RA-18-0079, Application to Revise Technical Specifications to Adopt TSTF-439, Eliminate Second Completion Times Limiting Time from Discovery of Failure to Meet an LCO

Application to Revise Technical Specifications to Adopt TSTF-439, Eliminate Second Completion Times Limiting Time from Discovery of Failure to Meet an LCO

ML18227A535
Person / Time
Site:	Brunswick
Issue date:	08/14/2018
From:	William Gideon Duke Energy Progress
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
RA-18-0079
Download: ML18227A535 (89)

Text

 :LOOLDP5*LGHRQ 9LFH3UHVLGHQW

%UXQVZLFN1XFOHDU3ODQW 32%R[

6RXWKSRUW1&

R

$XJXVW   

6HULDO5$ &)5

861XFOHDU5HJXODWRU\&RPPLVVLRQ

$771'RFXPHQW&RQWURO'HVN

DVKLQJWRQ'&

6XEMHFW %UXQVZLFN6WHDP(OHFWULF3ODQW8QLW1RVDQG

5HQHZHG)DFLOLW\2SHUDWLQJ/LFHQVH1RV'35DQG'35

'RFNHW1RVDQG

$SSOLFDWLRQWR5HYLVH7HFKQLFDO6SHFLILFDWLRQVWR$GRSW767)(OLPLQDWH

6HFRQG&RPSOHWLRQ7LPHV/LPLWLQJ7LPH)URP'LVFRYHU\RI)DLOXUH7R0HHWDQ

/&2'

/DGLHVDQG*HQWOHPHQ

3XUVXDQWWR&)5'XNH(QHUJ\3URJUHVV//& 'XNH(QHUJ\ LVVXEPLWWLQJDUHTXHVW

IRUDQDPHQGPHQWWRWKH7HFKQLFDO6SHFLILFDWLRQV 76 IRUWKH%UXQVZLFN6WHDP(OHFWULF3ODQW

%6(3 8QLW1RVDQG

7KHSURSRVHGFKDQJHFRQVLVWHQWZLWKSUHYLRXVO\15&DSSURYHG7HFKQLFDO6SHFLILFDWLRQ7DVN

)RUFH7UDYHOHU 767) GHOHWHVVHFRQG&RPSOHWLRQ7LPHVIURPWKHDIIHFWHG5HTXLUHG

$FWLRQVFRQWDLQHGLQ76DORQJZLWKUHPRYLQJWKHH[DPSOHFRQWDLQHGLQ766HFWLRQDQG

DGGLQJDGLVFXVVLRQDERXWDOWHUQDWLQJEHWZHHQ&RQGLWLRQV

$GGLWLRQDOO\WKHSURSRVHG/$5ZLOOPDNHDQDGPLQLVWUDWLYHUHYLVLRQWR76E\UHPRYLQJDQ

REVROHWHQRWHDVVRFLDWHGZLWK&RQGLWLRQ'DQG6XUYHLOODQFH5HTXLUHPHQWV

DQG

7KH(QFORVXUHSURYLGHVDGHVFULSWLRQDQGDVVHVVPHQWRIWKHSURSRVHGFKDQJHV7KHH[LVWLQJ

76SDJHVIRU8QLWVDQGPDUNHGWRVKRZWKHSURSRVHGFKDQJHVDUHLQFOXGHGDV$WWDFKPHQW

DQGRIWKH(QFORVXUHUHVSHFWLYHO\7KHUHYLVHG LHW\SHG 76SDJHVDUHLQFOXGHGDV

$WWDFKPHQWDQGIRU8QLWDQGUHVSHFWLYHO\$WWDFKPHQWSURYLGHVWKHH[LVWLQJ8QLW76

%DVHVSDJHVPDUNHGWRVKRZWKHSURSRVHGFKDQJHVIRULQIRUPDWLRQRQO\

$SSURYDORIWKHSURSRVHGDPHQGPHQWLVUHTXHVWHGRQH\HDUIURPFRPSOHWLRQRIWKH15&

DFFHSWDQFHUHYLHZ2QFHDSSURYHGWKHDPHQGPHQWVKDOOEHLPSOHPHQWHGZLWKLQGD\V,Q

DFFRUGDQFHZLWK&)5'XNH(QHUJ\LVSURYLGLQJDFRS\RIWKHSURSRVHGOLFHQVH

DPHQGPHQWWRWKHGHVLJQDWHGUHSUHVHQWDWLYHIRUWKH6WDWHRI1RUWK&DUROLQD

7KLVGRFXPHQWFRQWDLQVQRUHJXODWRU\FRPPLWPHQWV

3OHDVHUHIHUDQ\TXHVWLRQVUHJDUGLQJWKLVVXEPLWWDOWR0U/HH*U]HFN0DQDJHU5HJXODWRU\

$IIDLUVDW  

861XFOHDU5HJXODWRU\&RPPLVVLRQ

3DJHRI



FF ZLWK(QFORVXUH 

861XFOHDU5HJXODWRU\&RPPLVVLRQ5HJLRQ,,

$7710V&DWKHULQH+DQH\5HJLRQDO$GPLQLVWUDWRU

3HDFKWUHH&HQWHU$YH1(6XLWH

$WODQWD*$

861XFOHDU5HJXODWRU\&RPPLVVLRQ

$7710U'HQQLV-*DOYLQ 0DLO6WRS2:)1%$ 

5RFNYLOOH3LNH

5RFNYLOOH0'

861XFOHDU5HJXODWRU\&RPPLVVLRQ

$7710U*DOH6PLWK15&6HQLRU5HVLGHQW,QVSHFWRU

5LYHU5RDG

6RXWKSRUW1&

&KDLU1RUWK&DUROLQD8WLOLWLHV&RPPLVVLRQ (OHFWURQLF&RS\2QO\ 

0DLO6HUYLFH&HQWHU

5DOHLJK1&

VZDWVRQ#QFXFQHW

0U:/HH&R[,,,6HFWLRQ&KLHI (OHFWURQLF&RS\2QO\ 

5DGLDWLRQ3URWHFWLRQ6HFWLRQ

1RUWK&DUROLQD'HSDUWPHQWRI+HDOWKDQG+XPDQ6HUYLFHV

0DLO6HUYLFH&HQWHU

5DOHLJK1&

OHHFR[#GKKVQFJRY

5$

(QFORVXUH

3DJHRI



'HVFULSWLRQDQG$VVHVVPHQWRIWKH3URSRVHG&KDQJH

6XEMHFW $SSOLFDWLRQWR5HYLVH7HFKQLFDO6SHFLILFDWLRQVWR$GRSW767)(OLPLQDWH

6HFRQG&RPSOHWLRQ7LPHV/LPLWLQJ7LPH)URP'LVFRYHU\RI)DLOXUH7R0HHWDQ

/&2'

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

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

  'HVFULSWLRQRI3URSRVHG&KDQJH

  'HVFULSWLRQRI9DULDQFHV

  $GPLQLVWUDWLYH&KDQJHV



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

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

  $SSOLFDEOH5HJXODWRU\5HTXLUHPHQWV&ULWHULD

  1R6LJQLILFDQW+D]DUGV&RQVLGHUDWLRQ'HWHUPLQDWLRQ$QDO\VLV

  &RQFOXVLRQV

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

 5()(5(1&(6

$77$&+0(176

  3URSRVHG7HFKQLFDO6SHFLILFDWLRQV&KDQJHV 0DUN8S 8QLW

  3URSRVHG7HFKQLFDO6SHFLILFDWLRQV&KDQJHV 0DUN8S 8QLW

 5HYLVHG 7\SHG 7HFKQLFDO6SHFLILFDWLRQV3DJHV8QLW

 5HYLVHG 7\SHG 7HFKQLFDO6SHFLILFDWLRQV3DJHV8QLW

 3URSRVHG7HFKQLFDO6SHFLILFDWLRQ%DVHV&KDQJHV 0DUN8S 8QLW )RU

,QIRUPDWLRQ2QO\ 



 

5$

(QFORVXUH

3DJHRI



'HVFULSWLRQDQG$VVHVVPHQW

 6XPPDU\'HVFULSWLRQ

7KLVHYDOXDWLRQVXSSRUWVDUHTXHVWWRDPHQGWKH5HQHZHG2SHUDWLQJ/LFHQVH1RV'35DQG

'35IRU%UXQVZLFN6WHDP(OHFWULF3ODQW %6(3 8QLW1RVDQGUHVSHFWLYHO\

7KHSURSRVHGFKDQJHFRQVLVWHQWZLWKWKH15&DSSURYHG7HFKQLFDO6SHFLILFDWLRQ7DVN

)RUFH7UDYHOHU 767) 5HYLVLRQ LH5HIHUHQFH GHOHWHVVHFRQG&RPSOHWLRQ

7LPHVIURPWKHDIIHFWHG5HTXLUHG$FWLRQVFRQWDLQHGLQ7HFKQLFDO6SHFLILFDWLRQV 76 

6SHFLILFDOO\765HTXLUHG$FWLRQV%&DQG(DQG765HTXLUHG$FWLRQV%

&DQG'765HTXLUHG$FWLRQV$%&DQG',QDGGLWLRQWKHGHVFULSWLRQDQG

H[DPSOHRQVHFRQG&RPSOHWLRQ7LPHVFRQWDLQHGLQ766HFWLRQZLOOEHGHOHWHGDQGPRGLILHG

FRQVLVWHQWZLWK767)5HYLVLRQ3ODQWVSHFLILFYDULDWLRQVIURPWKHPRGHO767)DUH

GLVFXVVHGLQGHWDLOEHORZ

767)5HYLVLRQ³(OLPLQDWH6HFRQG&RPSOHWLRQ7LPHV/LPLWLQJ7LPH)URP'LVFRYHU\RI

)DLOXUH7R0HHWDQ/&2'ZDVDSSURYHGE\WKH15&RQ-DQXDU\

 'HWDLOHG'HVFULSWLRQ

 'HVFULSWLRQRI3URSRVHG&KDQJH

7KHJXLGDQFHRI185(*5HYLVLRQ³6WDQGDUG7HFKQLFDO6SHFLILFDWLRQV*HQHUDO(OHFWULF

3ODQWV%:5' LH5HIHUHQFH ZDVXVHGWRFRQYHUW%6(3VWDQGDUG76V 676 WRWKH

LPSURYHG76V ,76 ZKLFKZDVLVVXHGDVDPHQGPHQWVDQGIRU%6(38QLW1RVDQG

UHVSHFWLYHO\RQ-XQH LH5HIHUHQFH 7KH,76FRQYHUVLRQLQWURGXFHGDVHFRQG

&RPSOHWLRQ7LPHIRUFHUWDLQ765HTXLUHG$FWLRQVWKDWHVWDEOLVKDOLPLWRQWKHPD[LPXPDOORZHG

IRUDQ\FRPELQDWLRQRI&RQGLWLRQVWKDWUHVXOWLQDVLQJOHFRQWLQXRXVIDLOXUHWRPHHWWKH/&2

7KHVH&RPSOHWLRQ7LPHVKHQFHIRUWKUHIHUUHGWRDV³VHFRQG&RPSOHWLRQ7LPHV'DUHMRLQHGE\

DQ³$1ORJLFDOFRQQHFWRUWRWKH&RQGLWLRQVSHFLILF&RPSOHWLRQ7LPHDQGVWDWH³;GD\VIURP

GLVFRYHU\RIIDLOXUHWRPHHWWKH/&2'ZKHUH³;'YDULHVE\VSHFLILFDWLRQ7KHLQWHQWRIWKHVHFRQG

&RPSOHWLRQ7LPHZDVWRSUHFOXGHHQWU\LQWRDQGRXWRIWKH$&7,216IRUDQLQGHILQLWHSHULRG

ZLWKRXWPHHWLQJWKH/&2E\SURYLGLQJDOLPLWRQWKHDPRXQWRIWLPHWKDWWKH/&2FRXOGQRWEH

PHWIRUYDULRXVFRPELQDWLRQVRI&RQGLWLRQV

$IWHUWKH,76FRQYHUVLRQD%6(3VSHFLILFDPHQGPHQWZDVLVVXHGIRU76³$&6RXUFHV+/-

2SHUDWLQJ'DQG76³'LVWULEXWLRQ6\VWHPV+/-2SHUDWLQJ'DVDPHQGPHQWVDQGIRU

%6(38QLWVDQGUHVSHFWLYHO\RQ$SULO'XHWRWKHVKDUHGFRQILJXUDWLRQRIWKH

%6(3HOHFWULFDOGLVWULEXWLRQV\VWHPVWKHVHDPHQGPHQWVLQWURGXFHGQHZ76&RQGLWLRQV LH

RQO\DSSOLFDEOHZLWKRQHXQLWRSHUDWLQJDQGWKHRWKHUXQLWVKXWGRZQ WRDOORZH[WHQGHG

&RPSOHWLRQ7LPHVQHFHVVDU\WRDOORZSHUIRUPDQFHRISUHYHQWLYHPDLQWHQDQFHRQEXVHV

WUDQVIRUPHUVEUHDNHUVDQGRWKHUUHODWHGHOHFWULFDOHTXLSPHQWLQWKHVKXWGRZQXQLW7KH

&RPSOHWLRQ7LPHVIRUWKHVHFRQGLWLRQVDOVRLQWURGXFHGSODQWVSHFLILFVHFRQG&RPSOHWLRQ7LPHV

&RQVLVWHQWZLWK767)WKHSURSRVHGFKDQJH  UHPRYHVDOOVHFRQG&RPSOHWLRQ7LPHV

FRQWDLQHGLQWKH%6(376VDQG  PRGLILHV&RPSOHWLRQ7LPHV([DPSOHWRHOLPLQDWHWKH

VHFRQG&RPSOHWLRQ7LPHVFRQWDLQHGZLWKLQDQGUHYLVHVWKHGLVFXVVLRQLQWKH([DPSOHWRVWDWH

WKDWDOWHUQDWLQJEHWZHHQ&RQGLWLRQVLQVXFKDPDQQHUWKDWRSHUDWLRQFRXOGFRQWLQXHLQGHILQLWHO\

5$

(QFORVXUH

3DJHRI



ZLWKRXWHYHUUHVWRULQJV\VWHPVWRPHHWWKH/&2LVLQFRQVLVWHQWZLWKWKHEDVHVRIWKH&RPSOHWLRQ

7LPHVDQGLVLQDSSURSULDWH

$VVRFLDWHG76%DVHVDUHDOVREHLQJUHYLVHGWRGHOHWHWKHGLVFXVVLRQRIWKHVHFRQG&RPSOHWLRQ

7LPHV0DUNHGXSDQGUHYLVHG76DQG76%DVHVSDJHVDUHLQFOXGHGDV$WWDFKPHQWVWKURXJK

RIWKH(QFORVXUH

 'HVFULSWLRQRI9DULDQFHV

'XNH(QHUJ\LVSURSRVLQJWKHIROORZLQJYDULDQFHVIURPWKH76FKDQJHVGHVFULEHGLQ767)

7KHVHYDULDWLRQVGRQRWDIIHFWWKHDSSOLFDELOLW\RI767)WRWKHSURSRVHGOLFHQVH

DPHQGPHQW7KHMXVWLILFDWLRQVIRUGHOHWLQJVHFRQG&RPSOHWLRQ7LPHVSURYLGHGLQ767)DV

DFFHSWHGE\WKH15&DUHDSSOLFDEOHWRWKHIROORZLQJ%6(3FKDQJHVQRWZLWKLQWKHVFRSHRI

767)



%6(39DULDQFHV

767)&KDQJH %6(3&KDQJH ([SODQDWLRQ

765HTXLUHG$FWLRQ$ 1$ %6(376VGRQRWLQFOXGHD

&RQFHQWUDWLRQRIERURQLQ FRQGLWLRQDVVRFLDWHGZLWK

VROXWLRQQRWZLWKLQOLPLWV ERURQFRQFHQWUDWLRQQRWZLWKLQ

OLPLWV

765HTXLUHG$FWLRQ% 1$ 7KH&RPSOHWLRQ7LPHIRUWKH

2QH6/&VXEV\VWHP HTXLYDOHQW%6(3765HTXLUHG

LQRSHUDEOH $FWLRQ LH765HTXLUHG

$FWLRQ$ GRHVQRWLQFOXGHD

VHFRQG&RPSOHWLRQ7LPH

1$ 765HTXLUHG$FWLRQ% 7KHVHFRQG&RPSOHWLRQ7LPH

2QHUHTXLUHG1XFOHDU6HUYLFH ZDVDGGHGWRWKH%6(376V

DWHU 16: SXPS DVSDUWRIWKHFRQYHUVLRQWR

LQRSHUDEOH ,76185(*5HYLVLRQ

GLGQRWFRQWDLQDVHFRQG

&RPSOHWLRQ7LPHZLWKLQWKLV

VSHFLILFVHFWLRQKRZHYHU

%6(3DGRSWHGWKLVPRUH

UHVWULFWLYHFKDQJH

1$ 765HTXLUHG$FWLRQ& 7KHVHFRQG&RPSOHWLRQ7LPH

2QHUHTXLUHG&RQYHQWLRQDO ZDVDGGHGWRWKH%6(376V

6HUYLFH:DWHU &6: SXPS DVSDUWRIWKHFRQYHUVLRQWR

LQRSHUDEOH ,76185(*5HYLVLRQ

GLGQRWFRQWDLQDVHFRQG

&RPSOHWLRQ7LPHZLWKLQWKLV

VSHFLILFVHFWLRQKRZHYHU

%6(3DGRSWHGWKLVPRUH

UHVWULFWLYHFKDQJH

5$

(QFORVXUH

3DJHRI



%6(39DULDQFHV

767)&KDQJH %6(3&KDQJH ([SODQDWLRQ

1$ 765HTXLUHG$FWLRQ( 7KHVHFRQG&RPSOHWLRQ7LPH

7ZRUHTXLUHG&6:SXPSV ZDVDGGHGWRWKH%6(376V

LQRSHUDEOH DVSDUWRIWKHFRQYHUVLRQWR

,76185(*5HYLVLRQ

GLGQRWFRQWDLQDVHFRQG

&RPSOHWLRQ7LPHZLWKLQWKLV

VSHFLILFVHFWLRQKRZHYHU

%6(3DGRSWHGWKLVPRUH

UHVWULFWLYHFKDQJH

1$ 765HTXLUHG$FWLRQ% $IWHUWKH,76FRQYHUVLRQD

3ODQWVSHFLILF&RQGLWLRQ%LV %6(3VSHFLILFDPHQGPHQW

XVHGIRUSODQQHGPDLQWHQDQFH ZDVLVVXHGIRU76³$&

RQDVKXWGRZQXQLW¶V%23 6RXUFHV+/-2SHUDWLQJ'DQG76

EXVHVDQGWKHDVVRFLDWHG ³'LVWULEXWLRQ6\VWHPV+/-

N9HPHUJHQF\EXV,Q 2SHUDWLQJ'DVDPHQGPHQWV

RUGHUWRSHUIRUPPDLQWHQDQFH DQGIRU%6(38QLWV

RQWKHN9HPHUJHQF\ DQGUHVSHFWLYHO\RQ$SULO

EXVWKHDVVRFLDWHGGLHVHO 'XHWRWKHVKDUHG

JHQHUDWRU '* PXVWEH FRQILJXUDWLRQRIWKH%6(3

UHQGHUHGLQRSHUDEOH HOHFWULFDOGLVWULEXWLRQV\VWHPV

WKHVHDPHQGPHQWVLQWURGXFHG

QHZ76&RQGLWLRQV LHRQO\

DSSOLFDEOHZLWKRQHXQLW

RSHUDWLQJDQGWKHRWKHUXQLW

VKXWGRZQ WRDOORZH[WHQGHG

&RPSOHWLRQV7LPHVQHFHVVDU\

WRDOORZSHUIRUPDQFHRI

SUHYHQWLYHPDLQWHQDQFHRQ

EXVHVWUDQVIRUPHUV

EUHDNHUVDQGRWKHUUHODWHG

HOHFWULFDOHTXLSPHQWLQWKH

VKXWGRZQXQLW7KH

&RPSOHWLRQ7LPHVIRUWKHVH

FRQGLWLRQVDOVRLQWURGXFHG

SODQWVSHFLILFVHFRQG

&RPSOHWLRQ7LPHV

765HTXLUHG$FWLRQ$ 765HTXLUHG$FWLRQ& 1XPEHULQJGLIIHUHQFHRQO\

2QHUHTXLUHGRIIVLWHFLUFXLW 2QHUHTXLUHGRIIVLWHFLUFXLW

LQRSHUDEOH LQRSHUDEOH

765HTXLUHG$FWLRQ% 765HTXLUHG$FWLRQ 1XPEHULQJGLIIHUHQFHRQO\

2QHUHTXLUHG'*LQRSHUDEOH '

