ML18022A112

From kanterella
Jump to navigation Jump to search
NRR E-mail Capture - Current Version of the LAR Template for Jan 18, 2018, Public Meeting to Discuss Licensee Methods of Accounting for Seismic Risk in 10 CFR 50.69 Applications Without Using a Seismic Probabilistic Risk Assessment
ML18022A112
Person / Time
Issue date: 01/22/2018
From: Ed Miller
Special Projects and Process Branch
To: Ed Miller
Special Projects and Process Branch
References
Download: ML18022A112 (62)


Text

NRR-DMPSPEm Resource From: Miller, Ed Sent: Monday, January 22, 2018 10:11 AM To: Miller, Ed

Subject:

Slides for Jan 18, 2018, Public Meeting Attachments: 50.69 License Amendment Request Template R4.pdf Attached is the current version of the template LAR provided for the January 28, 2018, public meeting to discuss 10 CFR 50.69 LARs.

1

Hearing Identifier: NRR_DMPS Email Number: 111 Mail Envelope Properties (BL0PR0901MB23865CAFF5E2F0ECDA7CDB4AE9EC0)

Subject:

Slides for Jan 18, 2018, Public Meeting Sent Date: 1/22/2018 10:11:18 AM Received Date: 1/22/2018 10:11:21 AM From: Miller, Ed Created By: Ed.Miller@nrc.gov Recipients:

"Miller, Ed" <Ed.Miller@nrc.gov>

Tracking Status: None Post Office: BL0PR0901MB2386.namprd09.prod.outlook.com Files Size Date & Time MESSAGE 140 1/22/2018 10:11:21 AM 50.69 License Amendment Request Template R4.pdf 544362 Options Priority: Standard Return Notification: No Reply Requested: No Sensitivity: Normal Expiration Date:

Recipients Received:



10 CFR 50.69 LICENSE AMENDMENT REQUEST TEMPLATE 7KHSXUSRVHRIWKLVGRFXPHQWLVWRSURYLGHDVWUHDPOLQHGWHPSODWHIRUOLFHQVHHVWRXWLOL]HZKHQ

SUHSDULQJD&)5DSSOLFDWLRQVXEPLWWDO,WLVLQWHQGHGWKDWDOLFHQVHDPHQGPHQWUHTXHVW

/$5 WKDWIROORZVWKLVWHPSODWHFRQIRUPVWRWKHUHTXLUHPHQWVRI&)5 E  DQG

&)5 E  VWDWHV

$OLFHQVHHYROXQWDULO\FKRRVLQJWRLPSOHPHQWWKLVVHFWLRQVKDOOVXEPLWDQDSSOLFDWLRQIRU

OLFHQVHDPHQGPHQWXQGHUWKDWFRQWDLQVWKHIROORZLQJLQIRUPDWLRQ

L $GHVFULSWLRQRIWKHSURFHVVIRUFDWHJRUL]DWLRQRI5,6&+/-5,6&+/-5,6&+/-DQG5,6&+/-

66&V

LL $GHVFULSWLRQRIWKHPHDVXUHVWDNHQWRDVVXUHWKDWWKHTXDOLW\DQGOHYHORIGHWDLORIWKH

V\VWHPDWLFSURFHVVHVWKDWHYDOXDWHWKHSODQWIRULQWHUQDODQGH[WHUQDOHYHQWVGXULQJQRUPDO

RSHUDWLRQORZSRZHUDQGVKXWGRZQ LQFOXGLQJWKHSODQWVSHFLILFSUREDELOLVWLFULVN

DVVHVVPHQW 35$ PDUJLQVW\SHDSSURDFKHVRURWKHUV\VWHPDWLFHYDOXDWLRQWHFKQLTXHV

XVHGWRHYDOXDWHVHYHUHDFFLGHQWYXOQHUDELOLWLHV DUHDGHTXDWHIRUWKHFDWHJRUL]DWLRQRI

66&V

LLL 5HVXOWVRIWKH35$UHYLHZSURFHVVFRQGXFWHGWRPHHW F  L 

LY $GHVFULSWLRQRIDQGEDVLVIRUDFFHSWDELOLW\RIWKHHYDOXDWLRQVWREHFRQGXFWHGWR

VDWLVI\ F  LY 7KHHYDOXDWLRQVPXVWLQFOXGHWKHHIIHFWVRIFRPPRQFDXVH

LQWHUDFWLRQVXVFHSWLELOLW\DQGWKHSRWHQWLDOLPSDFWVIURPNQRZQGHJUDGDWLRQPHFKDQLVPV

IRUERWKDFWLYHDQGSDVVLYHIXQFWLRQVDQGDGGUHVVLQWHUQDOO\DQGH[WHUQDOO\LQLWLDWHGHYHQWV

DQGSODQWRSHUDWLQJPRGHV HJIXOOSRZHUDQGVKXWGRZQFRQGLWLRQV 

7KHDERYHUHTXLUHPHQWVDUHGHWDLOHGDQGDGGUHVVHGLQWKHWHFKQLFDOHYDOXDWLRQVHFWLRQRIWKLV

WHPSODWH7KHLQWHQWRIWKLVWHPSODWHLVWREHFRQFLVHEXWFRPSUHKHQVLYHDVZHOODVIOH[LEOH%HORZ

LVDQH[SODQDWLRQRIWKHGLIIHUHQWOHYHOVRIJXLGDQFHSURYLGHGE\WKLVWHPSODWHWKHLULQWHQWDQGKRZ

WKH\DUHIRUPDWWHGWKURXJKRXWWKHGRFXPHQW

  • HQHULFDOO\$SSOLFDEOH7H[W7KLVWH[WLVLQWHQGHGWREHXVHGLQDOOFDVHV

2SWLRQDO7H[W7KLVWH[WLQWHQGHGWREHXVHGRSWLRQDOO\GHSHQGLQJRQZKHWKHULWUHIOHFWVWKH

VLWXDWLRQRIWKHOLFHQVHH

>/LFHQVHH7R,QVHUW7H[W@7KLVWH[WLVLQWHQGHGWRLGHQWLI\ZKHUHWKHOLFHQVHHVKRXOGLQVHUWSODQW

VSHFLILFLQIRUPDWLRQ7KHVHSODFHKROGHUVVKRXOGEHGHOHWHGSULRUWRWKHFRPSOHWLRQRIWKH

VXEPLWWDO

([DPSOH7H[W7KLVWH[WLVLQWHQGHGWRRQO\SURYLGHJXLGDQFHRQWKHOHYHORIGHWDLOH[SHFWHGLQWKH

SODQWVSHFLILFLQIRUPDWLRQ7KLVWH[WVKRXOGEHGHOHWHGSULRUWRWKHFRPSOHWLRQRIWKHVXEPLWWDO



Preparer Notes7KLVWH[WLVLQWHQGHGWRSURYLGHDGGLWLRQDOJXLGDQFHWRWKHSUHSDUHURIWKHOLFHQVH

DPHQGPHQWUHTXHVW7KLVWH[WVKRXOGEHGHOHWHGSULRUWRWKHFRPSOHWLRQRIWKHVXEPLWWDO



>'$7(@ &)5

 &)5



$771'RFXPHQW&RQWURO'HVN

861XFOHDU5HJXODWRU\&RPPLVVLRQ

DVKLQJWRQ'&

>3/$171$0(@>81,7126@

>'RFNHW1R V >>(([@>(([@@





68%-(&7 $SSOLFDWLRQWR$GRSW&)55LVNLQIRUPHGFDWHJRUL]DWLRQDQG

WUHDWPHQWRIVWUXFWXUHVV\VWHPVDQGFRPSRQHQWVIRUQXFOHDUSRZHU

UHDFWRUV'



,QDFFRUGDQFHZLWKWKHSURYLVLRQVRI&)5DQG&)5>/,&(16((@LV

UHTXHVWLQJDQDPHQGPHQWWRWKHOLFHQVHRI>3/$171$0(81,7126@



7KHSURSRVHGDPHQGPHQWZRXOGPRGLI\WKH>3/$171$0(@OLFHQVLQJEDVLVE\WKH

DGGLWLRQRID/LFHQVH&RQGLWLRQWRDOORZIRUWKHLPSOHPHQWDWLRQRIWKHSURYLVLRQVRI

7LWOHRIWKH&RGHRI)HGHUDO5HJXODWLRQV &)5 3DUW³5LVN,QIRUPHG

&DWHJRUL]DWLRQDQG7UHDWPHQWRI6WUXFWXUHV6\VWHPVDQG&RPSRQHQWVIRU1XFOHDU

3RZHU5HDFWRUV'7KHSURYLVLRQVRI&)5DOORZDGMXVWPHQWRIWKHVFRSHRI

HTXLSPHQWVXEMHFWWRVSHFLDOWUHDWPHQWFRQWUROV HJTXDOLW\DVVXUDQFHWHVWLQJ

LQVSHFWLRQFRQGLWLRQPRQLWRULQJDVVHVVPHQWDQGHYDOXDWLRQ )RUHTXLSPHQW

GHWHUPLQHGWREHRIORZVDIHW\VLJQLILFDQFHDOWHUQDWLYHWUHDWPHQWUHTXLUHPHQWVFDQEH

LPSOHPHQWHGLQDFFRUGDQFHZLWKWKLVUHJXODWLRQ)RUHTXLSPHQWGHWHUPLQHGWREHRI

KLJKVDIHW\VLJQLILFDQFHUHTXLUHPHQWVZLOOQRWEHFKDQJHGRUZLOOEHHQKDQFHG7KLV

DOORZVLPSURYHGIRFXVRQHTXLSPHQWWKDWKDVVDIHW\VLJQLILFDQFHUHVXOWLQJLQLPSURYHG

SODQWVDIHW\



7KHHQFORVXUHWRWKLVOHWWHUSURYLGHVWKHEDVLVIRUWKHSURSRVHGFKDQJHWRWKH>3/$17

1$0(81,7126@2SHUDWLQJ/LFHQVHV7KHFDWHJRUL]DWLRQSURFHVVEHLQJLPSOHPHQWHG

WKURXJKWKLVFKDQJHLVFRQVLVWHQWZLWK1(,³&)566&&DWHJRUL]DWLRQ

  • XLGHOLQH5HYLVLRQGDWHG-XO\ZKLFKZDVHQGRUVHGE\WKH15&LQ5HJXODWRU\
  • XLGH*XLGHOLQHVIRU&DWHJRUL]LQJ6WUXFWXUHV6\VWHPVDQG&RPSRQHQWVLQ

1XFOHDU3RZHU3ODQWV$FFRUGLQJWRWKHLU6DIHW\6LJQLILFDQFH5HYLVLRQGDWHG0D\

$WWDFKPHQWRIWKHHQFORVXUHSURYLGHVDOLVWRIFDWHJRUL]DWLRQSUHUHTXLVLWHV8VH

RIWKHFDWHJRUL]DWLRQSURFHVVRQDSODQWV\VWHPZLOORQO\RFFXUDIWHUWKHVHSUHUHTXLVLWHV

DUHPHW



>35(3$5(5 6127(,IDSSOLFDEOHRQHRIWKHWKUHHIROORZLQJSDUDJUDSKVLV

UHFRPPHQGHGLQRUGHUWRSURYLGHDVVXUDQFHWRWKH15&WKDWWKHVXEPLWWDORI&)5

LV127³OLQNHG'WRRWKHUVXEPLWWDOV$OVRWKLVFDQDOVRVHUYHDVDVXJJHVWLRQWR

WKH15&WKDWLWLVSRVVLEOHWRVWUHDPOLQHWKHUHYLHZRIWKH35$PRGHOLQWKLVDSSOLFDWLRQ





XVLQJWKHDSSURYDOIURPDSUHYLRXVULVNLQIRUPHGDSSOLFDWLRQVXFKDV767)RU767)

RUVWUHDPOLQHWKHUHYLHZRIWKH35$PRGHOIRUDIXWXUHVXEPLWWDOWKDWZLOOEH

XWLOL]LQJWKHVDPHPRGHOV7KLVGLVFXVVLRQLVDOVRLQFOXGHGLQ6HFWLRQRIWKH

(QFORVXUH@



7KRXJKURXWLQHPDLQWHQDQFHXSGDWHVKDYHEHHQDSSOLHGWKH15&KDVSUHYLRXVO\

UHYLHZHGWKHWHFKQLFDODGHTXDF\RIWKH>3/$171$0(@3UREDELOLVWLF5LVN$VVHVVPHQW

35$ PRGHOLGHQWLILHGLQWKLVDSSOLFDWLRQIRU

x >SXUSRVH@LQ>LGHQWLI\SUHYLRXVDSSOLFDWLRQZKHUHWKH35$PRGHOWHFKQLFDO

DGHTXDF\ZDVUHYLHZHGE\WKH15&LQFOXGLQJGDWHDQG$'$06$FFHVVLRQ

1XPEHU@

x >/LVWDQ\DGGLWLRQDODSSOLFDWLRQVXVLQJWKHVHPRGHOV@



>/,&(16((@UHTXHVWVWKDWWKH15&XWLOL]HWKHUHYLHZRIWKH35$WHFKQLFDODGHTXDF\IRU

WKDWDSSOLFDWLRQZKHQSHUIRUPLQJWKHUHYLHZIRUWKLVDSSOLFDWLRQ



2U



>/,&(16((@LQWHQGVWRVXEPLWDVHSDUDWHOLFHQVHDPHQGPHQWUHTXHVWIRU>LGHQWLI\

DSSOLFDWLRQ@ZLWKLQWKHQH[W>;PRQWKV@XVLQJWKHVDPH35$PRGHO>V@GHVFULEHGLQWKLV

(QFORVXUH>/,&(16((@UHTXHVWVWKDWWKH15&FRRUGLQDWHWKHLUUHYLHZRIWKH35$

WHFKQLFDODGHTXDF\GHVFULSWLRQLQ6HFWLRQDQGRIWKLVHQFORVXUHIRUERWK

DSSOLFDWLRQV7KLVZRXOGUHGXFHWKHQXPEHURI>/,&(16((@DQG15&UHVRXUFHVQHFHVVDU\

WRFRPSOHWHWKHUHYLHZRIWKHDSSOLFDWLRQV7KLVUHTXHVWVKRXOGQRWEHFRQVLGHUHGD

OLQNHGUHTXHVWHGOLFHQVLQJDFWLRQ 5/$ DVWKHGHWDLOVRIWKH35$PRGHOVLQHDFK/$5DUH

FRPSOHWHZKLFKZLOODOORZWKH15&VWDIIWRLQGHSHQGHQWO\UHYLHZDQGDSSURYHHDFK/$5

RQWKHLURZQPHULWVZLWKRXWUHJDUGWRWKHUHVXOWVIURPWKHUHYLHZRIWKHRWKHU

2U

7KH35$PRGHO>V@GHVFULEHGZLWKLQWKLV/$5DUHWKHVDPHDVWKRVHGHVFULEHGZLWKLQWKH

>/,&(16((@VXEPLWWDORIWKH/$5GDWHG>'$7(@IRU>LGHQWLI\DSSOLFDWLRQ@ $'$06

$FFHVVLRQ1XPEHU>0/180%(5@ ZLWKURXWLQHPDLQWHQDQFHXSGDWHVDSSOLHG

>/,&(16((@UHTXHVWVWKDWWKH15&FRQGXFWWKHLUUHYLHZRIWKH35$WHFKQLFDODGHTXDF\

GHWDLOVIRUWKLVDSSOLFDWLRQLQFRRUGLQDWLRQZLWKWKHUHYLHZRIWKHDSSOLFDWLRQFXUUHQWO\LQ

SURFHVV7KLVZRXOGUHGXFHWKHQXPEHURI>/,&(16((@DQG15&UHVRXUFHVQHFHVVDU\WR

FRPSOHWHWKHUHYLHZRIWKHDSSOLFDWLRQV7KLVUHTXHVWVKRXOGQRWEHFRQVLGHUHGDOLQNHG

UHTXHVWHGOLFHQVLQJDFWLRQ 5/$ DVWKHGHWDLOVRIWKH35$PRGHOVLQHDFK/$5DUH

FRPSOHWHZKLFKZLOODOORZWKH15&VWDIIWRLQGHSHQGHQWO\UHYLHZDQGDSSURYHHDFK/$5

RQWKHLURZQPHULWVZLWKRXWUHJDUGWRWKHUHVXOWVIURPWKHUHYLHZRIWKHRWKHU







>/,&(16((@UHTXHVWVDSSURYDORIWKHSURSRVHGOLFHQVHDPHQGPHQWE\>'$7(@ZLWKWKH

DPHQGPHQWEHLQJLPSOHPHQWHG>%<'$7(25:,7+,1;'$<6@

,QDFFRUGDQFHZLWK&)5DFRS\RIWKLVDSSOLFDWLRQZLWKDWWDFKPHQWVLVEHLQJ

SURYLGHGWRWKH>GHVLJQDWHG67$7(2IILFLDO@



,QDFFRUGDQFHZLWK&)5 E DOLFHQVHDPHQGPHQWUHTXHVWPXVWEHH[HFXWHGLQ

DVLJQHGRULJLQDOXQGHURDWKRUDIILUPDWLRQ7KLVFDQEHDFFRPSOLVKHGE\DWWDFKLQJD

QRWDUL]HGDIILGDYLWFRQILUPLQJWKHVLJQDWXUHDXWKRULW\RIWKHVLJQDWRU\RUE\LQFOXGLQJ

WKHIROORZLQJVWDWHPHQWLQWKHFRYHUOHWWHU7KHDOWHUQDWLYHVWDWHPHQWLVSXUVXDQWWR

86&,WGRHVQRWUHTXLUHQRWDUL]DWLRQ



7KLVOHWWHUFRQWDLQVQRUHJXODWRU\FRPPLWPHQWV25D/LFHQVH&RQGLWLRQDQGRUUHJXODWRU\

FRPPLWPHQWVGHVFULEHGLQ$WWDFKPHQWWRWKH(QFORVXUH'

,I \RX VKRXOG KDYH DQ\ TXHVWLRQV UHJDUGLQJ WKLV VXEPLWWDO SOHDVH FRQWDFW >1$0(

7(/(3+21(180%(5@



,GHFODUHXQGHUSHQDOW\RISHUMXU\WKDWWKHIRUHJRLQJLVWUXHDQGFRUUHFW([HFXWHGRQ

>'$7(@









6LQFHUHO\







6LJQDWXUH





(QFORVXUH 

 (YDOXDWLRQRIWKH3URSRVHG&KDQJH



FF >15&3URMHFW0DQDJHU

 15&5HJLRQDO2IILFH

 15&5HVLGHQW,QVSHFWRU

 6WDWH&RQWDFW@



(QFORVXUH

>/HWWHU5HIHUHQFH1XPEHU@

Ž

ŽŽWŽŽ

7$%/(2)&217(176



 6800$5<'(6&5,37,21

 '(7$,/(''(6&5,37,21

 &855(175(*8/$725<5(48,5(0(176

 5($621)25352326('&+$1*(

 '(6&5,37,212)7+(352326('&+$1*(

 7(&+1,&$/(9$/8$7,21

 &$7(*25,=$7,21352&(66'(6&5,37,21 &)5 E  L 

 2YHUDOO&DWHJRUL]DWLRQ3URFHVV

 3DVVLYH&DWHJRUL]DWLRQ3URFHVV 'HOHWHG

'HOHWHG

 7(&+1,&$/$'(48$&<(9$/8$7,21 &)5 E  LL 

 ,QWHUQDO(YHQWVDQG,QWHUQDO)ORRGLQJ 'HOHWHG

 )LUH+D]DUGV

 6HLVPLF+D]DUGV

 2WKHU([WHUQDO+D]DUGV

 /RZ3RZHU 6KXWGRZQ 'HOHWHG

 35$0DLQWHQDQFHDQG8SGDWHV 'HOHWHG

 35$8QFHUWDLQW\(YDOXDWLRQV

 35$5(9,(:352&(665(68/76 &)5  E  LLL 

 5,6.(9$/8$7,216 &)5  E  LY 

 5(*8/$725<(9$/8$7,21

 $33/,&$%/(5(*8/$725<5(48,5(0(176&5,7(5,$

 126,*1,),&$17+$=$5'6&216,'(5$7,21$1$/<6,6

 &21&/86,216

 (19,5210(17$/&216,'(5$7,21

 5()(5(1&(6



 

