NL-21-0385, Application to Revise Technical Specifications to Adopt TSTF-554, Revise Reactor Coolant Leakage Requirements

From kanterella
(Redirected from ML21273A072)
Jump to navigation Jump to search

Application to Revise Technical Specifications to Adopt TSTF-554, Revise Reactor Coolant Leakage Requirements
ML21273A072
Person / Time
Site: Hatch, Vogtle, Farley  Southern Nuclear icon.png
Issue date: 09/29/2021
From: Gayheart C
Southern Nuclear Operating Co
To:
Document Control Desk, Office of Nuclear Reactor Regulation
References
NL-21-0385
Download: ML21273A072 (59)


Text











&RORQQDGH3DUNZD\\

%LUPLQJKDP$/





FDJD\\KHD#VRXWKHUQFRFRP

&KHU\\O$*D\\KHDUW

5HJXODWRU\\$IIDLUV'LUHFWRU









6HSWHPEHU







'RFNHW1RV 





1/













$771'RFXPHQW&RQWURO'HVN

861XFOHDU5HJXODWRU\\&RPPLVVLRQ

DVKLQJWRQ'&



-RVHSK0)DUOH\\1XFOHDU3ODQW8QLWVDQG

(GZLQ,+DWFK1XFOHDU3ODQW8QLWVDQG

9RJWOH(OHFWULF*HQHUDWLQJ3ODQW8QLWVDQG

$SSOLFDWLRQWR5HYLVH7HFKQLFDO6SHFLILFDWLRQVWR$GRSW767)

5HYLVH5HDFWRU&RRODQW/HDNDJH5HTXLUHPHQWV



/DGLHVDQG*HQWOHPHQ



3XUVXDQWWR&)56RXWKHUQ1XFOHDU2SHUDWLQJ&RPSDQ\\ 61& LVVXEPLWWLQJD

UHTXHVWIRUDQDPHQGPHQWWRWKH7HFKQLFDO6SHFLILFDWLRQV 76 IRU-RVHSK0)DUOH\\1XFOHDU

3ODQW )13 8QLWVDQG(GZLQ,+DWFK1XFOHDU3ODQW +13 8QLWVDQGDQG9RJWOH

(OHFWULF*HQHUDWLQJ3ODQW 9(*3 8QLWVDQG



61&UHTXHVWVDGRSWLRQRI767)5HYLVH5HDFWRU&RRODQW/HDNDJH5HTXLUHPHQWVZKLFK

LVDQDSSURYHGFKDQJHWRWKH6WDQGDUG7HFKQLFDO6SHFLILFDWLRQV 676 LQWRWKH)13+13DQG

9(*38QLWVDQG767KHSURSRVHGDPHQGPHQWUHYLVHVWKH76GHILQLWLRQRI/($.$*(

FODULILHVWKHUHTXLUHPHQWVZKHQSUHVVXUHERXQGDU\\OHDNDJHLVGHWHFWHGDQGDGGVD5HTXLUHG

$FWLRQZKHQSUHVVXUHERXQGDU\\OHDNDJHLVLGHQWLILHG7KHFKDQJHLVUHTXHVWHGDVSDUWRIWKH

&RQVROLGDWHG/LQH,WHP,PSURYHPHQW3URFHVV &/,,3 



7KH(QFORVXUHSURYLGHVDGHVFULSWLRQDQGDVVHVVPHQWRIWKHSURSRVHGFKDQJHV$WWDFKPHQW

SURYLGHVWKHH[LVWLQJ76SDJHVPDUNHGWRVKRZWKHSURSRVHGFKDQJHV$WWDFKPHQWSURYLGHV

UHYLVHG FOHDQ 76SDJHV$WWDFKPHQWSURYLGHVH[LVWLQJ76%DVHVSDJHVPDUNHGWRVKRZ

WKHSURSRVHGFKDQJHVIRULQIRUPDWLRQRQO\\



$SSURYDORIWKHSURSRVHGDPHQGPHQWLVUHTXHVWHGZLWKLQPRQWKVRIFRPSOHWLRQRIWKH15&

V

DFFHSWDQFHUHYLHZ2QFHDSSURYHGWKHDPHQGPHQWVKDOOEHLPSOHPHQWHGZLWKLQGD\\V



,QDFFRUGDQFHZLWK&)5DFRS\\RIWKLVDSSOLFDWLRQZLWKDWWDFKPHQWVLVEHLQJ

SURYLGHGWRWKHGHVLJQDWHG$ODEDPDDQG*HRUJLD2IILFLDOV



7KLVOHWWHUFRQWDLQVQRQHZUHJXODWRU\\FRPPLWPHQWV



,I\\RXVKRXOGKDYHDQ\\TXHVWLRQVUHJDUGLQJWKLVVXEPLWWDOSOHDVHFRQWDFW5\\DQ-R\\FHDW









861XFOHDU5HJXODWRU\\&RPPLVVLRQ

1/

3DJH







,GHFODUHXQGHUSHQDOW\\RISHUMXU\\WKDWWKHIRUHJRLQJLVWUXHDQGFRUUHFW



([HFXWHGRQWKHWKGD\\RI6HSWHPEHU





5HVSHFWIXOO\\VXEPLWWHG









&$*D\\KHDUW

5HJXODWRU\\$IIDLUV'LUHFWRU

6RXWKHUQ1XFOHDU2SHUDWLQJ&RPSDQ\\



&$*$*4







(QFORVXUH



'HVFULSWLRQDQG$VVHVVPHQW



$WWDFKPHQWV )13+13DQG9(*33URSRVHG7HFKQLFDO6SHFLILFDWLRQV&KDQJHV 0DUN8S 





 )13+13DQG9(*35HYLVHG7HFKQLFDO6SHFLILFDWLRQV3DJHV



 )13+13DQG9(*33URSRVHG7HFKQLFDO6SHFLILFDWLRQ%DVHV&KDQJHV

0DUN8S IRU,QIRUPDWLRQ2QO\\





FF

5HJLRQDO$GPLQLVWUDWRU5HJLRQ,,



1553URMHFW0DQDJHU+/-)DUOH\\+DWFK9RJWOH 



6HQLRU5HVLGHQW,QVSHFWRU+/-)DUOH\\+DWFK9RJWOH 



'LUHFWRU$ODEDPD2IILFHRI5DGLDWLRQ&RQWURO



'LUHFWRU(QYLURQPHQWDO3URWHFWLRQ'LYLVLRQ6WDWHRI*HRUJLD



57\\SH&*$



































-RVHSK0)DUOH\\1XFOHDU3ODQW8QLWVDQG

(GZLQ,+DWFK1XFOHDU3ODQW8QLWVDQG

9RJWOH(OHFWULF*HQHUDWLQJ3ODQW8QLWVDQG

$SSOLFDWLRQWR5HYLVH7HFKQLFDO6SHFLILFDWLRQVWR$GRSW767)