2QHUHTXLUHG'*LQRSHUDEOH

5$

(QFORVXUH

3DJHRI



%6(39DULDQFHV

767)&KDQJH %6(3&KDQJH ([SODQDWLRQ

1$ 765HTXLUHG$FWLRQ$ $IWHUWKH,76FRQYHUVLRQD

2QH$&HOHFWULFDOSRZHU %6(3VSHFLILFDPHQGPHQW

GLVWULEXWLRQVXEV\VWHP ZDVLVVXHGIRU76³$&

LQRSHUDEOHIRUSODQQHG 6RXUFHV+/-2SHUDWLQJ'DQG76

PDLQWHQDQFHGXHWRHLWKHU ³'LVWULEXWLRQ6\VWHPV+/-

LQRSHUDEOHORDGJURXS( 2SHUDWLQJ'DVDPHQGPHQWV

EXV HV RULQRSHUDEOHORDG DQGIRU%6(38QLWV

JURXS(EXV HV  DQGUHVSHFWLYHO\RQ$SULO

'XHWRWKHVKDUHG

FRQILJXUDWLRQRIWKH%6(3

HOHFWULFDOGLVWULEXWLRQV\VWHPV

WKHVHDPHQGPHQWVLQWURGXFHG

QHZ76&RQGLWLRQV LHRQO\

DSSOLFDEOHZLWKRQHXQLW

RSHUDWLQJDQGWKHRWKHUXQLW

VKXWGRZQ WRDOORZH[WHQGHG

&RPSOHWLRQ7LPHVQHFHVVDU\

WRDOORZSHUIRUPDQFHRI

SUHYHQWLYHPDLQWHQDQFHRQ

EXVHVWUDQVIRUPHUV

EUHDNHUVDQGRWKHUUHODWHG

HOHFWULFDOHTXLSPHQWLQWKH

VKXWGRZQXQLW7KH

&RPSOHWLRQ7LPHVIRUWKHVH

FRQGLWLRQVDOVRLQWURGXFHG

SODQWVSHFLILFVHFRQG

&RPSOHWLRQ7LPHV

765HTXLUHG$FWLRQ$ 765HTXLUHG$FWLRQ% 1XPEHULQJGLIIHUHQFHRQO\

2QHRUPRUH$&HOHFWULFDO 2QHRUPRUH$&HOHFWULFDO

SRZHUGLVWULEXWLRQVXEV\VWHPV SRZHUGLVWULEXWLRQVXEV\VWHPV

LQRSHUDEOH LQRSHUDEOHIRUUHDVRQVRWKHU

WKDQ&RQGLWLRQ$

765HTXLUHG$FWLRQ% 1$ %6(376VGRQRWLQFOXGHD

2QHRUPRUH$&YLWDOEXVHV FRQGLWLRQDVVRFLDWHGZLWK$&

LQRSHUDEOH YLWDOEXVHVLQRSHUDEOH

765HTXLUHG$FWLRQ& 765HTXLUHG$FWLRQ& 1XPEHULQJGLIIHUHQFHRQO\

2QHRUPRUHVWDWLRQVHUYLFH 2QHRUPRUH'&HOHFWULFDO

'&HOHFWULFDOGLVWULEXWLRQ SRZHUGLVWULEXWLRQVXEV\VWHPV

VXEV\VWHPVLQRSHUDEOH LQRSHUDEOHGXHWRORVVRI

QRUPDO'&VRXUFH

5$

(QFORVXUH

3DJHRI



%6(39DULDQFHV

767)&KDQJH %6(3&KDQJH ([SODQDWLRQ

1$ 765HTXLUHG$FWLRQ' 7KHRQVLWH'&HOHFWULFDO

2QHRUPRUH'&HOHFWULFDO SRZHUGLVWULEXWLRQV\VWHPLV

SRZHUGLVWULEXWLRQVXEV\VWHPV GLYLGHGLQWRUHGXQGDQWDQG

LQRSHUDEOHIRUUHDVRQVRWKHU LQGHSHQGHQW'&HOHFWULFDO

WKDQ&RQGLWLRQ& SRZHUGLVWULEXWLRQ

VXEV\VWHPVGXHWRWKH

XQLTXHVKDUHGHOHFWULFDO

V\VWHPDW%6(3%HFDXVH

HDFK'&VXEV\VWHPFDQEH

SRZHUHGE\DQRUPDODQG

DOWHUQDWH'&VRXUFHWKLV

VSHFLILF765HTXLUHG$FWLRQ

FRYHUVWKHORVVRIRQHRUPRUH

'&HOHFWULFDOSRZHU

GLVWULEXWLRQVXEV\VWHPVIRU

UHDVRQVRWKHUWKDQWKHORVVRI

WKHQRUPDO'&VRXUFH LH76

5HTXLUHG$FWLRQ& 



 $GPLQLVWUDWLYH&KDQJHV

7KHDGPLQLVWUDWLYHFKDQJHVUHTXHVWHGE\WKLVDPHQGPHQWDUHWRGHOHWHWZRREVROHWHQRWHV

DVVRFLDWHGZLWK765HTXLUHG$FWLRQ'DQG6XUYHLOODQFH5HTXLUHPHQWV 65 

DQG7KHQRWHDVVRFLDWHGZLWK765HTXLUHG$FWLRQ'VWDWHV³8QWLO'*LV

UHWXUQHGWRRSHUDEOHVWDWXVQRWWRH[FHHG(67RQ'HFHPEHUWKHGD\DQG

GD\&RPSOHWLRQ7LPHVDUHH[WHQGHGWRGD\VDQGGD\VUHVSHFWLYHO\'7KHQRWHDVVRFLDWHG

ZLWK7665VDQGVWDWHV³8QWLO'*LVUHWXUQHGWR23(5$%/(VWDWXV

QRWWRH[FHHG(67RQ'HFHPEHUSHUIRUPDQFHRI65¶;¶IRU('*V

DQGPD\EHVXVSHQGHG3DVWGXHVXUYHLOODQFHVZLOOEHFRPSOHWHGZLWKLQGD\VRIUHVWRUDWLRQ

RI('*RSHUDELOLW\RU'HFHPEHUZKLFKHYHURFFXUVILUVW'$OORIWKH65QRWHVUHDGWKH

VDPHH[FHSWIRUWKHµ;¶DERYHZKLFKGHVLJQDWHVWKHVSHFLILF65WKHQRWHLVDVVRFLDWHGZLWK

%RWKQRWHVZHUHDGGHGDVSDUWRIDQ(PHUJHQF\/$5GDWHG1RYHPEHUDQGDSSURYHG

RQ1RYHPEHUDV$PHQGPHQWVDQGIRU8QLWDQGUHVSHFWLYHO\

 7HFKQLFDO(YDOXDWLRQ

$VGLVFXVVHGLQ767)5HYLVLRQWKHDGRSWLRQRIDVHFRQG&RPSOHWLRQ7LPHZDVEDVHG

RQDQ15&FRQFHUQWKDWDSODQWFRXOGFRQWLQXHWRRSHUDWHLQGHILQLWHO\ZLWKDQ/&2JRYHUQLQJ

VDIHW\VLJQLILFDQWV\VWHPVQHYHUEHLQJPHWE\DOWHUQDWHO\PHHWLQJWKHUHTXLUHPHQWVRIVHSDUDWH

&RQGLWLRQV,QWKHUHZDVQRUHJXODWRU\UHTXLUHPHQWRUSURJUDPZKLFKFRXOGSUHYHQWWKLV

PLVXVHRIWKH76+RZHYHUWKDWLVQRORQJHUWKHFDVH:LWKWKHSURPXOJDWLRQRIWKH

0DLQWHQDQFH5XOHLPSOHPHQWDWLRQRIWKH5HDFWRU2YHUVLJKW3URFHVVDQGWKHLQFOXVLRQRI

DGPLQLVWUDWLYHFRQWUROVDVGLVFXVVHGKHUHLQWKHUHZRXOGH[LVWVWURQJGLVLQFHQWLYHWRFRQWLQXHG

RSHUDWLRQZLWKFRQFXUUHQWPXOWLSOHLQRSHUDELOLWLHVRIWKHW\SHWKHVHFRQG&RPSOHWLRQ7LPHVZHUH

GHVLJQHGWRSUHYHQW

5$

(QFORVXUH

3DJHRI



0DLQWHQDQFH5XOH

&)5 D  ³5HTXLUHPHQWVIRU0RQLWRULQJWKH(IIHFWLYHQHVVRI0DLQWHQDQFHDW1XFOHDU

3RZHU3ODQWV' LHWKH0DLQWHQDQFH5XOH UHTXLUHVHDFKOLFHQVHHWRPRQLWRUWKHSHUIRUPDQFH

RUFRQGLWLRQRI66&VDJDLQVWOLFHQVHHHVWDEOLVKHGJRDOVWRHQVXUHWKDWWKH66&VDUHFDSDEOHRI

IXOILOOLQJWKHLULQWHQGHGIXQFWLRQV,IWKHSHUIRUPDQFHRUFRQGLWLRQRIDQ66&GRHVQRWPHHW

HVWDEOLVKHGJRDOVDSSURSULDWHFRUUHFWLYHDFWLRQLVUHTXLUHGWREHWDNHQ7KH15&5HVLGHQW

,QVSHFWRUVPRQLWRUWKHOLFHQVHH¶V&RUUHFWLYH$FWLRQ3URJUDP &$3 DQGFRXOGWDNHDFWLRQLIWKH

OLFHQVHH¶VPDLQWHQDQFHSURJUDPDOORZHGWKHV\VWHPVUHTXLUHGE\DVLQJOH/&2WREHFRPH

FRQFXUUHQWO\LQRSHUDEOHPXOWLSOHWLPHV7KHSHUIRUPDQFHDQGFRQGLWLRQPRQLWRULQJDFWLYLWLHV

UHTXLUHGE\&)5 D  DQG D  ZRXOGLGHQWLI\LISRRUPDLQWHQDQFHSUDFWLFHVUHVXOWHG

LQPXOWLSOHHQWULHVLQWRWKH$&7,216RIWKH76DQGXQDFFHSWDEOHXQDYDLODELOLW\RIWKHVH66&V

7KHHIIHFWLYHQHVVRIWKHVHSHUIRUPDQFHPRQLWRULQJDFWLYLWLHVDQGDVVRFLDWHGFRUUHFWLYHDFWLRQV

LVHYDOXDWHGDWOHDVWHYHU\UHIXHOLQJF\FOHQRWWRH[FHHGPRQWKVSHU&)5 D  

8QGHUWKH76WKH&RPSOHWLRQ7LPHIRURQHV\VWHPLVQRWDIIHFWHGE\RWKHULQRSHUDEOH

HTXLSPHQW7KHVHFRQG&RPSOHWLRQ7LPHVZHUHDQDWWHPSWWRLQIOXHQFHWKH&RPSOHWLRQ7LPH

IRURQHV\VWHPEDVHGRQWKHFRQGLWLRQRIDQRWKHUV\VWHPLIWKHWZRV\VWHPVZHUHUHTXLUHGE\

WKHVDPH/&2+RZHYHU&)5 D  LVDPXFKEHWWHUPHFKDQLVPWRDSSO\WKLV

LQIOXHQFHDVWKH0DLQWHQDQFH5XOHFRQVLGHUVDOOLQRSHUDEOHULVNVLJQLILFDQWHTXLSPHQWQRWMXVW

WKHRQHRUWZRV\VWHPVJRYHUQHGE\WKHVDPH/&2

8QGHU&)5 D  WKHULVNLPSDFWRIDOOLQRSHUDEOHULVNVLJQLILFDQWHTXLSPHQWLV

DVVHVVHGDQGPDQDJHGZKHQSHUIRUPLQJSUHYHQWDWLYHRUFRUUHFWLYHPDLQWHQDQFH7KHULVN

DVVHVVPHQWVDUHFRQGXFWHGXVLQJWKHSURFHGXUHVDQGJXLGDQFHHQGRUVHGE\5HJXODWRU\

• XLGH³0RQLWRULQJWKH(IIHFWLYHQHVVRI0DLQWHQDQFHDW1XFOHDU3RZHU3ODQWV' LH

5HIHUHQFH 5HJXODWRU\*XLGHHQGRUVHVWKH5HYLVLRQ$RI180$5&³,QGXVWU\

• XLGHOLQHIRU0RQLWRULQJWKH(IIHFWLYHQHVVRI0DLQWHQDQFHDW1XFOHDU3RZHU3ODQWV' LH

5HIHUHQFH 7KHVHGRFXPHQWVDGGUHVVJHQHUDOJXLGDQFHIRUFRQGXFWRIWKHULVN

DVVHVVPHQWTXDQWLWDWLYHDQGTXDOLWDWLYHJXLGHOLQHVIRUHVWDEOLVKLQJULVNPDQDJHPHQWDFWLRQV

DQGH[DPSOHULVNPDQDJHPHQWDFWLRQV7KHVHLQFOXGHDFWLRQVWR

•  SODQDQGFRQGXFWRWKHUDFWLYLWLHVLQDPDQQHUWKDWFRQWUROVRYHUDOOULVN

•  LQFUHDVHGULVNDZDUHQHVVE\VKLIWDQGPDQDJHPHQWSHUVRQQHO

•  UHGXFHWKHGXUDWLRQRIWKHFRQGLWLRQ

•  PLQLPL]HWKHPDJQLWXGHRIULVNLQFUHDVHVWKURXJKWKHHVWDEOLVKPHQWRIEDFNXS

VXFFHVVSDWKVRUFRPSHQVDWRU\PHDVXUHV

•  DQGGHWHUPLQDWLRQWKDWWKHSURSRVHGPDLQWHQDQFHLVDFFHSWDEOH

7KLVFRPSUHKHQVLYHSURJUDPSURYLGHVPXFKJUHDWHUDVVXUDQFHRIVDIHSODQWRSHUDWLRQWKDQWKH

VHFRQG&RPSOHWLRQ7LPHVLQWKH76

5HDFWRU2YHUVLJKW3URFHVV

1XFOHDU(QHUJ\,QVWLWXWH 1(, ³5HJXODWRU\$VVHVVPHQW3HUIRUPDQFH,QGLFDWRU

• XLGHOLQH'GHVFULEHVWKHWUDFNLQJDQGUHSRUWLQJRISHUIRUPDQFHLQGLFDWRUVWRVXSSRUWWKH15&¶V

5HDFWRU2YHUVLJKW3URFHVV 523  LH5HIHUHQFH 7KH1(,GRFXPHQWLVHQGRUVHGE\

5HJXODWRU\,VVXH6XPPDU\ 5,6 ³9ROXQWDU\6XEPLVVLRQRI3HUIRUPDQFH,QGLFDWRU

'DWD' LH5HIHUHQFH 1(,6HFWLRQGHVFULEHVWKH0LWLJDWLQJ6\VWHPV

5$

(QFORVXUH

3DJHRI



&RUQHUVWRQH1(,VSHFLILFDOO\DGGUHVVHV(PHUJHQF\$&6RXUFHVZKLFKHQFRPSDVVHV

WKH$&6RXUFHVDQG'LVWULEXWLRQ6\VWHP/&2VDQGWKH&RROLQJ:DWHU6\VWHPVZKLFK

HQFRPSDVVHVWKH%6(316:DQG&6:6\VWHP/&2V([WHQGHGXQDYDLODELOLW\RIWKHVH

V\VWHPVGXHWRPXOWLSOHHQWULHVLQWRWKH$&7,216ZRXOGDIIHFWWKH15&¶VHYDOXDWLRQRIWKH

OLFHQVHH¶VSHUIRUPDQFHXQGHUWKH523

$GPLQLVWUDWLYH&RQWUROV

,QDGGLWLRQWRWKHVHSURJUDPVDUHTXLUHPHQWLVDGGHGWR6HFWLRQRIWKH76WRUHTXLUH

OLFHQVHHVWRKDYHDGPLQLVWUDWLYHFRQWUROVWROLPLWWKHPD[LPXPWLPHDOORZHGIRUDQ\FRPELQDWLRQ

RI&RQGLWLRQVWKDWUHVXOWLQDVLQJOHFRQWLJXRXVRFFXUUHQFHRIIDLOLQJWRPHHWWKH/&27KHVH

DGPLQLVWUDWLYHFRQWUROVVKRXOGFRQVLGHUSODQWULVNDQGVKDOOOLPLWWKHPD[LPXPFRQWLJXRXVWLPHRI

IDLOLQJWRPHHWWKH/&27KLV76UHTXLUHPHQWZKHQFRQVLGHUHGZLWKWKHUHJXODWRU\SURFHVVHV

GLVFXVVHGDERYHSURYLGHDQHTXLYDOHQWRUVXSHULRUOHYHORISODQWVDIHW\ZLWKRXWWKHXQQHFHVVDU\

FRPSOLFDWLRQRIWKH76E\VHFRQG&RPSOHWLRQ7LPHVRQVRPH6SHFLILFDWLRQV)XUWKHUPRUH

'XNH(QHUJ\ZLOOUHYLVH2,³%13&RQGXFWRI2SHUDWLRQV6XSSOHPHQW'WRLPSOHPHQWWKH

JXLGDQFHFRQWDLQHGLQ767)5HYLVLRQ6SHFLILFDOO\

,WLVSRVVLEOHWRDOWHUQDWHEHWZHHQ7HFKQLFDO6SHFLILFDWLRQ&RQGLWLRQVLQVXFKDPDQQHU

WKDW RSHUDWLRQ FRXOG FRQWLQXH LQGHILQLWHO\ ZLWKRXW HYHU UHVWRULQJ V\VWHPV WR PHHW WKH

/&2+RZHYHUGRLQJVRZRXOGEHLQFRQVLVWHQWZLWKWKHEDVLVRIWKH&RPSOHWLRQ7LPHV

7KHUHIRUHWKHPD[LPXPWLPHDOORZHGIRUDQ\FRPELQDWLRQRI&RQGLWLRQVWKDWUHVXOWLQD

VLQJOHFRQWLJXRXVRFFXUUHQFHRIIDLOLQJWRPHHWWKH/&2VKDOOEHOLPLWHG7KH&RPSOHWLRQ

7LPHVIRUWKRVH&RQGLWLRQVVKDOOQRWEHLQDSSURSULDWHO\H[WHQGHG

2,SURYLGHVJXLGDQFHIRUGRFXPHQWLQJWKHHQWUDQFHLQWR76$FWLRQVZKHQDQDSSOLFDEOH

/&2LVQRWPHW/&2UHDVVLJQPHQWDQG/&2FDQFHOODWLRQ7KLVFKDQJHZLOOEHSDUWRIWKH

LPSOHPHQWDWLRQSURFHVVIRUWKLV76FKDQJH

,QFRQFOXVLRQWKHSURSRVHGFKDQJHVDOWKRXJKZLWKYDULDQFHVIDOOZLWKLQWKHVFRSHRIWKLV767)

DQGWKHMXVWLILFDWLRQLVDOVRDSSOLFDEOH7KHDGGHG6HUYLFH:DWHUV\VWHPLVPRQLWRUHGXQGHU

ERWKWKH0DLQWHQDQFH5XOHDQGWKH5HDFWRU2YHUVLJKW3URFHVV3HUIRUPDQFH,QGLFDWRUVDVRQH

RIWKHILYH0LWLJDWLQJ6\VWHP3HUIRUPDQFH,QGH[ 063, V\VWHPV7KHXQDYDLODELOLW\DQG

UHOLDELOLW\RIWKHV\VWHPLVPRQLWRUHGPRQWKO\DQGUHVXOWVSURYLGHGWRWKH15&TXDUWHUO\

 5HJXODWRU\$QDO\VLV

 $SSOLFDEOH5HJXODWRU\5HTXLUHPHQWV&ULWHULD

7KHIROORZLQJ15&UHTXLUHPHQWVDUHDSSOLFDEOHWRWKHSURSRVHGFKDQJH

7LWOH&RGHRI)HGHUDO5HJXODWLRQV F  

7KHUHJXODWLRQVRI7LWOHRIWKH&RGHRI)HGHUDO5HJXODWLRQV &)5 ³7HFKQLFDO

6SHFLILFDWLRQV'HVWDEOLVKWKHUHTXLUHPHQWVUHODWHGWRWKHFRQWHQWRIWKH766HFWLRQ F  

VWDWHV

KHQDOLPLWLQJFRQGLWLRQIRURSHUDWLRQRIDQXFOHDUUHDFWRULVQRWPHWWKHOLFHQVHHVKDOO

VKXWGRZQWKHUHDFWRURUIROORZDQ\UHPHGLDODFWLRQSHUPLWWHGE\WKHWHFKQLFDO

VSHFLILFDWLRQVXQWLOWKHFRQGLWLRQFDQEHPHW

5$

(QFORVXUH

3DJHRI



7LWOH&RGHRI)HGHUDO5HJXODWLRQV

7KHUHJXODWLRQVRI&)5³5HTXLUHPHQWVIRU0RQLWRULQJWKH(IIHFWLYHQHVVRI

0DLQWHQDQFHDW1XFOHDU3RZHU3ODQWV'HVWDEOLVKDSHUIRUPDQFHEDVHGUXOHWRHQVXUHWKDW

QXFOHDUSRZHUSODQWVWUXFWXUHVV\VWHPVDQGFRPSRQHQWV 66&V ZLOOEHPDLQWDLQHGVRWKDW

WKH\ZLOOSHUIRUPWKHLULQWHQGHGIXQFWLRQZKHQUHTXLUHG

7KHSURSRVHGFKDQJHVFRQWLQXHWRPHHWWKHUHTXLUHPHQWVRIWKHVHUHJXODWLRQV

 1R6LJQLILFDQW+D]DUGV&RQVLGHUDWLRQ$QDO\VLV

'XNH(QHUJ\3URJUHVV//& 'XNH(QHUJ\ UHTXHVWVDGRSWLRQRI7HFKQLFDO6SHFLILFDWLRQ7DVN

)RUFH 767) 7UDYHOHU767)(OLPLQDWH6HFRQG&RPSOHWLRQ7LPHV/LPLWLQJ7LPH)URP

'LVFRYHU\RI)DLOXUH7R0HHWDQ/&2ZKLFKLVDQDSSURYHGFKDQJHWRWKH6WDQGDUG7HFKQLFDO

6SHFLILFDWLRQV 676 LQWRWKH%UXQVZLFN6WHDP(OHFWULF3ODQW %6(3 8QLWVDQG7HFKQLFDO

6SHFLILFDWLRQV 76 7KHSURSRVHGFKDQJHGHOHWHVVHFRQG&RPSOHWLRQ7LPHVIURPWKHDIIHFWHG

5HTXLUHG$FWLRQVFRQWDLQHGLQ76DORQJZLWKUHPRYLQJWKHH[DPSOHFRQWDLQHGLQ766HFWLRQ

DQGDGGLQJDGLVFXVVLRQDERXWDOWHUQDWLQJEHWZHHQ&RQGLWLRQV7KHVHFKDQJHVDUHFRQVLVWHQW

ZLWK15&DSSURYHG7UDYHOHU767)5HYLVLRQ

'XNH(QHUJ\KDVHYDOXDWHGZKHWKHUDVLJQLILFDQWKD]DUGVFRQVLGHUDWLRQLVLQYROYHGZLWKWKH

SURSRVHGDPHQGPHQW V E\IRFXVLQJRQWKHWKUHHVWDQGDUGVVHWIRUWKLQ&)5

,VVXDQFHRIDPHQGPHQWDVGLVFXVVHGEHORZ

 'RHVWKHSURSRVHGFKDQJHLQYROYHDVLJQLILFDQWLQFUHDVHLQWKHSUREDELOLW\RU

FRQVHTXHQFHVRIDQDFFLGHQWSUHYLRXVO\HYDOXDWHG"