L

(QFORVXUH

>/HWWHU5HIHUHQFH1XPEHU@

/,672)$77$&+0(176



$WWDFKPHQW/LVWRI&DWHJRUL]DWLRQ3UHUHTXLVLWHV 'HOHWHG

$WWDFKPHQW'HVFULSWLRQRI35$0RGHOV8VHGLQ&DWHJRUL]DWLRQ 'HOHWHG

$WWDFKPHQW'LVSRVLWLRQDQG5HVROXWLRQRI2SHQ3HHU5HYLHZ)LQGLQJVDQG6HOI

$VVHVVPHQW2SHQ,WHPV 'HOHWHG

$WWDFKPHQW([WHUQDO+D]DUGV6FUHHQLQJ 'HOHWHG

$WWDFKPHQW3URJUHVVLYH6FUHHQLQJ$SSURDFKIRU$GGUHVVLQJ([WHUQDO+D]DUGV 'HOHWHG

$WWDFKPHQW'LVSRVLWLRQRI.H\$VVXPSWLRQV6RXUFHVRI8QFHUWDLQW\ 'HOHWHG

$WWDFKPHQW&RPSDULVRQRI5*5HYLVLRQDQG5HYLVLRQ65V

$SSOLFDEOHWR&&,,,&&,,,,,DQG&&,,,,,, 'HOHWHG



LL

(QFORVXUH

>/HWWHU5HIHUHQFH1XPEHU@

 6800$5<'(6&5,37,21

7KHSURSRVHGDPHQGPHQWPRGLILHVWKHOLFHQVLQJEDVLVWRDOORZIRUWKH

LPSOHPHQWDWLRQRIWKHSURYLVLRQVRI7LWOHRIWKH&RGHRI)HGHUDO5HJXODWLRQV 

&)5 3DUW³5LVN,QIRUPHG&DWHJRUL]DWLRQDQG7UHDWPHQWRI6WUXFWXUHV

6\VWHPVDQG&RPSRQHQWVIRU1XFOHDU3RZHU5HDFWRUV'7KHSURYLVLRQVRI&)5

DOORZDGMXVWPHQWRIWKHVFRSHRIHTXLSPHQWVXEMHFWWRVSHFLDOWUHDWPHQW

FRQWUROV HJTXDOLW\DVVXUDQFHWHVWLQJLQVSHFWLRQFRQGLWLRQPRQLWRULQJ

DVVHVVPHQWDQGHYDOXDWLRQ )RUHTXLSPHQWGHWHUPLQHGWREHRIORZVDIHW\

VLJQLILFDQFHDOWHUQDWLYHWUHDWPHQWUHTXLUHPHQWVFDQEHLPSOHPHQWHGLQDFFRUGDQFH

ZLWKWKLVUHJXODWLRQ)RUHTXLSPHQWGHWHUPLQHGWREHRIKLJKVDIHW\VLJQLILFDQFH

UHTXLUHPHQWVZLOOQRWEHFKDQJHGRUZLOOEHHQKDQFHG7KLVDOORZVLPSURYHGIRFXVRQ

HTXLSPHQWWKDWKDVVDIHW\VLJQLILFDQFHUHVXOWLQJLQLPSURYHGSODQWVDIHW\

 '(7$,/(''(6&5,37,21

 &855(175(*8/$725<5(48,5(0(176

7KH1XFOHDU5HJXODWRU\&RPPLVVLRQ 15& KDVHVWDEOLVKHGDVHWRIUHJXODWRU\

UHTXLUHPHQWVIRUFRPPHUFLDOQXFOHDUUHDFWRUVWRHQVXUHWKDWDUHDFWRUIDFLOLW\GRHVQRW

LPSRVHDQXQGXHULVNWRWKHKHDOWKDQGVDIHW\RIWKHSXEOLFWKHUHE\SURYLGLQJ

UHDVRQDEOHDVVXUDQFHRIDGHTXDWHSURWHFWLRQWRSXEOLFKHDOWKDQGVDIHW\7KHFXUUHQW

ERG\RI15&UHJXODWLRQVDQGWKHLULPSOHPHQWDWLRQDUHODUJHO\EDVHGRQD

GHWHUPLQLVWLFDSSURDFK

7KLVGHWHUPLQLVWLFDSSURDFKHVWDEOLVKHVUHTXLUHPHQWVIRUHQJLQHHULQJPDUJLQDQG

TXDOLW\DVVXUDQFHLQGHVLJQPDQXIDFWXUHDQGFRQVWUXFWLRQ,QDGGLWLRQLWDVVXPHV

WKDWDGYHUVHFRQGLWLRQVFDQH[LVW HJHTXLSPHQWIDLOXUHVDQGKXPDQHUURUV DQG

HVWDEOLVKHVDVSHFLILFVHWRIGHVLJQEDVLVHYHQWV '%(V 7KHGHWHUPLQLVWLFDSSURDFK

WKHQUHTXLUHVWKDWWKHIDFLOLW\LQFOXGHVDIHW\V\VWHPVFDSDEOHRISUHYHQWLQJRU

PLWLJDWLQJWKHFRQVHTXHQFHVRIWKRVH'%(VWRSURWHFWSXEOLFKHDOWKDQGVDIHW\7KH

6WUXFWXUHV6\VWHPVDQG&RPSRQHQWV 66&V QHFHVVDU\WRGHIHQGDJDLQVWWKH'%(VDUH

GHILQHGDVVDIHW\UHODWHGDQGWKHVH66&VDUHWKHVXEMHFWRIPDQ\UHJXODWRU\

UHTXLUHPHQWVKHUHLQUHIHUUHGWRDV³VSHFLDOWUHDWPHQWV'GHVLJQHGWRHQVXUHWKDWWKH\

DUHRIKLJKTXDOLW\DQGKLJKUHOLDELOLW\DQGKDYHWKHFDSDELOLW\WRSHUIRUPGXULQJ

SRVWXODWHGGHVLJQEDVLVFRQGLWLRQV7UHDWPHQWLQFOXGHVEXWLVQRWOLPLWHGWRTXDOLW\

DVVXUDQFHWHVWLQJLQVSHFWLRQFRQGLWLRQPRQLWRULQJDVVHVVPHQWHYDOXDWLRQDQG

UHVROXWLRQRIGHYLDWLRQV7KHGLVWLQFWLRQEHWZHHQWUHDWPHQWDQGVSHFLDOWUHDWPHQWLV

WKHGHJUHHRI15&VSHFLILFDWLRQDVWRZKDWPXVWEHLPSOHPHQWHGIRUSDUWLFXODU66&VRU

IRUSDUWLFXODUFRQGLWLRQV7\SLFDOO\WKHUHJXODWLRQVHVWDEOLVKWKHVFRSHRI66&VWKDW

UHFHLYHVSHFLDOWUHDWPHQWXVLQJRQHRIWKUHHGLIIHUHQWWHUPVVDIHW\UHODWHG

LPSRUWDQWWRVDIHW\RUEDVLFFRPSRQHQW7KHWHUPVVDIHW\UHODWHGDQGEDVLF

FRPSRQHQWDUHGHILQHGLQWKHUHJXODWLRQVZKLOHLPSRUWDQWWRVDIHW\XVHGSULQFLSDOO\



(QFORVXUH

>/HWWHU5HIHUHQFH1XPEHU@

LQWKHJHQHUDOGHVLJQFULWHULD *'& RI$SSHQGL[$WR&)53DUWLVQRWH[SOLFLWO\

GHILQHG

 5($621)25352326('&+$1*(

$SUREDELOLVWLFDSSURDFKWRUHJXODWLRQHQKDQFHVDQGH[WHQGVWKHWUDGLWLRQDO

GHWHUPLQLVWLFDSSURDFKE\DOORZLQJFRQVLGHUDWLRQRIDEURDGHUVHWRISRWHQWLDO

FKDOOHQJHVWRVDIHW\SURYLGLQJDORJLFDOPHDQVIRUSULRULWL]LQJWKHVHFKDOOHQJHVEDVHG

RQVDIHW\VLJQLILFDQFHDQGDOORZLQJFRQVLGHUDWLRQRIDEURDGHUVHWRIUHVRXUFHVWR

GHIHQGDJDLQVWWKHVHFKDOOHQJHV,QFRQWUDVWWRWKHGHWHUPLQLVWLFDSSURDFK

3UREDELOLVWLF5LVN$VVHVVPHQWV 35$V DGGUHVVFUHGLEOHLQLWLDWLQJHYHQWVE\DVVHVVLQJ

WKHHYHQWIUHTXHQF\0LWLJDWLQJV\VWHPUHOLDELOLW\LVWKHQDVVHVVHGLQFOXGLQJWKH

SRWHQWLDOIRUFRPPRQFDXVHIDLOXUHV7KHSUREDELOLVWLFDSSURDFKWRUHJXODWLRQLVDQ

H[WHQVLRQDQGHQKDQFHPHQWRIWUDGLWLRQDOUHJXODWLRQE\FRQVLGHULQJULVNLQD

FRPSUHKHQVLYHPDQQHU

7RWDNHDGYDQWDJHRIWKHVDIHW\HQKDQFHPHQWVDYDLODEOHWKURXJKWKHXVHRI35$LQ

WKH15&SXEOLVKHGDQHZUHJXODWLRQ&)57KHSURYLVLRQVRI&)5

DOORZDGMXVWPHQWRIWKHVFRSHRIHTXLSPHQWVXEMHFWWRVSHFLDOWUHDWPHQWFRQWUROV

HJTXDOLW\DVVXUDQFHWHVWLQJLQVSHFWLRQFRQGLWLRQPRQLWRULQJDVVHVVPHQWDQG

HYDOXDWLRQ )RUHTXLSPHQWGHWHUPLQHGWREHRIORZVDIHW\VLJQLILFDQFHDOWHUQDWLYH

WUHDWPHQWUHTXLUHPHQWVFDQEHLPSOHPHQWHGLQDFFRUGDQFHZLWKWKHUHJXODWLRQ)RU

HTXLSPHQWGHWHUPLQHGWREHRIKLJKVDIHW\VLJQLILFDQFHUHTXLUHPHQWVZLOOQRWEH

FKDQJHGRUZLOOEHHQKDQFHG7KLVDOORZVLPSURYHGIRFXVRQHTXLSPHQWWKDWKDVVDIHW\

VLJQLILFDQFHUHVXOWLQJLQLPSURYHGSODQWVDIHW\

7KHUXOHFRQWDLQVUHTXLUHPHQWVRQKRZDOLFHQVHHFDWHJRUL]HV66&VXVLQJDULVN

LQIRUPHGSURFHVVDGMXVWVWUHDWPHQWUHTXLUHPHQWVFRQVLVWHQWZLWKWKHUHODWLYH

VLJQLILFDQFHRIWKH66&DQGPDQDJHVWKHSURFHVVRYHUWKHOLIHWLPHRIWKHSODQW$ULVN

LQIRUPHGFDWHJRUL]DWLRQSURFHVVLVHPSOR\HGWRGHWHUPLQHWKHVDIHW\VLJQLILFDQFHRI

66&VDQGSODFHWKH66&VLQWRRQHRIIRXUULVNLQIRUPHGVDIHW\FODVV 5,6& FDWHJRULHV

7KHGHWHUPLQDWLRQRIVDIHW\VLJQLILFDQFHLVSHUIRUPHGE\DQLQWHJUDWHGGHFLVLRQPDNLQJ

SURFHVVDVGHVFULEHGE\1(,³&)566&&DWHJRUL]DWLRQ*XLGHOLQH'

5HIHUHQFH ZKLFKXVHVERWKULVNLQVLJKWVDQGWUDGLWLRQDOHQJLQHHULQJLQVLJKWV7KH

VDIHW\IXQFWLRQVLQFOXGHWKHGHVLJQEDVLVIXQFWLRQVDVZHOODVIXQFWLRQVFUHGLWHGIRU

VHYHUHDFFLGHQWV LQFOXGLQJH[WHUQDOHYHQWV 6SHFLDORUDOWHUQDWLYHWUHDWPHQWIRUWKH

66&VLVDSSOLHGDVQHFHVVDU\WRPDLQWDLQIXQFWLRQDOLW\DQGUHOLDELOLW\DQGLVDIXQFWLRQ

RIWKH66&FDWHJRUL]DWLRQUHVXOWVDQGDVVRFLDWHGEDVHV)LQDOO\SHULRGLFDVVHVVPHQW

DFWLYLWLHVDUHFRQGXFWHGWRPDNHDGMXVWPHQWVWRWKHFDWHJRUL]DWLRQDQGRUWUHDWPHQW

SURFHVVHVDVQHHGHGVRWKDW66&VFRQWLQXHWRPHHWDOODSSOLFDEOHUHTXLUHPHQWV

7KHUXOHGRHVQRWDOORZIRUWKHHOLPLQDWLRQRI66&IXQFWLRQDOUHTXLUHPHQWVRUDOORZ

HTXLSPHQWWKDWLVUHTXLUHGE\WKHGHWHUPLQLVWLFGHVLJQEDVLVWREHUHPRYHGIURPWKH

IDFLOLW\,QVWHDGWKHUXOHHQDEOHVOLFHQVHHVWRIRFXVWKHLUUHVRXUFHVRQ66&VWKDWPDNH

DVLJQLILFDQWFRQWULEXWLRQWRSODQWVDIHW\)RU66&VWKDWDUHFDWHJRUL]HGDVKLJKVDIHW\



(QFORVXUH

>/HWWHU5HIHUHQFH1XPEHU@

VLJQLILFDQWH[LVWLQJWUHDWPHQWUHTXLUHPHQWVDUHPDLQWDLQHGRUHQKDQFHG&RQYHUVHO\

IRU66&VWKDWGRQRWVLJQLILFDQWO\FRQWULEXWHWRSODQWVDIHW\RQDQLQGLYLGXDOEDVLVWKH

UXOHDOORZVDQDOWHUQDWLYHULVNLQIRUPHGDSSURDFKWRWUHDWPHQWWKDWSURYLGHV

UHDVRQDEOHWKRXJKUHGXFHGOHYHORIFRQILGHQFHWKDWWKHVH66&VZLOOVDWLVI\IXQFWLRQDO

UHTXLUHPHQWV

,PSOHPHQWDWLRQRI&)5ZLOODOORZ>/,&(16((@WRLPSURYHIRFXVRQHTXLSPHQW

WKDWKDVVDIHW\VLJQLILFDQFHUHVXOWLQJLQLPSURYHGSODQWVDIHW\

 '(6&5,37,212)7+(352326('&+$1*(

>/,&(16((@SURSRVHVWKHDGGLWLRQRIWKHIROORZLQJFRQGLWLRQWRWKHUHQHZHGRSHUDWLQJ

OLFHQVH>V@RI>3/$1781,7@WRGRFXPHQWWKH15& VDSSURYDORIWKHXVH&)5

>/,&(16((@LVDSSURYHGWRLPSOHPHQW&)5XVLQJWKHSURFHVVHVIRU

FDWHJRUL]DWLRQRI5LVN,QIRUPHG6DIHW\&ODVV 5,6& 5,6&5,6&DQG

5,6&VWUXFWXUHVV\VWHPVDQGFRPSRQHQWV 66&V VSHFLILHGLQWKHOLFHQVH

DPHQGPHQWGDWHG>'$7(@

3ULRU15&DSSURYDOXQGHU&)5LVUHTXLUHGIRUDFKDQJHWRWKH

FDWHJRUL]DWLRQSURFHVVVSHFLILHGDERYH HJFKDQJHIURPDVHLVPLFPDUJLQV

DSSURDFKWRDVHLVPLFSUREDELOLVWLFULVNDVVHVVPHQWDSSURDFK 

If any items from Attachment 1 should apply as license conditions

>/,&(16((@VKDOOFRPSOHWHWKHQXPEHUHGLWHPV>,GHQWLI\,WHPV@OLVWHGLQ

$WWDFKPHQW/LVWRI&DWHJRUL]DWLRQ3UHUHTXLVLWHVRI>/,&(16((@OHWWHU>0/

1XPEHU@GDWHG>'$7(@SULRUWRLPSOHPHQWDWLRQ



 



(QFORVXUH

>/HWWHU5HIHUHQFH1XPEHU@

 7(&+1,&$/(9$/8$7,21

&)5VSHFLILHVWKHLQIRUPDWLRQWREHSURYLGHGE\DOLFHQVHHUHTXHVWLQJDGRSWLRQ

RIWKHUHJXODWLRQ7KLVUHTXHVWFRQIRUPVWRWKHUHTXLUHPHQWVRI&)5 E  

ZKLFKVWDWHV

$OLFHQVHHYROXQWDULO\FKRRVLQJWRLPSOHPHQWWKLVVHFWLRQVKDOOVXEPLWDQ

DSSOLFDWLRQIRUOLFHQVHDPHQGPHQWXQGHUWKDWFRQWDLQVWKHIROORZLQJ

LQIRUPDWLRQ

L $GHVFULSWLRQRIWKHSURFHVVIRUFDWHJRUL]DWLRQRI5,6&+/-5,6&+/-5,6&+/-

DQG5,6&+/-66&V

LL $GHVFULSWLRQRIWKHPHDVXUHVWDNHQWRDVVXUHWKDWWKHTXDOLW\DQGOHYHORI

GHWDLORIWKHV\VWHPDWLFSURFHVVHVWKDWHYDOXDWHWKHSODQWIRULQWHUQDODQG

H[WHUQDOHYHQWVGXULQJQRUPDORSHUDWLRQORZSRZHUDQGVKXWGRZQ LQFOXGLQJ

WKHSODQWVSHFLILFSUREDELOLVWLFULVNDVVHVVPHQW 35$ PDUJLQVW\SHDSSURDFKHV

RURWKHUV\VWHPDWLFHYDOXDWLRQWHFKQLTXHVXVHGWRHYDOXDWHVHYHUHDFFLGHQW

YXOQHUDELOLWLHV DUHDGHTXDWHIRUWKHFDWHJRUL]DWLRQRI66&V

LLL 5HVXOWVRIWKH35$UHYLHZSURFHVVFRQGXFWHGWRPHHW F  L 

LY $GHVFULSWLRQRIDQGEDVLVIRUDFFHSWDELOLW\RIWKHHYDOXDWLRQVWREH

FRQGXFWHGWRVDWLVI\ F  LY 7KHHYDOXDWLRQVPXVWLQFOXGHWKHHIIHFWV

RIFRPPRQFDXVHLQWHUDFWLRQVXVFHSWLELOLW\DQGWKHSRWHQWLDOLPSDFWVIURP

NQRZQGHJUDGDWLRQPHFKDQLVPVIRUERWKDFWLYHDQGSDVVLYHIXQFWLRQVDQG

DGGUHVVLQWHUQDOO\DQGH[WHUQDOO\LQLWLDWHGHYHQWVDQGSODQWRSHUDWLQJPRGHV

HJIXOOSRZHUDQGVKXWGRZQFRQGLWLRQV 

(DFKRIWKHVHVXEPLWWDOUHTXLUHPHQWVDUHDGGUHVVHGLQWKHIROORZLQJVHFWLRQV

[PREPARER'S NOTE: If applicable, one of the three following paragraphs is recommended in order to provide assurance to the NRC that the submittal of 10 CFR 50.69 is NOT linked to other submittals. Also, this can serve as a suggestion to the NRC that it is possible to streamline the review of the PRA model in this application using the approval from a previous risk-informed application such as TSTF-505 or TSTF 425 or streamline the review of the PRA model for a future submittal that will be utilizing the same models. This is a duplicate of the preparers note in the cover letter].