5HYLVH5HDFWRU&RRODQW/HDNDJH5HTXLUHPHQWV



(QFORVXUH



'HVFULSWLRQDQG$VVHVVPHQW

(QFORVXUHWR1/

'HVFULSWLRQDQG$VVHVVPHQW





(



'(6&5,37,21



6RXWKHUQ1XFOHDU2SHUDWLQJ&RPSDQ\\ 61& UHTXHVWVDGRSWLRQRI767)5HYLVH

5HDFWRU&RRODQW/HDNDJH5HTXLUHPHQWVZKLFKLVDQDSSURYHGFKDQJHWRWKH6WDQGDUG

7HFKQLFDO6SHFLILFDWLRQV 676 LQWRWKH7HFKQLFDO6SHFLILFDWLRQV 76 RI-RVHSK0)DUOH\\

1XFOHDU3ODQW )13 8QLWVDQG(GZLQ,+DWFK1XFOHDU3ODQW +13 8QLWVDQG

DQG9RJWOH(OHFWULF*HQHUDWLQJ3ODQW 9(*3 8QLWVDQG7KHSURSRVHGDPHQGPHQW

UHYLVHV WKH 76 GHILQLWLRQ RI /($.$*( FODULILHV WKH UHTXLUHPHQWV ZKHQ SUHVVXUH

ERXQGDU\\ OHDNDJH LV GHWHFWHG DQG DGGV D 5HTXLUHG $FWLRQ ZKHQ SUHVVXUH ERXQGDU\\

OHDNDJHLVLGHQWLILHG





$66(660(17







$SSOLFDELOLW\\RI6DIHW\\(YDOXDWLRQ

61& KDV UHYLHZHG WKH VDIHW\\ HYDOXDWLRQ IRU 767) SURYLGHG WR WKH

7HFKQLFDO6SHFLILFDWLRQV7DVN)RUFH 767) LQDOHWWHUGDWHG'HFHPEHU

>$'$06$FFHVVLRQ1R0/$@7KLVUHYLHZLQFOXGHGDUHYLHZRIWKH15&

VWDII¶VHYDOXDWLRQDVZHOODVWKHLQIRUPDWLRQSURYLGHGLQ767)$VGHVFULEHG

KHUHLQ61&KDVFRQFOXGHGWKDWWKHMXVWLILFDWLRQVSUHVHQWHGLQ767)DQGWKH

VDIHW\\HYDOXDWLRQSUHSDUHGE\\WKH15&VWDIIDUHDSSOLFDEOHWR)138QLWVDQG

+138QLWVDQGDQG9(*38QLWVDQGDQGMXVWLI\\WKLVDPHQGPHQWIRUWKH

LQFRUSRUDWLRQRIWKHFKDQJHVWRWKH)13+13DQG9(*376







9DULDWLRQV



([FHSW IRU VRPH HGLWRULDO GLIIHUHQFHV GLVFXVVHG LQ WKLV VHFWLRQ 61& LV QRW

SURSRVLQJ DQ\\ YDULDWLRQV IURP WKH 76 FKDQJHV GHVFULEHG LQ 767) RU WKH

DSSOLFDEOHSDUWVRIWKH15&VWDII¶VVDIHW\\HYDOXDWLRQGDWHG'HFHPEHU



7KH61&76FRQWDLQUHTXLUHPHQWVWKDWGLIIHUIURPWKH676RQZKLFK767)

ZDVEDVHGEXWDUHHQFRPSDVVHGLQWKH767)MXVWLILFDWLRQ



x

7KH)13DQG9(*3765HTXLUHG$FWLRQ% UHYLVHGWR& GLUHFW

EHLQJLQ0RGHZLWKLQKRXUVDQGDUHPRGLILHGE\\D1RWHWKDWVWDWHVWKDW

/&2DLVQRWDSSOLFDEOHZKHQHQWHULQJ0RGH7KH767)PDUNXS

5HTXLUHG$FWLRQ% UHYLVHGWR& UHTXLUHVEHLQJLQ0RGHZLWKLQKRXUV

7KLVGLIIHUHQFHLVGXHWRLQFRUSRUDWLRQRI767)5HYLVLRQ³&KDQJHLQ

7HFKQLFDO6SHFLILFDWLRQV(QG6WDWHV :&$3 'LQWRWKH)13DQG9(*3

76  767) ZDV QRW LQFRUSRUDWHG LQWR 5HYLVLRQ  RI WKH 676 RQ ZKLFK

767)LVEDVHG7KLVGLIIHUHQFHGRHVQRWDIIHFWWKHDSSOLFDELOLW\\RI767)

WRWKH)13DQG9(*376



x

7KH 676 PDUNXS RI 76  5&6 2SHUDWLRQDO /($.$*( LQ 767)