5HVSRQVH 1R

7KHSURSRVHGFKDQJHHOLPLQDWHVVHFRQG&RPSOHWLRQ7LPHVIURPWKH7HFKQLFDO

6SHFLILFDWLRQV&RPSOHWLRQ7LPHVDUHQRWDQLQLWLDWRUWRDQ\DFFLGHQWSUHYLRXVO\

HYDOXDWHG7KHFRQVHTXHQFHVRIDQDFFLGHQWGXULQJWKHUHYLVHG&RPSOHWLRQ7LPH

DUHQRGLIIHUHQWWKDQWKHFRQVHTXHQFHVRIWKHVDPHDFFLGHQWGXULQJWKHH[LVWLQJ

&RPSOHWLRQ7LPHV$VDUHVXOWWKHSUREDELOLW\DQGFRQVHTXHQFHVRIDQDFFLGHQW

SUHYLRXVO\HYDOXDWHGDUHQRWDIIHFWHGE\WKLVFKDQJH7KHSURSRVHGFKDQJHGRHV

QRWDOWHURUSUHYHQWWKHDELOLW\RIV\VWHPVVWUXFWXUHVDQGFRPSRQHQWV 66&V 

IURPSHUIRUPLQJWKHLULQWHQGHGIXQFWLRQWRPLWLJDWHWKHFRQVHTXHQFHVRIDQ

LQLWLDWLQJHYHQWZLWKLQWKHDVVXPHGDFFHSWDQFHOLPLWV7KHSURSRVHGFKDQJHGRHV

QRWDIIHFWWKHVRXUFHWHUPFRQWDLQPHQWLVRODWLRQRUUDGLRORJLFDOUHOHDVH

DVVXPSWLRQVXVHGLQHYDOXDWLQJWKHUDGLRORJLFDOFRQVHTXHQFHVRIDQDFFLGHQW

SUHYLRXVO\HYDOXDWHG)XUWKHUWKHSURSRVHGFKDQJHGRHVQRWLQFUHDVHWKHW\SHV

RUDPRXQWVRIUDGLRDFWLYHHIIOXHQWWKDWPD\EHUHOHDVHGRIIVLWHQRUVLJQLILFDQWO\

LQFUHDVHLQGLYLGXDORUFXPXODWLYHRFFXSDWLRQDOSXEOLFUDGLDWLRQH[SRVXUHV7KH

SURSRVHGFKDQJHLVFRQVLVWHQWZLWKWKHVDIHW\DQDO\VLVDVVXPSWLRQVDQG

UHVXOWDQWFRQVHTXHQFHV

7KHUHIRUHWKHSURSRVHGFKDQJHGRHVQRWLQYROYHDVLJQLILFDQWLQFUHDVHLQWKHSUREDELOLW\

RUFRQVHTXHQFHVRIDQDFFLGHQWSUHYLRXVO\HYDOXDWHG

5$

(QFORVXUH

3DJHRI



 'RHVWKHSURSRVHGFKDQJHFUHDWHWKHSRVVLELOLW\RIDQHZRUGLIIHUHQWNLQGRIDFFLGHQW

IURPDQ\DFFLGHQWSUHYLRXVO\HYDOXDWHG"

5HVSRQVH 1R

7KHSURSRVHGFKDQJHGRHVQRWLQYROYHDSK\VLFDODOWHUDWLRQWRWKHSODQW LHQRQHZRU

GLIIHUHQWW\SHRIHTXLSPHQWZLOOEHLQVWDOOHG RUDFKDQJHLQWKHPHWKRGVJRYHUQLQJ

QRUPDOSODQWRSHUDWLRQ7KHSURSRVHGFKDQJHZLOOQRWDOWHUWKHGHVLJQIXQFWLRQQRU

FUHDWHQHZIDLOXUHPHFKDQLVPVPDOIXQFWLRQVRUDFFLGHQWLQLWLDWRUVIRUWKHHTXLSPHQW

UHODWHGWRWKH76EHLQJDOWHUHG

7KXVEDVHGRQWKHDERYHWKLVFKDQJHGRHVQRWFUHDWHWKHSRVVLELOLW\RIDQHZRU

GLIIHUHQWNLQGRIDFFLGHQWIURPDQDFFLGHQWSUHYLRXVO\HYDOXDWHG

 'RHVWKHSURSRVHGFKDQJHLQYROYHDVLJQLILFDQWUHGXFWLRQLQDPDUJLQRIVDIHW\"

5HVSRQVH 1R

7KHSURSRVHGFKDQJHWRGHOHWHWKHVHFRQG&RPSOHWLRQ7LPHGRHVQRWDOWHUWKHPDQQHU

LQZKLFKVDIHW\OLPLWVOLPLWLQJVDIHW\V\VWHPVHWWLQJVRUOLPLWHGFRQGLWLRQVIRURSHUDWLRQ

DUHGHWHUPLQHG7KHVDIHW\DQDO\VLVDFFHSWDQFHFULWHULDDUHQRWDIIHFWHGE\WKLVFKDQJH

7KHSURSRVHGFKDQJHZLOOQRWUHVXOWLQSODQWRSHUDWLRQLQDFRQILJXUDWLRQRXWVLGHRIWKH

GHVLJQEDVLV

7KHUHIRUHWKHSURSRVHGFKDQJHGRHVQRWLQYROYHDVLJQLILFDQWUHGXFWLRQLQDPDUJLQRI

VDIHW\

%DVHGRQWKHDERYH'XNH(QHUJ\FRQFOXGHVWKDWWKHSURSRVHGFKDQJHSUHVHQWVQRVLJQLILFDQW

KD]DUGVFRQVLGHUDWLRQXQGHUWKHVWDQGDUGVVHWIRUWKLQ&)5 F DQGDFFRUGLQJO\D

ILQGLQJRIQRVLJQLILFDQWKD]DUGVFRQVLGHUDWLRQLVMXVWLILHG

 &RQFOXVLRQV

,QFRQFOXVLRQEDVHGRQWKHFRQVLGHUDWLRQVGLVFXVVHGDERYH  WKHUHLVUHDVRQDEOHDVVXUDQFH

WKDWWKHKHDOWKDQGVDIHW\RIWKHSXEOLFZLOOQRWEHHQGDQJHUHGE\RSHUDWLRQLQWKHSURSRVHG

PDQQHU  VXFKDFWLYLWLHVZLOOEHFRQGXFWHGLQFRPSOLDQFHZLWKWKH15&UHJXODWLRQVDQG  

WKHLVVXDQFHRIWKHDPHQGPHQWZLOOQRWEHLQLPLFDOWRWKHFRPPRQGHIHQVHDQGVHFXULW\RUWR

WKHKHDOWKDQGVDIHW\RIWKHSXEOLF

 (QYLURQPHQWDO(YDOXDWLRQ

7KHSURSRVHGFKDQJHZRXOGDOWHUDUHTXLUHPHQWZLWKUHVSHFWWRLQVWDOODWLRQRUXVHRIDIDFLOLW\

FRPSRQHQWORFDWHGZLWKLQWKHUHVWULFWHGDUHDDVGHILQHGLQ&)5RUZRXOGFKDQJHDQ

LQVSHFWLRQRUVXUYHLOODQFHUHTXLUHPHQW+RZHYHUWKHSURSRVHGFKDQJHGRHVQRWLQYROYH L D

VLJQLILFDQWKD]DUGVFRQVLGHUDWLRQ LL DVLJQLILFDQWFKDQJHLQWKHW\SHVRUVLJQLILFDQWLQFUHDVHLQ

WKHDPRXQWVRIDQ\HIIOXHQWVWKDWPD\EHUHOHDVHGRIIVLWHRU LLL DVLJQLILFDQWLQFUHDVHLQ

LQGLYLGXDORUFXPXODWLYHRFFXSDWLRQDOUDGLDWLRQH[SRVXUH$FFRUGLQJO\WKHSURSRVHGFKDQJH

PHHWVWKHHOLJLELOLW\FULWHULRQIRUFDWHJRULFDOH[FOXVLRQVHWIRUWKLQ&)5 F  7KHUHIRUH

SXUVXDQWWR&)5 E QRHQYLURQPHQWDOLPSDFWVWDWHPHQWRUHQYLURQPHQWDODVVHVVPHQW

QHHGEHSUHSDUHGLQFRQQHFWLRQZLWKWKHSURSRVHGFKDQJH

5$

(QFORVXUH

3DJHRI



 5HIHUHQFHV

 /HWWHUIURPWKH767)WRWKH15&³767)5HYLVLRQµ(OLPLQDWH6HFRQG

&RPSOHWLRQ7LPHV/LPLWLQJ7LPH)URP'LVFRYHU\RI)DLOXUH7R0HHWDQ/&2¶'

GDWHG-XQH$'$06$FFHVVLRQ1R0/

 185(*5HYLVLRQ³6WDQGDUG7HFKQLFDO6SHFLILFDWLRQV*HQHUDO(OHFWULF

3ODQWV%:5'GDWHG$SULO$'$06$FFHVVLRQ1R0/$

 /HWWHUIURP'DYLG&7ULPEOH 15& WR&6+LQQDQW &3 / ,VVXDQFHRI

$PHQGPHQW1RWR)DFLOLW\2SHUDWLQJ/LFHQVH1R'35DQG$PHQGPHQW

1RWR)DFLOLW\2SHUDWLQJ/LFHQVH1R'355HJDUGLQJ&RQYHUVLRQWR

,PSURYHG6WDQGDUG7HFKQLFDO6SHFLILFDWLRQVDQG,PSOHPHQWDWLRQRI5HDFWRU

6WDELOLW\6ROXWLRQ+/-%UXQVZLFN6WHDP(OHFWULF3ODQW8QLWVDQG 7$&1RV

0DQG0 GDWHG-XQH$'$06$FFHVVLRQ1R

 861XFOHDU5HJXODWRU\&RPPLVVLRQ5HJXODWRU\*XLGH³0RQLWRULQJWKH

(IIHFWLYHQHVVRI0DLQWHQDQFHDW1XFOHDU3RZHU3ODQWV'GDWHG0D\

$'$06$FFHVVLRQ1R0/

 1XFOHDU(QHUJ\,QVWLWXWH 1(, 180$5&³,QGXVWU\*XLGHOLQHIRU

0RQLWRULQJWKH(IIHFWLYHQHVVRI0DLQWHQDQFHDW1XFOHDU3RZHU3ODQWV'5HYLVLRQ

$$SULO$'$06$FFHVVLRQ1R0/$

 1(,*XLGHOLQH1(,³5HJXODWRU\$VVHVVPHQW3HUIRUPDQFH,QGLFDWRU

• XLGHOLQH'5HYLVLRQGDWHG$XJXVW$'$06$FFHVVLRQ1R

0/$

 15&5HJXODWRU\,VVXH6XPPDU\ 5,6 5,6³9ROXQWDU\6XEPLVVLRQRI

3HUIRUPDQFH,QGLFDWRU'DWD'GDWHG0D\$'$06$FFHVVLRQ

1R0/



5$

(QFORVXUH

$WWDFKPHQW



3URSRVHG7HFKQLFDO6SHFLILFDWLRQV&KDQJHV 0DUN8S 8QLW





Completion Times 1.3 1.3 Completion Times DESCRIPTION The above Completion Time extension does not apply to those (continued) Specifications that have exceptions that allow completely separate re-entry into the Condition (for each division, subsystem, component or variable expressed in the Condition) and separate tracking of Completion Times based on this re-entry. These exceptions are stated in individual Specifications.

The above Completion Time extension does not apply to a Completion Time with a modified "time zero." This modified "time zero" may be expressed as a repetitive time (i.e., "once per 8 hours9.259259e-5 days <br />0.00222 hours <br />1.322751e-5 weeks <br />3.044e-6 months <br />," where the Completion Time is referenced from a previous completion of the Required Action versus the time of Condition entry) or as a time modified by the phrase "from discovery . . ." Example 1.3-3 illustrates one use of this type of Completion Time. The 10 day Completion Time specified for Condition A and B in Example 1.3-3 may not be extended.

EXAMPLES The following examples illustrate the use of Completion Times with different types of Conditions and changing Conditions.

EXAMPLE 1.3-1 ACTIONS COMPLETION CONDITION REQUIRED ACTION TIME B. Required Action B.1 Be in MODE 3. 12 hours1.388889e-4 days <br />0.00333 hours <br />1.984127e-5 weeks <br />4.566e-6 months <br /> and associated Completion AND Time not met.

B.2 Be in MODE 4. 36 hours4.166667e-4 days <br />0.01 hours <br />5.952381e-5 weeks <br />1.3698e-5 months <br /> Condition B has two Required Actions. Each Required Action has its own separate Completion Time. Each Completion Time is referenced to the time that Condition B is entered.

(continued)

Brunswick Unit 1 1.3-3 Amendment No. 281

INSERT:

It is possible to alternate between Conditions A, B, and C in such a manner that operation could continue indefinitely without ever restoring systems to meet the LCO. However, doing so would be inconsistent with the basis of the Completion Times. Therefore, there shall be administrative controls to limit the maximum time allowed for any combination of Conditions that result in a single contiguous occurrence of failing to meet the LCO. These administrative controls shall ensure that the Completion Times for those Conditions are not inappropriately extended.

AC SourcesOperating 3.8.1 ACTIONS (continued)

CONDITION REQUIRED ACTION COMPLETION TIME D. (continued) D.5 Restore DG to OPERABLE ---------NOTE----------

status. Until DG 4 is returned to OPERABLE status, not to exceed 0745 EST on December 13, 2017, the 14 day and 17 day Completion Times are extended to 30 days and 33 days, respectively.

7 days from discovery of unavailability of SUPP-DG AND 24 hours2.777778e-4 days <br />0.00667 hours <br />3.968254e-5 weeks <br />9.132e-6 months <br /> from discovery of Condition D entry t 6 days concurrent with unavailability of SUPP-DG AND 14 days AND 17 days from discovery of failure to meet LCO 3.8.1.a or b (continued)

Brunswick Unit 1 3.8-5 Amendment No. 282

AC SourcesOperating 3.8.1 SURVEILLANCE REQUIREMENTS SURVEILLANCE FREQUENCY SR 3.8.1.1 Verify correct breaker alignment and indicated power In accordance with availability for each offsite circuit. the Surveillance Frequency Control Program SR 3.8.1.2 -------------------------------NOTES------------------------------

1. All DG starts may be preceded by an engine prelube period.

2. A modified DG start involving idling and gradual acceleration to synchronous speed may be used for this SR. When modified start procedures are not used, the time, voltage, and frequency tolerances of SR 3.8.1.7 must be met.

3. A single test at the specified Frequency will satisfy this Surveillance for both units.

4. Until DG 4 is returned to OPERABLE status, not to exceed 0745 EST on December 13, 2017, performance of SR 3.8.1.2 for EDGs 1, 2, and 3 may be suspended. Past due surveillances will be completed within 7 days of restoration of EDG 4 operability or December 20, 2017, whichever occurs first.

Verify each DG starts from standby conditions and In accordance with achieves steady state voltage t 3750 V and d 4300 V the Surveillance and frequency t 58.8 Hz and d 61.2 Hz. Frequency Control Program (continued)

Brunswick Unit 1 3.8-7 Amendment No. 282

AC SourcesOperating 3.8.1 SURVEILLANCE REQUIREMENTS (continued)

SURVEILLANCE FREQUENCY SR 3.8.1.3 -------------------------------NOTES------------------------------

1. DG loadings may include gradual loading.

2. Momentary transients outside the load range do not invalidate this test.

3. This Surveillance shall be conducted on only one DG at a time.

4. This SR shall be preceded by and immediately follow, without shutdown, a successful performance of SR 3.8.1.2 or SR 3.8.1.7.

5. A single test at the specified Frequency will satisfy this Surveillance for both units.

6. Until DG 4 is returned to OPERABLE status, not to exceed 0745 EST on December 13, 2017, performance of SR 3.8.1.3 for EDGs 1, 2, and 3 may be suspended. Past due surveillances will be completed within 7 days of restoration of EDG 4 operability or December 20, 2017, whichever occurs first.

In accordance with Verify each DG is synchronized and loaded and the Surveillance operates for t 60 minutes at a load t 2800 kW and Frequency Control d 3500 kW.

Program SR 3.8.1.4 Verify each engine mounted tank contains t 150 gal of In accordance with fuel oil. the Surveillance Frequency Control Program SR 3.8.1.5 Check for and remove accumulated water from each In accordance with engine mounted tank. the Surveillance Frequency Control Program (continued)

Brunswick Unit 1 3.8-8 Amendment No. 282

AC SourcesOperating 3.8.1 SURVEILLANCE REQUIREMENTS (continued)

SURVEILLANCE FREQUENCY SR 3.8.1.6 -------------------------------NOTE-------------------------------

Until DG 4 is returned to OPERABLE status, not to exceed 0745 EST on December 13, 2017, performance of SR 3.8.1.6 for EDGs 1, 2, and 3 may be suspended. Past due surveillances will be completed within 7 days of restoration of EDG 4 operability or December 20, 2017, whichever occurs first.

Verify the fuel oil transfer system operates to transfer In accordance with fuel oil from the day fuel oil storage tank to the engine the Surveillance mounted tank. Frequency Control Program SR 3.8.1.7 -------------------------------NOTES------------------------------

1. All DG starts may be preceded by an engine prelube period.

2. A single test at the specified Frequency will satisfy this Surveillance for both units.

Verify each DG starts from standby condition and In accordance with achieves, in d 10 seconds, voltage t 3750 V and the Surveillance frequency t 58.8 Hz, and after steady state conditions Frequency Control are reached, maintains voltage t 3750 V and d 4300 V Program and frequency t 58.8 Hz and d 61.2 Hz.

(continued)

Brunswick Unit 1 3.8-9 Amendment No. 282

Distribution SystemsOperating 3.8.7 ACTIONS (continued)

CONDITION REQUIRED ACTION COMPLETION TIME D. One or more DC electrical D.1 Restore DC electrical 7 days power distribution power distribution subsystems inoperable for subsystems to OPERABLE AND reasons other than status.

Condition C. 176 hours0.00204 days <br />0.0489 hours <br />2.910053e-4 weeks <br />6.6968e-5 months <br /> from discovery of failure to meet LCO E. Required Action and E.1 -------------NOTE--------------

associated Completion Time LCO 3.0.4.a is not of Condition A, B, C, or D applicable when entering not met. MODE 3.

Be in MODE 3. 12 hours1.388889e-4 days <br />0.00333 hours <br />1.984127e-5 weeks <br />4.566e-6 months <br /> F. Two or more electrical F.1 Enter LCO 3.0.3. Immediately power distribution subsystems inoperable that result in a loss of function.

Brunswick Unit 1 3.8-36 Amendment No. 280

5$

(QFORVXUH

$WWDFKPHQW



3URSRVHG7HFKQLFDO6SHFLILFDWLRQV&KDQJHV 0DUN8S 8QLW





Completion Times 1.3 1.3 Completion Times DESCRIPTION The above Completion Time extension does not apply to those (continued) Specifications that have exceptions that allow completely separate re-entry into the Condition (for each division, subsystem, component or variable expressed in the Condition) and separate tracking of Completion Times based on this re-entry. These exceptions are stated in individual Specifications.

The above Completion Time extension does not apply to a Completion Time with a modified "time zero." This modified "time zero" may be expressed as a repetitive time (i.e., "once per 8 hours9.259259e-5 days <br />0.00222 hours <br />1.322751e-5 weeks <br />3.044e-6 months <br />," where the Completion Time is referenced from a previous completion of the Required Action versus the time of Condition entry) or as a time modified by the phrase "from discovery . . ." Example 1.3-3 illustrates one use of this type of Completion Time. The 10 day Completion Time specified for Condition A and B in Example 1.3-3 may not be extended.

EXAMPLES The following examples illustrate the use of Completion Times with different types of Conditions and changing Conditions.

EXAMPLE 1.3-1 ACTIONS COMPLETION CONDITION REQUIRED ACTION TIME B. Required Action B.1 Be in MODE 3. 12 hours1.388889e-4 days <br />0.00333 hours <br />1.984127e-5 weeks <br />4.566e-6 months <br /> and associated Completion AND Time not met.

B.2 Be in MODE 4. 36 hours4.166667e-4 days <br />0.01 hours <br />5.952381e-5 weeks <br />1.3698e-5 months <br /> Condition B has two Required Actions. Each Required Action has its own separate Completion Time. Each Completion Time is referenced to the time that Condition B is entered.

(continued)

Brunswick Unit 2 1.3-3 Amendment No. 309

INSERT:

It is possible to alternate between Conditions A, B, and C in such a manner that operation could continue indefinitely without ever restoring systems to meet the LCO. However, doing so would be inconsistent with the basis of the Completion Times. Therefore, there shall be administrative controls to limit the maximum time allowed for any combination of Conditions that result in a single contiguous occurrence of failing to meet the LCO. These administrative controls shall ensure that the Completion Times for those Conditions are not inappropriately extended.

AC SourcesOperating 3.8.1 ACTIONS (continued)

CONDITION REQUIRED ACTION COMPLETION TIME D. (continued) D.5 Restore DG to OPERABLE ---------NOTE----------

status. Until DG 4 is returned to OPERABLE status, not to exceed 0745 EST on December 13, 2017, the 14 day and 17 day Completion Times are extended to 30 days and 33 days, respectively.

7 days from discovery of unavailability of SUPP-DG AND 24 hours2.777778e-4 days <br />0.00667 hours <br />3.968254e-5 weeks <br />9.132e-6 months <br /> from discovery of Condition D entry t 6 days concurrent with unavailability of SUPP-DG AND 14 days AND 17 days from discovery of failure to meet LCO 3.8.1.a or b (continued)

Brunswick Unit 2 3.8-5 Amendment No. 310

AC SourcesOperating 3.8.1 SURVEILLANCE REQUIREMENTS SURVEILLANCE FREQUENCY SR 3.8.1.1 Verify correct breaker alignment and indicated power In accordance with availability for each offsite circuit. the Surveillance Frequency Control Program SR 3.8.1.2 ----------------------------NOTES----------------------------------

1. All DG starts may be preceded by an engine prelube period.

2. A modified DG start involving idling and gradual acceleration to synchronous speed may be used for this SR. When modified start procedures are not used, the time, voltage, and frequency tolerances of SR 3.8.1.7 must be met.