7KRXJKURXWLQHPDLQWHQDQFHXSGDWHVKDYHEHHQDSSOLHGWKH15&KDVSUHYLRXVO\

UHYLHZHGWKHWHFKQLFDODGHTXDF\RIWKH>3/$171$0(@35$PRGHOLGHQWLILHGLQWKLV

DSSOLFDWLRQIRU

x >SXUSRVH@LQ>LGHQWLI\SUHYLRXVDSSOLFDWLRQZKHUHWKH35$PRGHOWHFKQLFDO

DGHTXDF\ZDVUHYLHZHGE\WKH15&LQFOXGLQJGDWHDQG$'$06$FFHVVLRQ



(QFORVXUH

>/HWWHU5HIHUHQFH1XPEHU@

1XPEHU@>/,&(16((@UHTXHVWVWKDWWKH15&XWLOL]HWKHUHYLHZRIWKH35$

WHFKQLFDODGHTXDF\IRUWKDWDSSOLFDWLRQZKHQSHUIRUPLQJWKHUHYLHZIRUWKLV

DSSOLFDWLRQ

x >/LVWDQ\DGGLWLRQDODSSOLFDWLRQVXVLQJWKHVHPRGHOV@

2U

>/,&(16((@LQWHQGVWRVXEPLWDVHSDUDWHOLFHQVHDPHQGPHQWUHTXHVWIRU>LGHQWLI\

DSSOLFDWLRQ@ZLWKLQWKHQH[W>;PRQWKV@XVLQJWKHVDPH35$PRGHO>V@GHVFULEHGLQWKLV

(QFORVXUH>/,&(16((@UHTXHVWVWKDWWKH15&FRRUGLQDWHWKHLUUHYLHZRIWKH35$

WHFKQLFDODGHTXDF\GHVFULSWLRQLQ6HFWLRQDQGRIWKLVHQFORVXUHIRUERWK

DSSOLFDWLRQV7KLVZRXOGUHGXFHWKHQXPEHURI>/,&(16((@DQG15&UHVRXUFHV

QHFHVVDU\WRFRPSOHWHWKHUHYLHZRIWKHDSSOLFDWLRQV7KLVUHTXHVWVKRXOGQRWEH

FRQVLGHUHGDOLQNHGUHTXHVWHGOLFHQVLQJDFWLRQ 5/$ DVWKHGHWDLOVRIWKH35$PRGHOV

LQHDFK/$5DUHFRPSOHWHZKLFKZLOODOORZWKH15&VWDIIWRLQGHSHQGHQWO\UHYLHZDQG

DSSURYHHDFK/$5RQWKHLURZQPHULWVZLWKRXWUHJDUGWRWKHUHVXOWVIURPWKHUHYLHZRI

WKHRWKHU

2U

7KH35$PRGHO>V@GHVFULEHGZLWKLQWKLV/$5DUHWKHVDPHDVWKRVHGHVFULEHGZLWKLQWKH

>/,&(16((@VXEPLWWDORIWKH/$5GDWHG>'$7(@IRU>LGHQWLI\DSSOLFDWLRQ@ $'$06

$FFHVVLRQ1XPEHU>0/180%(5@ ZLWKWKHVDPHURXWLQHPDLQWHQDQFHXSGDWHV

DSSOLHG>/,&(16((@UHTXHVWVWKDWWKH15&FRQGXFWWKHLUUHYLHZRIWKH35$WHFKQLFDO

DGHTXDF\GHWDLOVIRUWKLVDSSOLFDWLRQLQFRRUGLQDWLRQZLWKWKHUHYLHZRIWKHDSSOLFDWLRQ

FXUUHQWO\LQSURFHVV7KLVZRXOGUHGXFHWKHQXPEHURI>/,&(16((@DQG15&UHVRXUFHV

QHFHVVDU\WRFRPSOHWHWKHUHYLHZRIWKHDSSOLFDWLRQV7KLVUHTXHVWVKRXOGQRWEH

FRQVLGHUHGDOLQNHGUHTXHVWHGOLFHQVLQJDFWLRQ 5/$ DVWKHGHWDLOVRIWKH35$PRGHOV

LQHDFK/$5DUHFRPSOHWHZKLFKZLOODOORZWKH15&VWDIIWRLQGHSHQGHQWO\UHYLHZDQG

DSSURYHHDFK/$5RQWKHLURZQPHULWVZLWKRXWUHJDUGWRWKHUHVXOWVIURPWKHUHYLHZRI

WKHRWKHU

 &$7(*25,=$7,21352&(66'(6&5,37,21 &)5 E  L 

 2YHUDOO&DWHJRUL]DWLRQ3URFHVV

>/,&(16((@ZLOOLPSOHPHQWWKHULVNFDWHJRUL]DWLRQSURFHVVLQDFFRUGDQFHZLWK1(,

5HYLVLRQDVHQGRUVHGE\5HJXODWRU\*XLGH 5* ³*XLGHOLQHVIRU

&DWHJRUL]LQJ6WUXFWXUHV6\VWHPVDQG&RPSRQHQWVLQ1XFOHDU3RZHU3ODQWV$FFRUGLQJ

WRWKHLU6DIHW\6LJQLILFDQFH' 5HIHUHQFH 1(,6HFWLRQVWDWHV³'XHWRWKH

YDU\LQJOHYHOVRIXQFHUWDLQW\DQGGHJUHHVRIFRQVHUYDWLVPLQWKHVSHFWUXPRIULVN

FRQWULEXWRUVWKHULVNVLJQLILFDQFHRI66&VLVDVVHVVHGVHSDUDWHO\IURPHDFKRIILYHULVN

SHUVSHFWLYHVDQGXVHGWRLGHQWLI\66&VWKDWDUHSRWHQWLDOO\VDIHW\VLJQLILFDQW'$

VHSDUDWHHYDOXDWLRQLVDSSURSULDWHWRDYRLGUHOLDQFHRQDFRPELQHGUHVXOWWKDWPD\

PDVNWKHUHVXOWVRILQGLYLGXDOULVNFRQWULEXWRUV



(QFORVXUH

>/HWWHU5HIHUHQFH1XPEHU@



7KHSURFHVVWRFDWHJRUL]HHDFKV\VWHPZLOOEHFRQVLVWHQWZLWKWKHJXLGDQFHLQ1(,

³&)566&&DWHJRUL]DWLRQ*XLGHOLQH'DVHQGRUVHGE\5*5*

VWDWHVWKDW³WKHLPSOHPHQWDWLRQRIDOOSURFHVVHVGHVFULEHGLQ1(, LH6HFWLRQV

WKURXJK LVLQWHJUDOWRSURYLGLQJUHDVRQDEOHFRQILGHQFH'DQGWKDW³DOODVSHFWVRI1(,

PXVWEHIROORZHGWRDFKLHYHUHDVRQDEOHFRQILGHQFHLQWKHHYDOXDWLRQVUHTXLUHG

E\ F  LY '+RZHYHUQHLWKHU5*QRU1(,SUHVFULEHDSDUWLFXODU

VHTXHQFHRURUGHUIRUHDFKRIWKHHOHPHQWVWREHFRPSOHWHG7KHUHIRUHWKHRUGHULQ

ZKLFKHDFKRIWKHHOHPHQWVRIWKHFDWHJRUL]DWLRQSURFHVV OLVWHGEHORZ LVFRPSOHWHGLV

IOH[LEOHDQGDVORQJDVWKH\DUHDOOFRPSOHWHGWKH\PD\HYHQEHSHUIRUPHGLQSDUDOOHO

1RWHWKDW1(,RQO\UHTXLUHV,WHPWREHFRPSOHWHGIRUFRPSRQHQWVIXQFWLRQV

FDWHJRUL]HGDV/66E\DOORWKHUHOHPHQWV6LPLODUO\1(,RQO\UHTXLUHV,WHPWR

EHFRPSOHWHGIRUVDIHW\UHODWHGDFWLYHFRPSRQHQWVIXQFWLRQVFDWHJRUL]HGDV/66E\DOO

RWKHUHOHPHQWV



 35$EDVHGHYDOXDWLRQV HJWKHLQWHUQDOHYHQWVLQWHUQDOIORRGLQJDQGILUH

35$V 

 QRQ35$DSSURDFKHV HJILUHVDIHVKXWGRZQHTXLSPHQWOLVW 66(/ VHLVPLF

VDIHVKXWGRZQHTXLSPHQWOLVW 66(/ RWKHUH[WHUQDOHYHQWVVFUHHQLQJDQG

VKXWGRZQDVVHVVPHQW 

 6HYHQTXDOLWDWLYHFULWHULDLQ6HFWLRQRI1(,

 WKHGHIHQVHLQGHSWKDVVHVVPHQW

 WKHSDVVLYHFDWHJRUL]DWLRQPHWKRGRORJ\



&DWHJRUL]DWLRQRI66&VZLOOEHFRPSOHWHGSHUWKH1(,SURFHVVDVHQGRUVHGE\

5*ZKLFKLQFOXGHVWKHGHWHUPLQDWLRQRIVDIHW\VLJQLILFDQFHWKURXJKWKHYDULRXV

HOHPHQWVLGHQWLILHGDERYH7KHUHVXOWVRIWKHVHHOHPHQWVDUHXVHGDVLQSXWVWRDUULYHDW

DSUHOLPLQDU\FRPSRQHQWFDWHJRUL]DWLRQ LH+LJK6DIHW\6LJQLILFDQW +66 RU/RZ

6DIHW\6LJQLILFDQW /66 WKDWLVSUHVHQWHGWRWKH,QWHJUDWHG'HFLVLRQ0DNLQJ3DQHO

,'3 1RWHWKHWHUP³SUHOLPLQDU\+66RU/66'LVV\QRQ\PRXVZLWKWKH1(,WHUP

³FDQGLGDWH+66RU/66'$FRPSRQHQWRUIXQFWLRQLVSUHOLPLQDULO\FDWHJRUL]HGDV+66LI

DQ\HOHPHQWRIWKHSURFHVVUHVXOWVLQDSUHOLPLQDU\+66GHWHUPLQDWLRQLQDFFRUGDQFH

ZLWK7DEOHEHORZ7KHVDIHW\VLJQLILFDQFHGHWHUPLQDWLRQRIHDFKHOHPHQWLGHQWLILHG

DERYHLVLQGHSHQGHQWRIHDFKRWKHUDQGWKHUHIRUHWKHVHTXHQFHRIWKHHOHPHQWVGRHV

QRWLPSDFWWKHUHVXOWLQJSUHOLPLQDU\FDWHJRUL]DWLRQRIHDFKFRPSRQHQWRUIXQFWLRQ

&RQVLVWHQWZLWK1(,WKHFDWHJRUL]DWLRQRIDFRPSRQHQWRUIXQFWLRQZLOORQO\EH

³SUHOLPLQDU\'XQWLOLWKDVEHHQFRQILUPHGE\WKH,'32QFHWKH,'3FRQILUPVWKDWWKH

FDWHJRUL]DWLRQSURFHVVZDVIROORZHGDSSURSULDWHO\WKHILQDO5LVN,QIRUPHG6DIHW\&ODVV

5,6& FDWHJRU\FDQEHDVVLJQHG



7KH,'3PD\GLUHFWDQGDSSURYHGHWDLOHGFDWHJRUL]DWLRQRIFRPSRQHQWVLQDFFRUGDQFH

ZLWK1(,6HFWLRQ7KH,'3PD\DOZD\VHOHFWWRFKDQJHDSUHOLPLQDU\/66

FRPSRQHQWRUIXQFWLRQWR+66KRZHYHUWKHDELOLW\WRFKDQJHFRPSRQHQW

FDWHJRUL]DWLRQIURPSUHOLPLQDU\+66WR/66LVOLPLWHG7KLVDELOLW\LVRQO\DYDLODEOHWR



(QFORVXUH

>/HWWHU5HIHUHQFH1XPEHU@

WKH,'3IRUVHOHFWSURFHVVVWHSVDVGHVFULEHGLQ1(,DQGHQGRUVHGE\5*

7DEOHVXPPDUL]HVWKHVH,'3OLPLWDWLRQVLQ1(,7KHVWHSVRIWKHSURFHVVDUH

SHUIRUPHGDWHLWKHUWKHIXQFWLRQOHYHOFRPSRQHQWOHYHORUERWK7KLVLVDOVR

VXPPDUL]HGLQWKH7DEOH$FRPSRQHQWLVDVVLJQHGLWVILQDO5,6&FDWHJRU\XSRQ

DSSURYDOE\WKH,'3





7DEOH,'3&KDQJHVIURP3UHOLPLQDU\+66WR/66

,'3 'ULYHV

&DWHJRUL]DWLRQ6WHS

(OHPHQW (YDOXDWLRQ/HYHO &KDQJH $VVRFLDWHG

1(,6HFWLRQ

+66WR/66 )XQFWLRQV

,QWHUQDO(YHQWV

1RW

%DVH&DVH+/- <HV

$OORZHG

6HFWLRQ

)LUH6HLVPLFDQG

2WKHU([WHUQDO $OORZDEOH 1R

5LVN 35$

(YHQWV%DVH&DVH &RPSRQHQW

0RGHOHG 

35$6HQVLWLYLW\

$OORZDEOH 1R

6WXGLHV

,QWHJUDO35$

1RW

$VVHVVPHQW+/- <HV

$OORZHG

6HFWLRQ

)LUH6HLVPLFDQG

1RW

2WKHU([WHUQDO &RPSRQHQW 1R

5LVN 1RQ $OORZHG

+D]DUGV+/-

PRGHOHG 

6KXWGRZQ+/- 1RW

)XQFWLRQ&RPSRQHQW 1R

6HFWLRQ $OORZHG

&RUH'DPDJH+/- 1RW

)XQFWLRQ&RPSRQHQW <HV

'HIHQVHLQ 6HFWLRQ $OORZHG

'HSWK &RQWDLQPHQW+/- 1RW

&RPSRQHQW <HV

6HFWLRQ $OORZHG

4XDOLWDWLYH &RQVLGHUDWLRQV+/-

)XQFWLRQ $OORZDEOH 1$

&ULWHULD 6HFWLRQ

1RW

3DVVLYH 3DVVLYH+/-6HFWLRQ 6HJPHQW&RPSRQHQW 1R

$OORZHG





7KHPDSSLQJRIFRPSRQHQWVWRV\VWHPIXQFWLRQVLVXVHGLQVRPHFDWHJRUL]DWLRQ

SURFHVVVWHSVWRIDFLOLWDWHSUHOLPLQDU\FDWHJRUL]DWLRQRIFRPSRQHQWV6SHFLILFDOO\

IXQFWLRQVZLWKPDSSHGFRPSRQHQWVWKDWDUHGHWHUPLQHGWREH+66E\WKH35$EDVHG

DVVHVVPHQW LH,QWHUQDOHYHQWV35$RU,QWHJUDO35$DVVHVVPHQW RUGHIHQVHLQGHSWK

HYDOXDWLRQZLOOEHLQLWLDOO\WUHDWHGDV+66+RZHYHU1(,6HFWLRQDOORZV

GHWDLOHGFDWHJRUL]DWLRQZKLFKFDQUHVXOWLQVRPHFRPSRQHQWVPDSSHGWR+66IXQFWLRQV

EHLQJWUHDWHGDV/66DQG6HFWLRQGLVFXVVHVDGGLWLRQDOIXQFWLRQVWKDWPD\EH



(QFORVXUH

>/HWWHU5HIHUHQFH1XPEHU@

LGHQWLILHG HJILOODQGGUDLQ WRJURXSDQGFRQVLGHUSRWHQWLDOO\/66FRPSRQHQWVWKDW

PD\KDYHEHHQLQLWLDOO\DVVRFLDWHGZLWKD+66IXQFWLRQEXWZKLFKGRQRWVXSSRUWWKH

FULWLFDODWWULEXWHVRIWKDW+66IXQFWLRQ1RWHWKDWFHUWDLQVWHSVRIWKHFDWHJRUL]DWLRQ

SURFHVVDUHSHUIRUPHGDWDFRPSRQHQWOHYHO HJ3DVVLYH1RQ35$PRGHOHGKD]DUGV

+/-VHH7DEOH 7KHVHFRPSRQHQWVIURPWKHFRPSRQHQWOHYHODVVHVVPHQWVZLOO

UHPDLQ+66 ,'3FDQQRWRYHUULGH UHJDUGOHVVRIWKHVLJQLILFDQFHRIWKHIXQFWLRQVWR

ZKLFKWKH\DUHPDSSHG7KHUHIRUHLID+66FRPSRQHQWLVPDSSHGWRD/66IXQFWLRQ

WKDWFRPSRQHQWZLOOUHPDLQ+66,IDQ/66FRPSRQHQWLVPDSSHGWRDQ+66IXQFWLRQ

WKDWFRPSRQHQWPD\EHGULYHQ+66EDVHGRQ7DEOHDERYHRUPD\UHPDLQ/66





7KHIROORZLQJDUHFODULILFDWLRQVWREHDSSOLHGWRWKH1(,FDWHJRUL]DWLRQSURFHVV



x 7KH,QWHJUDWHG'HFLVLRQ0DNLQJ3DQHO ,'3 ZLOOEHFRPSRVHGRIDJURXSRIDWOHDVW

ILYHH[SHUWVZKRFROOHFWLYHO\KDYHH[SHUWLVHLQSODQWRSHUDWLRQGHVLJQ PHFKDQLFDO

DQGHOHFWULFDO HQJLQHHULQJV\VWHPHQJLQHHULQJVDIHW\DQDO\VLVDQGSUREDELOLVWLF

ULVNDVVHVVPHQW$WOHDVWWKUHHPHPEHUVRIWKH,'3ZLOOKDYHDPLQLPXPRIILYH

\HDUVRIH[SHULHQFHDWWKHSODQWDQGWKHUHZLOOEHDWOHDVWRQHPHPEHURIWKH,'3

ZKRKDVDPLQLPXPRIWKUHH\HDUVRIH[SHULHQFHLQWKHPRGHOLQJDQGXSGDWLQJRI

WKHSODQWVSHFLILF35$

x 7KH,'3ZLOOEHWUDLQHGLQWKHVSHFLILFWHFKQLFDODVSHFWVDQGUHTXLUHPHQWVUHODWHGWR

WKHFDWHJRUL]DWLRQSURFHVV7UDLQLQJZLOODGGUHVVDWDPLQLPXPWKHSXUSRVHRIWKH

FDWHJRUL]DWLRQSUHVHQWWUHDWPHQWUHTXLUHPHQWVIRU66&VLQFOXGLQJUHTXLUHPHQWVIRU

GHVLJQEDVLVHYHQWV35$IXQGDPHQWDOVGHWDLOVRIWKHSODQWVSHFLILF35$LQFOXGLQJ

WKHPRGHOLQJVFRSHDQGDVVXPSWLRQVWKHLQWHUSUHWDWLRQRIULVNLPSRUWDQFH

PHDVXUHVDQGWKHUROHRIVHQVLWLYLW\VWXGLHVDQGWKHFKDQJHLQULVNHYDOXDWLRQV

DQGWKHGHIHQVHLQGHSWKSKLORVRSK\DQGUHTXLUHPHQWVWRPDLQWDLQWKLVSKLORVRSK\

x 7KHGHFLVLRQFULWHULDIRUWKH,'3IRUFDWHJRUL]LQJ66&VDVVDIHW\VLJQLILFDQWRUORZ

VDIHW\VLJQLILFDQWSXUVXDQWWR I  ZLOOEHGRFXPHQWHGLQ>/,&(16((@

SURFHGXUHV'HFLVLRQVRIWKH,'3ZLOOEHDUULYHGDWE\FRQVHQVXV'LIIHULQJRSLQLRQV

ZLOOEHGRFXPHQWHGDQGUHVROYHGLISRVVLEOH,IDUHVROXWLRQFDQQRWEHDFKLHYHG

FRQFHUQLQJWKHVDIHW\VLJQLILFDQFHRIDQ66&WKHQWKH66&ZLOOEHFODVVLILHGDV

VDIHW\VLJQLILFDQW

x 3DVVLYHFKDUDFWHUL]DWLRQZLOOEHSHUIRUPHGXVLQJWKHSURFHVVHVGHVFULEHGLQ6HFWLRQ

&RQVLVWHQWZLWK1(,DQ+66GHWHUPLQDWLRQE\WKHSDVVLYH

FDWHJRUL]DWLRQSURFHVVFDQQRWEHFKDQJHGE\WKH,'3

x $QXQUHOLDELOLW\IDFWRURIZLOOEHXVHGIRUWKHVHQVLWLYLW\VWXGLHVGHVFULEHGLQ

6HFWLRQRI1(,7KHIDFWRURIZDVFKRVHQDVLWLVUHSUHVHQWDWLYHRIWKH

W\SLFDOHUURUIDFWRURIEDVLFHYHQWVXVHGLQWKH35$PRGHO



(QFORVXUH

>/HWWHU5HIHUHQFH1XPEHU@

x 1(,6HFWLRQUHTXLUHVDVVLJQLQJWKHVDIHW\VLJQLILFDQFHRIIXQFWLRQVWREH

SUHOLPLQDU\+66LILWLVVXSSRUWHGE\DQ66&GHWHUPLQHGWREH+66IURPWKH35$

EDVHGDVVHVVPHQWLQ6HFWLRQEXWGRHVQRWUHTXLUHWKLVIRU66&VGHWHUPLQHGWREH

+66IURPQRQ35$EDVHGGHWHUPLQLVWLFDVVHVVPHQWVLQ6HFWLRQ7KLVUHTXLUHPHQW

LVIXUWKHUFODULILHGLQWKH9RJWOH6(5 5HIHUHQFH; ZKLFKVWDWHV³<<LIDQ\66&LV

LGHQWLILHGDV+66IURPHLWKHUWKHLQWHJUDWHG35$FRPSRQHQWVDIHW\VLJQLILFDQFH

DVVHVVPHQW 6HFWLRQRI1(, RUWKHGHIHQVHLQGHSWKDVVHVVPHQW 6HFWLRQ

 WKHDVVRFLDWHGV\VWHPIXQFWLRQ V ZRXOGEHLGHQWLILHGDV+66'