UHQDPHV5HTXLUHG$FWLRQV%DQG%WR5HTXLUHG$FWLRQV&DQG&676

5HTXLUHG$FWLRQ%VWDWHV9HULI\\VRXUFHRIXQLGHQWLILHG/($.$*(LQFUHDVH

LVQRWVHUYLFHVHQVLWLYHW\\SHRUW\\SHDXVWHQLWLFVWDLQOHVVVWHHO+13

5HTXLUHG $FWLRQ % LV UHQDPHG & EXW WKH +13 76 GR QRW FRQWDLQ DQ

HTXLYDOHQW WR 5HTXLUHG $FWLRQ %  7KLV GLIIHUHQFH GRHV QRW DIIHFW WKH

DSSOLFDELOLW\\RI767)WRWKH+1376

(QFORVXUHWR1/

'HVFULSWLRQDQG$VVHVVPHQW





(



7KH DIIHFWHG SRUWLRQV RI WKH )13 +13 DQG 9(*3 76 KDYH VRPH HGLWRULDO

GLIIHUHQFHVIURPWKHFRUUHVSRQGLQJ676RQZKLFK767)ZDVEDVHG1RQHRI

WKH GLIIHUHQFHV DIIHFW WKH DSSOLFDELOLW\\ RI 767) WR WKH )13 +13 DQG

9(*376



x

)13DQG9(*3,WHPXQGHU'HILQLWLRQ³,GHQWLILHG/($.$*('DOUHDG\\HQGV

ZLWKD³'VRWKHPDUNXSVLQWKLVOLFHQVHDPHQGPHQWUHTXHVWHGLWRULDOO\\GLIIHU

IURP767)ZKLFKVKRZVWKHSXQFWXDWLRQFKDQJLQJIURPD³'WRD³'



x

)137KHGHILQLWLRQ³3UHVVXUH%RXQGDU\\/($.$*('LQWKH)1376XVHVWKH

WHUP³6*/($.$*('UDWKHUWKDQ³SULPDU\\WRVHFRQGDU\\/($.$*('5HYLVLRQ

RI767)LQFOXGHGDQHGLWRULDOFKDQJHWRUHSODFH³H[FHSW6*/($.$*('

ZLWK³H[FHSWSULPDU\\WRVHFRQGDU\\/($.$*('7KHHGLWRULDOFKDQJHUHVROYHG

DQ LQFRQVLVWHQF\\ EHWZHHQ WKH GHILQLWLRQ DQG WKH 76 HJ )13 76 

&21',7,21$ 7KLVGLIIHUHQFHLVGXHWR)13LPSOHPHQWLQJDSULRUUHYLVLRQRI

767)ZKLFKGLGQRW\\HWLQFOXGHWKLVHGLWRULDOFKDQJH)RUFRQVLVWHQF\\ZLWK

WKH 676 DQG 76  WKLV OLFHQVH DPHQGPHQW UHTXHVW LV UHTXHVWLQJ WKLV

HGLWRULDOFKDQJHWRWKHGHILQLWLRQ



x

+13,WHP DXQGHUGHILQLWLRQ³,GHQWLILHG/($.$*('KDV DFRPPDLQLWWR

VHSDUDWHWKHDSSRVLWLYH³VXFKDVWKDWIURPSXPSVHDOVRUYDOYHSDFNLQJ'IURP

WKHUHVWRIWKHVHQWHQFH1HLWKHU767)QRUWKH676KDYHWKLVFRPPD7KLV

OLFHQVHDPHQGPHQWUHTXHVWGRHVQRWUHTXHVWDFKDQJHWRWKLV



x

+13,WHPVDDQGDXQGHUGHILQLWLRQ³,GHQWLILHG/($.$*('DOUHDG\\HQGZLWK

VHPLFRORQVVRWKHPDUNXSVLQWKLVOLFHQVHDPHQGPHQWUHTXHVWHGLWRULDOO\\GLIIHU

IURP767)ZKLFKVKRZVWKHSXQFWXDWLRQFKDQJLQJIURPD³'WRD³'



x

+13DQG9(*3,WHPE³8QLGHQWLILHG/($.$*('XQGHU'HILQLWLRQ³/($.$*('

DOUHDG\\ HQGV ZLWK D ³' VR WKH PDUNXSV LQ WKLV OLFHQVH DPHQGPHQW UHTXHVW

HGLWRULDOO\\GLIIHUIURP767)ZKLFKVKRZVWKHSXQFWXDWLRQFKDQJLQJIURPD

³'WRD³'