3. A single test at the specified Frequency will satisfy this Surveillance for both units.

4. Until DG 4 is returned to OPERABLE status, not to exceed 0745 EST on December 13, 2017, performance of SR 3.8.1.2 for EDGs 1, 2, and 3 may be suspended. Past due surveillances will be completed within 7 days of restoration of EDG 4 operability or December 20, 2017, whichever occurs first.

Verify each DG starts from standby conditions and In accordance with achieves steady state voltage t 3750 V and d 4300 V the Surveillance and frequency t 58.8 Hz and d 61.2 Hz. Frequency Control Program (continued)

Brunswick Unit 2 3.8-7 Amendment No. 310

AC SourcesOperating 3.8.1 SURVEILLANCE REQUIREMENTS (continued)

SURVEILLANCE FREQUENCY SR 3.8.1.3 ----------------------------NOTES----------------------------------

1. DG loadings may include gradual loading.

2. Momentary transients outside the load range do not invalidate this test.

3. This Surveillance shall be conducted on only one DG at a time.

4. This SR shall be preceded by and immediately follow, without shutdown, a successful performance of SR 3.8.1.2 or SR 3.8.1.7.

5. A single test at the specified Frequency will satisfy this Surveillance for both units.

6. Until DG 4 is returned to OPERABLE status, not to exceed 0745 EST on December 13, 2017, performance of SR 3.8.1.3 for EDGs 1, 2, and 3 may be suspended. Past due surveillances will be completed within 7 days of restoration of EDG 4 operability or December 20, 2017, whichever occurs first.

Verify each DG is synchronized and loaded and In accordance with operates for t 60 minutes at a load t 2800 kW and the Surveillance d 3500 kW. Frequency Control Program SR 3.8.1.4 Verify each engine mounted tank contains t 150 gal of In accordance with fuel oil. the Surveillance Frequency Control Program SR 3.8.1.5 Check for and remove accumulated water from each In accordance with engine mounted tank. the Surveillance Frequency Control Program (continued)

Brunswick Unit 2 3.8-8 Amendment No. 310

AC SourcesOperating 3.8.1 SURVEILLANCE REQUIREMENTS (continued)

SURVEILLANCE FREQUENCY SR 3.8.1.6 -------------------------------NOTE-------------------------------

Until DG 4 is returned to OPERABLE status, not to exceed 0745 EST on December 13, 2017, performance of SR 3.8.1.6 for EDGs 1, 2, and 3 may be suspended. Past due surveillances will be completed within 7 days of restoration of EDG 4 operability or December 20, 2017, whichever occurs first.

Verify the fuel oil transfer system operates to transfer In accordance with fuel oil from the day fuel oil storage tank to the engine the Surveillance mounted tank. Frequency Control Program SR 3.8.1.7 ----------------------------NOTES----------------------------------

1. All DG starts may be preceded by an engine prelube period.

2. A single test at the specified Frequency will satisfy this Surveillance for both units.

Verify each DG starts from standby condition and In accordance with achieves, in d 10 seconds, voltage t 3750 V and the Surveillance frequency t 58.8 Hz, and after steady state conditions Frequency Control are reached, maintains voltage t 3750 V and d 4300 V Program and frequency t 58.8 Hz and d 61.2 Hz.

(continued)

Brunswick Unit 2 3.8-9 Amendment No. 310

'LVWULEXWLRQ6\VWHPV²2SHUDWLQJ



(/(&75,&$/32:(56<67(06

 'LVWULEXWLRQ6\VWHPV²2SHUDWLQJ

/&2 'LYLVLRQ,DQG'LYLVLRQ,,$&DQG'&HOHFWULFDOSRZHUGLVWULEXWLRQ

VXEV\VWHPVVKDOOEH23(5$%/(

$33/,&$%,/,7< 02'(6DQG

$&7,216

&21',7,21 5(48,5('$&7,21 &203/(7,217,0(

$ 2QH$&HOHFWULFDOSRZHU $ 5HVWRUHDIIHFWHGORDGJURXS GD\V

GLVWULEXWLRQVXEV\VWHP EXV HV WR23(5$%/(

LQRSHUDEOHIRUSODQQHG VWDWXV $1'

PDLQWHQDQFHGXHWRHLWKHU

LQRSHUDEOHORDGJURXS( KRXUVIURP

EXV HV RULQRSHUDEOHORDG GLVFRYHU\RIIDLOXUH

JURXS(EXV HV  WRPHHWWKH/&2

% 2QHRUPRUH$&HOHFWULFDO  % 5HVWRUH$&HOHFWULFDOSRZHU KRXUV

SRZHUGLVWULEXWLRQ GLVWULEXWLRQVXEV\VWHPVWR

VXEV\VWHPVLQRSHUDEOHIRU 23(5$%/(VWDWXV $1'

UHDVRQVRWKHUWKDQ

&RQGLWLRQ$ KRXUVIURP

GLVFRYHU\RIIDLOXUH

WRPHHW/&2

FRQWLQXHG 

 



%UXQVZLFN8QLW  $PHQGPHQW1R

Distribution SystemsOperating 3.8.7 ACTIONS (continued)

CONDITION REQUIRED ACTION COMPLETION TIME D. One or more DC electrical D.1 Restore DC electrical 7 days power distribution power distribution subsystems inoperable for subsystems to OPERABLE AND reasons other than status.

Condition C. 176 hours0.00204 days <br />0.0489 hours <br />2.910053e-4 weeks <br />6.6968e-5 months <br /> from discovery of failure to meet LCO E. Required Action and E.1 -------------NOTE--------------

associated Completion Time LCO 3.0.4.a is not of Condition A, B, C, or D applicable when entering not met. MODE 3.

Be in MODE 3. 12 hours1.388889e-4 days <br />0.00333 hours <br />1.984127e-5 weeks <br />4.566e-6 months <br /> F. Two or more electrical F.1 Enter LCO 3.0.3. Immediately power distribution subsystems inoperable that result in a loss of function.

Brunswick Unit 2 3.8-36 Amendment No. 308

5$

(QFORVXUH

$WWDFKPHQW



5HYLVHG7HFKQLFDO6SHFLILFDWLRQV3DJHV8QLW



&RPSOHWLRQ7LPHV



&RPSOHWLRQ7LPHV

 

'(6&5,37,21 7KHDERYH&RPSOHWLRQ7LPHH[WHQVLRQGRHVQRWDSSO\WRWKRVH

 FRQWLQXHG  6SHFLILFDWLRQVWKDWKDYHH[FHSWLRQVWKDWDOORZFRPSOHWHO\VHSDUDWH

UHHQWU\LQWRWKH&RQGLWLRQ IRUHDFKGLYLVLRQVXEV\VWHPFRPSRQHQWRU

YDULDEOHH[SUHVVHGLQWKH&RQGLWLRQ DQGVHSDUDWHWUDFNLQJRI&RPSOHWLRQ

7LPHVEDVHGRQWKLVUHHQWU\7KHVHH[FHSWLRQVDUHVWDWHGLQLQGLYLGXDO

6SHFLILFDWLRQV

7KHDERYH&RPSOHWLRQ7LPHH[WHQVLRQGRHVQRWDSSO\WRD&RPSOHWLRQ

7LPHZLWKDPRGLILHGWLPH]HUR7KLVPRGLILHGWLPH]HURPD\EH

H[SUHVVHGDVDUHSHWLWLYHWLPH LHRQFHSHUKRXUVZKHUHWKH

&RPSOHWLRQ7LPHLVUHIHUHQFHGIURPDSUHYLRXVFRPSOHWLRQRIWKH

5HTXLUHG$FWLRQYHUVXVWKHWLPHRI&RQGLWLRQHQWU\ RUDVDWLPHPRGLILHG

E\WKHSKUDVHIURPGLVFRYHU\

 

(;$03/(6 7KHIROORZLQJH[DPSOHVLOOXVWUDWHWKHXVHRI&RPSOHWLRQ7LPHVZLWK

GLIIHUHQWW\SHVRI&RQGLWLRQVDQGFKDQJLQJ&RQGLWLRQV

(;$03/(

$&7,216

&203/(7,21

&21',7,21 5(48,5('$&7,21 7,0(

% 5HTXLUHG$FWLRQ % %HLQ02'( KRXUV

DQGDVVRFLDWHG

&RPSOHWLRQ $1' 

7LPHQRWPHW

% %HLQ02'( KRXUV

&RQGLWLRQ%KDVWZR5HTXLUHG$FWLRQV(DFK5HTXLUHG$FWLRQKDVLWVRZQ

VHSDUDWH&RPSOHWLRQ7LPH(DFK&RPSOHWLRQ7LPHLVUHIHUHQFHGWRWKH

WLPHWKDW&RQGLWLRQ%LVHQWHUHG

 FRQWLQXHG 



%UXQVZLFN8QLW  $PHQGPHQW1R

&RPSOHWLRQ7LPHV



&RPSOHWLRQ7LPHV

 

(;$03/(6 (;$03/(

 FRQWLQXHG 

$&7,216

&203/(7,21

&21',7,21 5(48,5('$&7,21 7,0(

$ 2QH)XQFWLRQ; $ 5HVWRUH GD\V

VXEV\VWHP )XQFWLRQ;

LQRSHUDEOH VXEV\VWHPWR 

23(5$%/(

VWDWXV

% 2QH)XQFWLRQ< % 5HVWRUH KRXUV

VXEV\VWHP )XQFWLRQ<

LQRSHUDEOH VXEV\VWHPWR 

23(5$%/(

VWDWXV

& 2QH)XQFWLRQ; & 5HVWRUH KRXUV

VXEV\VWHP )XQFWLRQ; 

LQRSHUDEOH VXEV\VWHPWR

23(5$%/( 

 $1' VWDWXV



 2QH)XQFWLRQ< 25

VXEV\VWHP 

LQRSHUDEOH & 5HVWRUH KRXUV

)XQFWLRQ<

VXEV\VWHPWR

23(5$%/(

VWDWXV



 FRQWLQXHG 





%UXQVZLFN8QLW  $PHQGPHQW1R

&RPSOHWLRQ7LPHV



&RPSOHWLRQ7LPHV

 

(;$03/(6 (;$03/( FRQWLQXHG 

KHQRQH)XQFWLRQ;VXEV\VWHPDQGRQH)XQFWLRQ<VXEV\VWHPDUH

LQRSHUDEOH&RQGLWLRQ$DQG&RQGLWLRQ%DUHFRQFXUUHQWO\DSSOLFDEOH7KH

&RPSOHWLRQ7LPHVIRU&RQGLWLRQ$DQG&RQGLWLRQ%DUHWUDFNHGVHSDUDWHO\

IRUHDFKVXEV\VWHPVWDUWLQJIURPWKHWLPHHDFKVXEV\VWHPZDVGHFODUHG

LQRSHUDEOHDQGWKH&RQGLWLRQZDVHQWHUHG$VHSDUDWH&RPSOHWLRQ7LPH

LVHVWDEOLVKHGIRU&RQGLWLRQ&DQGWUDFNHGIURPWKHWLPHWKHVHFRQG

VXEV\VWHPZDVGHFODUHGLQRSHUDEOH LHWKHWLPHWKHVLWXDWLRQGHVFULEHG

LQ&RQGLWLRQ&ZDVGLVFRYHUHG 

,I5HTXLUHG$FWLRQ&LVFRPSOHWHGZLWKLQWKHVSHFLILHG&RPSOHWLRQ7LPH

&RQGLWLRQV%DQG&DUHH[LWHG,IWKH&RPSOHWLRQ7LPHIRU5HTXLUHG

$FWLRQ$KDVQRWH[SLUHGRSHUDWLRQPD\FRQWLQXHLQDFFRUGDQFHZLWK

&RQGLWLRQ$7KHUHPDLQLQJ&RPSOHWLRQ7LPHLQ&RQGLWLRQ$LVPHDVXUHG

IURPWKHWLPHWKHDIIHFWHGVXEV\VWHPZDVGHFODUHGLQRSHUDEOH LHLQLWLDO

HQWU\LQWR&RQGLWLRQ$ 

,WLVSRVVLEOHWRDOWHUQDWHEHWZHHQ&RQGLWLRQV$%DQG&LQVXFKD

PDQQHUWKDWRSHUDWLRQFRXOGFRQWLQXHLQGHILQLWHO\ZLWKRXWHYHUUHVWRULQJ

V\VWHPVWRPHHWWKH/&2+RZHYHUGRLQJVRZRXOGEHLQFRQVLVWHQWZLWK

WKHEDVLVRIWKH&RPSOHWLRQ7LPHV7KHUHIRUHWKHUHVKDOOEH

DGPLQLVWUDWLYHFRQWUROVWROLPLWWKHPD[LPXPWLPHDOORZHGIRUDQ\

FRPELQDWLRQRI&RQGLWLRQVWKDWUHVXOWLQDVLQJOHFRQWLJXRXVRFFXUUHQFHRI

IDLOLQJWRPHHWWKH/&27KHVHDGPLQLVWUDWLYHFRQWUROVVKDOOHQVXUHWKDW

WKH&RPSOHWLRQ7LPHVIRUWKRVH&RQGLWLRQVDUHQRWLQDSSURSULDWHO\

H[WHQGHG

 FRQWLQXHG 







%UXQVZLFN8QLW  $PHQGPHQW1R

6:6\VWHPDQG8+6



$&7,216 FRQWLQXHG 

&203/(7,21

&21',7,21 5(48,5('$&7,21 7,0(

% 2QHUHTXLUHG16:SXPS  % 127( 

LQRSHUDEOHIRUUHDVRQVRWKHU (QWHUDSSOLFDEOH&RQGLWLRQV

WKDQ&RQGLWLRQ$ DQG5HTXLUHG$FWLRQVRI 

/&2IRU'*VPDGH

LQRSHUDEOHE\16: 





 5HVWRUHUHTXLUHG16: GD\V

SXPSWR23(5$%/(

VWDWXV

& 2QHUHTXLUHGFRQYHQWLRQDO & 9HULI\WKHRQH23(5$%/( ,PPHGLDWHO\

VHUYLFHZDWHU &6: SXPS &6:SXPSDQGRQH

LQRSHUDEOH 23(5$%/(8QLW16: 

SXPSDUHSRZHUHGIURP

VHSDUDWHN9 

HPHUJHQF\EXVHV



$1'



& 5HVWRUHUHTXLUHG&6: GD\V

SXPSWR23(5$%/(

VWDWXV 

FRQWLQXHG 

 





%UXQVZLFN8QLW  $PHQGPHQW1R

6:6\VWHPDQG8+6



$&7,216 FRQWLQXHG 

&203/(7,21

&21',7,21 5(48,5('$&7,21 7,0(

' 5HTXLUHG$FWLRQ&DQG ' 5HVWRUHUHTXLUHG&6: KRXUV

DVVRFLDWHG&RPSOHWLRQ7LPH SXPSWR23(5$%/(

QRWPHW VWDWXV

( 7ZRUHTXLUHG&6:SXPSV ( 127( 

LQRSHUDEOH (QWHUDSSOLFDEOH&RQGLWLRQV 

DQG5HTXLUHG$FWLRQVRI 

/&25HVLGXDO+HDW 

5HPRYDO6HUYLFH:DWHU 

5+56: 6\VWHPIRU 

5+56:VXEV\VWHPVPDGH 

LQRSHUDEOHE\&6: 

 

 5HVWRUHRQHUHTXLUHG&6: KRXUV

SXPSWR23(5$%/(

VWDWXV

) 2QHUHTXLUHG16:SXPS ) 5HVWRUHUHTXLUHG16: KRXUV

LQRSHUDEOH SXPSWR23(5$%/(

VWDWXV 

 $1'

25 

 2QHUHTXLUHG&6:SXPS

LQRSHUDEOH ) 5HVWRUHUHTXLUHG&6: KRXUV

SXPSWR23(5$%/(

VWDWXV

FRQWLQXHG 

 

%UXQVZLFN8QLW  $PHQGPHQW1R

$&6RXUFHV²2SHUDWLQJ



$&7,216 FRQWLQXHG 

&21',7,21 5(48,5('$&7,21 &203/(7,217,0(

% 127(6 % 'HFODUHUHTXLUHGIHDWXUH V  ,PPHGLDWHO\IURP

 2QO\DSSOLFDEOHZKHQ ZLWKQRSRZHUDYDLODEOH GLVFRYHU\RI

 8QLWLVLQ02'( LQRSHUDEOHZKHQWKH &RQGLWLRQ%

 RU UHGXQGDQWUHTXLUHG FRQFXUUHQWZLWK

IHDWXUH V DUHLQRSHUDEOH LQRSHUDELOLW\RI

  &RQGLWLRQ%VKDOOQRWEH UHGXQGDQWUHTXLUHG

 HQWHUHGLQFRQMXQFWLRQ  IHDWXUH V 

 ZLWK&RQGLWLRQ$

  

 7ZR8QLWRIIVLWHFLUFXLWV  

LQRSHUDEOHGXHWRRQH8QLW

EDODQFHRISODQWFLUFXLWSDWK  

WRWKHGRZQVWUHDPN9

HPHUJHQF\EXVLQRSHUDEOH  

IRUSODQQHGPDLQWHQDQFH 



 $1' $1' 

 '*DVVRFLDWHGZLWKWKH  % 3HUIRUP65IRU KRXUV

DIIHFWHGGRZQVWUHDP 23(5$%/(RIIVLWH

N9HPHUJHQF\EXV FLUFXLW V  $1'

LQRSHUDEOHIRUSODQQHG

PDLQWHQDQFH  2QFHSHUKRXUV

WKHUHDIWHU





$1'



% 5HVWRUHERWK8QLWRIIVLWH GD\V

FLUFXLWVDQG'*WR

23(5$%/(VWDWXV 

FRQWLQXHG 

 

%UXQVZLFN8QLW  $PHQGPHQW1R

$&6RXUFHV²2SHUDWLQJ



$&7,216 FRQWLQXHG 

&21',7,21 5(48,5('$&7,21 &203/(7,217,0(

& 2QHRIIVLWHFLUFXLWLQRSHUDEOH & 3HUIRUP65IRU KRXUV

IRUUHDVRQVRWKHUWKDQ 23(5$%/(RIIVLWH

&RQGLWLRQ$RU% FLUFXLW V  $1'

 2QFHSHUKRXUV

WKHUHDIWHU





$1'



& 'HFODUHUHTXLUHGIHDWXUH V  KRXUVIURP

ZLWKQRRIIVLWHSRZHU GLVFRYHU\RIQR

DYDLODEOHLQRSHUDEOHZKHQ RIIVLWHSRZHUWRRQH

WKHUHGXQGDQWUHTXLUHG N9HPHUJHQF\

IHDWXUH V DUHLQRSHUDEOH EXVFRQFXUUHQWZLWK

LQRSHUDELOLW\RI

 UHGXQGDQWUHTXLUHG

IHDWXUH V 

 

$1' 

& 5HVWRUHRIIVLWHFLUFXLWWR KRXUV

23(5$%/(VWDWXV

FRQWLQXHG 

 

%UXQVZLFN8QLW  $PHQGPHQW1R

$&6RXUFHV²2SHUDWLQJ



$&7,216 FRQWLQXHG 

&21',7,21 5(48,5('$&7,21 &203/(7,217,0(

' FRQWLQXHG  ' 5HVWRUH'*WR23(5$%/( GD\VIURP

VWDWXV GLVFRYHU\RI

XQDYDLODELOLW\RI

 6833'*

$1'

KRXUVIURP

GLVFRYHU\RI

&RQGLWLRQ'HQWU\

GD\VFRQFXUUHQW

ZLWKXQDYDLODELOLW\RI

6833'*

$1'

GD\V

( 7ZRRUPRUHRIIVLWHFLUFXLWV ( 'HFODUHUHTXLUHGIHDWXUH V  KRXUVIURP

LQRSHUDEOHIRUUHDVRQVRWKHU LQRSHUDEOHZKHQWKH GLVFRYHU\RI

WKDQ&RQGLWLRQ% UHGXQGDQWUHTXLUHG &RQGLWLRQ(

IHDWXUH V DUHLQRSHUDEOH FRQFXUUHQWZLWK

LQRSHUDELOLW\RI

 UHGXQGDQWUHTXLUHG

IHDWXUH V 





$1'

( 5HVWRUHDOOEXWRQHRIIVLWH KRXUV

FLUFXLWWR23(5$%/(

VWDWXV

  FRQWLQXHG 





%UXQVZLFN8QLW  $PHQGPHQW1R

$&6RXUFHV²2SHUDWLQJ



6859(,//$1&(5(48,5(0(176

6859(,//$1&( )5(48(1&<

65 9HULI\FRUUHFWEUHDNHUDOLJQPHQWDQGLQGLFDWHGSRZHU ,QDFFRUGDQFHZLWK

DYDLODELOLW\IRUHDFKRIIVLWHFLUFXLW WKH6XUYHLOODQFH

)UHTXHQF\&RQWURO

3URJUDP

65 127(6 

 $OO'*VWDUWVPD\EHSUHFHGHGE\DQHQJLQH 

 SUHOXEHSHULRG 

 $PRGLILHG'*VWDUWLQYROYLQJLGOLQJDQGJUDGXDO 

DFFHOHUDWLRQWRV\QFKURQRXVVSHHGPD\EHXVHG 

IRUWKLV65:KHQPRGLILHGVWDUWSURFHGXUHVDUH 

QRWXVHGWKHWLPHYROWDJHDQGIUHTXHQF\ 

WROHUDQFHVRI65PXVWEHPHW 

 $VLQJOHWHVWDWWKHVSHFLILHG)UHTXHQF\ZLOO 

VDWLVI\WKLV6XUYHLOODQFHIRUERWKXQLWV 

 