x 2QFHDV\VWHPIXQFWLRQLVLGHQWLILHGDV+66WKHQDOOWKHFRPSRQHQWVWKDWVXSSRUW 'HOHWHG!>/,&(16((@ZLOOUHTXLUHWKDWLI

DQ\66&LVLGHQWLILHGDVKLJKVDIHW\VLJQLILFDQW

WKDWIXQFWLRQDUHSUHOLPLQDU\+667KH,'3PXVWLQWHUYHQHWRDVVLJQDQ\RIWKHVH +66 IURPHLWKHUWKHLQWHJUD35$FRPSRQHQW

VDIHW\VLJQLILFDQFHDVVHVVPHQW 6HFWLRQRI

+66)XQFWLRQFRPSRQHQWVWR/RZ6DIHW\6LJQLILFDQW /66  1(, RUWKHGHIHQVHLQGHSWK

x :LWKUHJDUGWRWKHFULWHULDWKDWFRQVLGHUVZKHWKHUWKHDFWLYHIXQFWLRQLVFDOOHGRXW DVVHVVPHQW 6HFWLRQRI1(, WKH

DVVRFLDWHGV\VWHPIXQFWLRQ V ZRXOGEH

RUUHOLHGXSRQLQWKHSODQW(PHUJHQF\$EQRUPDO2SHUDWLQJ3URFHGXUHV>/,&(16((@ LGHQWLILHGDV+66

ZLOOQRWWDNHFUHGLWIRUDOWHUQDWHPHDQVXQOHVVWKHDOWHUQDWHPHDQVDUH

SURFHGXUDOL]HGDQGLQFOXGHGLQ/LFHQVHG2SHUDWRUWUDLQLQJ



7KHIROORZLQJDUHWKHH[FHSWLRQVWDNHQWRWKH1(,FDWHJRUL]DWLRQSURFHVV

x 1(,6HFWLRQVWDWHVWKDWWKHILUHVDIHW\VLJQLILFDQFHSURFHVVWDNHVRQH

RIWZRIRUPV(LWKHUWKHXVHRI)LUH,QGXFHG9XOQHUDELOLW\(YDOXDWLRQ ),9( RUD

)LUH35$+RZHYHU6HFWLRQRIWKLV/$5GHVFULEHVDQDOWHUQDWHDSSURDFK

ZKLFKLPSOHPHQWVWKH$SSHQGL[56DIHW\6KXWGRZQDQDO\VLVWKDWZLOOEHXVHGLQ

WKH>/,&(16((@FDWHJRUL]DWLRQSURFHVVWRHYDOXDWHVDIHW\VLJQLILFDQFHUHODWHGWR

WKHILUHKD]DUG

x >([DPSOH8VHRIDQRWKHURIULVNDSSURDFKQRWGHVFULEHGLQ1(,@



7KHULVNDQDO\VLVWREHLPSOHPHQWHGIRUHDFKKD]DUGLVGHVFULEHGEHORZ



x ,QWHUQDO(YHQW5LVNV,QWHUQDOHYHQWVLQFOXGLQJLQWHUQDOIORRGLQJ35$PRGHOYHUVLRQ

>XWLOLW\YHUVLRQDQGGDWH@>DFFHSWHGE\15&IRU767)RURWKHUDSSOLFDWLRQGDWH

0/ 5HIHUHQFH; @

x )LUH5LVNV)LUH6DIH6KXWGRZQ(TXLSPHQW/LVW 66(/ 25)LUH35$PRGHOYHUVLRQ

>XWLOLW\YHUVLRQDQGGDWH@>DFFHSWHGE\15&IRU1)3$RURWKHUDSSOLFDWLRQ

GDWHG((0/ 5HIHUHQFH; @

x 6HLVPLF5LVNV6XFFHVV3DWK&RPSRQHQW/LVW 63&/ IURPWKH,3(((VHLVPLFDQDO\VLV

>DFFHSWHGE\15&6(5GDWHG((0/ 5HIHUHQFH; @256HLVPLF35$PRGHO

YHUVLRQ>XWLOLW\YHUVLRQDQGGDWH@



(QFORVXUH

>/HWWHU5HIHUHQFH1XPEHU@

x 2WKHU([WHUQDO5LVNV HJWRUQDGRVH[WHUQDOIORRGV ([WHUQDO>KD]DUG@35$PRGHO

YHUVLRQ>XWLOLW\YHUVLRQDQGGDWH@$1'258VLQJWKH,3(((VFUHHQLQJSURFHVVDV

DSSURYHGE\15&6(5GDWHG>GDWHG((0/ 5HIHUHQFH; @WKHRWKHUH[WHUQDO

KD]DUGVZHUHGHWHUPLQHGWREHLQVLJQLILFDQWFRQWULEXWRUVWRSODQWULVN

x /RZ3RZHUDQG6KXWGRZQ5LVNV4XDOLWDWLYHGHIHQVHLQGHSWK ',' VKXWGRZQ

PRGHOIRUVKXWGRZQFRQILJXUDWLRQULVNPDQDJHPHQW &50 EDVHGRQWKHIUDPHZRUN

IRU','SURYLGHGLQ180$5&³*XLGDQFHIRU,QGXVWU\$FWLRQVWR$VVHVV

6KXWGRZQ0DQDJHPHQW' 5HIHUHQFH ZKLFKSURYLGHVJXLGDQFHIRUDVVHVVLQJDQG

HQKDQFLQJVDIHW\GXULQJVKXWGRZQRSHUDWLRQV



$FKDQJHWRWKHFDWHJRUL]DWLRQSURFHVVWKDWLVRXWVLGHWKHERXQGVVSHFLILHGDERYH

HJFKDQJHIURPDVHLVPLFPDUJLQVDSSURDFKWRDVHLVPLFSUREDELOLVWLFULVN

DVVHVVPHQWDSSURDFK ZLOOQRWEHXVHGZLWKRXWSULRU15&DSSURYDO7KH66&

FDWHJRUL]DWLRQSURFHVVGRFXPHQWDWLRQZLOOLQFOXGHWKHIROORZLQJHOHPHQWV

 3URJUDPSURFHGXUHVXVHGLQWKHFDWHJRUL]DWLRQ

 6\VWHPIXQFWLRQVLGHQWLILHGDQGFDWHJRUL]HGZLWKWKHDVVRFLDWHGEDVHV

 0DSSLQJRIFRPSRQHQWVWRVXSSRUWIXQFWLRQ V 

 35$PRGHOUHVXOWVLQFOXGLQJVHQVLWLYLW\VWXGLHV

 +D]DUGVDQDO\VHVDVDSSOLFDEOH

 3DVVLYHFDWHJRUL]DWLRQUHVXOWVDQGEDVHV

 &DWHJRUL]DWLRQUHVXOWVLQFOXGLQJDOODVVRFLDWHGEDVHVDQG5,6&FODVVLILFDWLRQV

 &RPSRQHQWFULWLFDODWWULEXWHVIRU+6666&V

 5HVXOWVRISHULRGLFUHYLHZVDQG66&SHUIRUPDQFHHYDOXDWLRQV

,'3PHHWLQJPLQXWHVDQGTXDOLILFDWLRQWUDLQLQJUHFRUGVIRUWKH,'3PHPEHUV

 3DVVLYH&DWHJRUL]DWLRQ3URFHVV

)RUWKHSXUSRVHVRI&)5FDWHJRUL]DWLRQSDVVLYHFRPSRQHQWVDUHWKRVH

FRPSRQHQWVWKDWKDYHDSUHVVXUHUHWDLQLQJIXQFWLRQ3DVVLYHFRPSRQHQWVDQGWKH

SDVVLYHIXQFWLRQRIDFWLYHFRPSRQHQWVZLOOEHHYDOXDWHGXVLQJWKH$UNDQVDV1XFOHDU2QH

$12 5LVN,QIRUPHG5HSDLU5HSODFHPHQW$FWLYLWLHV 5,55$ PHWKRGRORJ\FRQWDLQHGLQ

5HIHUHQFH 0/ FRQVLVWHQWZLWKWKHUHODWHG6DIHW\(YDOXDWLRQ5HSRUW 6(5 

LVVXHGE\WKH2IILFHRI1XFOHDU5HDFWRU5HJXODWLRQ 'HOHWHG



(QFORVXUH

>/HWWHU5HIHUHQFH1XPEHU@

7KH5,55$PHWKRGRORJ\LVDULVNLQIRUPHGVDIHW\FODVVLILFDWLRQDQGWUHDWPHQWSURJUDP

IRUUHSDLUUHSODFHPHQWDFWLYLWLHV 5,55$PHWKRGRORJ\ IRUSUHVVXUHUHWDLQLQJLWHPVDQG

WKHLUDVVRFLDWHGVXSSRUWV,QWKLVPHWKRGWKHFRPSRQHQWIDLOXUHLVDVVXPHGZLWKD

SUREDELOLW\RIDQGRQO\WKHFRQVHTXHQFHHYDOXDWLRQLVSHUIRUPHG,WDGGLWLRQDOO\

DSSOLHVGHWHUPLQLVWLFFRQVLGHUDWLRQV HJ','VDIHW\PDUJLQV LQGHWHUPLQLQJVDIHW\

VLJQLILFDQFH&RPSRQHQWVXSSRUWVDUHDVVLJQHGWKHVDPHVDIHW\VLJQLILFDQFHDVWKH

KLJKHVWSDVVLYHO\UDQNHGFRPSRQHQWZLWKLQWKHERXQGVRIWKHDVVRFLDWHGDQDO\WLFDOSLSH

VWUHVVPRGHO&RQVLVWHQWZLWK1(,DQ+66GHWHUPLQDWLRQE\WKHSDVVLYH

FDWHJRUL]DWLRQSURFHVVFDQQRWEHFKDQJHGE\WKH,'3 'HOHWHG

7KHXVHRIWKLVPHWKRGZDVSUHYLRXVO\DSSURYHGWREHXVHGIRUD&)5

DSSOLFDWLRQE\15&LQWKHILQDO6DIHW\(YDOXDWLRQIRU9RJWOHGDWHG'HFHPEHU

5HIHUHQFH; 7KH5,55$PHWKRGDVDSSURYHGIRUXVHDW9RJWOHIRU&)5

GRHVQRWKDYHDQ\SODQWVSHFLILFDVSHFWVDQGLVJHQHULF,WUHOLHVRQWKHFRQGLWLRQDOFRUH

GDPDJHDQGODUJHHDUO\UHOHDVHSUREDELOLWLHVDVVRFLDWHGZLWKSRVWXODWHGUXSWXUHV6DIHW\

VLJQLILFDQFHLVJHQHUDOO\PHDVXUHGE\WKHIUHTXHQF\DQGWKHFRQVHTXHQFHRIWKHHYHQW

+RZHYHUWKLV5,55$SURFHVVFDWHJRUL]HVFRPSRQHQWVVROHO\EDVHGRQFRQVHTXHQFH

ZKLFKPHDVXUHVWKHVDIHW\VLJQLILFDQFHRIWKHSDVVLYHFRPSRQHQWJLYHQWKDWLWUXSWXUHV

7KLVDSSURDFKLVFRQVHUYDWLYHFRPSDUHGWRLQFOXGLQJWKHUXSWXUHIUHTXHQF\LQWKH

FDWHJRUL]DWLRQDVWKLVDSSURDFKZLOOQRWDOORZWKHFDWHJRUL]DWLRQRI66&VWREHDIIHFWHG

E\DQ\FKDQJHVLQIUHTXHQF\GXHWRFKDQJHVLQWUHDWPHQW7KHUHIRUHWKH5,55$

PHWKRGRORJ\IRUSDVVLYHFDWHJRUL]DWLRQLVDFFHSWDEOHDQGDSSURSULDWHIRUXVHDW>3/$17

1$0(@IRU&)5

7KHPHWKRGRORJ\GRHVQRWUHTXLUHPRGLILFDWLRQLQRUGHUWRDSSURSULDWHO\FDWHJRUL]H 'HOHWHG7KHUHTXLUHPHQWVRI&)5

DUHFRQVLVWHQWZLWKWKH$125,55$/LFHQVH

&ODVV66&V7KH$60(FODVVLILFDWLRQRIWKH66&GRHVQRWLPSDFWWKHPHWKRGRORJ\DVLW $PHQGPHQWDVWKHUXOHGRHVQRWUHPRYHWKH

RQO\HYDOXDWHVWKHFRQVHTXHQFHRIDUXSWXUHRIWKH66&¶VSUHVVXUHERXQGDU\$VVWDWHG UHSDLUDQGUHSODFHPHQWSURYLVLRQVRIWKH$60(

&RGHUHTXLUHGE\D J IRU$60(&ODVV

LQWKH9RJWOH6(5³FDWHJRUL]LQJVROHO\EDVHGRQFRQVHTXHQFHZKLFKPHDVXUHVWKH 66&VHYHQLIWKH\DUHFDWHJRUL]HGDV5,6&

VDIHW\VLJQLILFDQFHRIWKHSLSHJLYHQWKDWLWUXSWXUHVLVFRQVHUYDWLYHFRPSDUHGWR VLQFHWKRVH66&VFRQVWLWXWHSULQFLSDOILVVLRQ

SURGXFWEDUULHUVDVSDUWRIWKHUHDFWRUFRRODQW

LQFOXGLQJWKHUXSWXUHIUHTXHQF\LQWKHFDWHJRUL]DWLRQDQGWKHFDWHJRUL]DWLRQZLOOQRWEH V\VWHPRUFRQWDLQPHQW7KLVLVIXUWKHUFODULILHG

DIIHFWHGE\FKDQJHVLQIUHTXHQF\DULVLQJIURPFKDQJHVWRWKHWUHDWPHQW'7KHUHIRUH LQWKHUXOH¶V6WDWHPHQWRI&RQVLGHUDWLRQV

+RZHYHUVLQFHWKHVFRSHRI&)5

WKLVPHWKRGRORJ\LVDSSURSULDWHWRDSSO\WR$60(&ODVV66&VDVWKHFRQVHTXHQFH DGGUHVVHVDGGLWLRQDOUHTXLUHPHQWVWKLV

HYDOXDWLRQDQGGHWHUPLQLVWLFFRQVLGHUDWLRQVDUHLQGHSHQGHQWRIWKH$60(FODVVLILFDWLRQ PHWKRGRORJ\ZLOOEHDSSOLHGWRGHWHUPLQHWKH

VDIHW\VLJQLILFDQFHRI$60(&ODVV66&VVRPH

ZKHQGHWHUPLQLQJWKH66&¶VVDIHW\VLJQLILFDQFHDQGZLOOPDLQWDLQWKLVDFFHSWDEOHOHYHORI RIZKLFKPD\EHHYDOXDWHGWREH5,6&

FRQVHUYDWLVP7KHSDVVLYHFDWHJRUL]DWLRQSURFHVVLVLQWHQGHGWRDSSO\WKHVDPHULVN

LQIRUPHGSURFHVVDFFHSWHGLQWKH$125 5IRUWKHSDVVLYHFDWHJRUL]DWLRQRI&ODVV

DQGFRPSRQHQWVWR&ODVVSUHVVXUHUHWDLQLQJ66&VLQWKHVFRSHRIWKHV\VWHP

EHLQJFDWHJRUL]HG

7KH$125,55$SDVVLYHPHWKRGRORJ\LPSOHPHQWVWKHVDPHULVNLQIRUPHGLQVHUYLFH

LQVSHFWLRQ 5,,6, FRQVHTXHQFHHYDOXDWLRQSURFHVVFRQWDLQHGLQ(35,75

³5HYLVHG5LVN,QIRUPHG,QVHUYLFH,QVSHFWLRQ3URFHGXUH'VXSSOHPHQWHGZLWKDGGLWLRQDO

TXDOLWDWLYHFRQVLGHUDWLRQV7KH15&6(5RIWKLV(35,WRSLFDOUHSRUWZDVLVVXHGE\OHWWHU

RQ2FWREHU6HFWLRQRIWKH6(5GHVFULEHVWKHVFRSHRIWKH5,,6,

PHWKRGRORJ\DV



(QFORVXUH

>/HWWHU5HIHUHQFH1XPEHU@

7KHIXOOVFRSHRSWLRQLQFOXGHV$60(&RGH&ODVVDQGSLSLQJSLSLQJZKRVH

IDLOXUHFRXOGSUHYHQWVDIHW\UHODWHGVWUXFWXUHVV\VWHPVRUFRPSRQHQWV 66&V 

IURPIXOILOOLQJWKHLUVDIHW\IXQFWLRQVDQGQRQVDIHW\UHODWHGSLSLQJWKDWLVUHOLHG

XSRQWRPLWLJDWHDFFLGHQWVIRUZKRVHIDLOXUHFRXOGFDXVHDUHDFWRUVFUDPRU

DFWXDWLRQRIDVDIHW\UHODWHGV\VWHP

KLOHPDQ\SUHVVXUHERXQGDU\FRPSRQHQWV SDVVLYHFRPSRQHQWV DUHQRW³PRGHOHG'LQ

D35$WKHFRQVHTXHQFHHYDOXDWLRQSURFHVVRI755HY%$SURYLGHVDQH[SOLFLW

DQGUREXVWSURFHVVIRUGHWHUPLQLQJWKHLPSRUWDQFHRISUHVVXUHERXQGDU\FRPSRQHQWV

IRUERWKPRGHUDWHDQGKLJKHQHUJ\V\VWHPV&RQVLVWHQWZLWKWKH$60($1635$

6WDQGDUGWKLVVXSSOHPHQWDU\DQDO\VLVLVXVHGWRDXJPHQWWKHEDVH35$

LQIRUPDWLRQ)XUWKHUDVGLVFXVVHGDERYHWKHPHWKRGRORJ\XVHVWKHFRQVHTXHQFH

SRUWLRQRI(35,5,,6,SURFHVVHQKDQFHGZLWK³DGGLWLRQDOFRQVLGHUDWLRQV'ZKLFKSURYLGH

DQDGGLWLRQDOOD\HURIFRQILGHQFHIRUFDWHJRUL]LQJ&ODVV66&VDVZHOODV&ODVVDQG

QRQFODVV66&V

7KHVDPHSURFHVVDVLWSHUWDLQVWRLQVHUYLFHLQVSHFWLRQKDVEHHQDSSURYHGIRUXVHRQ

WKHIXOOVFRSHDQGFRGHFODVVGHVLJQDWLRQVRISUHVVXUHUHWDLQLQJSLSLQJDQGZHOGVLQ

QXFOHDUSRZHUSODQWV,WKDVEHHQGHWHUPLQHGWREHVXIILFLHQWO\UREXVWWRDVVHVVWKH

FRQVHTXHQFHULVNRI&ODVVSLSLQJDQGZHOGVLQWKHFRQWH[WRI,6,HYHQZLWKRXWWKH

DGGLWLRQDOTXDOLWDWLYHVWHSV7KH$125,55$KDVDOVRGHWHUPLQHGWREHVXIILFLHQWO\

UREXVWWRDVVHVVWKHFRQVHTXHQFHRIDOO&ODVVDQG&ODVV66&V ZLWKWKHDGGLWLRQDO

TXDOLWDWLYHVWHSV LQWKHFRQWH[WRIUHSDLUUHSODFHPHQW7KHUHIRUHWKH$125,55$

PHWKRGRORJ\VKRXOGEHVXIILFLHQWO\UREXVWWRDVVHVVWKHFRQVHTXHQFHRIWKHIXOO

VSHFWUXPRISUHVVXUHUHWDLQLQJFRPSRQHQWVDVZHOODVDFWLYHFRPSRQHQWVZLWKD

SUHVVXUHUHWDLQLQJIXQFWLRQUHJDUGOHVVRI$60(FODVVLILFDWLRQ

 7(&+1,&$/$'(48$&<(9$/8$7,21 &)5 E  LL 

7KHIROORZLQJVHFWLRQVGHPRQVWUDWHWKDWWKHTXDOLW\DQGOHYHORIGHWDLORIWKHSURFHVVHV

XVHGLQFDWHJRUL]DWLRQRI66&VDUHDGHTXDWH7KH35$PRGHOVGHVFULEHGEHORZKDYH

EHHQSHHUUHYLHZHGDQGWKHUHDUHQR35$XSJUDGHVWKDWKDYHQRWEHHQSHHUUHYLHZHG

7KH35$PRGHOVFUHGLWHGLQWKLVUHTXHVWDUHWKHVDPH35$PRGHOVFUHGLWHGLQWKH

>767)$DSSOLFDWLRQGDWHG-XO\$'$06$FFHVVLRQ1XPEHU0/$;;;

5HIHUHQFH; @ZLWKURXWLQHPDLQWHQDQFHXSGDWHVDSSOLHG

 ,QWHUQDO(YHQWVDQG,QWHUQDO)ORRGLQJ

7KH>3/$171$0(@FDWHJRUL]DWLRQSURFHVVIRUWKHLQWHUQDOHYHQWVDQGIORRGLQJKD]DUG

ZLOOXVHWKHSODQWVSHFLILF35$PRGHO7KH>/,&(16((@ULVNPDQDJHPHQWSURFHVV

HQVXUHVWKDWWKH35$PRGHOXVHGLQWKLVDSSOLFDWLRQUHIOHFWVWKHDVEXLOWDQGDV

RSHUDWHGSODQWIRUHDFKRIWKH>3/$17@XQLWV$WWDFKPHQWRIWKLVHQFORVXUHLGHQWLILHV

WKHDSSOLFDEOHLQWHUQDOHYHQWVDQGLQWHUQDOIORRGLQJ35$PRGHOV

1RWH3HHUUHYLHZLQIRUPDWLRQVKRXOGRQO\EHGLVFXVVHGLQ6HFWLRQ



(QFORVXUH

>/HWWHU5HIHUHQFH1XPEHU@



 )LUH+D]DUGV

2SWLRQ

1RWH,IWKHOLFHQVHHXVHVDGLIIHUHQWQDPHWRLGHQWLI\WKH³)LUH6DIH6KXWGRZQ

3URJUDP'UHSODFHWHUPZLWKWKHVLWHVSHFLILFQDPH

7KH>3/$171$0(@FDWHJRUL]DWLRQSURFHVVZLOOXVHWKH)LUH6DIH6KXWGRZQ(TXLSPHQW

/LVW 66(/ IRUHYDOXDWLRQRIVDIHW\VLJQLILFDQFHUHODWHGWRILUHKD]DUGV7KH)LUH6DIH

6KXWGRZQSDWKVLGHQWLI\WKHVDIHW\IXQFWLRQVDQGDVVRFLDWHGVHWVRIHTXLSPHQWFUHGLWHG

WRDFKLHYHDQGPDLQWDLQVDIHVKXWGRZQXQGHUSRVWXODWHGILUHFRQGLWLRQVDVGHILQHGE\

&)5$SSHQGL[5³)LUH3URWHFWLRQ3URJUDPIRU1XFOHDU3RZHU)DFLOLWLHV2SHUDWLQJ

3ULRUWR-DQXDU\' 5HIHUHQFH; DQG15&%UDQFK7HFKQLFDO3RVLWLRQ&0(%

*XLGHOLQHVIRU)LUH3URWHFWLRQIRU1XFOHDU3RZHU' 5HIHUHQFH< 7KH)LUH66(/

LGHQWLILHVWKHFUHGLWHGHTXLSPHQWRQWKHVH)LUH6DIH6KXWGRZQ3DWKV7KLVDSSURDFK

DOVRFRQVLGHUVUHJXODWRU\H[HPSWLRQVUHODWHGWRWKH)LUH6DIH6KXWGRZQSURJUDPDQG

ILUHLQGXFHG0XOWLSOH6SXULRXV2SHUDWLRQV 062V WRLGHQWLI\DQ\DGGLWLRQDOHTXLSPHQW

7KHXVHRIWKH)LUH66(/LVDVFUHHQLQJDSSURDFK7KHUHDUHQRLPSRUWDQFHPHDVXUHV

XVHGLQGHWHUPLQLQJVDIHW\VLJQLILFDQFHUHODWHGWRWKHILUHKD]DUG,QVWHDGXVLQJWKH

)LUH66(/ZRXOGLGHQWLI\DOOFUHGLWHGHTXLSPHQWDV+66UHJDUGOHVVRIWKHLUILUHGDPDJH

VXVFHSWLELOLW\RUIUHTXHQF\RIFKDOOHQJH7KLVDSSURDFKHQVXUHVWKH66&VWKDWDUH

FUHGLWHGWRHVWDEOLVKDQGPDLQWDLQVDIHVKXWGRZQFDSDELOLW\DUHUHWDLQHGDVVDIHW\

VLJQLILFDQW,IDFRPSRQHQWLVFUHGLWHGRQWKH)LUH66(/LWLVFRQVLGHUHG+66$VVWDWHG

LQ1(,DQ66&LGHQWLILHGDV+66E\DQRQ35$PHWKRGWRDGGUHVVILUH³PD\QRW

EHUHFDWHJRUL]HGE\WKH,'3'