x

+13,WHPF³7RWDO/($.$*('XQGHU'HILQLWLRQ³/($.$*('GRHVQRWKDYHDQ

³DQG'DWWKHHQG+13LVDGGLQJWKLV³DQG'ZLWKWKLV/$5IRUHGLWRULDOFRQVLVWHQF\\

ZLWKWKH767)PDUNXSDQGWKH676



767) 5HYLVLRQ  DQG LWV FRUUHVSRQGLQJ 6DIHW\\ (YDOXDWLRQ GLVFXVV WKH

DSSOLFDEOH UHJXODWRU\\ UHTXLUHPHQWV DQG JXLGDQFH LQFOXGLQJ WKH DSSOLFDELOLW\\ RI

&)5 $SSHQGL[ $ *HQHUDO 'HVLJQ &ULWHULD *'&   DQG 

9(*38QLWVDQG )13 8QLWV  DQG  DQG +13 8QLW  ZHUH OLFHQVHG WR

&)5 $SSHQGL[$ *'&  +RZHYHU +13 8QLW  ZDV QRW OLFHQVHG WR WKH

&)5$SSHQGL[$*'&+138QLWZDVOLFHQVHGWRWKHDSSOLFDEOH$WRPLF

(QHUJ\\&RPPLVVLRQ $(& SUHOLPLQDU\\JHQHUDOGHVLJQFULWHULDLGHQWLILHGLQ)HGHUDO

5HJLVWHU  )5  SXEOLVKHG -XO\\   $'$06 $FFHVVLRQ 1R

0/   7KH DSSOLFDEOH $(& SURSRVHG FULWHULD ZHUH FRPSDUHG WR WKH

&)5$SSHQGL[$*'&DVGRFXPHQWHGLQWKH+DWFK8SGDWHG)LQDO6DIHW\\

(QFORVXUHWR1/

'HVFULSWLRQDQG$VVHVVPHQW





(

$QDO\\VLV 5HSRUW 8)6$5  $SSHQGL[ ) &RQIRUPDQFH WR WKH $WRPLF (QHUJ\\

&RPPLVVLRQ $(& &ULWHULDDVGLVFXVVHGEHORZ



767) UHIHUHQFHV  &)5  $SSHQGL[ $ *'&  5HDFWRU FRRODQW

SUHVVXUHERXQGDU\\ZKLFKVWDWHV



7KHUHDFWRUFRRODQWSUHVVXUHERXQGDU\\VKDOOEHGHVLJQHGIDEULFDWHG

HUHFWHGDQGWHVWHGVRDVWRKDYHDQH[WUHPHO\\ORZSUREDELOLW\\RI

DEQRUPDOOHDNDJHRIUDSLGO\\SURSDJDWLQJIDLOXUHDQGRIJURVVUXSWXUH



767)UHIHUHQFHV&)5$SSHQGL[$*'&4XDOLW\\RIUHDFWRU

FRRODQWSUHVVXUHERXQGDU\\ZKLFKVWDWHV



&RPSRQHQWVZKLFKDUHSDUWRIWKHUHDFWRUFRRODQWSUHVVXUHERXQGDU\\

VKDOOEHGHVLJQHGIDEULFDWHGHUHFWHGDQGWHVWHGWRWKHKLJKHVWTXDOLW\\

VWDQGDUGVSUDFWLFDO0HDQVVKDOOEHSURYLGHGIRUGHWHFWLQJDQGWRWKH

H[WHQWSUDFWLFDOLGHQWLI\\LQJWKHORFDWLRQRIWKHVRXUFHRIUHDFWRUFRRODQW

OHDNDJH



'HVLJQHYDOXDWLRQVRI*'&DQGDUHLQFOXGHGLQ6HFWLRQ)RIWKH+13

8QLW  8)6$5 (YDOXDWLRQ ZLWK 5HVSHFW WR  *HQHUDO 'HVLJQ &ULWHULD

)ROORZLQJLPSOHPHQWDWLRQRIWKHSURSRVHGFKDQJH+138QLWZLOOUHPDLQLQ

FRPSOLDQFHZLWKDSSOLFDEOH$(&GHVLJQFULWHULDDVGHVFULEHGLQWKH+138QLW

8)6$5  7KHUHIRUH WKLV GLIIHUHQFH GRHV QRW DOWHU WKH FRQFOXVLRQ WKDW WKH

SURSRVHGFKDQJHLVDSSOLFDEOHWR+138QLW





5(*8/$725<$1$/<6,6







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



6RXWKHUQ 1XFOHDU 2SHUDWLQJ &RPSDQ\\ 61&  UHTXHVWV DGRSWLRQ RI 767)

5HYLVH5HDFWRU&RRODQW/HDNDJH5HTXLUHPHQWVZKLFKLVDQDSSURYHGFKDQJH

WRWKH6WDQGDUG7HFKQLFDO6SHFLILFDWLRQV 676 LQWRWKH7HFKQLFDO6SHFLILFDWLRQV

76  RI -RVHSK 0 )DUOH\\ 1XFOHDU 3ODQW )13  8QLWV  DQG  (GZLQ, +DWFK

1XFOHDU3ODQW +13 8QLWVDQGDQG9RJWOH(OHFWULF*HQHUDWLQJ3ODQW 9(*3 

8QLWVDQG7KHSURSRVHGDPHQGPHQWUHYLVHVWKH76GHILQLWLRQRI/($.$*(

FODULILHVWKHUHTXLUHPHQWVZKHQSUHVVXUHERXQGDU\\OHDNDJHLVGHWHFWHGDQGDGGV

D5HTXLUHG$FWLRQZKHQSUHVVXUHERXQGDU\\OHDNDJHLVLGHQWLILHG



61&KDVHYDOXDWHGZKHWKHUDVLJQLILFDQWKD]DUGVFRQVLGHUDWLRQLVLQYROYHGZLWK

WKH SURSRVHG DPHQGPHQW V  E\\ IRFXVLQJ RQ WKH WKUHH VWDQGDUGV VHW IRUWK LQ

&)5,VVXDQFHRIDPHQGPHQWDVGLVFXVVHGEHORZ



(QFORVXUHWR1/

'HVFULSWLRQDQG$VVHVVPHQW





(

 'RHVWKHSURSRVHGDPHQGPHQWLQYROYHDVLJQLILFDQWLQFUHDVHLQWKHSUREDELOLW\\

RUFRQVHTXHQFHVRIDQDFFLGHQWSUHYLRXVO\\HYDOXDWHG"



5HVSRQVH1R



7KHSURSRVHGDPHQGPHQWUHYLVHVWKH76GHILQLWLRQRI/($.$*('FODULILHV

WKHUHTXLUHPHQWVZKHQSUHVVXUHERXQGDU\\OHDNDJHLVGHWHFWHGDQGDGGVD

5HTXLUHG$FWLRQZKHQSUHVVXUHERXQGDU\\OHDNDJHLVLGHQWLILHG



7KH SURSRVHG FKDQJH UHYLVHV WKH GHILQLWLRQ RI SUHVVXUH ERXQGDU\\ OHDNDJH

3UHVVXUH ERXQGDU\\ OHDNDJH LV D SUHFXUVRU WR VRPH DFFLGHQWV SUHYLRXVO\\

HYDOXDWHG7KHSURSRVHGFKDQJHH[SDQGVWKHGHILQLWLRQRISUHVVXUHERXQGDU\\

OHDNDJHE\\HOLPLQDWLQJWKHTXDOLILFDWLRQWKDWSUHVVXUHERXQGDU\\OHDNDJHPXVW

EH IURP D QRQLVRODEOH IODZ  $ QHZ 76 $FWLRQ LV FUHDWHG ZKLFK UHTXLUHV

LVRODWLRQ RI WKH SUHVVXUH ERXQGDU\\ IODZ IURP WKH 5HDFWRU &RRODQW

6\\VWHP 5&6 7KLVQHZDFWLRQSURYLGHVDVVXUDQFHWKDWWKHIODZZLOOQRWUHVXOW

LQDQ\\DFFLGHQWSUHYLRXVO\\HYDOXDWHG



3UHVVXUHERXQGDU\\OHDNDJHDQGWKHDFWLRQVWDNHQZKHQSUHVVXUHERXQGDU\\

OHDNDJHLVGHWHFWHGLVQRWDVVXPHGLQWKHPLWLJDWLRQRIDQ\\DFFLGHQWSUHYLRXVO\\

HYDOXDWHG$VDUHVXOWWKHFRQVHTXHQFHVRIDQ\\DFFLGHQWSUHYLRXVO\\HYDOXDWHG

DUHXQDIIHFWHG



7KHUHIRUHWKHSURSRVHGFKDQJHGRHVQRWLQYROYHDVLJQLILFDQWLQFUHDVHLQWKH

SUREDELOLW\\RUFRQVHTXHQFHVRIDQDFFLGHQWSUHYLRXVO\\HYDOXDWHG



 'RHVWKHSURSRVHGDPHQGPHQWFUHDWHWKHSRVVLELOLW\\RIDQHZRUGLIIHUHQWNLQG

RIDFFLGHQWIURPDQ\\DFFLGHQWSUHYLRXVO\\HYDOXDWHG"