9HULI\HDFK'*VWDUWVIURPVWDQGE\FRQGLWLRQVDQG ,QDFFRUGDQFHZLWK

DFKLHYHVVWHDG\VWDWHYROWDJH9DQG9 WKH6XUYHLOODQFH

DQGIUHTXHQF\+]DQG+] )UHTXHQF\&RQWURO

3URJUDP

FRQWLQXHG 







%UXQVZLFN8QLW  $PHQGPHQW1R

$&6RXUFHV²2SHUDWLQJ



6859(,//$1&(5(48,5(0(176 FRQWLQXHG 

6859(,//$1&( )5(48(1&<

65 127(6 

 '*ORDGLQJVPD\LQFOXGHJUDGXDOORDGLQJ 

 0RPHQWDU\WUDQVLHQWVRXWVLGHWKHORDGUDQJHGR 

QRWLQYDOLGDWHWKLVWHVW 

 7KLV6XUYHLOODQFHVKDOOEHFRQGXFWHGRQRQO\ 

RQH'*DWDWLPH 

 7KLV65VKDOOEHSUHFHGHGE\DQGLPPHGLDWHO\ 

IROORZZLWKRXWVKXWGRZQDVXFFHVVIXO 

SHUIRUPDQFHRI65RU65 

  $VLQJOHWHVWDWWKHVSHFLILHG)UHTXHQF\ZLOO 

 VDWLVI\WKLV6XUYHLOODQFHIRUERWKXQLWV 

 

9HULI\HDFK'*LVV\QFKURQL]HGDQGORDGHGDQG ,QDFFRUGDQFHZLWK

RSHUDWHVIRUPLQXWHVDWDORDGN:DQG WKH6XUYHLOODQFH

N: )UHTXHQF\&RQWURO

3URJUDP

65 9HULI\HDFKHQJLQHPRXQWHGWDQNFRQWDLQVJDORI ,QDFFRUGDQFHZLWK

IXHORLO WKH6XUYHLOODQFH

)UHTXHQF\&RQWURO

3URJUDP

65 &KHFNIRUDQGUHPRYHDFFXPXODWHGZDWHUIURPHDFK ,QDFFRUGDQFHZLWK

HQJLQHPRXQWHGWDQN WKH6XUYHLOODQFH

)UHTXHQF\&RQWURO

3URJUDP

FRQWLQXHG 



 



%UXQVZLFN8QLW  $PHQGPHQW1R

$&6RXUFHV²2SHUDWLQJ



6859(,//$1&(5(48,5(0(176 FRQWLQXHG 

6859(,//$1&( )5(48(1&<

65 9HULI\WKHIXHORLOWUDQVIHUV\VWHPRSHUDWHVWRWUDQVIHU ,QDFFRUGDQFHZLWK

IXHORLOIURPWKHGD\IXHORLOVWRUDJHWDQNWRWKHHQJLQH WKH6XUYHLOODQFH

PRXQWHGWDQN )UHTXHQF\&RQWURO

3URJUDP

65 127(6 

 $OO'*VWDUWVPD\EHSUHFHGHGE\DQHQJLQH 

 SUHOXEHSHULRG 

  $VLQJOHWHVWDWWKHVSHFLILHG)UHTXHQF\ZLOO 

 VDWLVI\WKLV6XUYHLOODQFHIRUERWKXQLWV 

 

9HULI\HDFK'*VWDUWVIURPVWDQGE\FRQGLWLRQDQG ,QDFFRUGDQFHZLWK

DFKLHYHVLQVHFRQGVYROWDJH9DQG WKH6XUYHLOODQFH

IUHTXHQF\+]DQGDIWHUVWHDG\VWDWHFRQGLWLRQV )UHTXHQF\&RQWURO

DUHUHDFKHGPDLQWDLQVYROWDJH9DQG9 3URJUDP

DQGIUHTXHQF\+]DQG+]

FRQWLQXHG 



%UXQVZLFN8QLW  $PHQGPHQW1R

'LVWULEXWLRQ6\VWHPV²2SHUDWLQJ



(/(&75,&$/32:(56<67(06

 'LVWULEXWLRQ6\VWHPV²2SHUDWLQJ

/&2 'LYLVLRQ,DQG'LYLVLRQ,,$&DQG'&HOHFWULFDOSRZHUGLVWULEXWLRQ

VXEV\VWHPVVKDOOEH23(5$%/(

$33/,&$%,/,7< 02'(6DQG

$&7,216

&21',7,21 5(48,5('$&7,21 &203/(7,217,0(

$ 2QH$&HOHFWULFDOSRZHU $ 5HVWRUHDIIHFWHGORDGJURXS GD\V

GLVWULEXWLRQVXEV\VWHP EXV HV WR23(5$%/(

LQRSHUDEOHIRUSODQQHG VWDWXV

PDLQWHQDQFHGXHWRHLWKHU

LQRSHUDEOHORDGJURXS(

EXV HV RULQRSHUDEOHORDG

JURXS(EXV HV 

% 2QHRUPRUH$&HOHFWULFDO  % 5HVWRUH$&HOHFWULFDOSRZHU KRXUV

SRZHUGLVWULEXWLRQ GLVWULEXWLRQVXEV\VWHPVWR

VXEV\VWHPVLQRSHUDEOHIRU 23(5$%/(VWDWXV

UHDVRQVRWKHUWKDQ

&RQGLWLRQ$

FRQWLQXHG 

 





%UXQVZLFN8QLW  $PHQGPHQW1R

'LVWULEXWLRQ6\VWHPV²2SHUDWLQJ



$&7,216 FRQWLQXHG 

&21',7,21 5(48,5('$&7,21 &203/(7,217,0(

& 2QHRUPRUH'&HOHFWULFDO & 'HFODUHUHTXLUHGIHDWXUH V  ,PPHGLDWHO\

SRZHUGLVWULEXWLRQ VXSSRUWHGE\WKHLQRSHUDEOH 

VXEV\VWHPVLQRSHUDEOHGXH '&HOHFWULFDOSRZHU 

WRORVVRIQRUPDO'&VRXUFH GLVWULEXWLRQVXEV\VWHP 

LQRSHUDEOH 

$1' 

& ,QLWLDWHDFWLRQWRWUDQVIHU'& ,PPHGLDWHO\

HOHFWULFDOSRZHUGLVWULEXWLRQ 

VXEV\VWHPWRLWVDOWHUQDWH 

'&VRXUFH 

$1' 

& 'HFODUHUHTXLUHGIHDWXUH V  8SRQFRPSOHWLRQRI

VXSSRUWHGE\WKHLQRSHUDEOH WUDQVIHURIWKH

'&HOHFWULFDOSRZHU UHTXLUHGIHDWXUH V

GLVWULEXWLRQVXEV\VWHP '&HOHFWULFDOSRZHU

23(5$%/( GLVWULEXWLRQ

VXEV\VWHPWRLWV

 23(5$%/(

DOWHUQDWH'&VRXUFH





$1' 

& 5HVWRUH'&HOHFWULFDO GD\V

SRZHUGLVWULEXWLRQ

VXEV\VWHPWR23(5$%/(

VWDWXV

FRQWLQXHG 

 

%UXQVZLFN8QLW  $PHQGPHQW1R

'LVWULEXWLRQ6\VWHPV²2SHUDWLQJ



$&7,216 FRQWLQXHG 

&21',7,21 5(48,5('$&7,21 &203/(7,217,0(

' 2QHRUPRUH'&HOHFWULFDO ' 5HVWRUH'&HOHFWULFDO GD\V

SRZHUGLVWULEXWLRQ SRZHUGLVWULEXWLRQ

VXEV\VWHPVLQRSHUDEOHIRU VXEV\VWHPVWR23(5$%/(

UHDVRQVRWKHUWKDQ VWDWXV

&RQGLWLRQ&

( 5HTXLUHG$FWLRQDQG ( 127( 

DVVRFLDWHG&RPSOHWLRQ7LPH /&2DLVQRW 

RI&RQGLWLRQ$%&RU' DSSOLFDEOHZKHQHQWHULQJ 

QRWPHW 02'( 

 

 %HLQ02'( KRXUV

) 7ZRRUPRUHHOHFWULFDO ) (QWHU/&2 ,PPHGLDWHO\

SRZHUGLVWULEXWLRQ

VXEV\VWHPVLQRSHUDEOHWKDW

UHVXOWLQDORVVRIIXQFWLRQ





%UXQVZLFN8QLW  $PHQGPHQW1R

5$

(QFORVXUH

$WWDFKPHQW



5HYLVHG7HFKQLFDO6SHFLILFDWLRQV3DJHV8QLW

&RPSOHWLRQ7LPHV



&RPSOHWLRQ7LPHV

 

'(6&5,37,21 7KHDERYH&RPSOHWLRQ7LPHH[WHQVLRQGRHVQRWDSSO\WRWKRVH

 FRQWLQXHG  6SHFLILFDWLRQVWKDWKDYHH[FHSWLRQVWKDWDOORZFRPSOHWHO\VHSDUDWH

UHHQWU\LQWRWKH&RQGLWLRQ IRUHDFKGLYLVLRQVXEV\VWHPFRPSRQHQWRU

YDULDEOHH[SUHVVHGLQWKH&RQGLWLRQ DQGVHSDUDWHWUDFNLQJRI&RPSOHWLRQ

7LPHVEDVHGRQWKLVUHHQWU\7KHVHH[FHSWLRQVDUHVWDWHGLQLQGLYLGXDO

6SHFLILFDWLRQV

7KHDERYH&RPSOHWLRQ7LPHH[WHQVLRQGRHVQRWDSSO\WRD&RPSOHWLRQ

7LPHZLWKDPRGLILHGWLPH]HUR7KLVPRGLILHGWLPH]HURPD\EH

H[SUHVVHGDVDUHSHWLWLYHWLPH LHRQFHSHUKRXUVZKHUHWKH

&RPSOHWLRQ7LPHLVUHIHUHQFHGIURPDSUHYLRXVFRPSOHWLRQRIWKH

5HTXLUHG$FWLRQYHUVXVWKHWLPHRI&RQGLWLRQHQWU\ RUDVDWLPHPRGLILHG

E\WKHSKUDVHIURPGLVFRYHU\

 

(;$03/(6 7KHIROORZLQJH[DPSOHVLOOXVWUDWHWKHXVHRI&RPSOHWLRQ7LPHVZLWK

GLIIHUHQWW\SHVRI&RQGLWLRQVDQGFKDQJLQJ&RQGLWLRQV

(;$03/(

$&7,216

&203/(7,21

&21',7,21 5(48,5('$&7,21 7,0(

% 5HTXLUHG$FWLRQ % %HLQ02'( KRXUV

DQGDVVRFLDWHG

&RPSOHWLRQ $1' 

7LPHQRWPHW

% %HLQ02'( KRXUV

&RQGLWLRQ%KDVWZR5HTXLUHG$FWLRQV(DFK5HTXLUHG$FWLRQKDVLWVRZQ

VHSDUDWH&RPSOHWLRQ7LPH(DFK&RPSOHWLRQ7LPHLVUHIHUHQFHGWRWKH

WLPHWKDW&RQGLWLRQ%LVHQWHUHG

 FRQWLQXHG 





%UXQVZLFN8QLW  $PHQGPHQW1R

&RPSOHWLRQ7LPHV



&RPSOHWLRQ7LPHV

 

(;$03/(6 (;$03/(

 FRQWLQXHG 

$&7,216

&203/(7,21

&21',7,21 5(48,5('$&7,21 7,0(

$ 2QH)XQFWLRQ; $ 5HVWRUH GD\V

VXEV\VWHP )XQFWLRQ;

LQRSHUDEOH VXEV\VWHPWR

23(5$%/(

VWDWXV

% 2QH)XQFWLRQ< % 5HVWRUH KRXUV

VXEV\VWHP )XQFWLRQ<

LQRSHUDEOH VXEV\VWHPWR

23(5$%/(

VWDWXV

& 2QH)XQFWLRQ; & 5HVWRUH KRXUV

VXEV\VWHP )XQFWLRQ;

LQRSHUDEOH VXEV\VWHPWR 

23(5$%/(

 $1' VWDWXV 

 2QH)XQFWLRQ< 25 

VXEV\VWHP

LQRSHUDEOH & 5HVWRUH KRXUV

)XQFWLRQ<

VXEV\VWHPWR

23(5$%/(

VWDWXV



 FRQWLQXHG 



%UXQVZLFN8QLW  $PHQGPHQW1R

&RPSOHWLRQ7LPHV



&RPSOHWLRQ7LPHV

 

(;$03/(6 (;$03/( FRQWLQXHG 

KHQRQH)XQFWLRQ;VXEV\VWHPDQGRQH)XQFWLRQ<VXEV\VWHPDUH

LQRSHUDEOH&RQGLWLRQ$DQG&RQGLWLRQ%DUHFRQFXUUHQWO\DSSOLFDEOH7KH

&RPSOHWLRQ7LPHVIRU&RQGLWLRQ$DQG&RQGLWLRQ%DUHWUDFNHGVHSDUDWHO\

IRUHDFKVXEV\VWHPVWDUWLQJIURPWKHWLPHHDFKVXEV\VWHPZDVGHFODUHG

LQRSHUDEOHDQGWKH&RQGLWLRQZDVHQWHUHG$VHSDUDWH&RPSOHWLRQ7LPH

LVHVWDEOLVKHGIRU&RQGLWLRQ&DQGWUDFNHGIURPWKHWLPHWKHVHFRQG

VXEV\VWHPZDVGHFODUHGLQRSHUDEOH LHWKHWLPHWKHVLWXDWLRQGHVFULEHG

LQ&RQGLWLRQ&ZDVGLVFRYHUHG 

,I5HTXLUHG$FWLRQ&LVFRPSOHWHGZLWKLQWKHVSHFLILHG&RPSOHWLRQ7LPH

&RQGLWLRQV%DQG&DUHH[LWHG,IWKH&RPSOHWLRQ7LPHIRU5HTXLUHG

$FWLRQ$KDVQRWH[SLUHGRSHUDWLRQPD\FRQWLQXHLQDFFRUGDQFHZLWK

&RQGLWLRQ$7KHUHPDLQLQJ&RPSOHWLRQ7LPHLQ&RQGLWLRQ$LVPHDVXUHG

IURPWKHWLPHWKHDIIHFWHGVXEV\VWHPZDVGHFODUHGLQRSHUDEOH LHLQLWLDO

HQWU\LQWR&RQGLWLRQ$ 

,WLVSRVVLEOHWRDOWHUQDWHEHWZHHQ&RQGLWLRQV$%DQG&LQVXFKD

PDQQHUWKDWRSHUDWLRQFRXOGFRQWLQXHLQGHILQLWHO\ZLWKRXWHYHUUHVWRULQJ

V\VWHPVWRPHHWWKH/&2+RZHYHUGRLQJVRZRXOGEHLQFRQVLVWHQWZLWK

WKHEDVLVRIWKH&RPSOHWLRQ7LPHV7KHUHIRUHWKHUHVKDOOEH

DGPLQLVWUDWLYHFRQWUROVWROLPLWWKHPD[LPXPWLPHDOORZHGIRUDQ\

FRPELQDWLRQRI&RQGLWLRQVWKDWUHVXOWLQDVLQJOHFRQWLJXRXVRFFXUUHQFHRI

IDLOLQJWRPHHWWKH/&27KHVHDGPLQLVWUDWLYHFRQWUROVVKDOOHQVXUHWKDW

WKH&RPSOHWLRQ7LPHVIRUWKRVH&RQGLWLRQVDUHQRWLQDSSURSULDWHO\

H[WHQGHG

 FRQWLQXHG 



%UXQVZLFN8QLW  $PHQGPHQW1R

6:6\VWHPDQG8+6



$&7,216 FRQWLQXHG 

&203/(7,21

&21',7,21 5(48,5('$&7,21 7,0(

% 2QHUHTXLUHG16:SXPS  % 127( 

LQRSHUDEOHIRUUHDVRQVRWKHU (QWHUDSSOLFDEOH&RQGLWLRQV 

WKDQ&RQGLWLRQ$ DQG5HTXLUHG$FWLRQVRI 

/&2IRU'*VPDGH 

LQRSHUDEOHE\16: 

 

 5HVWRUHUHTXLUHG16: GD\V

SXPSWR23(5$%/(

VWDWXV

& 2QHUHTXLUHGFRQYHQWLRQDO & 9HULI\WKHRQH23(5$%/( ,PPHGLDWHO\

VHUYLFHZDWHU &6: SXPS &6:SXPSDQGRQH

LQRSHUDEOH 23(5$%/(8QLW16: 

SXPSDUHSRZHUHGIURP

VHSDUDWHN9 

HPHUJHQF\EXVHV



$1'



& 5HVWRUHUHTXLUHG&6: GD\V

SXPSWR23(5$%/(

VWDWXV

FRQWLQXHG 

 



%UXQVZLFN8QLW  $PHQGPHQW1R

6:6\VWHPDQG8+6



$&7,216 FRQWLQXHG 

&203/(7,21

&21',7,21 5(48,5('$&7,21 7,0(

' 5HTXLUHG$FWLRQ&DQG ' 5HVWRUHUHTXLUHG&6: KRXUV

DVVRFLDWHG&RPSOHWLRQ7LPH SXPSWR23(5$%/(

QRWPHW VWDWXV

( 7ZRUHTXLUHG&6:SXPSV ( 127( 

LQRSHUDEOH (QWHUDSSOLFDEOH&RQGLWLRQV 

DQG5HTXLUHG$FWLRQVRI 

/&25HVLGXDO+HDW 

5HPRYDO6HUYLFH:DWHU 

5+56: 6\VWHPIRU 

5+56:VXEV\VWHPVPDGH 

LQRSHUDEOHE\&6: 

 

 5HVWRUHRQHUHTXLUHG&6: KRXUV

SXPSWR23(5$%/(

VWDWXV

) 2QHUHTXLUHG16:SXPS ) 5HVWRUHUHTXLUHG16: KRXUV

LQRSHUDEOH SXPSWR23(5$%/(

VWDWXV 

 $1'

25 

 2QHUHTXLUHG&6:SXPS

LQRSHUDEOH ) 5HVWRUHUHTXLUHG&6: KRXUV

SXPSWR23(5$%/(

VWDWXV

FRQWLQXHG 

 





%UXQVZLFN8QLW  $PHQGPHQW1R

$&6RXUFHV²2SHUDWLQJ



$&7,216 FRQWLQXHG 

&21',7,21 5(48,5('$&7,21 &203/(7,217,0(

% 127(6 % 'HFODUHUHTXLUHGIHDWXUH V  ,PPHGLDWHO\IURP

 2QO\DSSOLFDEOHZKHQ ZLWKQRSRZHUDYDLODEOH GLVFRYHU\RI

 8QLWLVLQ02'( LQRSHUDEOHZKHQWKH &RQGLWLRQ%

 RU UHGXQGDQWUHTXLUHG FRQFXUUHQWZLWK

IHDWXUH V DUHLQRSHUDEOH LQRSHUDELOLW\RI

  &RQGLWLRQ%VKDOOQRWEH UHGXQGDQWUHTXLUHG

 HQWHUHGLQFRQMXQFWLRQ  IHDWXUH V 

 ZLWK&RQGLWLRQ$

  

 7ZR8QLWRIIVLWHFLUFXLWV  

LQRSHUDEOHGXHWRRQH8QLW

EDODQFHRISODQWFLUFXLWSDWK  

WRWKHGRZQVWUHDPN9

HPHUJHQF\EXVLQRSHUDEOH  

IRUSODQQHGPDLQWHQDQFH

 

 $1'

$1' 

 '*DVVRFLDWHGZLWKWKH

DIIHFWHGGRZQVWUHDP  % 3HUIRUP65IRU KRXUV

N9HPHUJHQF\EXV 23(5$%/(RIIVLWH

LQRSHUDEOHIRUSODQQHG FLUFXLW V  $1'

PDLQWHQDQFH

 2QFHSHUKRXUV

WKHUHDIWHU





$1'



% 5HVWRUHERWK8QLWRIIVLWH GD\V

FLUFXLWVDQG'*WR

23(5$%/(VWDWXV

FRQWLQXHG 

 



%UXQVZLFN8QLW  $PHQGPHQW1R

$&6RXUFHV²2SHUDWLQJ



$&7,216 FRQWLQXHG 

&21',7,21 5(48,5('$&7,21 &203/(7,217,0(

& 2QHRIIVLWHFLUFXLWLQRSHUDEOH & 3HUIRUP65IRU KRXUV

IRUUHDVRQVRWKHUWKDQ 23(5$%/(RIIVLWH

&RQGLWLRQ$RU% FLUFXLW V  $1'

 2QFHSHUKRXUV

WKHUHDIWHU





$1'



& 'HFODUHUHTXLUHGIHDWXUH V  KRXUVIURP

ZLWKQRRIIVLWHSRZHU GLVFRYHU\RIQR

DYDLODEOHLQRSHUDEOHZKHQ RIIVLWHSRZHUWRRQH

WKHUHGXQGDQWUHTXLUHG N9HPHUJHQF\

IHDWXUH V DUHLQRSHUDEOH EXVFRQFXUUHQWZLWK

LQRSHUDELOLW\RI

 UHGXQGDQWUHTXLUHG

IHDWXUH V 

 

$1' 

& 5HVWRUHRIIVLWHFLUFXLWWR KRXUV

23(5$%/(VWDWXV

FRQWLQXHG 

 



%UXQVZLFN8QLW  $PHQGPHQW1R

$&6RXUFHV²2SHUDWLQJ



$&7,216 FRQWLQXHG 

&21',7,21 5(48,5('$&7,21 &203/(7,217,0(

' FRQWLQXHG  ' 5HVWRUH'*WR23(5$%/( GD\VIURP

VWDWXV GLVFRYHU\RI

XQDYDLODELOLW\RI

 6833'*

$1'

KRXUVIURP

GLVFRYHU\RI

&RQGLWLRQ'HQWU\

GD\VFRQFXUUHQW

ZLWKXQDYDLODELOLW\RI

6833'*

$1'

GD\V

( 7ZRRUPRUHRIIVLWHFLUFXLWV ( 'HFODUHUHTXLUHGIHDWXUH V  KRXUVIURP

LQRSHUDEOHIRUUHDVRQVRWKHU LQRSHUDEOHZKHQWKH GLVFRYHU\RI

WKDQ&RQGLWLRQ% UHGXQGDQWUHTXLUHG &RQGLWLRQ(

IHDWXUH V DUHLQRSHUDEOH FRQFXUUHQWZLWK

LQRSHUDELOLW\RI

 UHGXQGDQWUHTXLUHG

IHDWXUH V 





$1'