)XUWKHUPRUHUHJXODWRU\H[HPSWLRQVUHODWHGWRWKH)LUH6DIH6KXWGRZQSURJUDPDQG

SUHYLRXVO\LGHQWLILHGILUHLQGXFHG062VZHUHUHYLHZHGDQGLWZDVFRQFOXGHGWKDWQR

HTXLSPHQWLQDGGLWLRQWRWKHFRPSRQHQWVRQWKH)LUH66(/DUHUHOLHGXSRQWRHVWDEOLVK

DQGPDLQWDLQVDIHVKXWGRZQ7KHUHIRUHQRDGGLWLRQDOFRPSRQHQWVZLOOEHLGHQWLILHGDV

+66ZLWKUHJDUGWRWKHILUHKD]DUG7KHUHVXOWVRIWKLVUHYLHZKDYHEHHQGRFXPHQWHG

E\WKHVLWHDQGDUHDYDLODEOHIRU15&DXGLW)LJXUHLOOXVWUDWHVKRZWKH)LUH66(/LV

UHYLHZHGWRGHWHUPLQHLIWKHFRPSRQHQWEHLQJHYDOXDWHGLV+6625)XUWKHUPRUH

UHJXODWRU\H[HPSWLRQVUHODWHGWRWKH)LUH6DIH6KXWGRZQSURJUDPDQGSUHYLRXVO\

LGHQWLILHGILUHLQGXFHG062VZHUHUHYLHZHGDQGDGGLWLRQDOHTXLSPHQWWKDWLVUHOLHG

XSRQWRHVWDEOLVKDQGPDLQWDLQVDIHVKXWGRZQZLOOEHUHWDLQHGDV+667KHUHVXOWVRI

WKLVUHYLHZKDYHEHHQGRFXPHQWHGE\WKHVLWHDQGDUHDYDLODEOHIRU15&DXGLW)LJXUH

LOOXVWUDWHVKRZWKH)LUH66(/DQGWKHDGGLWLRQDOLGHQWLILHGHTXLSPHQWDUHUHYLHZHG

WRGHWHUPLQHLIWKHFRPSRQHQWEHLQJHYDOXDWHGLV+66

7KLVDSSURDFKLVDQDOWHUQDWHSURFHVVIURPWKH1(,HQGRUVHGDSSURDFKHV

6LPLODUWRWKH1(,),9(DSSURDFKWKLVDSSURDFKXVHVWKH66(/DVDVFUHHQLQJ

WRRO+RZHYHUWKHGHYHORSPHQWRIWKH)LUH66(/LVQRWEDVHGRQDVXFFHVVLYH



(QFORVXUH

>/HWWHU5HIHUHQFH1XPEHU@

VFUHHQLQJPHWKRGRORJ\DQGLVWKHVWDUWLQJSRLQWIRUWKH),9(PHWKRGRORJ\7KHUHIRUH

LQGXVWU\DVVHVVPHQWVKDYHVKRZQWKDWWKLV)LUH66(/DSSURDFKOHDGVWRPDQ\

DGGLWLRQDO66&VEHLQJLGHQWLILHGDV+66PDNLQJLWPRUHFRQVHUYDWLYHLQGHWHUPLQLQJ

VDIHW\VLJQLILFDQFHWKDQWKH1(,),9(DSSURDFKRUD)LUH35$

7KH>/,&(16((@)LUH6DIH6KXWGRZQSURJUDPLVDQDFWLYHUHJXODWRU\SURJUDPWKDWLV

URXWLQHO\LQVSHFWHGE\15&,WZDVFRQILUPHGWKDWWKLVSURJUDPHQVXUHVWKDWWKH)LUH

66(/DQGWKHLGHQWLILFDWLRQRIDGGLWLRQDOHTXLSPHQWUHOLHGXSRQWRHVWDEOLVKDQG

PDLQWDLQVDIHVKXWGRZQUHIOHFWVWKHFXUUHQWDVEXLOWDVRSHUDWHGSODQWDQGWKDW

FKDQJHVWRWKHSODQWZLOOEHHYDOXDWHGWRGHWHUPLQHWKHLULPSDFWWRWKHHTXLSPHQWOLVW

DQGWKHFDWHJRUL]DWLRQSURFHVV





&^^WŽŽ^ŽŽ

&^^ŽWŽ



2SWLRQ

7KH>3/$171$0(@FDWHJRUL]DWLRQSURFHVVIRUILUHKD]DUGVZLOOXVHDSHHUUHYLHZHG

SODQWVSHFLILFILUH35$PRGHO7KHLQWHUQDO)LUH35$PRGHOZDVGHYHORSHGFRQVLVWHQW

ZLWK185(*&5DQGRQO\XWLOL]HVPHWKRGVSUHYLRXVO\DFFHSWHGE\WKH15&7KH

>/,&(16((@ULVNPDQDJHPHQWSURFHVVHQVXUHVWKDWWKH35$PRGHOXVHGLQWKLV

DSSOLFDWLRQUHIOHFWVWKHDVEXLOWDQGDVRSHUDWHGSODQWIRUHDFKRIWKH>3/$17@XQLWV

$WWDFKPHQW;DWWKHHQGRIWKLVHQFORVXUHLGHQWLILHVWKHDSSOLFDEOH)LUH35$PRGHO



(QFORVXUH

>/HWWHU5HIHUHQFH1XPEHU@

1RWH3HHUUHYLHZLQIRUPDWLRQVKRXOGRQO\EHGLVFXVVHGLQ6HFWLRQ

 6HLVPLF+D]DUGV

2SWLRQ

7KH>3/$171$0(@FDWHJRUL]DWLRQSURFHVVZLOOXVHWKHVHLVPLFPDUJLQVDQDO\VLV 60$ 

SHUIRUPHGIRUWKH,QGLYLGXDO3ODQW(YDOXDWLRQ([WHUQDO(YHQWV ,3((( LQUHVSRQVHWR

  • / 5HIHUHQFH IRUHYDOXDWLRQRIVDIHW\VLJQLILFDQFHUHODWHGWRVHLVPLFKD]DUGV

1RSODQWVSHFLILFDSSURDFKHVZHUHXWLOL]HGLQGHYHORSPHQWRIWKH60$7KH1(,

DSSURYHGXVHRIWKH60$>66(/@DVDVFUHHQLQJSURFHVVUHVXOWVLQWKHLGHQWLILFDWLRQRI

DOOV\VWHPIXQFWLRQVDQGDVVRFLDWHG66&VWKDWDUHLQYROYHGLQWKHVHLVPLFPDUJLQ

VXFFHVVSDWKDV+666LQFHWKHDQDO\VLVLVEHLQJXVHGDVDVFUHHQLQJWRROLPSRUWDQFH

PHDVXUHVDUHQRWXVHGWRGHWHUPLQHVDIHW\VLJQLILFDQFH7KH1(,DSSURDFKXVLQJ

WKH>66(/@LGHQWLILHVLGHQWLI\FUHGLWHGHTXLSPHQWDV+66UHJDUGOHVVRIWKHLUFDSDFLW\

IUHTXHQF\RIFKDOOHQJHRUOHYHORIIXQFWLRQDOGLYHUVLW\

$QHYDOXDWLRQZDVSHUIRUPHGRIWKHDVEXLOWDVRSHUDWHGSODQWDJDLQVWWKH60$

>66(/@7KHHYDOXDWLRQFRPSDUHGRIWKHDVEXLOWDVRSHUDWHGSODQWWRWKHSODQW

FRQILJXUDWLRQRULJLQDOO\DVVHVVHGE\WKH60$'LIIHUHQFHVZHUHUHYLHZHGWRLGHQWLI\DQ\

SRWHQWLDOLPSDFWVWRWKHHTXLSPHQWFUHGLWHGRQWKH>66(/@$SSURSULDWHFKDQJHVWRWKH

FUHGLWHGHTXLSPHQWZHUHLGHQWLILHGDQGGRFXPHQWHG7KLVGRFXPHQWDWLRQLVDYDLODEOH

IRUDXGLW7KH>/,&(16((@ULVNPDQDJHPHQWSURJUDPHQVXUHVWKDWIXWXUHFKDQJHVWR

WKHSODQWZLOOEHHYDOXDWHGWRGHWHUPLQHWKHLULPSDFWRQWKH60$DQGULVN

FDWHJRUL]DWLRQSURFHVV



2SWLRQ

7KH>3/$171$0(@FDWHJRUL]DWLRQSURFHVVIRUVHLVPLFKD]DUGVZLOOXVHDSHHUUHYLHZHG

SODQWVSHFLILFVHLVPLF35$PRGHO7KH>/,&(16((@ULVNPDQDJHPHQWSURFHVVHQVXUHV

WKDWWKH35$PRGHOXVHGLQWKLVDSSOLFDWLRQUHIOHFWVWKHDVEXLOWDQGDVRSHUDWHGSODQW

IRUHDFKRIWKH>3/$17@XQLWV,QGXVWU\VWDQGDUGPHWKRGVZHUHXWLOL]HGLQWKH

GHYHORSPHQWRIWKHVHLVPLFKD]DUGVIRUWKH635$8SGDWHVWRVHLVPLFKD]DUGFXUYHV

ZLOOEHUHIOHFWHGLQWKH35$XVHGIRUWKHFDWHJRUL]DWLRQLQDFFRUGDQFHZLWKWKH35$

PRGHOPDLQWHQDQFHSURFHVV

,I$GGHQGXP%LVFUHGLWHGXVHWKHIROORZLQJSDUDJUDSK

%HFDXVH$60($1635$6WDQGDUG$GGHQGXP%LVFUHGLWHGIRUUHYLHZRUGLVSRVLWLRQRI

SHHUUHYLHZILQGLQJVWKHIROORZLQJLVVXHVLQ15&OHWWHU0/ 5HIHUHQFH 

DUHGLVSRVLWLRQHGDVIROORZV<<@

7KHVHLVPLFDQDO\VLVLVEDVHGRQWKHODWHVWDYDLODEOHKD]DUGFXUYHV3ODQWVSHFLILF

DSSURDFKHVWRVHLVPLFKD]DUGVDUHGHVFULEHGDVIROORZV

>6XPPDUL]HDQ\SODQWVSHFLILFDSSURDFKHVXVHG@



(QFORVXUH

>/HWWHU5HIHUHQFH1XPEHU@

$WWDFKPHQW;DWWKHHQGRIWKLVHQFORVXUHLGHQWLILHVWKHDSSOLFDEOH6HLVPLF35$PRGHO

1RWH3HHUUHYLHZLQIRUPDWLRQVKRXOGRQO\EHGLVFXVVHGLQ6HFWLRQ



 2WKHU([WHUQDO+D]DUGV

1RWH7KLVILUVWRSWLRQLVIRURWKHUH[WHUQDOKD]DUGV LHH[WHUQDOKD]DUGVWKDWDUHQRW

ILUHRUVHLVPLF ZKHUHWKHOLFHQVHHSODQVWRXVHD35$PRGHO



7KH>3/$171$0(@FDWHJRUL]DWLRQSURFHVVIRUWKHIROORZLQJKD]DUG>V@ZLOOXVHSHHU

UHYLHZHG35$PRGHOV DVDSSOLFDEOH LQDFFRUGDQFHZLWKWKH$60(35$6WDQGDUG5$

6D

>/LVW+D]DUGV@

7KH>/,&(16((@ULVNPDQDJHPHQWSURFHVVHQVXUHVWKDWWKH35$PRGHOXVHGLQWKLV

DSSOLFDWLRQUHIOHFWVWKHDVEXLOWDQGDVRSHUDWHGSODQWIRUHDFKRIWKH>3/$17@XQLWV

$WWDFKPHQW>V@;DWWKHHQGRIWKLVHQFORVXUHLGHQWLILHVWKHDSSOLFDEOHRWKHUH[WHUQDO

KD]DUG35$PRGHO>V@



1RWH7KLVQH[WRSWLRQRIXVLQJ,3(((VFUHHQLQJUHVXOWVDUHIRUKD]DUGVWKDWZHUH

127FRPSOHWHO\³VFUHHQHG'DQGLQVWHDGXVHGDVFUHHQLQJSURFHVVWRLGHQWLI\66&V

WKDWZHUHQHFHVVDU\WRSURWHFWDJDLQVWWKHKD]DUG HJWRUQDGRPLVVLOHEDUULHU 6HH

1(,IRUPRUHLQIRUPDWLRQ

7KH>3/$171$0(@FDWHJRUL]DWLRQSURFHVVZLOOXVHVFUHHQLQJUHVXOWVIURPWKH,3(((LQ

UHVSRQVHWR*HQHULF/HWWHU */  5HIHUHQFH IRUHYDOXDWLRQRIVDIHW\

VLJQLILFDQFHUHODWHGWRWKHIROORZLQJH[WHUQDOKD]DUGV

>/LVW+D]DUGV@

)LJXUHLQ6HFWLRQRI1(,LOOXVWUDWHVWKHSURFHVVWKDWZLOOEHXVHGWR

GHWHUPLQHVDIHW\VLJQLILFDQFHUHODWHGWRWKHDERYHKD]DUGV

$OORWKHUH[WHUQDOKD]DUGVZHUHVFUHHQHGIURPDSSOLFDELOLW\WR>3/$1781,7@SHUD

SODQWVSHFLILFHYDOXDWLRQLQDFFRUGDQFHZLWK*/ 5HIHUHQFH DQGXSGDWHGWR

XVHWKHFULWHULDLQ$60(35$6WDQGDUG5$6D$WWDFKPHQWSURYLGHVDVXPPDU\

RIWKHRWKHUH[WHUQDOKD]DUGVVFUHHQLQJUHVXOWV$WWDFKPHQWSURYLGHVDVXPPDU\RI

WKHSURJUHVVLYHVFUHHQLQJDSSURDFKIRUH[WHUQDOKD]DUGV

1RWH7KLVQH[WRSWLRQVKRXOGEHXVHGIRUDOORWKHUH[WHUQDOKD]DUGVWKDWZHUH

VFUHHQHGGXHWRSODQWGHVLJQDQGFUHGLWHGVSHFLILFFRPSRQHQWVLQWKDWVFUHHQLQJ

$VSDUWRIWKHFDWHJRUL]DWLRQDVVHVVPHQWRIRWKHUH[WHUQDOKD]DUGULVNDQHYDOXDWLRQLV

SHUIRUPHGWRGHWHUPLQHLIWKHUHDUHFRPSRQHQWVEHLQJFDWHJRUL]HGSDUWLFLSDWHLQ



(QFORVXUH

>/HWWHU5HIHUHQFH1XPEHU@

VFUHHQHGVFHQDULRVDQGZKRVHIDLOXUHZRXOGUHVXOWLQDQXQVFUHHQHGVFHQDULR

&RQVLVWHQWZLWKWKHIORZFKDUWLQ)LJXUHLQ6HFWLRQRI1(,WKHVH

FRPSRQHQWVZRXOGEHFRQVLGHUHG+66

>/LVW+D]DUGV@

1RWH7KLVQH[WRSWLRQVKRXOGEHXVHGIRUDOORWKHUH[WHUQDOKD]DUGVWKDWZHUH

VFUHHQHGE\IUHTXHQF\7KLVODQJXDJHVKRXOGEHJHQHULFDOO\DSSOLFDEOH

$OOUHPDLQLQJKD]DUGVZHUHVFUHHQHGIURPDSSOLFDELOLW\DQGFRQVLGHUHGLQVLJQLILFDQWIRU

HYHU\66&DQGWKHUHIRUHZLOOQRWEHFRQVLGHUHGGXULQJWKHFDWHJRUL]DWLRQSURFHVV

,IDQ\FKDQJHVDUHLPSOHPHQWHG&KDQJHVWRWKH,3(((DQDO\VLVRULQFRUSRUDWLRQRI

SODQWPRGLILFDWLRQVLQWKHXSGDWHG,3(((DQDO\VLVDUHVXPPDUL]HGDVIROORZV

>6XPPDUL]HDQ\XSGDWHV@



 /RZ3RZHU 6KXWGRZQ

&RQVLVWHQWZLWK1(,WKH>3/$171$0(@FDWHJRUL]DWLRQSURFHVVZLOOXVHWKH

VKXWGRZQVDIHW\PDQDJHPHQWSODQGHVFULEHGLQ180$5&IRUHYDOXDWLRQRIVDIHW\

VLJQLILFDQFHUHODWHGWRORZSRZHUDQGVKXWGRZQFRQGLWLRQV7KHRYHUDOOSURFHVVIRU

DGGUHVVLQJVKXWGRZQULVNLVLOOXVWUDWHGLQ)LJXUHRI1(,

180$5&VSHFLILHVWKDWDGHIHQVHLQGHSWKDSSURDFKVKRXOGEHXVHGZLWKUHVSHFW

WRHDFKGHILQHGVKXWGRZQNH\VDIHW\IXQFWLRQ7KHNH\VDIHW\IXQFWLRQVGHILQHGLQ

180$5&DUHHYDOXDWHGIRUFDWHJRUL]DWLRQRI66&V

66&VWKDWPHHWWKHWZRFULWHULD LHFRQVLGHUHGSDUWRID³SULPDU\VKXWGRZQVDIHW\

V\VWHP'RUDIDLOXUHZRXOGLQLWLDWHDQHYHQWGXULQJVKXWGRZQFRQGLWLRQV GHVFULEHGLQ

6HFWLRQ1(,ZLOOEHFRQVLGHUHGSUHOLPLQDU\+66

 35$0DLQWHQDQFHDQG8SGDWHV

7KH>/,&(16((@ULVNPDQDJHPHQWSURFHVVHQVXUHVWKDWWKHDSSOLFDEOH35$PRGHO V 

XVHGLQWKLVDSSOLFDWLRQFRQWLQXHVWRUHIOHFWWKHDVEXLOWDQGDVRSHUDWHGSODQWIRUHDFK

RIWKH>3/$17@XQLWV7KHSURFHVVGHOLQHDWHVWKHUHVSRQVLELOLWLHVDQGJXLGHOLQHVIRU

XSGDWLQJWKH35$PRGHOVDQGLQFOXGHVFULWHULDIRUERWKUHJXODUO\VFKHGXOHGDQGLQWHULP

35$PRGHOXSGDWHV7KHSURFHVVLQFOXGHVSURYLVLRQVIRUPRQLWRULQJSRWHQWLDODUHDV

DIIHFWLQJWKH35$PRGHOV HJGXHWRFKDQJHVLQWKHSODQWHUURUVRUOLPLWDWLRQV

LGHQWLILHGLQWKHPRGHODQGLQGXVWU\RSHUDWLRQDOH[SHULHQFH IRUDVVHVVLQJWKHULVN

LPSDFWRIXQLQFRUSRUDWHGFKDQJHVDQGIRUFRQWUROOLQJWKHPRGHODQGDVVRFLDWHG

FRPSXWHUILOHV7KHSURFHVVZLOODVVHVVWKHLPSDFWRIWKHVHFKDQJHVRQWKHSODQW35$

PRGHOLQDWLPHO\PDQQHUEXWQRORQJHUWKDQRQFHHYHU\WZRUHIXHOLQJRXWDJHV,IWKHUH

LVDVLJQLILFDQWLPSDFWRQWKH35$PRGHOWKH66&FDWHJRUL]DWLRQZLOOEHUHHYDOXDWHG



(QFORVXUH

>/HWWHU5HIHUHQFH1XPEHU@

,QDGGLWLRQ>/,&(16((@ZLOOLPSOHPHQWDSURFHVVWKDWDGGUHVVHVWKHUHTXLUHPHQWVLQ

1(,6HFWLRQ³3URJUDP'RFXPHQWDWLRQDQG&KDQJH&RQWURO'7KHSURFHVVZLOO

UHYLHZWKHUHVXOWVRISHULRGLFDQGLQWHULPXSGDWHVRIWKHSODQW35$WKDWPD\DIIHFWWKH

UHVXOWVRIWKHFDWHJRUL]DWLRQSURFHVV,IWKHUHVXOWVDUHDIIHFWHGDGMXVWPHQWVZLOOEH

PDGHDVQHFHVVDU\WRWKHFDWHJRUL]DWLRQRUWUHDWPHQWSURFHVVHVWRPDLQWDLQWKHYDOLGLW\

RIWKHSURFHVVHV,QDGGLWLRQDQ\35$PRGHOXSJUDGHVZLOOEHSHHUUHYLHZHGSULRUWR

LPSOHPHQWLQJWKRVHFKDQJHVLQWKH35$PRGHOXVHGIRUFDWHJRUL]DWLRQ

 35$8QFHUWDLQW\(YDOXDWLRQV

8QFHUWDLQW\HYDOXDWLRQVDVVRFLDWHGZLWKDQ\DSSOLFDEOHEDVHOLQH35$PRGHO V XVHGLQ

WKLVDSSOLFDWLRQZHUHHYDOXDWHGGXULQJWKHDVVHVVPHQWRI35$WHFKQLFDODGHTXDF\DQG

FRQILUPHGWKURXJKWKHVHOIDVVHVVPHQWDQGSHHUUHYLHZSURFHVVHVDVGLVFXVVHGLQ

6HFWLRQRIWKLVHQFORVXUH

8QFHUWDLQW\HYDOXDWLRQVDVVRFLDWHGZLWKWKHULVNFDWHJRUL]DWLRQSURFHVVDUHDGGUHVVHG

XVLQJWKHSURFHVVHVGLVFXVVHGLQ6HFWLRQRI1(,DQGLQWKHSUHVFULEHGVHQVLWLYLW\

VWXGLHVGLVFXVVHGLQ6HFWLRQ

,QWKHRYHUDOOULVNVHQVLWLYLW\VWXGLHV>/,&(16((@ZLOOXWLOL]HDIDFWRURIWRLQFUHDVHWKH

XQDYDLODELOLW\RUXQUHOLDELOLW\RI/66FRPSRQHQWVFRQVLVWHQWZLWKWKDWDSSURYHGIRU

9RJWOHLQ5HIHUHQFH&RQVLVWHQWZLWKWKH1(,JXLGDQFH>/,&(16((@ZLOO

SHUIRUPERWKDQLQLWLDOVHQVLWLYLW\VWXG\DQGDFXPXODWLYHVHQVLWLYLW\VWXG\7KHLQLWLDO

VHQVLWLYLW\VWXG\DSSOLHVWRWKHV\VWHPWKDWLVEHLQJFDWHJRUL]HG,QWKHFXPXODWLYH

VHQVLWLYLW\VWXG\WKHIDLOXUHSUREDELOLWLHV XQUHOLDELOLW\DQGXQDYDLODELOLW\DVDSSURSULDWH 

RIDOO/66FRPSRQHQWVPRGHOHGLQDOOLGHQWLILHG35$PRGHOVIRUDOOV\VWHPVWKDWKDYH

EHHQFDWHJRUL]HGDUHLQFUHDVHGE\DIDFWRURI7KLVVHQVLWLYLW\VWXG\WRJHWKHUZLWKWKH

SHULRGLFUHYLHZSURFHVVDVVXUHVWKDWWKHSRWHQWLDOFXPXODWLYHULVNLQFUHDVHIURPWKH

FDWHJRUL]DWLRQLVPDLQWDLQHGDFFHSWDEO\ORZ7KHSHUIRUPDQFHPRQLWRULQJSURFHVV

PRQLWRUVWKHFRPSRQHQWSHUIRUPDQFHWRHQVXUHWKDWSRWHQWLDOLQFUHDVHVLQIDLOXUHUDWHV

RIFDWHJRUL]HGFRPSRQHQWVDUHGHWHFWHGDQGDGGUHVVHGEHIRUHUHDFKLQJWKHUDWH

DVVXPHGLQWKHVHQVLWLYLW\VWXG\

7KHGHWDLOHGSURFHVVRILGHQWLI\LQJFKDUDFWHUL]LQJDQGTXDOLWDWLYHVFUHHQLQJRIPRGHO

XQFHUWDLQWLHVLVIRXQGLQ6HFWLRQRI185(*DQG6HFWLRQRI(35,75

 5HIHUHQFH 7KHSURFHVVLQWKHVHUHIHUHQFHVZDVPRVWO\GHYHORSHGWR

HYDOXDWHWKHXQFHUWDLQWLHVDVVRFLDWHGZLWKWKHLQWHUQDOHYHQWV35$PRGHOKRZHYHUWKH

DSSURDFKFDQEHDSSOLHGWRRWKHUW\SHVRIKD]DUGJURXSV

7KHOLVWRIDVVXPSWLRQVDQGVRXUFHVRIXQFHUWDLQW\ZHUHUHYLHZHGWRLGHQWLI\WKRVH

ZKLFKZRXOGEHVLJQLILFDQWIRUWKHHYDOXDWLRQRIWKLVDSSOLFDWLRQ,IWKH>3/$17@35$

PRGHOXVHGDQRQFRQVHUYDWLYHWUHDWPHQWRUPHWKRGVWKDWDUHQRWFRPPRQO\DFFHSWHG

WKHXQGHUO\LQJDVVXPSWLRQRUVRXUFHRIXQFHUWDLQW\ZDVUHYLHZHGWRGHWHUPLQHLWV

LPSDFWRQWKLVDSSOLFDWLRQ2QO\WKRVHDVVXPSWLRQVRUVRXUFHVRIXQFHUWDLQW\WKDWFRXOG

VLJQLILFDQWO\LPSDFWWKHULVNFDOFXODWLRQVZHUHFRQVLGHUHGNH\IRUWKLVDSSOLFDWLRQ



(QFORVXUH

>/HWWHU5HIHUHQFH1XPEHU@

.H\>3/$17@35$PRGHOVSHFLILFDVVXPSWLRQVDQGVRXUFHVRIXQFHUWDLQW\IRUWKLV

DSSOLFDWLRQZHUHLGHQWLILHGDQGGLVSRVLWLRQHGLQ$WWDFKPHQW7KHFRQFOXVLRQRIWKLV

UHYLHZLVWKDWQRDGGLWLRQDOVHQVLWLYLW\DQDO\VHVDUHUHTXLUHGWRDGGUHVV>3/$17@35$

PRGHOVSHFLILFDVVXPSWLRQVRUVRXUFHVRIXQFHUWDLQW\H[FHSWIRUWKHIROORZLQJ

x 3HUIRUPDVHQVLWLYLW\LQFUHDVLQJDOOWKHVHLVPLF35$KXPDQHYHQWVIDLOXUHV +()V 

GHULYHGIURPWKHLQWHUQDOHYHQWV35$PRGHOE\DIDFWRURIWRDGGUHVVWKH

XQFHUWDLQW\DVVRFLDWHGZLWKPDLQFRQWUROURRPDFWLRQVWKDWPLJKWWDNHORQJHULQD

VHLVPLFHYHQWYHUVXVDQLQWHUQDOLQLWLDWLQJHYHQW 



(QFORVXUH

>/HWWHU5HIHUHQFH1XPEHU@

 35$5(9,(:352&(665(68/76 &)5  E  LLL 

1RWH2QO\GHVFULEHWKHPRVWUHFHQWIXOOVFRSHSHHUUHYLHZVDQGUHODWHGIRFXVHG

VFRSHSHHUUHYLHZV+LVWRULFDOLQIRUPDWLRQRISHHUUHYLHZVVKRXOGQRWEHLQFOXGHG

7KH35$PRGHO>V@GHVFULEHGLQ6HFWLRQKDVEHHQDVVHVVHGDJDLQVW5*³$Q

$SSURDFKIRU'HWHUPLQLQJWKH7HFKQLFDO$GHTXDF\RI3UREDELOLVWLF5LVN$VVHVVPHQW

5HVXOWVIRU5LVN,QIRUPHG$FWLYLWLHV'5HYLVLRQ 5HIHUHQFH FRQVLVWHQWZLWK15&5,6



7KHLQWHUQDOHYHQWV35$PRGHOZDVVXEMHFWWRDVHOIDVVHVVPHQWDQGDIXOOVFRSHSHHU

UHYLHZFRQGXFWHGLQ>0RQWK<HDU@'HVFULEHDQ\UHODWHGIRFXVHGVFRSHSHHUUHYLHZV

VLQFHWKHPRVWUHFHQWIXOOVFRSHSHHUUHYLHZ

,I3HHU5HYLHZZDVQRWFRPSOHWHGDJDLQVW5*5HY

6LQFHWKHSHHUUHYLHZRIWKH,QWHUQDO(YHQWV35$PRGHOZDVSHUIRUPHGSULRUWRWKH

SXEOLFDWLRQRI5*5HYDVHOIDVVHVVPHQWZDVFRQGXFWHGWRDVVHVVWKH

GLIIHUHQFHVEHWZHHQ5*5HYDQG5*5HY;7KDWDVVHVVPHQWFRQILUPHG

WKDWWKH35$PRGHOPHHWVWKHUHTXLUHPHQWVRI5*5HY5HVXOWVIURPWKDW

DVVHVVPHQWDUHGRFXPHQWHGLQ$WWDFKPHQW

25

7KH,QWHUQDO(YHQWV35$PRGHOZDVSHHUUHYLHZHGLQ><($5@E\WKH>3:5RU%:5@

2ZQHUV*URXS 3:52*RU%:52* SULRUWRWKHLVVXDQFHRI5HJXODWRU\*XLGH

$VDUHVXOWDVHOIDVVHVVPHQWZDVFRQGXFWHGE\>/,&(16((@RIWKH,QWHUQDO(YHQWV35$

PRGHOLQDFFRUGDQFHZLWK$SSHQGL[%RI5*5HYLVLRQ 5HIHUHQFH; WRDGGUHVV

WKH35$WHFKQLFDODGHTXDF\UHTXLUHPHQWVQRWFRQVLGHUHGLQWKH><($5@SHHUUHYLHZ

7KH,QWHUQDO(YHQWV35$WHFKQLFDODGHTXDF\ LQFOXGLQJWKH><($5@SHHUUHYLHZDQGVHOI

DVVHVVPHQWUHVXOWV KDVSUHYLRXVO\EHHQUHYLHZHGE\WKH15&LQSUHYLRXVUHTXHVWVWR

>GHVFULEHDSSOLFDWLRQ@ 5HIHUHQFH;; $Q\35$XSJUDGHVDVGHILQHGE\WKH$60(35$

6WDQGDUG5$6D 5HIHUHQFH VLQFHWKLVUHYLHZKDYHEHHQUHYLHZHGE\D

IRFXVHGVFRSHSHHUUHYLHZ251R35$XSJUDGHVDVGHILQHGE\WKH$60(35$

6WDQGDUG5$6D 5HIHUHQFH KDYHRFFXUUHGWRWKH,QWHUQDO(YHQWV35$PRGHO

VLQFHFRQGXFWRIWKH>3:52*RU%:52*@SHHUUHYLHZLQ><($5@

7KH)LUH35$PRGHOZDVVXEMHFWWRDVHOIDVVHVVPHQWDQGDIXOOVFRSHSHHUUHYLHZ

FRQGXFWHGLQ>0RQWK<HDU@'HVFULEHDQ\UHODWHGIRFXVHGVFRSHSHHUUHYLHZVVLQFHWKH

PRVWUHFHQWIXOOVFRSHSHHUUHYLHZ

7KH>2WKHU+D]DUG HJVHLVPLF @35$PRGHOZDVVXEMHFWWRDVHOIDVVHVVPHQWDQGD

IXOOVFRSHSHHUUHYLHZFRQGXFWHGLQ>0RQWK<HDU@7KH>2WKHU+D]DUG@35$3HHU

5HYLHZZDVFRQGXFWHGFRQVLVWHQWZLWK1(,5HYLVLRQ³([WHUQDO+D]DUGV35$

3HHU5HYLHZ3URFHVV*XLGHOLQHV' 5HIHUHQFH DQGDGGUHVVHGDOO15&FRPPHQWV

GRFXPHQWHGLQWKHDVVRFLDWHG15&/HWWHU0/$ 5HIHUHQFH 'HVFULEHDQ\



(QFORVXUH

>/HWWHU5HIHUHQFH1XPEHU@

UHODWHGIRFXVHGVFRSHSHHUUHYLHZVVLQFHWKHPRVWUHFHQWIXOOVFRSHSHHUUHYLHZ$

VLPLODUSDUDJUDSKVKRXOGEHUHSHDWHGIRUHDFKH[WHUQDOKD]DUGPRGHOHG

$ILQGLQJFORVXUHUHYLHZZDVFRQGXFWHGRQWKHLGHQWLILHG35$PRGHOVRQ>'DWH V @

&ORVHGILQGLQJVZHUHUHYLHZHGDQGFORVHGXVLQJWKHSURFHVVGRFXPHQWHGLQ$SSHQGL[;

WR1(,1(,DQG1(,³&ORVHRXWRI)DFWVDQG2EVHUYDWLRQV' ) 2V 

5HIHUHQFH DVDFFHSWHGE\15&LQWKHOHWWHUGDWHG0D\ 0/$ 

5HIHUHQFH 7KHUHVXOWVRIWKLVUHYLHZKDYHEHHQGRFXPHQWHGDQGDUHDYDLODEOHIRU

15&DXGLW

$WWDFKPHQW;SURYLGHVDVXPPDU\RIWKHUHPDLQLQJILQGLQJVDQGRSHQLWHPVLQFOXGLQJ

x 2SHQLWHPVDQGGLVSRVLWLRQIURPWKH>3/$171$0(@5*VHOIDVVHVVPHQW

x 2SHQILQGLQJVDQGGLVSRVLWLRQRIWKH>3/$171$0(@SHHUUHYLHZV7KLVDOVR

LQFOXGHVWKRVHRSHQSHHUUHYLHZILQGLQJVWKDWDUHUHTXHVWHGWKH15&UHYLHZIRU

FORVXUHDVSDUWRIWKLV/$5

x ,GHQWLILFDWLRQRIDQGEDVLVIRUDQ\VHQVLWLYLW\DQDO\VLVQHHGHGWRDGGUHVVRSHQ

ILQGLQJV

7KHDWWDFKPHQW>V@LGHQWLILHGDERYHGHPRQVWUDWHWKDWWKH35$LVRIVXIILFLHQWTXDOLW\DQG

OHYHORIGHWDLOWRVXSSRUWWKHFDWHJRUL]DWLRQSURFHVVDQGKDVEHHQVXEMHFWHGWRDSHHU

UHYLHZSURFHVVDVVHVVHGDJDLQVWDVWDQGDUGRUVHWRIDFFHSWDQFHFULWHULDWKDWLV

HQGRUVHGE\WKH15&DVUHTXLUHG&)5 F  L 



(QFORVXUH

>/HWWHU5HIHUHQFH1XPEHU@

 5,6.(9$/8$7,216 &)5  E  LY 

7KH>3/$171$0(@&)5FDWHJRUL]DWLRQSURFHVVZLOOLPSOHPHQWWKHJXLGDQFHLQ

1(,7KHRYHUDOOULVNHYDOXDWLRQSURFHVVGHVFULEHGLQWKH1(,JXLGDQFHDGGUHVVHV

ERWKNQRZQGHJUDGDWLRQPHFKDQLVPVDQGFRPPRQFDXVHLQWHUDFWLRQVDQGPHHWVWKH

UHTXLUHPHQWVRI E  LY 6HQVLWLYLW\VWXGLHVGHVFULEHGLQ1(,6HFWLRQ

ZLOOEHXVHGWRFRQILUPWKDWWKHFDWHJRUL]DWLRQSURFHVVUHVXOWVLQDFFHSWDEO\VPDOO

LQFUHDVHVWRFRUHGDPDJHIUHTXHQF\ &') DQGODUJHHDUO\UHOHDVHIUHTXHQF\ /(5) 

7KHIDLOXUHUDWHVIRUHTXLSPHQWDQGLQLWLDWLQJHYHQWIUHTXHQFLHVXVHGLQWKH35$LQFOXGH

WKHTXDQWLILDEOHLPSDFWVIURPNQRZQGHJUDGDWLRQPHFKDQLVPVDVZHOODVRWKHU

PHFKDQLVPV HJGHVLJQHUURUVPDQXIDFWXULQJGHILFLHQFLHVDQGKXPDQHUURUV 

6XEVHTXHQWSHUIRUPDQFHPRQLWRULQJDQG35$XSGDWHVUHTXLUHGE\WKHUXOHZLOOFRQWLQXH

WRFDSWXUHWKLVGDWDDQGSURYLGHWLPHO\LQVLJKWVLQWRWKHQHHGWRDFFRXQWIRUDQ\

LPSRUWDQWQHZGHJUDGDWLRQPHFKDQLVPV

 



(QFORVXUH

>/HWWHU5HIHUHQFH1XPEHU@

 5(*8/$725<(9$/8$7,21

 $33/,&$%/(5(*8/$725<5(48,5(0(176&5,7(5,$

7KHIROORZLQJ15&UHTXLUHPHQWVDQGJXLGDQFHGRFXPHQWVDUHDSSOLFDEOHWRWKH

SURSRVHGFKDQJH

x 7KHUHJXODWLRQVLQ7LWOHRIWKH&RGHRI)HGHUDO5HJXODWLRQV &)5 3DUW

5LVN,QIRUPHG&DWHJRUL]DWLRQDQG7UHDWPHQWRI6WUXFWXUHV6\VWHPVDQG

&RPSRQHQWVIRU1XFOHDU3RZHU5HDFWRUV

x 15&5HJXODWRU\*XLGH*XLGHOLQHVIRU&DWHJRUL]LQJ6WUXFWXUHV6\VWHPV

DQG&RPSRQHQWVLQ1XFOHDU3RZHU3ODQWV$FFRUGLQJWRWKHLU6DIHW\6LJQLILFDQFH'

5HYLVLRQ0D\

x 5HJXODWRU\*XLGH³$Q$SSURDFKIRU8VLQJ3UREDELOLVWLF5LVN$VVHVVPHQWLQ

5LVN,QIRUPHG'HFLVLRQVRQ3ODQW6SHFLILF&KDQJHVWRWKH/LFHQVLQJ%DVLV'

5HYLVLRQ$SULO

x 5HJXODWRU\*XLGH³$Q$SSURDFKIRU'HWHUPLQLQJWKH7HFKQLFDO$GHTXDF\

RI3UREDELOLVWLF5LVN$VVHVVPHQW5HVXOWVIRU5LVN,QIRUPHG$FWLYLWLHV'5HYLVLRQ

0DUFK

7KHSURSRVHGFKDQJHLVFRQVLVWHQWZLWKWKHDSSOLFDEOHUHJXODWLRQVDQGUHJXODWRU\

JXLGDQFH

 126,*1,),&$17+$=$5'6&216,'(5$7,21$1$/<6,6

>/,&(16((@SURSRVHVWRPRGLI\WKHOLFHQVLQJEDVLVWRDOORZIRUWKHYROXQWDU\

LPSOHPHQWDWLRQRIWKHSURYLVLRQVRI7LWOHRIWKH&RGHRI)HGHUDO5HJXODWLRQV 

&)5 3DUW³5LVN,QIRUPHG&DWHJRUL]DWLRQDQG7UHDWPHQWRI6WUXFWXUHV6\VWHPV

DQG&RPSRQHQWVIRU1XFOHDU3RZHU5HDFWRUV'7KHSURYLVLRQVRI&)5DOORZ

DGMXVWPHQWRIWKHVFRSHRIHTXLSPHQWVXEMHFWWRVSHFLDOWUHDWPHQWFRQWUROV HJ

TXDOLW\DVVXUDQFHWHVWLQJLQVSHFWLRQFRQGLWLRQPRQLWRULQJDVVHVVPHQWDQG

HYDOXDWLRQ )RUHTXLSPHQWGHWHUPLQHGWREHRIORZVDIHW\VLJQLILFDQFHDOWHUQDWLYH

WUHDWPHQWUHTXLUHPHQWVFDQEHLPSOHPHQWHGLQDFFRUGDQFHZLWKWKLVUHJXODWLRQ)RU

HTXLSPHQWGHWHUPLQHGWREHRIKLJKVDIHW\VLJQLILFDQFHUHTXLUHPHQWVZLOOQRWEH

FKDQJHGRUZLOOEHHQKDQFHG7KLVDOORZVLPSURYHGIRFXVRQHTXLSPHQWWKDWKDVVDIHW\

VLJQLILFDQFHUHVXOWLQJLQLPSURYHGSODQWVDIHW\

>/,&(16((@KDVHYDOXDWHGZKHWKHURUQRWDVLJQLILFDQWKD]DUGVFRQVLGHUDWLRQLV

LQYROYHGZLWKWKHSURSRVHGDPHQGPHQW V E\IRFXVLQJRQWKHWKUHHVWDQGDUGVVHWIRUWK

LQ&)5,VVXDQFHRIDPHQGPHQWDVGLVFXVVHGEHORZ



 'RHVWKHSURSRVHGFKDQJHLQYROYHDVLJQLILFDQWLQFUHDVHLQWKHSUREDELOLW\RU

FRQVHTXHQFHVRIDQDFFLGHQWSUHYLRXVO\HYDOXDWHG"





(QFORVXUH

>/HWWHU5HIHUHQFH1XPEHU@

5HVSRQVH1R

7KHSURSRVHGFKDQJHZLOOSHUPLWWKHXVHRIDULVNLQIRUPHGFDWHJRUL]DWLRQ

SURFHVVWRPRGLI\WKHVFRSHRI6WUXFWXUHV6\VWHPVDQG&RPSRQHQWV 66&V 

VXEMHFWWR15&VSHFLDOWUHDWPHQWUHTXLUHPHQWVDQGWRLPSOHPHQWDOWHUQDWLYH

WUHDWPHQWVSHUWKHUHJXODWLRQV7KHSURFHVVXVHGWRHYDOXDWH66&VIRUFKDQJHV

WR15&VSHFLDOWUHDWPHQWUHTXLUHPHQWVDQGWKHXVHRIDOWHUQDWLYHUHTXLUHPHQWV

HQVXUHVWKHDELOLW\RIWKH66&VWRSHUIRUPWKHLUGHVLJQIXQFWLRQ7KHSRWHQWLDO

FKDQJHWRVSHFLDOWUHDWPHQWUHTXLUHPHQWVGRHVQRWFKDQJHWKHGHVLJQDQG

RSHUDWLRQRIWKH66&V$VDUHVXOWWKHSURSRVHGFKDQJHGRHVQRWVLJQLILFDQWO\

DIIHFWDQ\LQLWLDWRUVWRDFFLGHQWVSUHYLRXVO\HYDOXDWHGRUWKHDELOLW\WRPLWLJDWH

DQ\DFFLGHQWVSUHYLRXVO\HYDOXDWHG7KHFRQVHTXHQFHVRIWKHDFFLGHQWV

SUHYLRXVO\HYDOXDWHGDUHQRWDIIHFWHGEHFDXVHWKHPLWLJDWLRQIXQFWLRQV

SHUIRUPHGE\WKH66&VDVVXPHGLQWKHVDIHW\DQDO\VLVDUHQRWEHLQJPRGLILHG

7KH66&VUHTXLUHGWRVDIHO\VKXWGRZQWKHUHDFWRUDQGPDLQWDLQLWLQDVDIH

VKXWGRZQFRQGLWLRQIROORZLQJDQDFFLGHQWZLOOFRQWLQXHWRSHUIRUPWKHLUGHVLJQ

IXQFWLRQV



7KHUHIRUHWKHSURSRVHGFKDQJHGRHVQRWLQYROYHDVLJQLILFDQWLQFUHDVHLQWKH

SUREDELOLW\RUFRQVHTXHQFHVRIDQDFFLGHQWSUHYLRXVO\HYDOXDWHG



 'RHVWKHSURSRVHGFKDQJHFUHDWHWKHSRVVLELOLW\RIDQHZRUGLIIHUHQWNLQGRI

DFFLGHQWIURPDQ\DFFLGHQWSUHYLRXVO\HYDOXDWHG"