5HVSRQVH1R



7KHSURSRVHGDPHQGPHQWUHYLVHVWKH76GHILQLWLRQRI/($.$*(FODULILHV

WKHUHTXLUHPHQWVZKHQSUHVVXUHERXQGDU\\OHDNDJHLVGHWHFWHGDQGDGGVD

5HTXLUHG$FWLRQZKHQSUHVVXUHERXQGDU\\OHDNDJHLVLGHQWLILHG7KHSURSRVHG

FKDQJH GRHV QRW DOWHU WKH GHVLJQ IXQFWLRQ RU RSHUDWLRQ RI WKH 5&6  7KH

SURSRVHGFKDQJHGRHVQRWDOWHUWKHDELOLW\\RIWKH5&6WRSHUIRUPLWVGHVLJQ

IXQFWLRQ  6LQFH SUHVVXUH ERXQGDU\\ OHDNDJH LV DQ HYDOXDWHG DFFLGHQW WKH

SURSRVHGFKDQJHGRHVQRWFUHDWHDQ\\QHZIDLOXUHPHFKDQLVPVPDOIXQFWLRQV

RUDFFLGHQWLQLWLDWRUVQRWFRQVLGHUHGLQWKHGHVLJQDQGOLFHQVLQJEDVHV



7KHUHIRUHWKHSURSRVHGFKDQJHGRHVQRWFUHDWHWKHSRVVLELOLW\\RIDQHZRU

GLIIHUHQWNLQGRIDFFLGHQWIURPDQ\\DFFLGHQWSUHYLRXVO\\HYDOXDWHG



 'RHVWKHSURSRVHGDPHQGPHQWLQYROYHDVLJQLILFDQWUHGXFWLRQLQDPDUJLQRI

VDIHW\\"