( 5HVWRUHDOOEXWRQHRIIVLWH KRXUV

FLUFXLWWR23(5$%/(

VWDWXV

  FRQWLQXHG 



%UXQVZLFN8QLW  $PHQGPHQW1R

$&6RXUFHV²2SHUDWLQJ



6859(,//$1&(5(48,5(0(176

6859(,//$1&( )5(48(1&<

65 9HULI\FRUUHFWEUHDNHUDOLJQPHQWDQGLQGLFDWHGSRZHU ,QDFFRUGDQFHZLWK

DYDLODELOLW\IRUHDFKRIIVLWHFLUFXLW WKH6XUYHLOODQFH

)UHTXHQF\&RQWURO

3URJUDP

65 127(6 

 $OO'*VWDUWVPD\EHSUHFHGHGE\DQHQJLQH 

 SUHOXEHSHULRG 

 $PRGLILHG'*VWDUWLQYROYLQJLGOLQJDQGJUDGXDO 

DFFHOHUDWLRQWRV\QFKURQRXVVSHHGPD\EHXVHG 

IRUWKLV65:KHQPRGLILHGVWDUWSURFHGXUHVDUH 

QRWXVHGWKHWLPHYROWDJHDQGIUHTXHQF\ 

WROHUDQFHVRI65PXVWEHPHW 

 $VLQJOHWHVWDWWKHVSHFLILHG)UHTXHQF\ZLOO 

VDWLVI\WKLV6XUYHLOODQFHIRUERWKXQLWV 

 

9HULI\HDFK'*VWDUWVIURPVWDQGE\FRQGLWLRQVDQG ,QDFFRUGDQFHZLWK

DFKLHYHVVWHDG\VWDWHYROWDJH9DQG9 WKH6XUYHLOODQFH

DQGIUHTXHQF\+]DQG+] )UHTXHQF\&RQWURO

3URJUDP

FRQWLQXHG 







%UXQVZLFN8QLW  $PHQGPHQW1R

$&6RXUFHV²2SHUDWLQJ



6859(,//$1&(5(48,5(0(176 FRQWLQXHG 

6859(,//$1&( )5(48(1&<

65 127(6 

 '*ORDGLQJVPD\LQFOXGHJUDGXDOORDGLQJ 

 0RPHQWDU\WUDQVLHQWVRXWVLGHWKHORDGUDQJHGR 

QRWLQYDOLGDWHWKLVWHVW 

 7KLV6XUYHLOODQFHVKDOOEHFRQGXFWHGRQRQO\ 

RQH'*DWDWLPH 

 7KLV65VKDOOEHSUHFHGHGE\DQGLPPHGLDWHO\ 

IROORZZLWKRXWVKXWGRZQDVXFFHVVIXO 

SHUIRUPDQFHRI65RU65 

 $VLQJOHWHVWDWWKHVSHFLILHG)UHTXHQF\ZLOO 

VDWLVI\WKLV6XUYHLOODQFHIRUERWKXQLWV 

 

9HULI\HDFK'*LVV\QFKURQL]HGDQGORDGHGDQG ,QDFFRUGDQFHZLWK

RSHUDWHVIRUPLQXWHVDWDORDGN:DQG WKH6XUYHLOODQFH

N: )UHTXHQF\&RQWURO

3URJUDP

65 9HULI\HDFKHQJLQHPRXQWHGWDQNFRQWDLQVJDORI ,QDFFRUGDQFHZLWK

IXHORLO WKH6XUYHLOODQFH

)UHTXHQF\&RQWURO

3URJUDP

65 &KHFNIRUDQGUHPRYHDFFXPXODWHGZDWHUIURPHDFK ,QDFFRUGDQFHZLWK

HQJLQHPRXQWHGWDQN WKH6XUYHLOODQFH

)UHTXHQF\&RQWURO

3URJUDP

FRQWLQXHG 







%UXQVZLFN8QLW  $PHQGPHQW1R

$&6RXUFHV²2SHUDWLQJ



6859(,//$1&(5(48,5(0(176 FRQWLQXHG 

6859(,//$1&( )5(48(1&<

65 9HULI\WKHIXHORLOWUDQVIHUV\VWHPRSHUDWHVWRWUDQVIHU ,QDFFRUGDQFHZLWK

IXHORLOIURPWKHGD\IXHORLOVWRUDJHWDQNWRWKHHQJLQH WKH6XUYHLOODQFH

PRXQWHGWDQN )UHTXHQF\&RQWURO

3URJUDP

65 127(6 

 $OO'*VWDUWVPD\EHSUHFHGHGE\DQHQJLQH 

 SUHOXEHSHULRG 

  $VLQJOHWHVWDWWKHVSHFLILHG)UHTXHQF\ZLOO 

 VDWLVI\WKLV6XUYHLOODQFHIRUERWKXQLWV 

 

 9HULI\HDFK'*VWDUWVIURPVWDQGE\FRQGLWLRQDQG ,QDFFRUGDQFHZLWK

DFKLHYHVLQVHFRQGVYROWDJH9DQG WKH6XUYHLOODQFH

IUHTXHQF\+]DQGDIWHUVWHDG\VWDWHFRQGLWLRQV )UHTXHQF\&RQWURO

DUHUHDFKHGPDLQWDLQVYROWDJH9DQG9 3URJUDP

DQGIUHTXHQF\+]DQG+]

FRQWLQXHG 





%UXQVZLFN8QLW  $PHQGPHQW1R

'LVWULEXWLRQ6\VWHPV²2SHUDWLQJ



(/(&75,&$/32:(56<67(06

 'LVWULEXWLRQ6\VWHPV²2SHUDWLQJ

/&2 'LYLVLRQ,DQG'LYLVLRQ,,$&DQG'&HOHFWULFDOSRZHUGLVWULEXWLRQ

VXEV\VWHPVVKDOOEH23(5$%/(

$33/,&$%,/,7< 02'(6DQG

$&7,216

&21',7,21 5(48,5('$&7,21 &203/(7,217,0(

$ 2QH$&HOHFWULFDOSRZHU $ 5HVWRUHDIIHFWHGORDGJURXS GD\V

GLVWULEXWLRQVXEV\VWHP EXV HV WR23(5$%/(

LQRSHUDEOHIRUSODQQHG VWDWXV

PDLQWHQDQFHGXHWRHLWKHU

LQRSHUDEOHORDGJURXS(

EXV HV RULQRSHUDEOHORDG

JURXS(EXV HV 

% 2QHRUPRUH$&HOHFWULFDO  % 5HVWRUH$&HOHFWULFDOSRZHU KRXUV

SRZHUGLVWULEXWLRQ GLVWULEXWLRQVXEV\VWHPVWR

VXEV\VWHPVLQRSHUDEOHIRU 23(5$%/(VWDWXV

UHDVRQVRWKHUWKDQ

&RQGLWLRQ$

FRQWLQXHG 

 



%UXQVZLFN8QLW  $PHQGPHQW1R

'LVWULEXWLRQ6\VWHPV²2SHUDWLQJ



$&7,216 FRQWLQXHG 

&21',7,21 5(48,5('$&7,21 &203/(7,217,0(

& 2QHRUPRUH'&HOHFWULFDO & 'HFODUHUHTXLUHGIHDWXUH V  ,PPHGLDWHO\

SRZHUGLVWULEXWLRQ VXSSRUWHGE\WKHLQRSHUDEOH

VXEV\VWHPVLQRSHUDEOHGXH '&HOHFWULFDOSRZHU 

WRORVVRIQRUPDO'&VRXUFH GLVWULEXWLRQVXEV\VWHP

LQRSHUDEOH 

$1' 

& ,QLWLDWHDFWLRQWRWUDQVIHU'& ,PPHGLDWHO\

HOHFWULFDOSRZHUGLVWULEXWLRQ

VXEV\VWHPWRLWVDOWHUQDWH 

'&VRXUFH



$1'



& 'HFODUHUHTXLUHGIHDWXUH V  8SRQFRPSOHWLRQRI

VXSSRUWHGE\WKHLQRSHUDEOH WUDQVIHURIWKH

'&HOHFWULFDOSRZHU UHTXLUHGIHDWXUH V

GLVWULEXWLRQVXEV\VWHP '&HOHFWULFDOSRZHU

23(5$%/( GLVWULEXWLRQ

VXEV\VWHPWRLWV

 23(5$%/(

DOWHUQDWH'&VRXUFH





$1'



& 5HVWRUH'&HOHFWULFDO GD\V

SRZHUGLVWULEXWLRQ

VXEV\VWHPWR23(5$%/(

VWDWXV

 FRQWLQXHG 

 



%UXQVZLFN8QLW  $PHQGPHQW1R

'LVWULEXWLRQ6\VWHPV²2SHUDWLQJ



$&7,216 FRQWLQXHG 

&21',7,21 5(48,5('$&7,21 &203/(7,217,0(

' 2QHRUPRUH'&HOHFWULFDO ' 5HVWRUH'&HOHFWULFDO GD\V

SRZHUGLVWULEXWLRQ SRZHUGLVWULEXWLRQ

VXEV\VWHPVLQRSHUDEOHIRU VXEV\VWHPVWR23(5$%/(

UHDVRQVRWKHUWKDQ VWDWXV

&RQGLWLRQ&

( 5HTXLUHG$FWLRQDQG ( 127( 

DVVRFLDWHG&RPSOHWLRQ7LPH /&2DLVQRW 

RI&RQGLWLRQ$%&RU' DSSOLFDEOHZKHQHQWHULQJ 

QRWPHW 02'( 

 

 %HLQ02'( KRXUV

) 7ZRRUPRUHHOHFWULFDO ) (QWHU/&2 ,PPHGLDWHO\

SRZHUGLVWULEXWLRQ

VXEV\VWHPVLQRSHUDEOHWKDW

UHVXOWLQDORVVRIIXQFWLRQ







%UXQVZLFN8QLW  $PHQGPHQW1R

5$

(QFORVXUH

$WWDFKPHQW

3URSRVHG7HFKQLFDO6SHFLILFDWLRQ%DVHV&KDQJHV 0DUN8S 8QLW

)RU,QIRUPDWLRQ2QO\ 

6:6\VWHPDQG8+6

%

%$6(6

 

$&7,216$  FRQWLQXHG 

FDSDELOLW\LVXQDYDLODEOHWRRQHRUPRUH'*V$&7,216IRU/&2

$&6RXUFHV²2SHUDWLQJPXVWEHLPPHGLDWHO\HQWHUHG7KLVDOORZV

&RQGLWLRQ$WRSURYLGHUHTXLUHPHQWVIRUDQLQRSHUDEOH16:SXPSZLWKRXW

UHJDUGWRZKHWKHUDFRROLQJZDWHUVXSSO\LVDYDLODEOHWRWKH'*V

/&2SURYLGHVWKHDSSURSULDWHUHVWULFWLRQVIRURQHRUPRUH

LQRSHUDEOH'*V

%

LWKRQHUHTXLUHG16:SXPSLQRSHUDEOHIRUUHDVRQVRWKHUWKDQ

&RQGLWLRQ$RQHLQRSHUDEOHSXPSPXVWEHUHVWRUHGWR23(5$%/(VWDWXV

ZLWKLQGD\VDQGGD\VIURPGLVFRYHU\RIIDLOXUHWRPHHWWKH/&2

LWKWKHXQLWLQWKLVFRQGLWLRQWKHUHPDLQLQJ23(5$%/(16:DQG&6:

SXPSVDUHDGHTXDWHWRSHUIRUPWKH6:KHDWUHPRYDOIXQFWLRQ+RZHYHU

WKHRYHUDOOUHOLDELOLW\LVUHGXFHG7KHGD\&RPSOHWLRQ7LPHLVEDVHGRQ

WKHUHPDLQLQJ6:KHDWUHPRYDOFDSDELOLW\DUHDVRQDEOHWLPHIRUUHSDLUV

DQGWKHORZSUREDELOLW\RIDQHYHQWRFFXUULQJGXULQJWKLVWLPHSHULRG

UHTXLULQJWKH6:6\VWHP

7KHVHFRQG&RPSOHWLRQ7LPHIRU5HTXLUHG$FWLRQ%HVWDEOLVKHVDOLPLW

RQWKHPD[LPXPWLPHDOORZHGIRUDQ\FRPELQDWLRQRIUHTXLUHG16:DQG

&6:SXPSVWREHLQRSHUDEOHGXULQJDQ\VLQJOHFRQWLJXRXVRFFXUUHQFHRI

IDLOLQJWRPHHWWKH/&2,I&RQGLWLRQ%LVHQWHUHGZKLOHIRULQVWDQFHD

UHTXLUHG&6:SXPSLVLQRSHUDEOHDQGWKDW&6:SXPSLVVXEVHTXHQWO\

UHWXUQHG23(5$%/(WKH/&2PD\DOUHDG\KDYHEHHQQRWPHWIRUXSWR

GD\V7KLVVLWXDWLRQFRXOGOHDGWRDWRWDORIGD\VVLQFHLQLWLDOIDLOXUH

WRPHHWWKH/&2WRUHVWRUHWKH16:SXPS$WWKLVWLPHDUHTXLUHG&6:

SXPSFRXOGDJDLQEHFRPHLQRSHUDEOHWKH16:SXPSUHVWRUHG

23(5$%/(DQGDQDGGLWLRQDOGD\V IRUDWRWDORIGD\V DOORZHG

SULRUWRFRPSOHWHUHVWRUDWLRQRIWKH/&27KHGD\&RPSOHWLRQ7LPH

SURYLGHVDOLPLWRQWKHWLPHDOORZHGLQDVSHFLILHGFRQGLWLRQDIWHU

GLVFRYHU\RIIDLOXUHWRPHHWWKH/&27KLVOLPLWLVFRQVLGHUHGUHDVRQDEOH

IRUVLWXDWLRQVLQZKLFK&RQGLWLRQV%DQG&RU&RQGLWLRQV%DQG'DUH

HQWHUHGFRQFXUUHQWO\7KH$1'FRQQHFWRUEHWZHHQWKHGD\DQGWKH

GD\&RPSOHWLRQ7LPHVPHDQVWKDWERWK&RPSOHWLRQ7LPHVDSSO\

VLPXOWDQHRXVO\DQGWKHPRUHUHVWULFWLYH&RPSOHWLRQ7LPHPXVWEHPHW

 FRQWLQXHG 

%UXQVZLFN8QLW  % 5HYLVLRQ1R

6:6\VWHPDQG8+6

%

%$6(6

 

$&7,216%  FRQWLQXHG 

7KHVHFRQG&RPSOHWLRQ7LPHDOORZVIRUDQH[FHSWLRQWRWKHQRUPDOWLPH

]HURIRUEHJLQQLQJWKHDOORZHGRXWDJHWLPHFORFN7KLVH[FHSWLRQ

UHVXOWVLQHVWDEOLVKLQJWKHWLPH]HURDWWKHWLPH/&2ZDVLQLWLDOO\

QRWPHWLQVWHDGRIDWWKHWLPHWKDW&RQGLWLRQ%ZDVHQWHUHG

3XUVXDQWWR/&2WKH$&6RXUFHV²2SHUDWLQJ$&7,216ZRXOGQRW

EHHQWHUHGHYHQLIFRROLQJFDSDELOLW\ZHUHORVWWRWKH'*VUHVXOWLQJLQRQH

RUPRUHLQRSHUDEOH'*V7KHUHIRUH5HTXLUHG$FWLRQ%LVPRGLILHGE\D

1RWHWRLQGLFDWHWKDWZKHQ&RQGLWLRQ%LVHQWHUHGDQG16:FRROLQJ

FDSDELOLW\LVXQDYDLODEOHWRRQHRUPRUH'*V$&7,216IRU/&2

$&6RXUFHV²2SHUDWLQJPXVWEHLPPHGLDWHO\HQWHUHG7KLVDOORZV

&RQGLWLRQ%WRSURYLGHUHTXLUHPHQWVIRUDQLQRSHUDEOH16:SXPSZLWKRXW

UHJDUGWRZKHWKHUDFRROLQJZDWHUVXSSO\LVDYDLODEOHWRWKH'*V

/&2SURYLGHVWKHDSSURSULDWHUHVWULFWLRQVIRURQHRUPRUH

LQRSHUDEOH'*V

&DQG&

LWKRQHUHTXLUHG&6:SXPSLQRSHUDEOHWKHLQRSHUDEOHSXPSPXVWEH

UHVWRUHGWR23(5$%/(VWDWXVZLWKLQGD\VDQGGD\VIURPGLVFRYHU\

RIIDLOXUHWRPHHWWKH/&2:LWKWKHXQLWLQWKLVFRQGLWLRQWKH23(5$%/(

&6:SXPSDQG16:SXPSVDUHDGHTXDWHWRSHUIRUPWKHKHDWUHPRYDO

IXQFWLRQ+RZHYHUWKHRYHUDOOUHOLDELOLW\LVUHGXFHG7KHGD\

&RPSOHWLRQ7LPHLVEDVHGRQWKHDYDLODELOLW\RIWZR8QLW6:SXPSV DQ

23(5$%/(&6:SXPSDQGDQ23(5$%/(8QLW16:SXPS HDFK

SRZHUHGIURPVHSDUDWHN9HPHUJHQF\EXVHVWRVXSSRUWWKHXQLW V

VHUYLFHZDWHUORDGV,PPHGLDWHYHULILFDWLRQWKDWWKH23(5$%/(&6:

SXPSDQGRQH23(5$%/(8QLW16:SXPSDUHSRZHUHGIURPVHSDUDWH

HPHUJHQF\EXVHVLVWKHUHIRUHUHTXLUHGZKHQRQHUHTXLUHG&6:SXPSLV

LQRSHUDEOH,IWKH23(5$%/(&6:SXPSDQGRQH8QLW16:SXPS

FDQQRWEHLPPHGLDWHO\YHULILHGWREHSRZHUHGIURPVHSDUDWHN9

HPHUJHQF\EXVHV&RQGLWLRQ'PXVWEHLPPHGLDWHO\HQWHUHG7KHGD\

&RPSOHWLRQ7LPHLVEDVHGRQWKHUHPDLQLQJ6:KHDWUHPRYDOFDSDELOLW\

DUHDVRQDEOHWLPHIRUUHSDLUVDQGWKHORZSUREDELOLW\RIDQHYHQW

RFFXUULQJGXULQJWKLVWLPHSHULRGUHTXLULQJWKH6:6\VWHP

 FRQWLQXHG 

%UXQVZLFN8QLW  % 5HYLVLRQ1R

6:6\VWHPDQG8+6

%

%$6(6

 

$&7,216 &DQG& FRQWLQXHG 

7KHVHFRQG&RPSOHWLRQ7LPHIRU5HTXLUHG$FWLRQ&HVWDEOLVKHVDOLPLW

RQWKHPD[LPXPWLPHDOORZHGIRUDQ\FRPELQDWLRQRIUHTXLUHG16:DQG

&6:SXPSVWREHLQRSHUDEOHGXULQJDQ\VLQJOHFRQWLJXRXVRFFXUUHQFHRI

IDLOLQJWRPHHWWKH/&2,I&RQGLWLRQ&LVHQWHUHGZKLOHIRULQVWDQFHD

UHTXLUHG16:SXPSLVLQRSHUDEOHDQGWKDW16:SXPSLVVXEVHTXHQWO\

UHWXUQHG23(5$%/(WKH/&2PD\DOUHDG\KDYHEHHQQRWPHWIRUXSWR

GD\V7KLVVLWXDWLRQFRXOGOHDGWRDWRWDORIGD\VVLQFHLQLWLDOIDLOXUH

WRPHHWWKH/&2WRUHVWRUHWKH&6:SXPS$WWKLVWLPHDUHTXLUHG16:

SXPSFRXOGDJDLQEHFRPHLQRSHUDEOHWKH&6:SXPSUHVWRUHG

23(5$%/(DQGDQDGGLWLRQDOGD\V IRUDWRWDORIGD\V DOORZHG

SULRUWRFRPSOHWHUHVWRUDWLRQRIWKH/&27KHGD\&RPSOHWLRQ7LPH

SURYLGHVDOLPLWRQWKHWLPHDOORZHGLQDVSHFLILHGFRQGLWLRQDIWHU

GLVFRYHU\RIIDLOXUHWRPHHWWKH/&27KLVOLPLWLVFRQVLGHUHGUHDVRQDEOH

IRUVLWXDWLRQVLQZKLFK&RQGLWLRQV%DQG&DUHHQWHUHGFRQFXUUHQWO\7KH

$1'FRQQHFWRUEHWZHHQWKHGD\DQGWKHGD\&RPSOHWLRQ7LPHV

PHDQVWKDWERWK&RPSOHWLRQ7LPHVDSSO\VLPXOWDQHRXVO\DQGWKHPRUH

UHVWULFWLYH&RPSOHWLRQ7LPHPXVWEHPHW7KHVHFRQG&RPSOHWLRQ7LPH

DOORZVIRUDQH[FHSWLRQWRWKHQRUPDOWLPH]HURIRUEHJLQQLQJWKH

DOORZHGRXWDJHWLPHFORFN7KLVH[FHSWLRQUHVXOWVLQHVWDEOLVKLQJWKH

WLPH]HURDWWKHWLPH/&2ZDVLQLWLDOO\QRWPHWLQVWHDGRIDWWKH

WLPHWKDW&RQGLWLRQ&ZDVHQWHUHG

'

,I5HTXLUHG$FWLRQ&FDQQRWEHFRPSOHWHGZLWKLQWKHDVVRFLDWHG

&RPSOHWLRQ7LPHRULIWKHVWDWXVRIWKH8QLW6:SXPSVFKDQJHVDIWHU

5HTXLUHG$FWLRQ&LVLQLWLDOO\PHWRQHUHTXLUHG&6:SXPSPXVWEH

UHVWRUHGWR23(5$%/(VWDWXVZLWKLQKRXUV:LWKWKHXQLWLQWKLV

FRQGLWLRQWKH23(5$%/(6:SXPSVDUHDGHTXDWHWRSHUIRUPWKHKHDW

UHPRYDOIXQFWLRQ+RZHYHURYHUDOOUHOLDELOLW\LVUHGXFHGDVFRPSDUHGWR

&RQGLWLRQ&DQGDUHGXFHG&RPSOHWLRQ7LPHRIKRXUVLVSURYLGHG7KH

KRXU&RPSOHWLRQ7LPHLVEDVHGRQWKHUHPDLQLQJ6:6\VWHPKHDW

UHPRYDOFDSDELOLW\DUHDVRQDEOHWLPHIRUUHSDLUVDQGWKHORZSUREDELOLW\

RIDQHYHQWRFFXUULQJGXULQJWKHWLPHSHULRGUHTXLULQJWKH6:6\VWHP

 FRQWLQXHG 

%UXQVZLFN8QLW  % 5HYLVLRQ1R

6:6\VWHPDQG8+6

%

%$6(6

 