5HVSRQVH1R

7KHSURSRVHGFKDQJHZLOOSHUPLWWKHXVHRIDULVNLQIRUPHGFDWHJRUL]DWLRQ

SURFHVVWRPRGLI\WKHVFRSHRI66&VVXEMHFWWR15&VSHFLDOWUHDWPHQW

UHTXLUHPHQWVDQGWRLPSOHPHQWDOWHUQDWLYHWUHDWPHQWVSHUWKHUHJXODWLRQV7KH

SURSRVHGFKDQJHGRHVQRWFKDQJHWKHIXQFWLRQDOUHTXLUHPHQWVFRQILJXUDWLRQRU

PHWKRGRIRSHUDWLRQRIDQ\66&8QGHUWKHSURSRVHGFKDQJHQRDGGLWLRQDO

SODQWHTXLSPHQWZLOOEHLQVWDOOHG

7KHUHIRUHWKHSURSRVHGFKDQJHGRHVQRWFUHDWHWKHSRVVLELOLW\RIDQHZRU

GLIIHUHQWNLQGRIDFFLGHQWIURPDQ\DFFLGHQWSUHYLRXVO\HYDOXDWHG



 'RHVWKHSURSRVHGFKDQJHLQYROYHDVLJQLILFDQWUHGXFWLRQLQDPDUJLQRIVDIHW\"



5HVSRQVH1R

7KHSURSRVHGFKDQJHZLOOSHUPLWWKHXVHRIDULVNLQIRUPHGFDWHJRUL]DWLRQ

SURFHVVWRPRGLI\WKHVFRSHRI66&VVXEMHFWWR15&VSHFLDOWUHDWPHQW

UHTXLUHPHQWVDQGWRLPSOHPHQWDOWHUQDWLYHWUHDWPHQWVSHUWKHUHJXODWLRQV7KH

SURSRVHGFKDQJHGRHVQRWDIIHFWDQ\6DIHW\/LPLWVRURSHUDWLQJSDUDPHWHUV

XVHGWRHVWDEOLVKWKHVDIHW\PDUJLQ7KHVDIHW\PDUJLQVLQFOXGHGLQDQDO\VHVRI

DFFLGHQWVDUHQRWDIIHFWHGE\WKHSURSRVHGFKDQJH7KHUHJXODWLRQUHTXLUHV



(QFORVXUH

>/HWWHU5HIHUHQFH1XPEHU@

WKDWWKHUHEHQRVLJQLILFDQWHIIHFWRQSODQWULVNGXHWRDQ\FKDQJHWRWKHVSHFLDO

WUHDWPHQWUHTXLUHPHQWVIRU66&VDQGWKDWWKH66&VFRQWLQXHWREHFDSDEOHRI

SHUIRUPLQJWKHLUGHVLJQEDVLVIXQFWLRQVDVZHOODVWRSHUIRUPDQ\EH\RQG

GHVLJQEDVLVIXQFWLRQVFRQVLVWHQWZLWKWKHFDWHJRUL]DWLRQSURFHVVDQGUHVXOWV

7KHUHIRUHWKHSURSRVHGFKDQJHGRHVQRWLQYROYHDVLJQLILFDQWUHGXFWLRQLQD

PDUJLQRIVDIHW\

%DVHGRQWKHDERYH>/,&(16((@FRQFOXGHVWKDWWKHSURSRVHGFKDQJHSUHVHQWVQR

VLJQLILFDQWKD]DUGVFRQVLGHUDWLRQXQGHUWKHVWDQGDUGVVHWIRUWKLQ&)5 F 

DQGDFFRUGLQJO\DILQGLQJRIQRVLJQLILFDQWKD]DUGVFRQVLGHUDWLRQLVMXVWLILHG

 &21&/86,216

,QFRQFOXVLRQEDVHGRQWKHFRQVLGHUDWLRQVGLVFXVVHGDERYH  WKHUHLVUHDVRQDEOH

DVVXUDQFHWKDWWKHKHDOWKDQGVDIHW\RIWKHSXEOLFZLOOQRWEHHQGDQJHUHGE\

RSHUDWLRQLQWKHSURSRVHGPDQQHU  VXFKDFWLYLWLHVZLOOEHFRQGXFWHGLQ

FRPSOLDQFHZLWKWKH&RPPLVVLRQ¶VUHJXODWLRQVDQG  WKHLVVXDQFHRIWKH

DPHQGPHQWZLOOQRWEHLQLPLFDOWRWKHFRPPRQGHIHQVHDQGVHFXULW\RUWRWKH

KHDOWKDQGVDIHW\RIWKHSXEOLF





 



(QFORVXUH

>/HWWHU5HIHUHQFH1XPEHU@

 (19,5210(17$/&216,'(5$7,21

$UHYLHZKDVGHWHUPLQHGWKDWWKHSURSRVHGDPHQGPHQWZRXOGFKDQJHDUHTXLUHPHQW

ZLWKUHVSHFWWRLQVWDOODWLRQRUXVHRIDIDFLOLW\FRPSRQHQWORFDWHGZLWKLQWKHUHVWULFWHG

DUHDDVGHILQHGLQ&)5RUZRXOGFKDQJHDQLQVSHFWLRQRUVXUYHLOODQFH

UHTXLUHPHQW+RZHYHUWKHSURSRVHGDPHQGPHQWGRHVQRWLQYROYH L DVLJQLILFDQW

KD]DUGVFRQVLGHUDWLRQ LL DVLJQLILFDQWFKDQJHLQWKHW\SHVRUDVLJQLILFDQWLQFUHDVHLQ

WKHDPRXQWVRIDQ\HIIOXHQWVWKDWPD\EHUHOHDVHGRIIVLWHRU LLL DVLJQLILFDQWLQFUHDVH

LQLQGLYLGXDORUFXPXODWLYHRFFXSDWLRQDOUDGLDWLRQH[SRVXUH$FFRUGLQJO\WKHSURSRVHG

DPHQGPHQWPHHWVWKHHOLJLELOLW\FULWHULRQIRUFDWHJRULFDOH[FOXVLRQVHWIRUWKLQ&)5

 F  7KHUHIRUHSXUVXDQWWR&)5 E QRHQYLURQPHQWDOLPSDFW

VWDWHPHQWRUHQYLURQPHQWDODVVHVVPHQWQHHGEHSUHSDUHGLQFRQQHFWLRQZLWKWKH

SURSRVHGDPHQGPHQW

 



(QFORVXUH

>/HWWHU5HIHUHQFH1XPEHU@

 5()(5(1&(6

1RWHWKDWUHIHUHQFHVPD\QHHGWREHUHQXPEHUHGEDVHGRQRSWLRQDODQGVLWHVSHFLILF

WH[WXVHG

 1(,³&)566&&DWHJRUL]DWLRQ*XLGHOLQH5HYLVLRQ1XFOHDU

(QHUJ\,QVWLWXWH-XO\

 15&5HJXODWRU\*XLGH³*XLGHOLQHVIRU&DWHJRUL]LQJ6WUXFWXUHV6\VWHPVDQG

&RPSRQHQWVLQ1XFOHDU3RZHU3ODQWV$FFRUGLQJWRWKHLU6DIHW\6LJQLILFDQFH'

5HYLVLRQ0D\

 180$5&³*XLGHOLQHVIRU,QGXVWU\$FWLRQVWR$VVHVV6KXWGRZQ

0DQDJHPHQW''HFHPEHU

 (35,755HYLVHG5LVN,QIRUPHG,QVHUYLFH,QVSHFWLRQ(YDOXDWLRQ

3URFHGXUH)LQDO5HSRUW'5HYLVLRQ%$-DQXDU\

 $126(5$UNDQVDV1XFOHDU2QH8QLW$SSURYDORI5HTXHVWIRU$OWHUQDWLYH$1

5 55HYLVLRQ5HTXHVWWR8VH5LVN,QIRUPHG6DIHW\&ODVVLILFDWLRQDQG

7UHDWPHQWIRU5HSDLU5HSODFHPHQW$FWLYLWLHVLQ&ODVVDQG0RGHUDWHDQG+LJK

(QHUJ\6\VWHPV 7$&120'  0/ $SULO

 *HQHULF/HWWHU³,QGLYLGXDO3ODQW([DPLQDWLRQRI([WHUQDO(YHQWV ,3((( IRU

6HYHUH$FFLGHQW9XOQHUDELOLWLHV&)5 I 6XSSOHPHQW'8615&-XQH



 5HJXODWRU\*XLGH³$Q$SSURDFKIRU'HWHUPLQLQJWKH7HFKQLFDO$GHTXDF\RI

3UREDELOLVWLF5LVN$VVHVVPHQW5HVXOWVIRU5LVN,QIRUPHG$FWLYLWLHV'5HYLVLRQ

0DUFK

 185(**XLGDQFHRQWKH7UHDWPHQWRI8QFHUWDLQWLHV$VVRFLDWHGZLWK35$VLQ

5LVN,QIRUPHG'HFLVLRQ0DNLQJ0DUFK

 (35,757UHDWPHQWRI3DUDPHWHUDQG0RGHO8QFHUWDLQW\IRU3UREDELOLVWLF

5LVN$VVHVVPHQWV'HFHPEHU

 $60($165$6D6WDQGDUGIRU/HYHOO/DUJH(DUO\5HOHDVH)UHTXHQF\

3UREDELOLVWLF5LVN$VVHVVPHQWIRU1XFOHDU3RZHU3ODQW$SSOLFDWLRQV$GGHQGXP$WR

5$6$60(1HZ<RUN1<$PHULFDQ1XFOHDU6RFLHW\/D*UDQJH3DUN

,OOLQRLVGDWHG)HEUXDU\

 1(,/HWWHUWR15&³)LQDO5HYLVLRQRI$SSHQGL[;WR1(,&ORVH

2XWRI)DFWVDQG2EVHUYDWLRQV ) 2V ')HEUXDU\$FFHVVLRQ1XPEHU

0/$

 15&/HWWHUWR0U*UHJ.UXHJHU 1(, ³861XFOHDU5HJXODWRU\&RPPLVVLRQ

$FFHSWDQFHRQ1XFOHDU(QHUJ\,QVWLWXWH$SSHQGL[;WR*XLGDQFHDQG

&ORVH2XWRI)DFWVDQG2EVHUYDWLRQV ) 2V '0D\$FFHVVLRQ

1XPEHU0/$



(QFORVXUH

>/HWWHU5HIHUHQFH1XPEHU@

 15&/HWWHUWR0U2OLYHU0DUWLQH]³861XFOHDU5HJXODWRU\&RPPLVVLRQ 15& 

&RPPHQWVRQµ$GGHQGDWRD&XUUHQW$%6$60(5$6%;;6WDQGDUGIRU/HYHO

/DUHJH(DUO\5HOHDVH)UHTXHQF\3UREDELOLVLWLF5LVN$VVHVVPHQW)RU1XFOHDU3RZHU

3ODQW$SSOLFDWLRQV'

 1(,³([WHUQDO+D]DUGV35$3HHU5HYLHZ3URFHVV*XLGHOLQHV5HYLVLRQ

1XFOHDU(QHUJ\,QVWLWXWH$XJXVW

 15&/HWWHUWR0U%LII%UDGOH\ 1(, ³861XFOHDU5HJXODWRU\&RPPLVVLRQ

&RPPHQWVRQ1XFOHDU(QHUJ\,QVWLWXWHµ([WHUQDO+D]DUGV35$3HHU5HYLHZ

3URFHVV*XLGHOLQHV¶'DWHG$XJXVW'1RYHPEHU$FFHVVLRQ1XPEHU

0/$

 $GGDQ\UHIHUHQFHVWR15&UHYLHZRISODQWVSHFLILF),9(60$RU,3(((VFUHHQLQJ

IRU6HFWLRQ

 $GGDQ\RSWLRQDOUHIHUHQFHVRQSUHYLRXVO\DSSURYHGDSSOLFDWLRQVZLWK15&UHYLHZ

RI35$PRGHOVIRU6HFWLRQ



(QFORVXUH

>/HWWHU5HIHUHQFH1XPEHU@

>ŽŽŽW



/LFHQVLQJ1RWH7KHQHHGIRUD/LFHQVH&RQGLWLRQDQGRUUHJXODWRU\FRPPLWPHQWV

VKRXOGEHUHYLHZHGE\WKH/LFHQVLQJ'HSDUWPHQW,QJHQHUDOSODQWVVKRXOGLGHQWLI\

WKHQHHGIRUSODQWPRGLILFDWLRQVWRPHHWWKH&')DQG/(5)ULVNYDOXHVLQ5*DV

D/LFHQVH&RQGLWLRQDQGWKHQHHGIRUVLWHSURFHGXUHVWRDGGUHVVWKHLWHPVOLVWHG

EHORZDVDQ15&&RPPLWPHQW+RZHYHUWKHILQDOGHFLVLRQLVOHIWWRHDFKLQGLYLGXDO

SODQW

7KH35$PRGHOWREHXVHGIRUFDWHJRUL]DWLRQFUHGLWVWKHIROORZLQJPRGLILFDWLRQVWR

DFKLHYHDQRYHUDOO&RUH'DPDJH)UHTXHQF\ &') DQG/DUJH(DUO\5HOHDVH

)UHTXHQF\ /(5) FRQVLVWHQWZLWK15&5HJXODWRU\*XLGHULVNOLPLWV8VHRI

WKHFDWHJRUL]DWLRQSURFHVVRQDSODQWV\VWHPZLOORQO\RFFXUDIWHUWKHPRGLILFDWLRQV

DUHFRPSOHWHG

 >'HVFULEHPRGLILFDWLRQ@

 ,QVWDOOIXVHVLQQRQFODVV'&PRWRUFLUFXLWVWRSUHYHQWVHFRQGDU\ILUHVGXHWR

PXOWLSOHILUHLQGXFHGIDXOWV7KLVPRGLILFDWLRQLVFRPSOHWHLQ8QLWDQGLV

VFKHGXOHGWREHLPSOHPHQWHGLQ8QLWLQWKHIDOOUHIXHOLQJRXWDJHDQG

8QLWLQWKHVSULQJUHIXHOLQJRXWDJH

>/,&(16((@ZLOOHVWDEOLVKSURFHGXUH V SULRUWRWKHXVHRIWKHFDWHJRUL]DWLRQSURFHVV

RQDSODQWV\VWHP7KHSURFHGXUH V ZLOOFRQWDLQWKHHOHPHQWVVWHSVOLVWHGEHORZ

x ,QWHJUDWHG'HFLVLRQ0DNLQJ3DQHO ,'3 PHPEHUTXDOLILFDWLRQUHTXLUHPHQWV

x 4XDOLWDWLYHDVVHVVPHQWRIV\VWHPIXQFWLRQV6\VWHPIXQFWLRQVDUHTXDOLWDWLYHO\

FDWHJRUL]HGDVSUHOLPLQDU\+LJK6DIHW\6LJQILFDQW +66 RU/RZ6DIHW\

6LJQLILFDQW /66 EDVHGRQWKHVHYHQFULWHULDLQ6HFWLRQRI1(, VHH

6HFWLRQ $Q\FRPSRQHQWVXSSRUWLQJDQ+66IXQFWLRQLVFDWHJRUL]HGDV

SUHOLPLQDU\+66&RPSRQHQWVVXSSRUWLQJDQ/66IXQFWLRQDUHFDWHJRUL]HGDV

SUHOLPLQDU\/66

x &RPSRQHQWVDIHW\VLJQLILFDQFHDVVHVVPHQW6DIHW\VLJQLILFDQFHRIDFWLYH

FRPSRQHQWVLVDVVHVVHGWKURXJKDFRPELQDWLRQRI3UREDELOLVWLF5LVN

$VVHVVPHQW 35$ DQGQRQ35$PHWKRGVFRYHULQJDOOKD]DUGV6DIHW\

VLJQLILFDQFHRISDVVLYHFRPSRQHQWVLVDVVHVVHGXVLQJDPHWKRGRORJ\IRU

SDVVLYHFRPSRQHQWV

x $VVHVVPHQWRIGHIHQVHLQGHSWK ',' DQGVDIHW\PDUJLQ6DIHW\UHODWHG

FRPSRQHQWVWKDWDUHFDWHJRUL]HGDVSUHOLPLQDU\/66DUHHYDOXDWHGIRUWKHLU 'HOHWHG&

UROHLQSURYLGLQJ','DQGVDIHW\PDUJLQDQGLIDSSURSULDWHXSJUDGHGWR+66

x 5HYLHZE\WKH,'37KHFDWHJRUL]DWLRQUHVXOWVDUHSUHVHQWHGWRWKHO'3IRU

UHYLHZDQGDSSURYDO7KHO'3UHYLHZVWKHFDWHJRUL]DWLRQUHVXOWVDQGPDNHV



(QFORVXUH

>/HWWHU5HIHUHQFH1XPEHU@

WKHILQDOGHWHUPLQDWLRQRQWKHVDIHW\VLJQLILFDQFHRIV\VWHPIXQFWLRQVDQG

FRPSRQHQWV

x 5LVNVHQVLWLYLW\VWXG\)RU35$PRGHOHGFRPSRQHQWVDQRYHUDOOULVNVHQVLWLYLW\

VWXG\LVXVHGWRFRQILUPWKDWWKHSRSXODWLRQRISUHOLPLQDU\/66FRPSRQHQWV

UHVXOWVLQDFFHSWDEO\VPDOOLQFUHDVHVWRFRUHGDPDJHIUHTXHQF\ &') DQG

ODUJHHDUO\UHOHDVHIUHTXHQF\ /(5) DQGPHHWVWKHDFFHSWDQFHJXLGHOLQHVRI

5HJXODWRU\*XLGH

x 3HULRGLFUHYLHZVDUHSHUIRUPHGWRHQVXUHFRQWLQXHGFDWHJRUL]DWLRQYDOLGLW\

DQGDFFHSWDEOHSHUIRUPDQFHIRUWKRVH66&VWKDWKDYHEHHQFDWHJRUL]HG

x 'RFXPHQWDWLRQUHTXLUHPHQWVSHU6HFWLRQRIWKHHQFORVXUH 



(QFORVXUH

>/HWWHU5HIHUHQFH1XPEHU@

ŽŽWZDŽhŽŽ



8QLWV 0RGHO %DVHOLQH&') %DVHOLQH/(5) &RPPHQWV

>DSSOLFDEOH

SULRUDSSURYDOV@

/DUJH(DUO\

>UHIHUHQFHUHYLHZ &RUH'DPDJH 

 5HOHDVH

GDWH@ )UHTXHQF\ >RQHPRGHO

)UHTXHQF\

DSSOLFDEOHWRDOO

XQLWV@

%%)GDWHG 15&UHYLHZHG

2FWREHU PRGHOIRUULVN

 LQIRUPHG

 ( (

3HHU5HYLHZHG FRPSOHWLRQ

$JDLQVW5*5 WLPHV

RQ-XQH 0/;;;;;;;; 

%%)GDWHG 15&UHYLHZHG

2FWREHU PRGHOIRUULVN

 LQIRUPHG

 ( (

3HHU5HYLHZHG FRPSOHWLRQ

$JDLQVW5*5 WLPHV

RQ-XQH 0/;;;;;;;; 















(QFORVXUH

>/HWWHU5HIHUHQFH1XPEHU@



ŽŽZŽŽŽKWZ&^K/

&DSDELOLW\

)LQGLQJ 6XSSRUWLQJ 'LVSRVLWLRQIRU>$QG

&DWHJRU\ 'HVFULSWLRQ

1XPEHU 5HTXLUHPHQW V  IRU2WKHU$SSOLFDWLRQV@

&& 

3URYLGH $60($16 &DSDELOLW\ :ULWHXSRIILQGLQJIURPSHHUUHYLHZ ,GHQWLI\ZKHWKHUWKHILQGLQJZDV

LGHQWLILHU ,GHQWLILHU &DWHJRU\ UHSRUW UHVROYHG5HTXHVW15&¶VUHYLHZ

IURP3HHU LGHQWLILHGLQ IRUFORVXUHLIQHHGHG3URYLGHD

5HYLHZ SHHUUHYLHZ GHVFULSWLRQRIWKHGLVSRVLWLRQRI

5HSRUW UHSRUW WKHILQGLQJ6WDWHWKDWWKLV

 GLVSRVLWLRQRUFORVXUHLV

,IPXOWLSOH DSSURSULDWHIRUDOOLGHQWLILHG

PRGHOVDUH DSSOLFDWLRQVRUVSHFLI\ZKLFK

EHLQJXVHG DSSOLFDWLRQV

LGHQWLI\

ZKLFK

PRGHOWKH

ILQGLQJ

DSSOLHVWR 



+5* +5* &&,,,,,, &KHFNRIFRQVLVWHQF\DQGUHYLHZIRU 7KLV) 2ZDVUHVROYHG,WLV

UHDVRQDEOHQHVVLVPLVVLQJLQWKH5HYLVLRQ UHTXHVWHGWKDW15&UHYLHZWKH

1RW0HW XSGDWHG+5$GUDIWDQGWKHSULRU UHVROXWLRQRIWKLVILQGLQJIRU

UHYLVLRQGRFXPHQWLQIRUPDWLRQUHODWHGWR FORVXUHDJDLQVWWKHEDVHPRGHO

WKHVHLWHPVLVQRWDSSURSULDWHWRXVHLQ

OLJKWRIWKHXSGDWHVSHUIRUPHGDQG $OO+5$VZHUHUHYLHZHGDQG

FKDQJHVWRWKHUHVXOWV6HFWLRQLQFOXGHV ZHUHHLWKHUGHWHUPLQHGWREH

DWDEOHRIKXPDQIDLOXUHHYHQWV +)(V  UHDVRQDEOHRUKDYHEHHQ

DQGKXPDQHUURUSUREDELOLWLHV +(3V EXW UHYLVHG7KLVUHYLHZLV

GRHVQRWLQFOXGH+(3UHDVRQDEOHQHVV GRFXPHQWHGLQ6HFWLRQRI

FKHFNDVLVGRFXPHQWHGLQ6HFWLRQRI WKHLQWHUQDOHYHQWV35$

WKH1RYHPEHU+5$XSGDWHIRU FDOFXODWLRQ 5HIHUHQFH; 

5HYLVLRQ



(QFORVXUH

>/HWWHU5HIHUHQFH1XPEHU@

&DSDELOLW\

)LQGLQJ 6XSSRUWLQJ 'LVSRVLWLRQIRU>$QG

&DWHJRU\ 'HVFULSWLRQ

1XPEHU 5HTXLUHPHQW V  IRU2WKHU$SSOLFDWLRQV@

&& 

&6& &6& &&,,,,,, $VXPPDU\RIWKHILUH]RQHQRPHQFODWXUH 7KLV) 2UHIHUVWRD

0(7 HJXVHGLQFDEOHURXWLQJ DQGWDEOH GRFXPHQWDWLRQHQKDQFHPHQW

DVVRFLDWLQJILUH]RQHVZLWKSK\VLFDO 7KHUHVROXWLRQRIWKLV) 2KDV

 DQDO\VLVXQLWVDQGUHIHUULQJWRDSSURSULDWH QRLPSDFWRQDQ\WHFKQLFDO

SODQWGUDZLQJVDQGVLWHPDSVZRXOG HOHPHQWRIWKHDQDO\VLV

VLPSOLI\UHYLHZ,QIRUPDWLRQLVDYDLODEOH

EXWVFDWWHUHGFRPSOLFDWLQJUHYLHZ

&RQGHQVHWKHLQIRUPDWLRQIURPWKH)6$5

&KDSWHU$ )LUH+D]DUGV$QDO\VLV LQWRD

WDEOH$GGQRPHQFODWXUHGHVFULSWLRQDQG

DSSURSULDWHSODQWGUDZLQJVDQGVLWH

PDSV

$OWHUQDWHDOLJQPHQWUXQVZHUH

SHUIRUPHGWRLGHQWLI\LI

XQFHUWDLQW\RUULVNLQVLJKWV

ZRXOGEHDIIHFWHGDVDUHVXOWRI

DQDVVXPHGDOLJQPHQW7KLV

LQFOXGHGDUHYLHZRIWKH)9DQG

$V\PPHWU\DQDO\VLVZDVQRWSHUIRUPHGLQ 5$:LPSRUWDQFHPHDVXUHVWKDW

&&,,,,,,

WKHTXDQWLILFDWLRQDQDO\VLV,QVLJKWVIURP ZLOOEHXVHGIRUWKH

48) 48)

DOWHUQDWHDOLJQPHQWVPD\QRWEH FDWHJRUL]DWLRQRI66&V,WZDV

1RW0HW

DGHTXDWHO\FDWHJRUL]HGRULGHQWLILHG GHWHUPLQHGWKDWDOWHUQDWH

DOLJQPHQWVZRXOGQRLPSDFWWKH

FDWHJRUL]DWLRQRIDQ\66&V

$WWDFKPHQWSURYLGHVPRUH

GHWDLOVRIWKHDOWHUQDWH

DOLJQPHQWDQGVHQVLWLYLW\FDVHV

WKDWZHUHSHUIRUPHG



(QFORVXUH

>/HWWHU5HIHUHQFH1XPEHU@



,^

6FUHHQLQJ5HVXOW

([WHUQDO+D]DUG

6FUHHQLQJ

6FUHHQHG"