5HVSRQVH1R



7KHSURSRVHGDPHQGPHQWUHYLVHVWKH76GHILQLWLRQRI/($.$*(FODULILHV

WKHUHTXLUHPHQWVZKHQSUHVVXUHERXQGDU\\OHDNDJHLVGHWHFWHGDQGDGGVD

(QFORVXUHWR1/

'HVFULSWLRQDQG$VVHVVPHQW





(

5HTXLUHG$FWLRQZKHQSUHVVXUHERXQGDU\\OHDNDJHLVLGHQWLILHG7KHSURSRVHG

FKDQJHGRHVQRWDIIHFWWKHLQLWLDODVVXPSWLRQVPDUJLQVRUFRQWUROOLQJYDOXHV

XVHGLQDQ\\DFFLGHQWDQDO\\VLV7KHDPRXQWRIOHDNDJHDOORZHGIURPWKH5&6

LVQRWLQFUHDVHG7KHSURSRVHGFKDQJHGRHVQRWDIIHFWDQ\\GHVLJQEDVLVRU

VDIHW\\OLPLWRUDQ\\/LPLWLQJ&RQGLWLRQIRU2SHUDWLRQ



7KHUHIRUHWKHSURSRVHGFKDQJHGRHVQRWLQYROYHDVLJQLILFDQWUHGXFWLRQLQD

PDUJLQRIVDIHW\\



%DVHG RQ WKH DERYH 61& FRQFOXGHV WKDW WKH SURSRVHG FKDQJH SUHVHQWV QR

VLJQLILFDQWKD]DUGVFRQVLGHUDWLRQXQGHUWKHVWDQGDUGVVHWIRUWKLQ&)5 F 

DQGDFFRUGLQJO\\DILQGLQJRIQRVLJQLILFDQWKD]DUGVFRQVLGHUDWLRQLVMXVWLILHG





&RQFOXVLRQ



,Q FRQFOXVLRQ EDVHG RQ WKH FRQVLGHUDWLRQV GLVFXVVHG DERYH   WKHUH LV

UHDVRQDEOH DVVXUDQFH WKDW WKH KHDOWK DQG VDIHW\\ RI WKH SXEOLF ZLOO QRW EH

HQGDQJHUHG E\\ RSHUDWLRQ LQ WKH SURSRVHG PDQQHU   VXFK DFWLYLWLHV ZLOO EH

FRQGXFWHGLQFRPSOLDQFHZLWKWKH&RPPLVVLRQ¶VUHJXODWLRQVDQG  WKHLVVXDQFH

RIWKHDPHQGPHQWZLOOQRWEHLQLPLFDOWRWKHFRPPRQGHIHQVHDQGVHFXULW\\RUWR

WKHKHDOWKDQGVDIHW\\RIWKHSXEOLF





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



7KHSURSRVHGFKDQJHZRXOGFKDQJHDUHTXLUHPHQWZLWKUHVSHFWWRLQVWDOODWLRQRUXVHRID

IDFLOLW\\FRPSRQHQWORFDWHGZLWKLQWKHUHVWULFWHGDUHDDVGHILQHGLQ&)5RUZRXOG

FKDQJHDQLQVSHFWLRQRUVXUYHLOODQFHUHTXLUHPHQW+RZHYHUWKHSURSRVHGFKDQJHGRHV

QRWLQYROYH L DVLJQLILFDQWKD]DUGVFRQVLGHUDWLRQ LL DVLJQLILFDQWFKDQJHLQWKHW\\SHVRU

VLJQLILFDQWLQFUHDVHLQWKHDPRXQWVRIDQ\\HIIOXHQWVWKDWPD\\EHUHOHDVHGRIIVLWHRU LLL D

VLJQLILFDQW LQFUHDVH LQ LQGLYLGXDO RU FXPXODWLYH RFFXSDWLRQDO UDGLDWLRQ H[SRVXUH

$FFRUGLQJO\\WKHSURSRVHGFKDQJHPHHWVWKHHOLJLELOLW\\FULWHULRQIRUFDWHJRULFDOH[FOXVLRQ

VHWIRUWKLQ&)5 F  7KHUHIRUHSXUVXDQWWR&)5 E QRHQYLURQPHQWDO

LPSDFWVWDWHPHQWRUHQYLURQPHQWDODVVHVVPHQWQHHGEHSUHSDUHGLQFRQQHFWLRQZLWKWKH

SURSRVHGFKDQJH



























-RVHSK0)DUOH\\1XFOHDU3ODQW8QLWVDQG

(GZLQ,+DWFK1XFOHDU3ODQW8QLWVDQG

9RJWOH(OHFWULF*HQHUDWLQJ3ODQW8QLWVDQG

$SSOLFDWLRQWR5HYLVH7HFKQLFDO6SHFLILFDWLRQVWR$GRSW767)