$&7,216( 

 FRQWLQXHG 

LWKWZRUHTXLUHG&6:SXPSVLQRSHUDEOHWKHRQHUHTXLUHGLQRSHUDEOH

SXPSPXVWEHUHVWRUHGWR23(5$%/(VWDWXVZLWKLQKRXUVDQG

GD\VIURPGLVFRYHU\RIIDLOXUHWRPHHWWKH/&2:LWKWKHXQLWLQWKLV

FRQGLWLRQWKH23(5$%/(16:SXPSVDUHDGHTXDWHWRSHUIRUPWKHKHDW

UHPRYDOIXQFWLRQ7KHKRXU&RPSOHWLRQ7LPHLVEDVHGRQWKH

DYDLODELOLW\RIWKHUHPDLQLQJ16:SXPSVWRVXSSRUWWKHXQLW VVHUYLFH

ZDWHUORDGV7KHKRXU&RPSOHWLRQ7LPHLVEDVHGRQWKHUHPDLQLQJ

6:6\VWHPKHDWUHPRYDOFDSDELOLW\DUHDVRQDEOHWLPHIRUUHSDLUVDQG

WKHORZSUREDELOLW\RIDQHYHQWRFFXUULQJGXULQJWKLVWLPHSHULRGUHTXLULQJ

WKH6:6\VWHP

7KHVHFRQG&RPSOHWLRQ7LPHIRU5HTXLUHG$FWLRQ(HVWDEOLVKHVDOLPLW

RQWKHPD[LPXPWLPHDOORZHGIRUDQ\FRPELQDWLRQRIUHTXLUHG16:DQG

&6:SXPSVWREHLQRSHUDEOHGXULQJDQ\VLQJOHFRQWLJXRXVRFFXUUHQFHRI

IDLOLQJWRPHHWWKH/&2,I&RQGLWLRQ(LVHQWHUHGZKLOHIRULQVWDQFHD

UHTXLUHG16:SXPSLVLQRSHUDEOHDQGWKDW16:SXPSLVVXEVHTXHQWO\

UHWXUQHG23(5$%/(WKH/&2PD\DOUHDG\KDYHEHHQQRWPHWIRUXSWR

GD\V7KLVVLWXDWLRQFRXOGOHDGWRDWRWDORIGD\VVLQFHLQLWLDOIDLOXUH

WRPHHWWKH/&2WRUHVWRUHWKH&6:SXPS$WWKLVWLPHDUHTXLUHG16:

SXPSFRXOGDJDLQEHFRPHLQRSHUDEOHWKH&6:SXPSUHVWRUHG

23(5$%/(DQGDQDGGLWLRQDOGD\V IRUDWRWDORIGD\V DOORZHG

SULRUWRFRPSOHWHUHVWRUDWLRQRIWKH/&27KHGD\&RPSOHWLRQ7LPH

SURYLGHVDOLPLWRQWKHWLPHDOORZHGLQDVSHFLILHGFRQGLWLRQDIWHU

GLVFRYHU\RIIDLOXUHWRPHHWWKH/&27KLVOLPLWLVFRQVLGHUHGUHDVRQDEOH

IRUVLWXDWLRQVLQZKLFK&RQGLWLRQV%DQG(DUHHQWHUHGFRQFXUUHQWO\7KH

$1'FRQQHFWRUEHWZHHQWKHGD\DQGWKHGD\&RPSOHWLRQ7LPHV

PHDQVWKDWERWK&RPSOHWLRQ7LPHVDSSO\VLPXOWDQHRXVO\DQGWKHPRUH

UHVWULFWLYH&RPSOHWLRQ7LPHPXVWEHPHW7KHVHFRQG&RPSOHWLRQ7LPH

DOORZVIRUDQH[FHSWLRQWRWKHQRUPDOWLPH]HURIRUEHJLQQLQJWKH

DOORZHGRXWDJHWLPHFORFN

7KLVH[FHSWLRQUHVXOWVLQHVWDEOLVKLQJWKHWLPH]HURDWWKHWLPH

/&2ZDVLQLWLDOO\QRWPHWLQVWHDGRIDWWKHWLPHWKDW&RQGLWLRQ(

ZDVHQWHUHG

3XUVXDQWWR/&2WKH5+56:$&7,216ZRXOGQRWEHHQWHUHGHYHQ

LIFRROLQJFDSDELOLW\ZHUHORVWWRWKH5+56:KHDWH[FKDQJHUVUHVXOWLQJLQ

RQHRUPRUHLQRSHUDEOH5+56:VXEV\VWHPV7KHUHIRUH5HTXLUHG

 FRQWLQXHG 

%UXQVZLFN8QLW  % 5HYLVLRQ1R

$&6RXUFHV²2SHUDWLQJ

%

%$6(6

 

$&7,216%  FRQWLQXHG 

7RHQVXUHKLJKO\UHOLDEOHSRZHUVRXUFHVUHPDLQZLWKRQH8QLWEDODQFH

RISODQWFLUFXLWSDWKWRWKHGRZQVWUHDPN9HPHUJHQF\EXVLQRSHUDEOH

DQGWKH'*DVVRFLDWHGZLWKWKHGRZQVWUHDPN9HPHUJHQF\EXV

LQRSHUDEOHLWLVQHFHVVDU\WRYHULI\WKHDYDLODELOLW\RIWKHUHPDLQLQJRIIVLWH

FLUFXLWVRQDPRUHIUHTXHQWEDVLV6LQFHWKH5HTXLUHG$FWLRQRQO\

VSHFLILHVSHUIRUPDIDLOXUHRI65DFFHSWDQFHFULWHULDGRHVQRW

UHVXOWLQWKH5HTXLUHG$FWLRQQRWPHW+RZHYHULIDVHFRQGFLUFXLWIDLOV

65WKHVHFRQGRIIVLWHFLUFXLWLVLQRSHUDEOHDQG&RQGLWLRQ(IRU

WZRRUPRUHRIIVLWHFLUFXLWVLQRSHUDEOHLVHQWHUHG

%

7KLV5HTXLUHG$FWLRQSURYLGHVDGD\WLPHSHULRGWRSHUIRUPSODQQHG

PDLQWHQDQFHRQRQHRIWKHVH%23EXVHVDQGWKHFLUFXLWSDWKWRLWV

DVVRFLDWHGN9HPHUJHQF\EXVZKHQ8QLWLVLQ02'(RU

'XULQJWKHSODQQHGPDLQWHQDQFHRIWKH%23EXVWKHDVVRFLDWHG

HPHUJHQF\EXVDQGWKHDVVRFLDWHG'*LIDFRQGLWLRQLVGLVFRYHUHGRQ

WKHVHEXVHVRUWKH'*UHTXLULQJFRUUHFWLYHPDLQWHQDQFHWKLV

PDLQWHQDQFHPD\EHSHUIRUPHGZLWKLQWKHGD\WLPHSHULRGRI5HTXLUHG

$FWLRQ% ,I8QLWLVLQ02'(RUWKHQWKH8QLW$&7,216RI

6SHFLILFDWLRQ$&6RXUFHV²2SHUDWLQJUHTXLUHHQWU\LQWR

/&2IRUWKLVFRQGLWLRQ 7KHGD\&RPSOHWLRQ7LPHWDNHVLQWR

DFFRXQWWKHFDSDFLW\DQGFDSDELOLW\RIWKHUHPDLQLQJ$&VRXUFHVDQGD

UHDVRQDEOHWLPHIUDPHIRUSHUIRUPDQFHRISODQQHGPDLQWHQDQFH7KLVLV

DFFHSWDEOHEHFDXVHPDLQWHQDQFHRQHDFK%23EXVDQGWKHFLUFXLWSDWK

WRLWVDVVRFLDWHGHPHUJHQF\EXVZLOOLQFUHDVHWKHUHOLDELOLW\RIWKHRIIVLWH

FLUFXLWVWRWKHGRZQVWUHDPN9HPHUJHQF\EXVHV,WVKRXOGEHQRWHG

WKDWZKLOHLQWKLVFRQGLWLRQHDFKRIWKHUHPDLQLQJWKUHHN9

HPHUJHQF\EXVHVZLOOKDYHWKHLUVWDQGE\HPHUJHQF\VRXUFHDQGWZR

VRXUFHVRIRIIVLWHSRZHU23(5$%/(,IRQHRUERWKVRXUFHVRIRIIVLWH

SRZHUDUHORVWWRDQDGGLWLRQDON9HPHUJHQF\EXVWKHQ&RQGLWLRQ(

LVHQWHUHG

7KHVHFRQG&RPSOHWLRQ7LPHIRU5HTXLUHG$FWLRQ%HVWDEOLVKHVDOLPLW

RQWKHPD[LPXPWLPHDOORZHGIRUDQ\FRPELQDWLRQRIUHTXLUHG$&SRZHU

VRXUFHVWREHLQRSHUDEOHGXULQJDQ\VLQJOHFRQWLJXRXVRFFXUUHQFHRI

IDLOLQJWRPHHW/&2DRUE,I&RQGLWLRQ%LVHQWHUHGZKLOHIRU

 FRQWLQXHG 

%UXQVZLFN8QLW  % 5HYLVLRQ1R

$&6RXUFHV²2SHUDWLQJ

%

%$6(6

 

$&7,216%  FRQWLQXHG 

LQVWDQFHDQRIIVLWHFLUFXLWLVLQRSHUDEOHDQGWKDWFLUFXLWLVVXEVHTXHQWO\

UHVWRUHG23(5$%/(WKH/&2PD\DOUHDG\KDYHEHHQQRWPHWIRUXSWR

KRXUV7KLVVLWXDWLRQFRXOGOHDGWRDWRWDORIGD\VIURPLQLWLDOIDLOXUH

RIWKH/&2WRUHVWRUDWLRQRIWKH%23FLUFXLWSDWKWRWKHGRZQVWUHDP

N9HPHUJHQF\EXVDQG'*DVVRFLDWHGZLWKWKHDIIHFWHGN9

HPHUJHQF\EXV$WWKLVWLPHDVHFRQGRIIVLWHFLUFXLWFRXOGDJDLQEHFRPH

LQRSHUDEOHWKH%23FLUFXLWSDWKWRWKHGRZQVWUHDPN9HPHUJHQF\

EXVDQG'*DVVRFLDWHGZLWKWKHDIIHFWHGN9HPHUJHQF\EXVUHVWRUHG

23(5$%/(DQGDQDGGLWLRQDOKRXUV IRUDWRWDORIGD\V DOORZHG

SULRUWRFRPSOHWHUHVWRUDWLRQRIWKH/&27KHGD\&RPSOHWLRQ7LPH

SURYLGHVDOLPLWRQWKHWLPHDOORZHGLQDVSHFLILHGFRQGLWLRQDIWHU

GLVFRYHU\RIIDLOXUHWRPHHW/&2DRUE7KLVOLPLWLVFRQVLGHUHG

UHDVRQDEOHIRUVLWXDWLRQVLQZKLFK&RQGLWLRQ%DQG&RQGLWLRQ&RU'DUH

HQWHUHGFRQFXUUHQWO\7KH$1'FRQQHFWRUEHWZHHQWKHGD\DQG

GD\&RPSOHWLRQ7LPHPHDQVWKDWERWK&RPSOHWLRQ7LPHVDSSO\

VLPXOWDQHRXVO\DQGWKHPRUHUHVWULFWLYHPXVWEHPHW

$VLQ5HTXLUHG$FWLRQ%WKHVHFRQG&RPSOHWLRQ7LPHDOORZVIRUDQ

H[FHSWLRQWRWKHQRUPDOWLPH]HURIRUEHJLQQLQJWKHDOORZHGRXWDJHWLPH

FORFN7KLVH[FHSWLRQUHVXOWVLQHVWDEOLVKLQJWKHWLPH]HURDWWKHWLPH

WKDW/&2DRUEZDVLQLWLDOO\QRWPHWLQVWHDGRIWKHWLPHWKDW

&RQGLWLRQ%ZDVHQWHUHG

&

7RHQVXUHDKLJKO\UHOLDEOHSRZHUVRXUFHUHPDLQVZLWKRQHRIIVLWHFLUFXLW

LQRSHUDEOHLWLVQHFHVVDU\WRYHULI\WKHDYDLODELOLW\RIWKHUHPDLQLQJRIIVLWH

FLUFXLWVRQDPRUHIUHTXHQWEDVLV6LQFHWKH5HTXLUHG$FWLRQRQO\

VSHFLILHVSHUIRUPDIDLOXUHRI65DFFHSWDQFHFULWHULDGRHVQRW

UHVXOWLQD5HTXLUHG$FWLRQQRWPHW+RZHYHULIDVHFRQGFLUFXLWIDLOV

65WKHVHFRQGRIIVLWHFLUFXLWLVLQRSHUDEOHDQG&RQGLWLRQ(IRU

WZRRUPRUHRIIVLWHFLUFXLWVLQRSHUDEOHLVHQWHUHG

 FRQWLQXHG 

%UXQVZLFN8QLW  % 5HYLVLRQ1R

$&6RXUFHV²2SHUDWLQJ

%

%$6(6

 

$&7,216 & FRQWLQXHG 

7KHUHPDLQLQJ23(5$%/(RIIVLWHFLUFXLWVDQG'*VDUHDGHTXDWHWR

VXSSO\HOHFWULFDOSRZHUWRWKHRQVLWH&ODVV('LVWULEXWLRQ6\VWHP7KXV

RQDFRPSRQHQWEDVLVVLQJOHIDLOXUHSURWHFWLRQPD\KDYHEHHQORVWIRUWKH

UHTXLUHGIHDWXUH VIXQFWLRQKRZHYHUIXQFWLRQLVQRWORVW7KHKRXU

&RPSOHWLRQ7LPHWDNHVLQWRDFFRXQWWKHFRPSRQHQW23(5$%,/,7<RIWKH

UHGXQGDQWFRXQWHUSDUWWRWKHLQRSHUDEOHUHTXLUHGIHDWXUH$GGLWLRQDOO\

WKHKRXU&RPSOHWLRQ7LPHWDNHVLQWRDFFRXQWWKHFDSDFLW\DQG

FDSDELOLW\RIWKHUHPDLQLQJ$&VRXUFHVDUHDVRQDEOHWLPHIRUUHSDLUVDQG

WKHORZSUREDELOLW\RID'%$RFFXUULQJGXULQJWKLVSHULRG

&

$FFRUGLQJWR5HJXODWRU\*XLGH 5HI RSHUDWLRQPD\FRQWLQXHLQ

&RQGLWLRQ&IRUDSHULRGWKDWVKRXOGQRWH[FHHGKRXUV:LWKRQH

RIIVLWHFLUFXLWLQRSHUDEOHWKHUHOLDELOLW\RIWKHRIIVLWHV\VWHPLVGHJUDGHG

DQGWKHSRWHQWLDOIRUDORVVRIRIIVLWHSRZHULVLQFUHDVHGZLWKDWWHQGDQW

SRWHQWLDOIRUDFKDOOHQJHWRWKHSODQWVDIHW\V\VWHPV,QWKLVFRQGLWLRQ

KRZHYHUWKHUHPDLQLQJ23(5$%/(RIIVLWHFLUFXLWVDQG'*VDUH

DGHTXDWHWRVXSSO\HOHFWULFDOSRZHUWRWKHRQVLWH&ODVV('LVWULEXWLRQ

6\VWHP

7KHKRXU&RPSOHWLRQ7LPHWDNHVLQWRDFFRXQWWKHFDSDFLW\DQG

FDSDELOLW\RIWKHUHPDLQLQJ$&VRXUFHVDUHDVRQDEOHWLPHIRUUHSDLUVDQG

WKHORZSUREDELOLW\RID'%$RFFXUULQJGXULQJWKLVSHULRG

7KHVHFRQG&RPSOHWLRQ7LPHIRU5HTXLUHG$FWLRQ&HVWDEOLVKHVDOLPLW

RQWKHPD[LPXPWLPHDOORZHGIRUDQ\FRPELQDWLRQRIUHTXLUHG$&SRZHU

VRXUFHVWREHLQRSHUDEOHGXULQJDQ\VLQJOHFRQWLJXRXVRFFXUUHQFHRI

IDLOLQJWRPHHW/&2DRUE,I&RQGLWLRQ&LVHQWHUHGZKLOHIRU

LQVWDQFHD'*LVLQRSHUDEOHDQGWKDW'*LVVXEVHTXHQWO\UHWXUQHG

23(5$%/(WKH/&2PD\DOUHDG\KDYHEHHQQRWPHWIRUXSWRGD\V

7KLVVLWXDWLRQFRXOGOHDGWRDWRWDORIGD\VVLQFHLQLWLDOIDLOXUHWRPHHW

WKH/&2WRUHVWRUHWKHRIIVLWHFLUFXLW$WWKLVWLPHD'*FRXOGDJDLQ

EHFRPHLQRSHUDEOHWKHFLUFXLWUHVWRUHG23(5$%/(DQGDQDGGLWLRQDO

GD\V IRUDWRWDORIGD\V DOORZHGSULRUWRFRPSOHWHUHVWRUDWLRQRIWKH

/&27KHGD\&RPSOHWLRQ7LPHSURYLGHVDOLPLWRQWKHWLPHDOORZHG

 FRQWLQXHG 

%UXQVZLFN8QLW  % 5HYLVLRQ1R

$&6RXUFHV²2SHUDWLQJ

%

%$6(6

 

$&7,216 & FRQWLQXHG 

LQDVSHFLILHGFRQGLWLRQDIWHUGLVFRYHU\RIIDLOXUHWRPHHW/&2DRUE

7KLVOLPLWLVFRQVLGHUHGUHDVRQDEOHIRUVLWXDWLRQVLQZKLFK&RQGLWLRQV&

DQG'DUHHQWHUHGFRQFXUUHQWO\7KH$1'FRQQHFWRUEHWZHHQWKH

KRXUVDQGGD\&RPSOHWLRQ7LPHVPHDQVWKDWERWK&RPSOHWLRQ

7LPHVDSSO\VLPXOWDQHRXVO\DQGWKHPRUHUHVWULFWLYH&RPSOHWLRQ7LPH

PXVWEHPHW

$VLQ5HTXLUHG$FWLRQ&WKH&RPSOHWLRQ7LPHDOORZVIRUDQH[FHSWLRQ

WRWKHQRUPDOWLPH]HURIRUEHJLQQLQJWKHDOORZHGRXWDJHWLPHFORFN

7KLVH[FHSWLRQUHVXOWVLQHVWDEOLVKLQJWKHWLPH]HURDWWKHWLPH

/&2DRUEZDVLQLWLDOO\QRWPHWLQVWHDGRIDWWKHWLPHWKDW

&RQGLWLRQ&ZDVHQWHUHG

'

7RHQVXUHDKLJKO\UHOLDEOHSRZHUVRXUFHUHPDLQVZLWKRQH'*

LQRSHUDEOHLWLVQHFHVVDU\WRYHULI\WKHDYDLODELOLW\RIWKHRIIVLWHFLUFXLWVRQ

DPRUHIUHTXHQWEDVLV6LQFHWKH5HTXLUHG$FWLRQRQO\VSHFLILHV

SHUIRUPDIDLOXUHWRPHHW65DFFHSWDQFHFULWHULDGRHVQRWUHVXOW

LQD5HTXLUHG$FWLRQEHLQJQRWPHW+RZHYHULIDFLUFXLWIDLOVWRSDVV

65LWLVLQRSHUDEOH8SRQRIIVLWHFLUFXLWLQRSHUDELOLW\DGGLWLRQDO

&RQGLWLRQVPXVWWKHQEHHQWHUHG

'

,QRUGHUWRH[WHQGWKH5HTXLUHG$FWLRQ'&RPSOHWLRQ7LPHIRUDQ

LQRSHUDEOH'*IURPGD\VWRGD\VLQRSHUDEOHLWLVQHFHVVDU\WRYHULI\

WKHDYDLODELOLW\RIWKH6833'*ZLWKLQKRXUVRQHQWU\LQWR76/&2

DQGHYHU\KRXUVWKHUHDIWHU6LQFH5HTXLUHG$FWLRQ'RQO\VSHFLILHV

HYDOXDWHGLVFRYHULQJWKH6833'*XQDYDLODEOHGRHVQRWUHVXOWLQWKH

5HTXLUHG$FWLRQEHLQJQRWPHW LHWKHHYDOXDWLRQLVSHUIRUPHG 

+RZHYHURQGLVFRYHU\RIDQXQDYDLODEOH6833'*WKH&RPSOHWLRQ7LPH

IRU5HTXLUHG$FWLRQ'VWDUWVWKHGD\DQGRUKRXUFORFN

6833'*DYDLODELOLW\UHTXLUHVWKDW

 7KHORDGWHVWKDVEHHQSHUIRUPHGZLWKLQGD\VRIHQWU\LQWRWKH

H[WHQGHG&RPSOHWLRQ7LPH7KH5HTXLUHG$FWLRQHYDOXDWLRQLVPHWZLWK

DQDGPLQLVWUDWLYHYHULILFDWLRQRIWKLVSULRUWHVWLQJ

 6833'*IXHOWDQNWHVWLVYHULILHGORFDOO\WREHKRXUVXSSO\DQG

 6833'*VXSSRUWLQJV\VWHPSDUDPHWHUVIRUVWDUWLQJDQGRSHUDWLQJDUH

YHULILHGWREHZLWKLQUHTXLUHGOLPLWVIRUIXQFWLRQDODYDLODELOLW\ HJEDWWHU\

VWDWHRIFKDUJHVWDUWLQJDLUV\VWHPSUHVVXUH 

7KH6833'*LVQRWXVHGWRH[WHQGWKH&RPSOHWLRQ7LPHIRUPRUHWKDQ

RQHLQRSHUDEOH'*DWDQ\RQHWLPH

 FRQWLQXHG 

%UXQVZLFN8QLW  % 5HYLVLRQ1R

'LVWULEXWLRQ6\VWHPV²2SHUDWLQJ

%

%$6(6

 