&ULWHULRQ &RPPHQW

<1 

1RWHD 

$LUSRUWKD]DUGPHHWV653

36

UHTXLUHPHQWV$GGLWLRQDOO\DLUZD\V

$LUFUDIW,PSDFW <

KD]DUGERXQGLQJDQDO\VLVSHU185(*

36

LV(\

1RWDSSOLFDEOHWRWKHVLWHEHFDXVHRI

$YDODQFKH < &

FOLPDWHDQGWRSRJUDSK\

6XGGHQLQIOX[HVQRWDSSOLFDEOHWRWKH

SODQWGHVLJQ FORVHGORRSV\VWHPVIRU

%LRORJLFDO(YHQW < && (&:6DQG&:6 6ORZO\GHYHORSLQJ

JURZWKFDQEHGHWHFWHGDQGPLWLJDWHGE\

VXUYHLOODQFH

1RWDSSOLFDEOHWRWKHVLWHEHFDXVHRI

&RDVWDO(URVLRQ < &

ORFDWLRQ

3ODQWGHVLJQHOLPLQDWHVGURXJKWDVD

'URXJKW < & FRQFHUQ,QDGGLWLRQWKLVHYHQWLVVORZO\

GHYHORSLQJ

3ODQWGHVLJQPHHWV653

([WHUQDO)ORRGLQJ < 36

UHTXLUHPHQWV

7KHSODQWGHVLJQEDVLVWRUQDGRKDVD

36

([WUHPH:LQGRU IUHTXHQF\(\7KHVSUD\SRQG

<

7RUQDGR QR))OHV QRWSURWHFWHGDJDLQVWPLVVLOHV 

36

KDYHDERXQGLQJPHGLDQULVN(\

/LPLWHGRFFXUUHQFHEHFDXVHRIDULG

)RJ < & FOLPDWHDQGQHJOLJLEOHLPSDFWRQWKH

SODQW

1RWDSSOLFDEOHWRWKHVLWHEHFDXVHRI

)RUHVWRU5DQJH)LUH < &

OLPLWHGYHJHWDWLRQ

/LPLWHGRFFXUUHQFHEHFDXVHRIDULG

)URVW < &

FOLPDWH



(QFORVXUH

>/HWWHU5HIHUHQFH1XPEHU@

6FUHHQLQJ5HVXOW

([WHUQDO+D]DUG

6FUHHQLQJ

6FUHHQHG"

&ULWHULRQ &RPPHQW

<1 

1RWHD 

/LPLWHGRFFXUUHQFHDQGERXQGHGE\

&

RWKHUHYHQWVIRUZKLFKWKHSODQWLV

+DLO <

GHVLJQHG)ORRGLQJLPSDFWVFRYHUHG

&

XQGHU,QWHQVH3UHFLSLWDWLRQ

3ODQWLVGHVLJQHGIRUWKLVKD]DUG

+LJK6XPPHU

< & $VVRFLDWHGSODQWWULSVKDYHQRWRFFXUUHG

7HPSHUDWXUH

DQGDUHQRWH[SHFWHG

+LJK7LGH/DNH/HYHO 1RWDSSOLFDEOHWRWKHVLWHEHFDXVHRI

< &

RU5LYHU6WDJH ORFDWLRQ

&RYHUHGXQGHU([WUHPH:LQGRU

+XUULFDQH < &

7RUQDGRDQG,QWHQVH3UHFLSLWDWLRQ

,FHEORFNDJHFDXVLQJIORRGLQJLVQRW

DSSOLFDEOHWRWKHVLWHEHFDXVHRIORFDWLRQ

&

QRQHDUE\ULYHUVDQGFOLPDWH

,FH&RYHU <

FRQGLWLRQV 3ODQWLVGHVLJQHGIRU

&

IUHH]LQJWHPSHUDWXUHVZKLFKDUH

LQIUHTXHQWDQGVKRUWLQGXUDWLRQ

([SORVLYHKD]DUGLPSDFWVDQGFRQWURO

,QGXVWULDORU0LOLWDU\

< 36 URRPKDELWDELOLW\LPSDFWVPHHWWKH

)DFLOLW\$FFLGHQW

653UHTXLUHPHQWV 5*VDQG 

35$VDGGUHVVLQJLQWHUQDOIORRGLQJKDYH

LQGLFDWHGWKLVKD]DUGW\SLFDOO\UHVXOWVLQ

&')V(\$OVRWKH$60($16

,QWHUQDO)ORRGLQJ 1 1RQH

35$6WDQGDUGUHTXLUHVDGHWDLOHG35$

IRUWKLVKD]DUGZKLFKLVDGGUHVVHGLQWKH

>3/$1781,7@,QWHUQDO)ORRGLQJ35$

35$VDGGUHVVLQJLQWHUQDOILUHKDYH

LQGLFDWHGWKLVKD]DUGW\SLFDOO\UHVXOWVLQ

&')V(\$OVRWKH$60($16

,QWHUQDO)LUH 1 1RQH

35$6WDQGDUGUHTXLUHVDGHWDLOHG35$

IRUWKLVKD]DUGZKLFKLVDGGUHVVHGLQWKH

>3/$1781,7@,QWHUQDO)LUH35$

1RWDSSOLFDEOHWRWKHVLWHEHFDXVHRI

/DQGVOLGH < &

WRSRJUDSK\



(QFORVXUH

>/HWWHU5HIHUHQFH1XPEHU@

6FUHHQLQJ5HVXOW

([WHUQDO+D]DUG

6FUHHQLQJ

6FUHHQHG"

&ULWHULRQ &RPPHQW

<1 

1RWHD 

/LJKWQLQJVWULNHVFDXVLQJORVVRIRIIVLWH

SRZHURUWXUELQHWULSDUHFRQWULEXWRUVWR

WKHLQLWLDWLQJHYHQWIUHTXHQFLHVIRUWKHVH

/LJKWQLQJ < & HYHQWV+RZHYHURWKHUFDXVHVDUHDOVR

LQFOXGHG7KHLPSDFWVDUHQRJUHDWHU

WKDQDOUHDG\PRGHOHGLQWKHLQWHUQDO

HYHQWV35$

/RZ/DNH/HYHORU 1RWDSSOLFDEOHWRWKHVLWHEHFDXVHRI

< &

5LYHU6WDJH ORFDWLRQ

([WHQGHGIUHH]LQJWHPSHUDWXUHVDUH

&

/RZ:LQWHU UDUHWKHSODQWLVGHVLJQHGIRUVXFK

<

7HPSHUDWXUH HYHQWVDQGWKHLULPSDFWVDUHVORZWR

&

GHYHORS

7KHIUHTXHQF\RIPHWHRULWHVJUHDWHUWKDQ

0HWHRULWHRU6DWHOOLWH OEVWULNLQJWKHSODQWLVDURXQG(\

< 36

,PSDFW DQGFRUUHVSRQGLQJVDWHOOLWHLPSDFWVLV

DURXQG(\

3LSHOLQHVDUHQRWFORVHHQRXJKWR

3LSHOLQH$FFLGHQW < &

VLJQLILFDQWO\LPSDFWSODQWVWUXFWXUHV

5HOHDVHRI&KHPLFDOV 3ODQWVWRUDJHRIFKHPLFDOVPHHWV

< 36

LQ2QVLWH6WRUDJH 653UHTXLUHPHQWV

1RWDSSOLFDEOHWRWKHVLWHEHFDXVHRI

5LYHU'LYHUVLRQ < &

ORFDWLRQ

7KHSODQWLVGHVLJQHGIRUVXFKHYHQWV

&

$OVRDSURFHGXUHLQVWUXFWVRSHUDWRUVWR

6DQGRU'XVW6WRUP <

UHSODFHILOWHUVEHIRUHWKH\EHFRPH

&

LQRSHUDEOH

& 1RWDSSOLFDEOHWRWKHVLWHEHFDXVHRI

6HLFKH < ORFDWLRQ2QVLWHUHVHUYRLUVDQGVSUD\

& SRQGVGHVLJQHGIRUVHLFKHV



(QFORVXUH

>/HWWHU5HIHUHQFH1XPEHU@

6FUHHQLQJ5HVXOW

([WHUQDO+D]DUG

6FUHHQLQJ

6FUHHQHG"

&ULWHULRQ &RPPHQW

<1 

1RWHD 

35$VDGGUHVVLQJVHLVPLFDFWLYLW\KDYH

LQGLFDWHGWKLVKD]DUGW\SLFDOO\UHVXOWVLQ

&')V(\$OVRWKH$60($16

6HLVPLF$FWLYLW\ 1 1RQH 35$6WDQGDUGUHTXLUHVDGHWDLOHG35$

RU6HLVPLF0DUJLQV$VVHVVPHQW 60$ 

IRUWKLVKD]DUGZKLFKLVDGGUHVVHGLQWKH

>3/$1781,7@6HLVPLF35$RU63&/

7KHHYHQWGDPDJHSRWHQWLDOLVOHVVWKDQ

&

RWKHUHYHQWVIRUZKLFKWKHSODQWLV

6QRZ <

GHVLJQHG3RWHQWLDOIORRGLQJLPSDFWV

&

FRYHUHGXQGHUH[WHUQDOIORRGLQJ

7KHSRWHQWLDOIRUWKLVKD]DUGLVORZDWWKH

&

6RLO6KULQN6ZHOO VLWHWKHSODQWGHVLJQFRQVLGHUVWKLV

<

&RQVROLGDWLRQ KD]DUGDQGWKHKD]DUGLVVORZO\

&

GHYHORSLQJDQGFDQEHPLWLJDWHG

1RWDSSOLFDEOHWRWKHVLWHEHFDXVHRI

6WRUP6XUJH < &

ORFDWLRQ

7R[LFJDVFRYHUHGXQGHUUHOHDVHRI

FKHPLFDOVLQRQVLWHVWRUDJHLQGXVWULDORU

7R[LF*DV < &

PLOLWDU\IDFLOLW\DFFLGHQWDQG

WUDQVSRUWDWLRQDFFLGHQW

3RWHQWLDODFFLGHQWVPHHWWKH653

36 UHTXLUHPHQWV%RXQGLQJDQDO\VHVXVHG

IRURIIVLWHUDLOVKLSPHQWRIFKORULQHJDV

36

7UDQVSRUWDWLRQ DQGRQVLWHWUXFNVKLSPHQWRIDPPRQLXP

<

$FFLGHQW K\GUR[LGH0DULQHDFFLGHQWQRW

&

DSSOLFDEOHWRWKHVLWHEHFDXVHRI

& ORFDWLRQ$YLDWLRQDQGSLSHOLQHDFFLGHQWV

FRYHUHGXQGHUWKRVHVSHFLILFFDWHJRULHV

1RWDSSOLFDEOHWRWKHVLWHEHFDXVHRI

7VXQDPL < &

ORFDWLRQ

7XUELQH*HQHUDWHG 3RWHQWLDODFFLGHQWVPHHWWKH653

< 36

0LVVLOHV UHTXLUHPHQWV

9ROFDQLF$FWLYLW\ < &

1RWDSSOLFDEOHWRWKHVLWHEHFDXVHRI



(QFORVXUH

>/HWWHU5HIHUHQFH1XPEHU@

6FUHHQLQJ5HVXOW

([WHUQDO+D]DUG

6FUHHQLQJ

6FUHHQHG"

&ULWHULRQ &RPPHQW

<1 

1RWHD 

ORFDWLRQ

DYHVDVVRFLDWHGZLWKDGMDFHQWODUJH

&

ERGLHVRIZDWHUDUHQRWDSSOLFDEOHWRWKH

DYHV <

VLWH:DYHVDVVRFLDWHGZLWKH[WHUQDO

&

IORRGLQJDUHFRYHUHGXQGHUWKDWKD]DUG

1RWHD+/-6HH$WWDFKPHQWIRUGHVFULSWLRQVRIWKHVFUHHQLQJFULWHULD



 



(QFORVXUH

>/HWWHU5HIHUHQFH1XPEHU@

WŽ^ŽŽ,

(YHQW$QDO\VLV &ULWHULRQ 6RXUFH &RPPHQWV

185(*&5

&(YHQWGDPDJHSRWHQWLDOLV

,QLWLDO3UHOLPLQDU\ DQG$60($16

HYHQWVIRUZKLFKSODQWLV 

6FUHHQLQJ 6WDQGDUG5$6D

GHVLJQHG



&(YHQWKDVORZHUPHDQ 185(*&5

IUHTXHQF\DQGQRZRUVH DQG$60($16

 

FRQVHTXHQFHVWKDQRWKHU 6WDQGDUG5$6D

HYHQWVDQDO\]HG 

185(*&5

&(YHQWFDQQRWRFFXUFORVH DQG$60($16

 

HQRXJKWRWKHSODQWWRDIIHFWLW 6WDQGDUG5$6D



185(*&5 1RWXVHGWRVFUHHQ

&(YHQWLVLQFOXGHGLQWKH DQG$60($16 8VHGRQO\WRLQFOXGH



GHILQLWLRQRIDQRWKHUHYHQW 6WDQGDUG5$6D ZLWKLQDQRWKHU

 HYHQW

&(YHQWGHYHORSVVORZO\

 DOORZLQJDGHTXDWHWLPHWR $60($166WDQGDUG 

HOLPLQDWHRUPLWLJDWHWKHWKUHDW

36'HVLJQEDVLVKD]DUG

3URJUHVVLYH $60($166WDQGDUG

FDQQRWFDXVHDFRUHGDPDJH 

6FUHHQLQJ 5$6D

DFFLGHQW

36'HVLJQEDVLVIRUWKH

185(*DQG

HYHQWPHHWVWKHFULWHULDLQWKH

$60($166WDQGDUG 

15&6WDQGDUG5HYLHZ

 5$6D

3ODQ 653 

36'HVLJQEDVLVHYHQWPHDQ 185(*DV

IUHTXHQF\LV(\DQGWKH PRGLILHGLQ

 

PHDQFRQGLWLRQDOFRUHGDPDJH $60($166WDQGDUG

SUREDELOLW\LV 5$6D

185(*DQG

36%RXQGLQJPHDQ&')LV

 $60($166WDQGDUG 

(\

5$6D



(QFORVXUH

>/HWWHU5HIHUHQFH1XPEHU@

(YHQW$QDO\VLV &ULWHULRQ 6RXUFH &RPPHQWV

6FUHHQLQJQRWVXFFHVVIXO35$ 185(*DQG

'HWDLOHG35$ QHHGVWRPHHWUHTXLUHPHQWVLQ $60($166WDQGDUG 

WKH$60($1635$6WDQGDUG 5$6D







(QFORVXUH

>/HWWHU5HIHUHQFH1XPEHU@

ŽŽŽ<Ž^ŽŽh



7KHIROORZLQJWDEOHSURYLGHVWKHVWUXFWXUHRIWKLVDWWDFKPHQWZKLFKVKRXOGEHSRSXODWHG

ZLWKLWHPVRIVLJQLILFDQFHIURPWKHSODQWVSHFLILFHYDOXDWLRQ





$VVXPSWLRQ 'LVSRVLWLRQ

'LVFXVVLRQ

8QFHUWDLQW\

  

  

  

  

  

  

  

  



(QFORVXUH

>/HWWHU5HIHUHQFH1XPEHU@

ŽŽŽZ'ZŽZŽ^ZŽ////////

//////



7KLVDWWDFKPHQWLVRSWLRQDODQGWKHIROORZLQJWDEOHFDQEHDGMXVWHGLIQHFHVVDU\



65LQ35$6WDQGDUG 65LQ35$6WDQGDUG

'HVFULSWLRQRI

DV$PHQGHGE\5* DV$PHQGHGE\5* 5HVROXWLRQ

&KDQJH

5HYLVLRQ 5HYLVLRQ

,(&&&,,,,,,, ,(&&&,,,,,,, 7KHVHQWHQFHVZHUH >LGHQWLI\LI185(*&5

  FODULILFDWLRQVSURYLGHG GDWDLVXVHG,IVRMXVWLI\

$QH[DPSOHRIDQ $QH[DPSOHRIDQDFFHSWDEOH LQ5*5HYLVLRQ LW¶VXVHRUSURYLGHVHQVLWLYLW\

DFFHSWDEOHJHQHULFGDWD JHQHULFGDWDVRXUFHVLV DQG5HYLVLRQ VWXG\RILPSDFWRIFKDQJLQJ

VRXUFHVLV185(*&5 185(*&51RWH UHVSHFWLYHO\ WRPRUHUHFHQWGDWDVRXUFH@

1RWH 7KHXSGDWHG65FLWHVD

PRUHUHFHQWH[DPSOHRI

DQDFFHSWDEOHJHQHULF

GDWDVRXUFH

6<%&&,,,,,, 6<%&&,,,,,, 7KHVHQWHQFHVZHUH >&RQILUPWKDWDGGLWLRQDO

  FODULILFDWLRQVSURYLGHG IDLOXUHPRGHVZHUH

K KDUVKHQYLURQPHQWV K KDUVKHQYLURQPHQWV LQ5*5HYLVLRQ FRQVLGHUHGRUSHUIRUP

LQGXFHGE\FRQWDLQPHQW LQGXFHGE\FRQWDLQPHQW DQG5HYLVLRQ VHQVLWLYLW\VWXG\RILPSDFW

YHQWLQJRUIDLOXUHWKDWPD\ YHQWLQJIDLOXUHRIWKH UHVSHFWLYHO\ IURPDGGLWLRQDOIDLOXUH

RFFXUSULRUWRWKHRQVHWRI FRQWDLQPHQWYHQWLQJGXFWVRU 7KHXSGDWHG65 PRGHV@

FRUHGDPDJH IDLOXUHRIWKHFRQWDLQPHQW H[SOLFLWO\UHTXLUHV

ERXQGDU\WKDWPD\RFFXUSULRU FRQVLGHUDWLRQRI

WRWKHRQVHWRIFRUHGDPDJH FRQWDLQPHQWYHQWLQJ

GXFWVDQGIDLOXUHRIWKH

FRQWDLQPHQWERXQGDU\

SULRUWRFRUHGDPDJH



(QFORVXUH

>/HWWHU5HIHUHQFH1XPEHU@

65LQ35$6WDQGDUG 65LQ35$6WDQGDUG

'HVFULSWLRQRI

DV$PHQGHGE\5* DV$PHQGHGE\5* 5HVROXWLRQ

&KDQJH

5HYLVLRQ 5HYLVLRQ

'$&&&,,,,,, '$&&&,,,,,, 5HIHUHQFH185(* 7KRXJKDGGLWLRQDOH[DPSOHV

  ZDVDGGHGE\5* RIJHQHULFGDWDZHUH

([DPSOHVRISDUDPHWHU ([DPSOHVRISDUDPHWHU 5HYLVLRQ5HIHUHQFHV LGHQWLILHGWKH\GRQ¶WVXSHU

HVWLPDWHVDQGDVVRFLDWHG HVWLPDWHVDQGDVVRFLDWHG 185(*DQG FHGHWKHSUHYLRXVGDWD

VRXUFHVLQFOXGH VRXUFHVLQFOXGH 185(*&5ZHUH VRXUFHDQGZLOOQRWLPSDFW

D FRPSRQHQWIDLOXUHUDWHV D FRPSRQHQWIDLOXUHUDWHV LQFOXGHGLQWKH WKHWHFKQLFDODGHTXDF\RI

DQGSUREDELOLWLHV DQGSUREDELOLWLHV185(*&5 YHUVLRQRIWKH35$ WKH35$

185(*&51RWH   185(*&5 6WDQGDUG

185(*&51RWH   185(* 7KHXSGDWHG65FLWHV

185(*1RWH 185(*&5 PRUHUHFHQWH[DPSOHV

RIDFFHSWDEOHJHQHULF

GDWDVRXUFHV

48$D&&,,,,,, 48$&&,,,,,, 7KH/(5)UHTXLUHPHQW 6HTXHQFHTXDQWLILFDWLRQIRU

3529,'(HVWLPDWHVRIWKH 3529,'(HVWLPDWHVRIWKH ZDVDGGHGE\5* /(5)PD\LGHQWLI\

LQGLYLGXDOVHTXHQFHVLQD LQGLYLGXDOVHTXHQFHVLQD 5HYLVLRQ7KH HQKDQFHPHQWVWREHPDGH

PDQQHUFRQVLVWHQWZLWKWKH PDQQHUFRQVLVWHQWZLWKWKH XSGDWHG65H[SOLFLWO\ LQWKH/(5)PRGHOIRUD

HVWLPDWLRQRIWRWDO&') HVWLPDWLRQRIWRWDO&') DQG UHTXLUHVFRQVLGHUDWLRQ PRUHUHDOLVWLFHHVWLPDWHRI

/(5)  RI/(5)IRUVHTXHQFH /(5)+RZHYHUDVWKH

TXDQWLILFDWLRQ VHTXHQFHTXDQWLILFDWLRQLV

QRWXVHGLQWKH1(,

5LVN5DQNLQJPHWKRGRORJ\

DORQJZLWK'HIHQVHLQ'HSWK

FRQVLGHUDWLRQVQRWKDYLQJ

/(5)TXDQWLILHGDWWKH

VHTXHQFHOHYHOZLOOQRW

LPSDFWWKHFDWHJRUL]DWLRQ

UHVXOWV



(QFORVXUH

>/HWWHU5HIHUHQFH1XPEHU@

65LQ35$6WDQGDUG 65LQ35$6WDQGDUG

'HVFULSWLRQRI

DV$PHQGHGE\5* DV$PHQGHGE\5* 5HVROXWLRQ

&KDQJH

5HYLVLRQ 5HYLVLRQ

48$E 48$ 7KHSKUDVHIURP 3HUWKHQRWHLQ65/(

 &&, LQWHUQDOHYHQWVZDV (DQG/()/(5)ZDV

&&, (67,0$7(WKHSRLQWHVWLPDWH GHOHWHGIURPWKH DGGUHVVHGLQDSSOLFDEOH

(67,0$7(WKHSRLQW &') DQG/(5)  YHUVLRQRIWKH35$ UHTXLUHPHQWVRI7DEOH

HVWLPDWH&')IURPLQWHUQDO &&,, 6WDQGDUG7KH/(5) ZKLFKLQFOXGHVDOO4865V

HYHQWV (67,0$7(WKHPHDQ&') DQG UHTXLUHPHQWZDVDGGHG 7KXVWKHSHHUUHYLHZXVLQJ

 /(5) DFFRXQWLQJIRUWKHVWDWH E\5*5HYLVLRQ WKHYHUVLRQRIWKH35$

&&,, RINQRZOHGJHFRUUHODWLRQ  6WDQGDUGZDVDGGUHVVHG

(67,0$7(WKHPHDQ&') EHWZHHQHYHQWSUREDELOLWLHV 7KH65H[SOLFLWO\ WKHVH/(5)UHTXLUHPHQWV

IURPLQWHUQDOHYHQWV 1RWH  

UHTXLUHVFRQVLGHUDWLRQ

DFFRXQWLQJIRUWKHVWDWHRI &&,,,

RI/(5)

NQRZOHGJHFRUUHODWLRQ &$/&8/$7(WKHPHDQ&') DQG

EHWZHHQHYHQWSUREDELOLWLHV /(5) E\SURSDJDWLQJWKH

1RWH   XQFHUWDLQW\GLVWULEXWLRQV

 HQVXULQJWKDWWKHVWDWHRI

&&,,, NQRZOHGJHFRUUHODWLRQEHWZHHQ

&$/&8/$7(WKHPHDQ&') HYHQWSUREDELOLWLHVLVWDNHQLQWR

IURPLQWHUQDOHYHQWVE\ DFFRXQW

SURSDJDWLQJWKHXQFHUWDLQW\

GLVWULEXWLRQVHQVXULQJWKDW

WKHVWDWHRINQRZOHGJH

FRUUHODWLRQEHWZHHQHYHQW

SUREDELOLWLHVLVWDNHQLQWR

DFFRXQW



(QFORVXUH

>/HWWHU5HIHUHQFH1XPEHU@

65LQ35$6WDQGDUG 65LQ35$6WDQGDUG

'HVFULSWLRQRI

DV$PHQGHGE\5* DV$PHQGHGE\5* 5HVROXWLRQ

&KDQJH

5HYLVLRQ 5HYLVLRQ

48%&&,,,,,, 48%&&,,,,,, 7KH/(5)UHTXLUHPHQW 7KH65H[SOLFLWO\UHTXLUHV

$&&2817IRUV\VWHP $&&2817IRUV\VWHPVXFFHVVHV ZDVDGGHGE\5* FRQVLGHUDWLRQRI/(5)

VXFFHVVHVLQDGGLWLRQWR LQDGGLWLRQWRV\VWHPIDLOXUHVLQ 5HYLVLRQ +RZHYHUSHUWKHQRWHLQ

V\VWHPIDLOXUHVLQWKH WKHHYDOXDWLRQRIDFFLGHQW 65/((DQG/()

HYDOXDWLRQRIDFFLGHQW VHTXHQFHVWRWKHH[WHQWQHHGHG /(5)ZDVDGGUHVVHGLQ

VHTXHQFHVWRWKHH[WHQW IRUUHDOLVWLFHVWLPDWLRQRI&')RU DSSOLFDEOHUHTXLUHPHQWVRI

QHHGHGIRUUHDOLVWLF /(5)7KLVDFFRXQWLQJPD\EH 7DEOHZKLFKLQFOXGHV

HVWLPDWLRQRI&')7KLV DFFRPSOLVKHGE\XVLQJ DOO4865V7KXVWKHSHHU

DFFRXQWLQJPD\EH QXPHULFDOTXDQWLILFDWLRQRI UHYLHZXVLQJWKH

DFFRPSOLVKHGE\XVLQJ VXFFHVVSUREDELOLW\

YHUVLRQRIWKH35$6WDQGDUG

QXPHULFDOTXDQWLILFDWLRQRI FRPSOHPHQWDU\ORJLFRUD

ZDVDGGUHVVHGWKHVH/(5)