5HYLVH5HDFWRU&RRODQW/HDNDJH5HTXLUHPHQWV



$WWDFKPHQW



)13+13DQG9(*33URSRVHG7HFKQLFDO6SHFLILFDWLRQV&KDQJHV 0DUN8S







'HILQLWLRQV









FRQWLQXHG 



)DUOH\\8QLWVDQG



$PHQGPHQW1R 8QLW 





$PHQGPHQW1R 8QLW 

'HILQLWLRQV



²$9(5$*(

VKDOOEHWKHDYHUDJH ZHLJKWHGLQSURSRUWLRQWRWKH

',6,17(*5$7,21(1(5*<

FRQFHQWUDWLRQRIHDFKUDGLRQXFOLGHLQWKHUHDFWRUFRRODQWDW

WKHWLPHRIVDPSOLQJ RIWKHVXPRIWKHDYHUDJHEHWDDQG

JDPPDHQHUJLHVSHUGLVLQWHJUDWLRQ LQ0H9 IRULVRWRSHV

RWKHUWKDQLRGLQHVZLWKKDOIOLYHV!PLQXWHVPDNLQJXSDW

OHDVWRIWKHWRWDOQRQLRGLQHDFWLYLW\\LQWKHFRRODQW



(1*,1((5('6$)(7<

7KH(6)5(63216(7,0(VKDOOEHWKDWWLPHLQWHUYDOIURP

)($785( (6) 5(63216(

ZKHQWKHPRQLWRUHGSDUDPHWHUH[FHHGVLWV(6)DFWXDWLRQ

7,0(

VHWSRLQWDWWKHFKDQQHOVHQVRUXQWLOWKH(6)HTXLSPHQWLV

FDSDEOHRISHUIRUPLQJLWVVDIHW\\IXQFWLRQ LHWKHYDOYHV

WUDYHOWRWKHLUUHTXLUHGSRVLWLRQVSXPSGLVFKDUJHSUHVVXUHV

UHDFKWKHLUUHTXLUHGYDOXHVHWF 7LPHVVKDOOLQFOXGHGLHVHO

JHQHUDWRUVWDUWLQJDQGVHTXHQFHORDGLQJGHOD\\VZKHUH

DSSOLFDEOH7KHUHVSRQVHWLPHPD\\EHPHDVXUHGE\\PHDQV

RIDQ\\VHULHVRIVHTXHQWLDORYHUODSSLQJRUWRWDOVWHSVVRWKDW

WKHHQWLUHUHVSRQVHWLPHLVPHDVXUHG,QOLHXRI

PHDVXUHPHQWUHVSRQVHWLPHPD\\EHYHULILHGIRUVHOHFWHG

FRPSRQHQWVSURYLGHGWKDWWKHFRPSRQHQWVDQGWKH

PHWKRGRORJ\\IRUYHULILFDWLRQKDYHEHHQSUHYLRXVO\\UHYLHZHG

DQGDSSURYHGE\\WKH15&RUWKHFRPSRQHQWVKDYHEHHQ

HYDOXDWHGLQDFFRUGDQFHZLWKDQ15&DSSURYHG

PHWKRGRORJ\\



,16(59,&(7(67,1*

7KH,16(59,&(7(67,1*352*5$0LVWKHOLFHQVHH

352*5$0

SURJUDPWKDWIXOILOOVWKHUHTXLUHPHQWVRI&)5D I 



/($.$*(

/($.$*(VKDOOEH





D

,GHQWLILHG/($.$*(









/($.$*(VXFKDVWKDWIURPSXPSVHDOVRUYDOYH

SDFNLQJ H[FHSWUHDFWRUFRRODQWSXPS 5&3 VHDO

ZDWHULQMHFWLRQRUOHDNRII WKDWLVFDSWXUHGDQG

FRQGXFWHGWRFROOHFWLRQV\\VWHPVRUDVXPSRU

FROOHFWLQJWDQN









/($.$*(LQWRWKHFRQWDLQPHQWDWPRVSKHUHIURP

VRXUFHVWKDWDUHERWKVSHFLILFDOO\\ORFDWHGDQG

NQRZQHLWKHUWRQRWWRLQWHUIHUHZLWKWKHRSHUDWLRQRI

OHDNDJHGHWHFWLRQV\\VWHPVRUQRWWREHSUHVVXUH

ERXQGDU\\/($.$*(RU



'HILQLWLRQV











)DUOH\\8QLWVDQG



$PHQGPHQW1R 8QLW 





$PHQGPHQW1R 8QLW 

'HILQLWLRQV



/($.$*(





5HDFWRU&RRODQW6\\VWHP 5&6 /($.$*(



FRQWLQXHG 





WKURXJKDVWHDPJHQHUDWRU 6* WRWKH6HFRQGDU\\

6\\VWHP





E

8QLGHQWLILHG/($.$*(







$OO/($.$*( H[FHSW5&3VHDOZDWHULQMHFWLRQRU

OHDNRII WKDWLVQRWLGHQWLILHG/($.$*(





F

3UHVVXUH%RXQGDU\\/($.$*(







/($.$*( H[FHSW6*SULPDU\\WRVHFRQGDU\\/($.$*( 

WKURXJKDQRQLVRODEOHIDXOWLQDQ5&6FRPSRQHQWERG\\

SLSHZDOORUYHVVHOZDOO/($.$*(SDVWVHDOVSDFNLQJ

DQGJDVNHWVLVQRWSUHVVXUHERXQGDU\\/($.$*(



0$67(55(/$<7(67

$0$67(55(/$<7(67VKDOOFRQVLVWRIHQHUJL]LQJHDFK

PDVWHUUHOD\\DQGYHULI\\LQJWKH23(5$%,/,7<RIHDFKUHOD\\

7KH0$67(55(/$<7(67VKDOOLQFOXGHDFRQWLQXLW\\FKHFN

RIHDFKDVVRFLDWHGVODYHUHOD\\



02'(

$02'(VKDOOFRUUHVSRQGWRDQ\\RQHLQFOXVLYHFRPELQDWLRQ

RIFRUHUHDFWLYLW\\FRQGLWLRQSRZHUOHYHODYHUDJHUHDFWRU

FRRODQWWHPSHUDWXUHDQGUHDFWRUYHVVHOKHDGFORVXUHEROW

WHQVLRQLQJVSHFLILHGLQ7DEOHZLWKIXHOLQWKHUHDFWRU

YHVVHO



23(5$%/( ² 23(5$%,/,7<

$V\\VWHPVXEV\\VWHPWUDLQFRPSRQHQWRUGHYLFHVKDOOEH

23(5$%/(RUKDYH23(5$%,/,7<ZKHQLWLVFDSDEOHRI

SHUIRUPLQJLWVVSHFLILHGVDIHW\\IXQFWLRQ V DQGZKHQDOO

QHFHVVDU\\DWWHQGDQWLQVWUXPHQWDWLRQFRQWUROVQRUPDORU

HPHUJHQF\\HOHFWULFDOSRZHUFRROLQJDQGVHDOZDWHU

OXEULFDWLRQDQGRWKHUDX[LOLDU\\HTXLSPHQWWKDWDUHUHTXLUHGIRU

WKHV\\VWHPVXEV\\VWHPWUDLQFRPSRQHQWRUGHYLFHWR

SHUIRUPLWVVSHFLILHGVDIHW\\IXQFWLRQ V DUHDOVRFDSDEOHRI

SHUIRUPLQJWKHLUUHODWHGVXSSRUWIXQFWLRQ V 



3+<6,&67(676

3+<6,&67(676VKDOOEHWKRVHWHVWVSHUIRUPHGWRPHDVXUH

WKHIXQGDPHQWDOQXFOHDUFKDUDFWHULVWLFVRIWKHUHDFWRUFRUH

DQGUHODWHGLQVWUXPHQWDWLRQ7KHVHWHVWVDUH





D

'HVFULEHGLQ&KDSWHU,QLWLDO7HVWVDQG2SHUDWLRQ





RIWKH)6$5





E

$XWKRUL]HGXQGHUWKHSURYLVLRQVRI&)5RU





F

2WKHUZLVHDSSURYHGE\\WKH1XFOHDU5HJXODWRU\\





&RPPLVVLRQ



5&62SHUDWLRQDO/($.$*(











)DUOH\\8QLWVDQG



$PHQGPHQW1R 8QLW 





$PHQGPHQW1R 8QLW 

5($&725&22/$176<67(0 5&6 



5&62SHUDWLRQDO/($.$*(





/&2

5&6RSHUDWLRQDO/($.$*(VKDOOEHOLPLWHGWR





D

1RSUHVVXUHERXQGDU\\/($.$*(





E

JSPXQLGHQWLILHG/($.$*(





F

JSPLGHQWLILHG/($.$*(DQG





G

JDOORQVSHUGD\\SULPDU\\WRVHFRQGDU\\/($.$*(WKURXJKDQ\\



RQHVWHDPJHQHUDWRU 6* 







$33/,&$%,/,7<

02'(6DQG





$&7,216



&21',7,21



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

&203/(7,217,0(

$

3UHVVXUHERXQGDU\\

/($.$*(H[LVWV

$

,VRODWHDIIHFWHG

FRPSRQHQWSLSHRU

YHVVHOIURPWKH5&6E\\

XVHRIDFORVHGPDQXDO

YDOYHFORVHGDQG

GHDFWLYDWHGDXWRPDWLF

YDOYHEOLQGIODQJHRU

FKHFNYDOYH

KRXUV

%$ 5&6RSHUDWLRQDO

/($.$*(QRWZLWKLQOLPLWV

IRUUHDVRQVRWKHUWKDQ

SUHVVXUHERXQGDU\\

/($.$*(RUSULPDU\\WR

VHFRQGDU\\/($.$*(

%$

5HGXFH/($.$*(WR

ZLWKLQOLPLWV



KRXUV





5&62SHUDWLRQDO/($.$*(











)DUOH\\8QLWVDQG



$PHQGPHQW1R 8QLW 





$PHQGPHQW1R 8QLW 

$&7,216



&21',7,21



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

&203/(7,217,0(

&% 5HTXLUHG$FWLRQDQG

DVVRFLDWHG&RPSOHWLRQ

7LPHRI&RQGLWLRQ$QRW

PHW





25





3UHVVXUHERXQGDU\\

/($.$*(H[LVWV





25





3ULPDU\\WRVHFRQGDU\\

/($.$*(QRWZLWKLQOLPLW



&%

%HLQ02'(



$1'