$&7,216$  FRQWLQXHG 

/RDGJURXS(FRQVLVWVRIN9EXV(9EXV(DQG

9$&YLWDOEXV(

/RDGJURXS(FRQVLVWVRIN9EXV(9EXV(DQG

9$&YLWDOEXV(

/RDGJURXS(FRQVLVWVRIN9EXV(9EXV(DQG

9$&YLWDOEXV(

/RDGJURXS(FRQVLVWVRIN9EXV(9EXV(DQG

9$&YLWDOEXV(

7KHVHFRQG&RPSOHWLRQ7LPHIRU5HTXLUHG$FWLRQ$HVWDEOLVKHVDOLPLW

RQWKHPD[LPXPWLPHDOORZHGIRUDQ\FRPELQDWLRQRIUHTXLUHGGLVWULEXWLRQ

VXEV\VWHPVWREHLQRSHUDEOHGXULQJDQ\VLQJOHFRQWLJXRXVRFFXUUHQFHRI

IDLOLQJWRPHHWWKH/&2,I&RQGLWLRQ$LVHQWHUHGZKLOHIRULQVWDQFHDQ

$&EXVLQDORDGJURXSLQDGLIIHUHQWGLYLVLRQLVLQRSHUDEOHDQG

VXEVHTXHQWO\UHWXUQHG23(5$%/(WKLV/&2PD\DOUHDG\KDYHEHHQQRW

PHWIRUXSWRKRXUV7KLVVLWXDWLRQFRXOGOHDGWRDWRWDOGXUDWLRQRI

KRXUV VLQFHLQLWLDOIDLOXUHWRPHHWWKH/&2 WRUHVWRUHWKH$&

(OHFWULFDO3RZHU'LVWULEXWLRQ6\VWHP$WWKLVWLPHDQ$&EXVLQDORDG

JURXSLQDGLIIHUHQWGLYLVLRQFRXOGDJDLQEHFRPHLQRSHUDEOHDQGWKHORDG

JURXSUHPRYHGXQGHU&RQGLWLRQ$FRXOGEHUHVWRUHG23(5$%/(7KLV

FRXOGFRQWLQXHLQGHILQLWHO\

7KLV&RPSOHWLRQ7LPHDOORZVIRUDQH[FHSWLRQWRWKHQRUPDOWLPH]HUR

IRUEHJLQQLQJWKHDOORZHGRXWDJHWLPHFORFN7KLVUHVXOWVLQHVWDEOLVKLQJ

WKHWLPH]HURDWWKHWLPHWKLV/&2ZDVLQLWLDOO\QRWPHWLQVWHDGRIDWWKH

WLPH&RQGLWLRQ$ZDVHQWHUHG7KHKRXU&RPSOHWLRQ7LPHLVDQ

DFFHSWDEOHOLPLWDWLRQRQWKLVSRWHQWLDOWRIDLOWRPHHWWKH/&2LQGHILQLWHO\

,IZKLOHLQ&RQGLWLRQ$HPHUJHQF\EXVHVDVVRFLDWHGZLWKDQRWKHUORDG

JURXSEHFRPHLQRSHUDEOH HJEXVHVLQORDGJURXSV(DQG(DUH

FRQFXUUHQWO\LQRSHUDEOH &RQGLWLRQ%DQG)PXVWEHHQWHUHGDV

DSSURSULDWH

 FRQWLQXHG 

%UXQVZLFN8QLW  % 5HYLVLRQ1R

'LVWULEXWLRQ6\VWHPV²2SHUDWLQJ

%

%$6(6

 

$&7,216% 

 FRQWLQXHG 

LWKRQHRUPRUHUHTXLUHG$&EXVHVRUGLVWULEXWLRQSDQHOVLQRQHGLYLVLRQ

LQRSHUDEOHIRUUHDVRQVRWKHUWKDQ&RQGLWLRQ$WKHUHPDLQLQJ$&HOHFWULFDO

SRZHUGLVWULEXWLRQVXEV\VWHPVDUHFDSDEOHRIVXSSRUWLQJWKHPLQLPXP

VDIHW\IXQFWLRQVQHFHVVDU\WRVKXWGRZQWKHUHDFWRUDQGPDLQWDLQLWLQD

VDIHVKXWGRZQFRQGLWLRQDVVXPLQJQRVLQJOHIDLOXUH7KHRYHUDOO

UHOLDELOLW\LVUHGXFHGKRZHYHUEHFDXVHDVLQJOHIDLOXUHLQWKHUHPDLQLQJ

$&HOHFWULFDOSRZHUGLVWULEXWLRQVXEV\VWHPVFRXOGUHVXOWLQWKHPLQLPXP

UHTXLUHG(6)IXQFWLRQVQRWEHLQJVXSSRUWHG7KHUHIRUHWKHUHTXLUHG$&

EXVHVDQGGLVWULEXWLRQSDQHOVPXVWEHUHVWRUHGWR23(5$%/(VWDWXV

ZLWKLQKRXUV

7KH&RQGLWLRQ%ZRUVWVFHQDULRLVRQHGLYLVLRQZLWKRXW$&SRZHU LHQR

RIIVLWHSRZHUWRWKHGLYLVLRQDQGWKHDVVRFLDWHG'*LQRSHUDEOH ,QWKLV

&RQGLWLRQWKHXQLWLVPRUHYXOQHUDEOHWRDFRPSOHWHORVVRI$&SRZHU,W

LVWKHUHIRUHLPSHUDWLYHWKDWWKHXQLWRSHUDWRUV DWWHQWLRQEHIRFXVHGRQ

PLQLPL]LQJWKHSRWHQWLDOIRUORVVRISRZHUWRWKHUHPDLQLQJGLYLVLRQE\

VWDELOL]LQJWKHXQLWDQGUHVWRULQJSRZHUWRWKHDIIHFWHGGLYLVLRQ7KH

KRXUWLPHOLPLWEHIRUHUHTXLULQJDXQLWVKXWGRZQLQWKLV&RQGLWLRQLV

DFFHSWDEOHEHFDXVHRI

D 7KHSRWHQWLDOIRUGHFUHDVHGVDIHW\LIWKHXQLWRSHUDWRUV DWWHQWLRQLV

GLYHUWHGIURPWKHHYDOXDWLRQVDQGDFWLRQVQHFHVVDU\WRUHVWRUH

SRZHUWRWKHDIIHFWHGGLYLVLRQWRWKHDFWLRQVDVVRFLDWHGZLWKWDNLQJ

WKHXQLWWRVKXWGRZQZLWKLQWKLVWLPHOLPLW

E 7KHORZSRWHQWLDOIRUDQHYHQWLQFRQMXQFWLRQZLWKDVLQJOHIDLOXUHRI

DUHGXQGDQWFRPSRQHQWLQWKHGLYLVLRQZLWK$&SRZHU 7KH

UHGXQGDQWFRPSRQHQWLVYHULILHG23(5$%/(LQDFFRUGDQFHZLWK

6SHFLILFDWLRQ6DIHW\)XQFWLRQ'HWHUPLQDWLRQ3URJUDP

6)'3  

7KHVHFRQG&RPSOHWLRQ7LPHIRU5HTXLUHG$FWLRQ%HVWDEOLVKHVDOLPLW

RQWKHPD[LPXPWLPHDOORZHGIRUDQ\FRPELQDWLRQRIUHTXLUHGGLVWULEXWLRQ

VXEV\VWHPVWREHLQRSHUDEOHGXULQJDQ\VLQJOHFRQWLJXRXVRFFXUUHQFHRI

IDLOLQJWRPHHWWKH/&2,I&RQGLWLRQ%LVHQWHUHGZKLOHIRULQVWDQFHD

'&EXVLVLQRSHUDEOHDQGVXEVHTXHQWO\UHWXUQHG23(5$%/(WKLV/&2

 FRQWLQXHG 

%UXQVZLFN8QLW  % 5HYLVLRQ1R

'LVWULEXWLRQ6\VWHPV²2SHUDWLQJ

%

%$6(6

 

$&7,216%  FRQWLQXHG 

PD\DOUHDG\KDYHEHHQQRWPHWIRUXSWRGD\V7KLVVLWXDWLRQFRXOG

OHDGWRDWRWDOGXUDWLRQRIKRXUVVLQFHLQLWLDOIDLOXUHWRPHHWWKH/&2

WRUHVWRUHWKH$&HOHFWULFDOSRZHUGLVWULEXWLRQV\VWHP$WWKLVWLPHD'&

EXVFRXOGDJDLQEHFRPHLQRSHUDEOHDQGWKH$&HOHFWULFDOSRZHU

GLVWULEXWLRQV\VWHPFRXOGEHUHVWRUHG23(5$%/(7KLVFRXOGFRQWLQXH

LQGHILQLWHO\

7KLV&RPSOHWLRQ7LPHDOORZVIRUDQH[FHSWLRQWRWKHQRUPDOWLPH]HUR

IRUEHJLQQLQJWKHDOORZHGRXWDJHWLPHFORFN7KLVUHVXOWVLQHVWDEOLVKLQJ

WKHWLPH]HURDWWKHWLPHWKLV/&2ZDVLQLWLDOO\QRWPHWLQVWHDGRIDWWKH

WLPH&RQGLWLRQ%ZDVHQWHUHG7KHKRXU&RPSOHWLRQ7LPHLVDQ

DFFHSWDEOHOLPLWDWLRQRQWKLVSRWHQWLDOWRIDLOWRPHHWWKH/&2LQGHILQLWHO\

&&&DQG&

&RQGLWLRQ&DSSOLHVWRWKH9'&EXVHVOLVWHGLQ7DEOH%ZKLFK

FDQEHVXSSOLHGIURPHLWKHUDQRUPDORUDQDOWHUQDWH'&VRXUFH7KHVH

EXVHVDUHOLVWHGEHORZ

D 9'&&RQWURO3RZHU%XVHVIRUN96ZLWFKJHDU(((

DQG(

E 9'&&RQWURO3RZHU%XVHVIRU96ZLWFKJHDU(((

DQG(

F 9'&(66/RJLF&DELQHWV+++DQG+DQG

G 9'&'*3DQHOV'*'*'*DQG'*

&RQGLWLRQ$SHUPLWVWKHGHHQHUJL]DWLRQRIWKH(ORDGJURXSEXV HV RU

WKH(ORDGJURXSEXV HV IRUSODQQHGPDLQWHQDQFHZKHQ8QLWLVLQ

02'(RU'XULQJDN9RU9EXVRXWDJHLWLVGHVLUDEOHWR

FOHDUERWKWKHQRUPDODQGDOWHUQDWHVRXUFHVRI'&FRQWUROSRZHUWRWKH

EXVIRUSHUVRQQHOVDIHW\7KHGHHQHUJL]HG$&EXVLVLQRSHUDEOHDQGQRW

FDSDEOHRIVXSSO\LQJLWVORDGVUHJDUGOHVVRIWKHDYDLODELOLW\RI'&FRQWURO

SRZHU+HQFHHQWU\LQWR&RQGLWLRQ&DVDUHVXOWRISHUIRUPLQJ

PDLQWHQDQFHXQGHU&RQGLWLRQ$LVQRWQHFHVVDU\&RQGLWLRQ'ZRXOG

DSSO\

 FRQWLQXHG 

%UXQVZLFN8QLW  % 5HYLVLRQ1R

'LVWULEXWLRQ6\VWHPV²2SHUDWLQJ

%

%$6(6

 

$&7,216 &&&DQG& FRQWLQXHG 

FRPSRQHQWDQGLVFRQVLVWHQWZLWKWKHDOORZHG&RPSOHWLRQ7LPHIRUDQ

LQRSHUDEOH'&HOHFWULFDOSRZHUVXEV\VWHPVSHFLILHGLQ6SHFLILFDWLRQ

'&6RXUFHV²2SHUDWLQJ

7KHVHFRQG&RPSOHWLRQ7LPHIRU5HTXLUHG$FWLRQ&HVWDEOLVKHVDOLPLW

RQWKHPD[LPXPWLPHDOORZHGIRUDQ\FRPELQDWLRQRIUHTXLUHGHOHFWULFDO

SRZHUGLVWULEXWLRQVXEV\VWHPVWREHLQRSHUDEOHGXULQJDQ\VLQJOH

FRQWLJXRXVRFFXUUHQFHRIIDLOLQJWRPHHWWKH/&2,I&RQGLWLRQ&LV

HQWHUHGZKLOHIRULQVWDQFHDQ$&EXVLVLQRSHUDEOHDQGVXEVHTXHQWO\

UHVWRUHG23(5$%/(WKH/&2PD\DOUHDG\KDYHEHHQQRWPHWIRUXSWR

KRXUV7KLVVLWXDWLRQFRXOGOHDGWRDWRWDOGXUDWLRQRIKRXUVVLQFH

LQLWLDOIDLOXUHWRPHHWWKH/&2WRUHVWRUHWKH'&HOHFWULFDOSRZHU

GLVWULEXWLRQV\VWHP$WWKLVWLPHDQ$&EXVFRXOGDJDLQEHFRPH

LQRSHUDEOHDQGWKH'&HOHFWULFDOSRZHUGLVWULEXWLRQV\VWHPFRXOGEH

UHVWRUHG23(5$%/(7KLVFRXOGFRQWLQXHLQGHILQLWHO\

7KLV&RPSOHWLRQ7LPHDOORZVIRUDQH[FHSWLRQWRWKHQRUPDOWLPH]HUR

IRUEHJLQQLQJWKHDOORZHGRXWDJHWLPHFORFN7KLVDOORZDQFHUHVXOWVLQ

HVWDEOLVKLQJWKHWLPH]HURDWWKHWLPHWKH/&2ZDVLQLWLDOO\QRWPHW

LQVWHDGRIDWWKHWLPH&RQGLWLRQ&ZDVHQWHUHG7KHKRXU&RPSOHWLRQ

7LPHLVDQDFFHSWDEOHOLPLWDWLRQRQWKLVSRWHQWLDORIIDLOLQJWRPHHWWKH

/&2LQGHILQLWHO\

'

LWKRQH'&HOHFWULFDOSRZHUGLVWULEXWLRQVXEV\VWHPLQRSHUDEOHIRU

UHDVRQVRWKHUWKDQ&RQGLWLRQ&WKHUHPDLQLQJ'&HOHFWULFDOSRZHU

GLVWULEXWLRQVXEV\VWHPLVFDSDEOHRIVXSSRUWLQJWKHPLQLPXPVDIHW\

IXQFWLRQVQHFHVVDU\WRVKXWGRZQWKHUHDFWRUDQGPDLQWDLQLWLQDVDIH

VKXWGRZQFRQGLWLRQDVVXPLQJQRVLQJOHIDLOXUH7KHRYHUDOOUHOLDELOLW\LV

UHGXFHGKRZHYHUEHFDXVHDVLQJOHIDLOXUHLQWKHUHPDLQLQJ'&HOHFWULFDO

SRZHUGLVWULEXWLRQVXEV\VWHPFRXOGUHVXOWLQWKHPLQLPXPUHTXLUHG(6)

IXQFWLRQVQRWEHLQJVXSSRUWHG7KHUHIRUHWKHUHTXLUHG'&HOHFWULFDO

SRZHUGLVWULEXWLRQVXEV\VWHPPXVWEHUHVWRUHGWR23(5$%/(VWDWXV

ZLWKLQGD\VE\SRZHULQJWKHEXVIURPWKHDVVRFLDWHGEDWWHULHVRU

FKDUJHUV

 FRQWLQXHG 

%UXQVZLFN8QLW  % 5HYLVLRQ1R

'LVWULEXWLRQ6\VWHPV²2SHUDWLQJ

%

%$6(6

 

$&7,216'  FRQWLQXHG 

&RQGLWLRQ'UHSUHVHQWVRQHGLYLVLRQZLWKRXWDGHTXDWH'&SRZHU

SRWHQWLDOO\ZLWKERWKWKHEDWWHU\ V VLJQLILFDQWO\GHJUDGHGDQGWKH

DVVRFLDWHGFKDUJHU V QRQIXQFWLRQLQJ,QWKLVVLWXDWLRQWKHSODQWLV

VLJQLILFDQWO\PRUHYXOQHUDEOHWRDFRPSOHWHORVVRIDOO'&SRZHU,WLV

WKHUHIRUHLPSHUDWLYHWKDWWKHRSHUDWRU VDWWHQWLRQIRFXVRQVWDELOL]LQJWKH

SODQWPLQLPL]LQJWKHSRWHQWLDOIRUORVVRISRZHUWRWKHUHPDLQLQJGLYLVLRQV

DQGUHVWRULQJSRZHUWRWKHDIIHFWHGGLYLVLRQ

7KHGD\&RPSOHWLRQ7LPHLVFRQVLVWHQWZLWKWKHDOORZHG&RPSOHWLRQ

7LPHIRUDQLQRSHUDEOH'&HOHFWULFDOSRZHUVXEV\VWHPVSHFLILHGLQ

6SHFLILFDWLRQ'&6RXUFHV²2SHUDWLQJ7DNLQJH[FHSWLRQWR

/&2IRUFRPSRQHQWVZLWKRXWDGHTXDWH'&SRZHUZKLFKZRXOG

KDYH5HTXLUHG$FWLRQ&RPSOHWLRQ7LPHVVKRUWHUWKDQGD\VLV

DFFHSWDEOHEHFDXVHRI

D 7KHSRWHQWLDOIRUGHFUHDVHGVDIHW\ZKHQUHTXLULQJDFKDQJHLQ

SODQWFRQGLWLRQV LHUHTXLULQJDVKXWGRZQ ZKLOHQRWDOORZLQJ

VWDEOHRSHUDWLRQVWRFRQWLQXH

E 7KHSRWHQWLDOIRUGHFUHDVHGVDIHW\ZKHQUHTXLULQJHQWU\LQWR

QXPHURXVDSSOLFDEOH&RQGLWLRQVDQG5HTXLUHG$FWLRQVIRU

FRPSRQHQWVZLWKRXW'&SRZHUZKLOHQRWSURYLGLQJVXIILFLHQWWLPH

IRUWKHRSHUDWRUVWRSHUIRUPWKHQHFHVVDU\HYDOXDWLRQVDQGDFWLRQV

IRUUHVWRULQJSRZHUWRWKHDIIHFWHGGLYLVLRQ

F 7KHORZSRWHQWLDOIRUDQHYHQWLQFRQMXQFWLRQZLWKDVLQJOHIDLOXUHRI

DUHGXQGDQWFRPSRQHQW

7KHVHFRQG&RPSOHWLRQ7LPHIRU5HTXLUHG$FWLRQ'HVWDEOLVKHVDOLPLW

RQWKHPD[LPXPWLPHDOORZHGIRUDQ\FRPELQDWLRQRIUHTXLUHGHOHFWULFDO

SRZHUGLVWULEXWLRQVXEV\VWHPVWREHLQRSHUDEOHGXULQJDQ\VLQJOH

FRQWLJXRXVRFFXUUHQFHRIIDLOLQJWRPHHWWKH/&2,I&RQGLWLRQ'LV

HQWHUHGZKLOHIRULQVWDQFHDQ$&EXVLVLQRSHUDEOHDQGVXEVHTXHQWO\

UHVWRUHG23(5$%/(WKH/&2PD\DOUHDG\KDYHEHHQQRWPHWIRUXSWR

KRXUV7KLVVLWXDWLRQFRXOGOHDGWRDWRWDOGXUDWLRQRIKRXUVVLQFH

LQLWLDOIDLOXUHWRPHHWWKH/&2WRUHVWRUHWKH'&HOHFWULFDOSRZHU

 FRQWLQXHG 

%UXQVZLFN8QLW  % 5HYLVLRQ1R

Distribution SystemsOperating B 3.8.7 BASES ACTIONS D.1 (continued) distribution system. At this time, an AC bus could again become inoperable, and the DC electrical power distribution system could be restored OPERABLE. This could continue indefinitely.

This Completion Time allows for an exception to the normal "time zero" for beginning the allowed outage time "clock." This allowance results in establishing the "time zero" at the time the LCO was initially not met, instead of at the time Condition D was entered. The 176 hour0.00204 days <br />0.0489 hours <br />2.910053e-4 weeks <br />6.6968e-5 months <br /> Completion Time is an acceptable limitation on this potential of failing to meet the LCO indefinitely.

E.1 If the inoperable electrical power distribution subsystem(s) cannot be restored to OPERABLE status within the associated Completion Time, the unit must be brought to a MODE in which overall plant risk is minimized. To achieve this status, the plant must be brought to at least MODE 3 within 12 hours1.388889e-4 days <br />0.00333 hours <br />1.984127e-5 weeks <br />4.566e-6 months <br />.

Remaining in the Applicability of the LCO is acceptable because the plant risk in MODE 3 is similar to or lower than the risk in MODE 4 (Ref. 4) and because the time spent in MODE 3 to perform the necessary repairs to restore the system to OPERABLE status will be short. However, voluntary entry into MODE 4 may be made as it is also an acceptable low-risk state.

Required Action E.1 is modified by a Note that states that LCO 3.0.4.a is not applicable when entering MODE 3. This Note prohibits the use of LCO 3.0.4.a to enter MODE 3 during startup with the LCO not met.

However, there is no restriction on the use of LCO 3.0.4.b, if applicable, because LCO 3.0.4.b requires performance of a risk assessment addressing inoperable systems and components, consideration of the results, determination of the acceptability of entering MODE 3, and establishment of risk management actions, if appropriate. LCO 3.0.4 is not applicable to, and the Note does not preclude, changes in MODES or other specified conditions in the Applicability that are required to comply with ACTIONS or that are part of a shutdown of the unit.

The allowed Completion Time is reasonable, based on operating experience, to reach the required plant conditions from full power conditions in an orderly manner and without challenging plant systems.

F.1 Condition F corresponds to a level of degradation in the electrical power distribution system that causes a required safety function to be lost.

(continued)

Brunswick Unit 1 B 3.8.7-13 Revision No. 97