VXFFHVVSUREDELOLW\ GHOHWHWHUPDSSUR[LPDWLRQDQG

UHTXLUHPHQWV

FRPSOHPHQWDU\ORJLFRUD LQFOXGHVWKHWUHDWPHQWRI

GHOHWHWHUPDSSUR[LPDWLRQ WUDQVIHUVDPRQJHYHQWWUHHV

DQGLQFOXGHVWKHWUHDWPHQW ZKHUHWKHVXFFHVVHVPD\QRWEH

RIWUDQVIHUVDPRQJHYHQW WUDQVIHUUHGEHWZHHQHYHQW

WUHHVZKHUHWKHVXFFHVVHV WUHHV

PD\QRWEHWUDQVIHUUHG

EHWZHHQHYHQWWUHHV

48( 48( 7KH/(5)UHTXLUHPHQW 7KH65H[SOLFLWO\UHTXLUHV

 &&, ZDVDGGHGE\5* FRQVLGHUDWLRQRI/(5)

&&, (67,0$7(WKHXQFHUWDLQW\ 5HYLVLRQ +RZHYHUSHUWKHQRWHLQ

(67,0$7(WKHXQFHUWDLQW\ LQWHUYDORI&') DQG/(5)   65/((DQG/()

LQWHUYDORI&')UHVXOWV UHVXOWV3URYLGHDEDVLVIRU /(5)ZDVDGGUHVVHGLQ

3URYLGHDEDVLVIRUWKH WKHHVWLPDWHFRQVLVWHQWZLWK DSSOLFDEOHUHTXLUHPHQWVRI

HVWLPDWHFRQVLVWHQWZLWKWKH WKHFKDUDFWHUL]DWLRQ 7DEOHZKLFKLQFOXGHV

FKDUDFWHUL]DWLRQSDUDPHWHU SDUDPHWHUXQFHUWDLQWLHV DOO4865V7KXVWKHSHHU

XQFHUWDLQWLHV '$'+5 '$'+5'+5*,( UHYLHZXVLQJWKH

'+5*,(&  & 

YHUVLRQRIWKH35$6WDQGDUG

 &&,,

ZDVDGGUHVVHGWKHVH/(5)



(QFORVXUH

>/HWWHU5HIHUHQFH1XPEHU@

65LQ35$6WDQGDUG 65LQ35$6WDQGDUG

'HVFULSWLRQRI

DV$PHQGHGE\5* DV$PHQGHGE\5* 5HVROXWLRQ

&KDQJH

5HYLVLRQ 5HYLVLRQ

&&,, (67,0$7(WKHXQFHUWDLQW\ UHTXLUHPHQWV

(67,0$7(WKHXQFHUWDLQW\ LQWHUYDORIWKH&') DQG/(5) 

LQWHUYDORIWKH&')UHVXOWV UHVXOWV(67,0$7(WKH

(67,0$7(WKHXQFHUWDLQW\ XQFHUWDLQW\LQWHUYDOV

LQWHUYDOVDVVRFLDWHGZLWK DVVRFLDWHGZLWKSDUDPHWHU

SDUDPHWHUXQFHUWDLQWLHV XQFHUWDLQWLHV '$'+5

'$'+5'+5*,( '+5*,(& WDNLQJ

& WDNLQJLQWRDFFRXQW LQWRDFFRXQWWKHVWDWHRI

WKHVWDWHRINQRZOHGJH NQRZOHGJHFRUUHODWLRQ

FRUUHODWLRQ 

 &&,,,

&&,,, 3URSDJDWHSDUDPHWHU

3URSDJDWHSDUDPHWHU XQFHUWDLQWLHV '$'+5

XQFHUWDLQWLHV '$'+5 '+5*,(& << QR

'+5*,(& << QR FKDQJH 

FKDQJH 

48( 48( 6HSDUDWHUHTXLUHPHQWV 7KHXSGDWHG65DVVLJQVWKH

 &&,,,,,, IRU&&,,,DQG,,, VDPHUHTXLUHPHQWWRDOO

&&, )RUHDFKVRXUFHRIPRGHO ZHUHFROODSVHGLQWRD WKUHH&&V0HHWLQJ&&,,

3529,'(DQDVVHVVPHQWRI XQFHUWDLQW\DQGUHODWHG VLQJOHUHTXLUHPHQWIRU LQWKHYHUVLRQRIWKH

WKHLPSDFWRIWKHPRGHO DVVXPSWLRQLGHQWLILHGLQ48( &&,,,,,,LQWKH 35$6WDQGDUGDVVXUHVWKDW

XQFHUWDLQWLHVDQG DQG48(UHVSHFWLYHO\ YHUVLRQRIWKH35$ WKHQHZ65LVPHW

DVVXPSWLRQVRQWKHUHVXOWV ,'(17,)<KRZWKH35$PRGHOLV 6WDQGDUG7KH

RIWKH35$ DIIHFWHG HJLQWURGXFWLRQRID UHIHUHQFHWR1RWH

 QHZEDVLFHYHQWFKDQJHVWR ZDVGHOHWHGE\5*

&&,, EDVLFHYHQWSUREDELOLWLHVFKDQJH

5HYLVLRQ

(9$/8$7(WKHVHQVLWLYLW\RI LQVXFFHVVFULWHULRQLQWURGXFWLRQ



WKHUHVXOWVWRPRGHO RIDQHZLQLWLDWLQJHYHQW 

XQFHUWDLQWLHVDQGNH\

DVVXPSWLRQVXVLQJ



(QFORVXUH

>/HWWHU5HIHUHQFH1XPEHU@

65LQ35$6WDQGDUG 65LQ35$6WDQGDUG

'HVFULSWLRQRI

DV$PHQGHGE\5* DV$PHQGHGE\5* 5HVROXWLRQ

&KDQJH

5HYLVLRQ 5HYLVLRQ

VHQVLWLYLW\DQDO\VHV1RWH

 



&&,,,

(9$/8$7(WKHVHQVLWLYLW\RI

WKHUHVXOWVWRXQFHUWDLQ

PRGHOERXQGDU\FRQGLWLRQV

DQGRWKHUDVVXPSWLRQV

XVLQJVHQVLWLYLW\DQDO\VHV

H[FHSWZKHUHVXFKVRXUFHV

RIXQFHUWDLQW\KDYHEHHQ

DGHTXDWHO\WUHDWHGLQWKH

TXDQWLWDWLYHXQFHUWDLQW\

DQDO\VLV1RWH  

/() /() 6HSDUDWHUHTXLUHPHQWV 7KHXSGDWHG65DVVLJQVWKH

 &&,,,,,,, IRU&&,,,DQG,,, VDPHUHTXLUHPHQWWRDOO

&&, ,'(17,)<DQG&+$5$&7(5,=( ZHUHFROODSVHGLQWRD WKUHH&&V0HHWLQJ&&,,LQ

3529,'(DTXDOLWDWLYH WKH/(5)VRXUFHVRIPRGHO VLQJOHUHTXLUHPHQWIRU WKHYHUVLRQRIWKH35$

DVVHVVPHQWRIWKHNH\ XQFHUWDLQW\DQGUHODWHG &&,,,,,,LQWKH 6WDQGDUGDVVXUHVWKDWWKH

VRXUFHVRIXQFHUWDLQW\ DVVXPSWLRQVLQDPDQQHU YHUVLRQRIWKH35$ QHZ65LVPHW

([DPSOHV FRQVLVWHQWZLWKWKHDSSOLFDEOH 6WDQGDUG

D ,GHQWLI\ERXQGLQJ UHTXLUHPHQWVRI7DEOHV

DVVXPSWLRQV  G DQG H 

E ,GHQWLI\FRQVHUYDWLYH

WUHDWPHQWRISKHQRPHQD



&&,,

3529,'(XQFHUWDLQW\

DQDO\VLVWKDWLGHQWLILHVWKH

NH\VRXUFHVRIXQFHUWDLQW\



(QFORVXUH

>/HWWHU5HIHUHQFH1XPEHU@

65LQ35$6WDQGDUG 65LQ35$6WDQGDUG

'HVFULSWLRQRI

DV$PHQGHGE\5* DV$PHQGHGE\5* 5HVROXWLRQ

&KDQJH

5HYLVLRQ 5HYLVLRQ

DQGLQFOXGHVVHQVLWLYLW\

VWXGLHVIRUWKHVLJQLILFDQW

FRQWULEXWRUVWR/(5)



&&,,,

3529,'(XQFHUWDLQW\

DQDO\VLVWKDWLGHQWLILHVWKH

NH\VRXUFHVRIXQFHUWDLQW\

DQGLQFOXGHVVHQVLWLYLW\

VWXGLHV

,)) ,)33% 7KHUHTXLUHPHQWWR 6LQFHGRFXPHQWDWLRQRI

 &&,,,,,, GRFXPHQWZDONGRZQV ZDONGRZQVZDVQRWLQWKH

&&,,,,,, '2&80(17WKHSURFHVVXVHGWR SHUIRUPHGLQVXSSRUWRI YHUVLRQRIWKH35$

'2&80(17WKHSURFHVV LGHQWLI\IORRGDUHDV)RU SODQWSDUWLWLRQLQJZDV 6WDQGDUGLWZDVQRW

XVHGWRLGHQWLI\IORRG H[DPSOHWKLVGRFXPHQWDWLRQ DGGHGWRWKH UHYLHZHGDVSDUWRIWKHSHHU

DUHDV)RUH[DPSOHWKLV W\SLFDOO\LQFOXGHV YHUVLRQRIWKH35$ UHYLHZFRQGXFWHGXVLQJWKDW

GRFXPHQWDWLRQW\SLFDOO\ D IORRGDUHDVXVHGLQWKH 6WDQGDUG YHUVLRQRIWKH35$

LQFOXGHV DQDO\VLVDQGWKHUHDVRQIRU 7KHXSGDWHG65FLWHV 6WDQGDUG

 HOLPLQDWLQJDUHDVIURPIXUWKHU H[DPSOHVRIDFFHSWDEOH $VHOIDVVHVVPHQWDJDLQVW

E IORRGDUHDVXVHGLQWKH DQDO\VLV

GRFXPHQWDWLRQRIWKH WKHYHUVLRQRIWKH

DQDO\VLVDQGWKHUHDVRQIRU E DQ\ZDONGRZQVSHUIRUPHGLQ

SURFHVVWRLGHQWLI\IORRG VWDQGDUGZDVSHUIRUPHG

HOLPLQDWLQJDUHDVIURP VXSSRUWRIWKHSODQWSDUWLWLRQLQJ

VRXUFHV DQG>LWZDVGHWHUPLQHGWKDW

IXUWKHUDQDO\VLV

WKHGRFXPHQWDWLRQRIIORRG

ZDONGRZQVPHHWVWKH

UHTXLUHPHQWRIWKH

VWDQGDUG@25>WKHIORRG

ZDONGRZQGRFXPHQWDWLRQ

ZDVXSGDWHGWRPHHWWKH



(QFORVXUH

>/HWWHU5HIHUHQFH1XPEHU@

65LQ35$6WDQGDUG 65LQ35$6WDQGDUG

'HVFULSWLRQRI

DV$PHQGHGE\5* DV$PHQGHGE\5* 5HVROXWLRQ

&KDQJH

5HYLVLRQ 5HYLVLRQ

UHTXLUHPHQWVRIWKH

VWDQGDUGDQGWKHQHZZDON

GRZQLQIRUPDWLRQZDV

HYDOXDWHGWRGHWHUPLQHWKDW

LWKDGQRLPSDFWRIWKH

)ORRG35$PRGHO@25>WKH

IORRGZDONGRZQ

GRFXPHQWDWLRQZDVXSGDWHG

WRPHHWWKHUHTXLUHPHQWVRI

WKHVWDQGDUGDQGWKH)ORRG

35$PRGHOZDVXSGDWHGWR

DFFRXQWIRUQHZZDONGRZQ

LQIRUPDWLRQ@

,)%&&,,,,,, ,)62$&&,,,,,, 7KHUHTXLUHPHQWWR >7KLVUHTXLUHPHQWZDV

)RUHDFKIORRGDUHD )RUHDFKIORRGDUHD,'(17,)< LQFOXGHWKHILUH DGGUHVVHGLQWKHSHHU

,'(17,)<WKHSRWHQWLDO WKHSRWHQWLDOVRXUFHVRIIORRGLQJ SURWHFWLRQV\VWHPLQ UHYLHZZKLFKXVHGWKH

VRXUFHVRIIORRGLQJ1RWH   1RWH  ,1&/8'( ,WHP D DVDSRWHQWLDO YHUVLRQRIWKH35$6WDQGDUG

,1&/8'( D HTXLSPHQW HJSLSLQJ IORRGLQJVRXUFHZDV DPHQGHGE\5*

D HTXLSPHQW HJSLSLQJ YDOYHVSXPSV ORFDWHGLQWKH DGGHGE\5* 5HYLVLRQ@

YDOYHVSXPSV ORFDWHGLQ DUHDWKDWDUHFRQQHFWHGWRIOXLG 5HYLVLRQ 25

WKHDUHDWKDWDUHFRQQHFWHG V\VWHPV HJFLUFXODWLQJZDWHU 7KHUHTXLUHPHQWWR >7KHIORRGPRGHOZDV

WRIOXLGV\VWHPV HJ V\VWHPVHUYLFHZDWHUV\VWHP LQFOXGHWKHUHDFWRU UHYLHZHGDQGLWZDV

FLUFXODWLQJZDWHUV\VWHP ILUHSURWHFWLRQV\VWHP

FRRODQWV\VWHPLQ,WHP FRQILUPHGWKDWWKHILUH

VHUYLFHZDWHUV\VWHPILUH FRPSRQHQWFRROLQJZDWHU

D DVDSRWHQWLDO SURWHFWLRQDQG5&6V\VWHPV

SURWHFWLRQV\VWHP V\VWHPIHHGZDWHUV\VWHP

IORRGLQJVRXUFHZDV DUHLQFOXGHGLQWKHIORRG

FRPSRQHQWFRROLQJZDWHU FRQGHQVDWHDQGVWHDPV\VWHPV

DGGHGWRWKH PRGHO@

V\VWHPIHHGZDWHUV\VWHP DQGUHDFWRUFRRODQWV\VWHP 

FRQGHQVDWHDQGVWHDP YHUVLRQRIWKH35$ 25

V\VWHPV  6WDQGDUG >7KHILUHSURWHFWLRQDQG5&6

ZHUHDGGHGDVVRXUFHVRI



(QFORVXUH

>/HWWHU5HIHUHQFH1XPEHU@

65LQ35$6WDQGDUG 65LQ35$6WDQGDUG

'HVFULSWLRQRI

DV$PHQGHGE\5* DV$PHQGHGE\5* 5HVROXWLRQ

&KDQJH

5HYLVLRQ 5HYLVLRQ

IORRGLQJWRWKHIORRGPRGHO@

,)) ,)62) 7KHUHTXLUHPHQWWR 7KHLQWHUQDOIORRG35$

&&,,,,,, &&,,,,,, GRFXPHQWZDONGRZQV GRFXPHQWVWKHZDONGRZQV

'2&80(17WKHSURFHVV '2&80(17WKHSURFHVVXVHGWR SHUIRUPHGLQVXSSRUWRI SHUIRUPHGWRYDOLGDWH

XVHGWRLGHQWLI\DSSOLFDEOH LGHQWLI\DSSOLFDEOHIORRGVRXUFHV WKHLGHQWLILFDWLRQRU LQIRUPDWLRQUHODWHGWRIORRG

IORRGVRXUFHV)RUH[DPSOH )RUH[DPSOHWKLV VFUHHQLQJRIIORRG DUHDVIORRGVRXUFHV66&V

WKLVGRFXPHQWDWLRQW\SLFDOO\ GRFXPHQWDWLRQW\SLFDOO\ VRXUFHVDVDGGHGWRWKH PLWLJDWLRQDQGRWKHUIORRG

LQFOXGHV LQFOXGHV YHUVLRQRIWKH UHODWHGIHDWXUHVLQWKHIORRG

IORRGVRXUFHVLGHQWLILHGLQ )ORRGVRXUFHVLGHQWLILHGLQWKH 35$6WDQGDUG DUHDVWKDWDUHFRQVLGHUHGLQ

WKHDQDO\VLVUXOHVXVHGWR DQDO\VLVUXOHVXVHGWRVFUHHQ 7KHXSGDWHG65FLWHV IORRGVHTXHQFHGHILQLWLRQ

VFUHHQRXWWKHVHVRXUFHV RXWWKHVHVRXUFHVDQGWKH

H[DPSOHVRIDFFHSWDEOH

DQGWKHUHVXOWLQJOLVWRI UHVXOWLQJOLVWRIVRXUFHVWREH

GRFXPHQWDWLRQRIWKH

VRXUFHVWREHIXUWKHU IXUWKHUH[DPLQHG

SURFHVVWRLGHQWLI\IORRG

H[DPLQHG 6FUHHQLQJDQDO\VLVXVHGLQWKH

VRXUFHV

<< DQDO\VLV

I VFUHHQLQJFULWHULDXVHGLQ FDOFXODWLRQVRURWKHUDQDO\VHV

WKHDQDO\VLV XVHGWRVXSSRUWRUUHILQHWKH

<< IORRGLQJHYDOXDWLRQ

M FDOFXODWLRQVRURWKHU DQ\ZDONGRZQVSHUIRUPHGLQ

DQDO\VHVXVHGWRVXSSRUWRU VXSSRUWRILGHQWLILFDWLRQRU



(QFORVXUH

>/HWWHU5HIHUHQFH1XPEHU@

65LQ35$6WDQGDUG 65LQ35$6WDQGDUG

'HVFULSWLRQRI

DV$PHQGHGE\5* DV$PHQGHGE\5* 5HVROXWLRQ

&KDQJH

5HYLVLRQ 5HYLVLRQ

UHILQHWKHIORRGLQJ VFUHHQLQJRIIORRGVRXUFHV

HYDOXDWLRQ

,)) ,)) 7KHUHTXLUHPHQWWR 7KHLQWHUQDOIORRG35$

&&,,,,,, &&,,,,,, GRFXPHQWZDONGRZQV GRFXPHQWVWKHZDONGRZQV

'2&80(17WKHSURFHVV '2&80(17WKHSURFHVVXVHGWR SHUIRUPHGLQVXSSRUWRI SHUIRUPHGWRYDOLGDWH

XVHGWRLGHQWLI\DSSOLFDEOH LGHQWLI\DSSOLFDEOHIORRGVRXUFHV WKHLGHQWLILFDWLRQRU LQIRUPDWLRQUHODWHGWRIORRG

IORRGVRXUFHV)RUH[DPSOH )RUH[DPSOHWKLV VFUHHQLQJRIIORRG DUHDVIORRGVRXUFHV66&V

WKLVGRFXPHQWDWLRQW\SLFDOO\ GRFXPHQWDWLRQW\SLFDOO\ VRXUFHVDVDGGHGWRWKH PLWLJDWLRQDQGRWKHUIORRG

LQFOXGHV LQFOXGHV YHUVLRQRIWKH UHODWHGIHDWXUHVLQWKHIORRG

  35$6WDQGDUG DUHDVWKDWDUHFRQVLGHUHGLQ

F SURSDJDWLRQSDWKZD\V D SURSDJDWLRQSDWKZD\V 7KHXSGDWHG65FLWHV IORRGVHTXHQFHGHILQLWLRQ

 

H[DPSOHVRIDFFHSWDEOH

G DFFLGHQWPLWLJDWLQJ E DFFLGHQWPLWLJDWLQJIHDWXUHV

GRFXPHQWDWLRQRIWKH

IHDWXUHVDQGEDUULHUV DQGEDUULHUVFUHGLWHG

SURFHVVWRLGHQWLI\IORRG

FUHGLWHG 

VRXUFHV

 F DVVXPSWLRQVRUFDOFXODWLRQV

H DVVXPSWLRQVRU XVHGLQWKHGHWHUPLQDWLRQRI 6LQFHGRFXPHQWDWLRQRI

FDOFXODWLRQVXVHGLQWKH IORRGLQGXFHGHIIHFWVRQ ZDONGRZQVZDVQRWLQ

GHWHUPLQDWLRQRIIORRG HTXLSPHQWRSHUDELOLW\ WKHYHUVLRQRIWKH

LQGXFHGHIIHFWVRQ  35$6WDQGDUGLWZDV

HTXLSPHQWRSHUDELOLW\ G VFUHHQLQJFULWHULDXVHGLQWKH QRWUHYLHZHGDVSDUWRI



(QFORVXUH

>/HWWHU5HIHUHQFH1XPEHU@

65LQ35$6WDQGDUG 65LQ35$6WDQGDUG

'HVFULSWLRQRI

DV$PHQGHGE\5* DV$PHQGHGE\5* 5HVROXWLRQ

&KDQJH

5HYLVLRQ 5HYLVLRQ

 DQDO\VLV WKHSHHUUHYLHZ

I VFUHHQLQJFULWHULDXVHGLQ  FRQGXFWHGXVLQJWKDW

WKHDQDO\VLV H IORRGVFHQDULRVFRQVLGHUHG YHUVLRQRIWKH35$

 VFUHHQHGDQGUHWDLQHG 6WDQGDUG

J IORRGVFHQDULRV 

FRQVLGHUHGVFUHHQHGDQG I GHVFULSWLRQRIKRZWKH

UHWDLQHG LQWHUQDOHYHQWVDQDO\VLVPRGHOV

 ZHUHPRGLILHG

K GHVFULSWLRQRIKRZWKH 

LQWHUQDOHYHQWVDQDO\VLV J FDOFXODWLRQVRURWKHU

PRGHOVZHUHPRGLILHG DQDO\VHVXVHGWRVXSSRUWRU

 UHILQHWKHIORRGLQJHYDOXDWLRQ

M FDOFXODWLRQVRURWKHU 

DQDO\VHVXVHGWRVXSSRUWRU K DQ\ZDONGRZQVSHUIRUPHGLQ

UHILQHWKHIORRGLQJ VXSSRUWRILGHQWLILFDWLRQRU

HYDOXDWLRQ VFUHHQLQJRIIORRGVFHQDULRV





,)) ,)) 7KHUHTXLUHPHQWWR 6LQFHGRFXPHQWDWLRQRI

  GRFXPHQWZDONGRZQV ZDONGRZQVZDVQRWLQWKH

&&,,,,,, &&,,,,,, SHUIRUPHGLQVXSSRUWRI YHUVLRQRIWKH35$

'2&80(17WKHSURFHVV '2&80(17WKHSURFHVVXVHGWR WKHLGHQWLILFDWLRQRU 6WDQGDUGLWZDVQRW

XVHGWRGHILQHWKH GHILQHWKHDSSOLFDEOHLQWHUQDO VFUHHQLQJRIIORRG UHYLHZHGDVSDUWRIWKHSHHU

DSSOLFDEOHLQWHUQDOIORRG IORRGDFFLGHQWVHTXHQFHVDQG VRXUFHVDVDGGHGWRWKH UHYLHZFRQGXFWHGXVLQJWKDW

DFFLGHQWVHTXHQFHVDQG WKHLUDVVRFLDWHGTXDQWLILFDWLRQ YHUVLRQRIWKH YHUVLRQRIWKH35$6WDQGDUG

WKHLUDVVRFLDWHG )RUH[DPSOHWKLV 35$6WDQGDUG 7KHLQWHUQDOIORRG35$

TXDQWLILFDWLRQ)RUH[DPSOH GRFXPHQWDWLRQW\SLFDOO\  GRFXPHQWVWKHZDONGRZQV

WKLVGRFXPHQWDWLRQW\SLFDOO\ LQFOXGHV

7KHXSGDWHG65FLWHV SHUIRUPHGWRYDOLGDWH

LQFOXGHV 

H[DPSOHVRIDFFHSWDEOH LQIRUPDWLRQUHODWHGWRIORRG

 

GRFXPHQWDWLRQRIWKH DUHDVIORRGVRXUFHV66&V



(QFORVXUH

>/HWWHU5HIHUHQFH1XPEHU@

65LQ35$6WDQGDUG 65LQ35$6WDQGDUG

'HVFULSWLRQRI

DV$PHQGHGE\5* DV$PHQGHGE\5* 5HVROXWLRQ

&KDQJH

5HYLVLRQ 5HYLVLRQ

 M FDOFXODWLRQVRURWKHUDQDO\VHV SURFHVVWRLGHQWLI\IORRG PLWLJDWLRQDQGRWKHUIORRG

M FDOFXODWLRQVRURWKHU XVHGWRVXSSRUWRUUHILQHWKH UHODWHGIHDWXUHV UHODWHGIHDWXUHVLQWKHIORRG

DQDO\VHVXVHGWRVXSSRUWRU IORRGLQJHYDOXDWLRQ FRQVLGHUHGLQIORRG DUHDVWKDWDUHFRQVLGHUHGLQ

UHILQHWKHIORRGLQJ  VHTXHQFH IORRGVHTXHQFHGHILQLWLRQ

HYDOXDWLRQ I VFUHHQLQJFULWHULDXVHGLQWKH TXDQWLILFDWLRQ

 DQDO\VLV

I VFUHHQLQJFULWHULDXVHGLQ 

WKHDQDO\VLV L IORRGLQJVFHQDULRVFRQVLGHUHG

 VFUHHQHGDQGUHWDLQHG

L IORRGLQJVFHQDULRV 

FRQVLGHUHGVFUHHQHGDQG N UHVXOWVRIWKHLQWHUQDOIORRG

UHWDLQHG DQDO\VLVFRQVLVWHQWZLWKWKH

 TXDQWLILFDWLRQUHTXLUHPHQWV

N UHVXOWVRIWKHLQWHUQDO SURYLGHGLQ+/548'

IORRGDQDO\VLVFRQVLVWHQW 

ZLWKWKHTXDQWLILFDWLRQ H DQ\ZDONGRZQVSHUIRUPHGLQ

UHTXLUHPHQWVSURYLGHGLQ VXSSRUWRILQWHUQDOIORRG

+/548' DFFLGHQWVHTXHQFHTXDQWLILFDWLRQ