&%

127(





/&2DLVQRW

DSSOLFDEOHZKHQHQWHULQJ

02'(











%HLQ02'(



KRXUV



















KRXUV







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



6859(,//$1&(



)5(48(1&<

65

127(6

 1RWUHTXLUHGWREHSHUIRUPHGLQ02'(RU

XQWLOKRXUVRIVWHDG\\VWDWHRSHUDWLRQ



 1RWDSSOLFDEOHWRSULPDU\\WRVHFRQGDU\\/($.$*(







9HULI\\5&6RSHUDWLRQDO/($.$*(LVZLWKLQOLPLWVE\\

SHUIRUPDQFHRI5&6ZDWHULQYHQWRU\\EDODQFH



127(

2QO\\UHTXLUHGWR

EHSHUIRUPHG

GXULQJVWHDG\\

VWDWHRSHUDWLRQ



,QDFFRUGDQFH

ZLWKWKH

6XUYHLOODQFH

)UHTXHQF\\

&RQWURO3URJUDP



65

127(

1RWUHTXLUHGWREHSHUIRUPHGXQWLOKRXUVDIWHU

HVWDEOLVKPHQWRIVWHDG\\VWDWHRSHUDWLRQ







9HULI\\SULPDU\\WRVHFRQGDU\\/($.$*(LV

JDOORQVSHUGD\\WKURXJKDQ\\RQH6*











,QDFFRUGDQFH

ZLWKWKH

6XUYHLOODQFH

)UHTXHQF\\

'HILQLWLRQV







+$7&+81,7



$PHQGPHQW1R

 'HILQLWLRQV FRQWLQXHG 





(1'2)&<&/(

7KH(2&5376<67(05(63216(7,0(VKDOOEHWKDWWLPHLQWHUYDO

5(&,5&8/$7,21

IURPLQLWLDOVLJQDOJHQHUDWLRQE\\WKHDVVRFLDWHGWXUELQHVWRSYDOYHOLPLW

380375,3

VZLWFKRUIURPZKHQWKHWXUELQHFRQWUROYDOYHK\\GUDXOLFFRQWURO

(2&537 

RLOSUHVVXUHGURSVEHORZWKHSUHVVXUHVZLWFKVHWSRLQWWRFRPSOHWH

6<67(0

VXSSUHVVLRQRIWKHHOHFWULFDUFEHWZHHQWKHIXOO\\RSHQFRQWDFWVRIWKH

5(63216(7,0(

UHFLUFXODWLRQSXPSFLUFXLWEUHDNHU7KHUHVSRQVHWLPHPD\\EHPHDVXUHG

E\\PHDQVRIDQ\\VHULHVRIVHTXHQWLDORYHUODSSLQJRUWRWDOVWHSVVRWKDW

WKHHQWLUHUHVSRQVHWLPHLVPHDVXUHG



,16(59,&(

7KH,16(59,&(7(67,1*352*5$0LVWKHOLFHQVHHSURJUDPWKDWIXOILOOV

7(67,1*

WKHUHTXLUHPHQWVRI&)5D I 

352*5$0



/($.$*(

/($.$*(VKDOOEH





D

,GHQWLILHG/($.$*(









/($.$*(LQWRWKHGU\\ZHOOVXFKDVWKDWIURPSXPSVHDOV

RUYDOYHSDFNLQJWKDWLVFDSWXUHGDQGFRQGXFWHGWRDVXPS

RUFROOHFWLQJWDQNRU









/($.$*(LQWRWKHGU\\ZHOODWPRVSKHUHIURPVRXUFHVWKDW

DUHERWKVSHFLILFDOO\\ORFDWHGDQGNQRZQHLWKHUWRQRWWR

LQWHUIHUHZLWKWKHRSHUDWLRQRIOHDNDJHGHWHFWLRQV\\VWHPVRU

QRWWREHSUHVVXUHERXQGDU\\/($.$*(





E

8QLGHQWLILHG/($.$*(







$OO/($.$*(LQWRWKHGU\\ZHOOWKDWLVQRWLGHQWLILHG/($.$*(





F

7RWDO/($.$*(







6XPRIWKHLGHQWLILHGDQGXQLGHQWLILHG/($.$*(DQG





G

3UHVVXUH%RXQGDU\\/($.$*(









/($.$*(WKURXJKDQRQLVRODEOHIDXOWLQD5HDFWRU&RRODQW

6\\VWHP 5&6 FRPSRQHQWERG\\SLSHZDOORUYHVVHOZDOO

/($.$*(SDVWVHDOVSDFNLQJDQGJDVNHWVLVQRWSUHVVXUH

ERXQGDU\\/($.$*(



/,1($5+($7

/,1($5+($7*(1(5$7,215$7( /+*5 VKDOOEHWKHSRZHUJHQHUDWLRQ

  • (1(5$7,21

LQDQDUELWUDU\\OHQJWKRIIXHOURGXVXDOO\\VL[LQFKHV,WLVWKHLQWHJUDORIWKH

5$7(

KHDWIOX[RYHUWKHKHDWWUDQVIHUDUHDDVVRFLDWHGZLWKWKHXQLWOHQJWK



/2*,&6<67(0

$/2*,&6<67(0)81&7,21$/7(67VKDOOEHDWHVWRIDOO

)81&7,21$/

UHTXLUHGORJLFFRPSRQHQWV LHDOOUHTXLUHGUHOD\\VDQGFRQWDFWVWULS

7(67

XQLWVVROLGVWDWHORJLFHOHPHQWVHWF RIDORJLFFLUFXLWIURPDVFORVHWR

WKHVHQVRUDVSUDFWLFDEOHXSWREXWQRWLQFOXGLQJWKHDFWXDWHGGHYLFHWR

YHULI\\23(5$%,/,7<7KH/2*,&6<67(0)81&7,21$/7(67PD\\EH

SHUIRUPHGE\\PHDQVRIDQ\\VHULHVRIVHTXHQWLDORYHUODSSLQJRUWRWDO

5&62SHUDWLRQDO/($.$*(







+$7&+81,7



$PHQGPHQW1R 

 5($&725&22/$176<67(0 5&6 



 5&62SHUDWLRQDO/($.$*(





/&2

5&6RSHUDWLRQDO/($.$*(VKDOOEHOLPLWHGWR





D

1RSUHVVXUHERXQGDU\\/($.$*(





E

JSPXQLGHQWLILHG/($.$*(





F

JSPWRWDO/($.$*(DYHUDJHGRYHUWKHSUHYLRXVKRXU

SHULRGDQG





G

JSPLQFUHDVHLQXQLGHQWLILHG/($.$*(ZLWKLQWKHSUHYLRXV

 KRXUSHULRGLQ02'(





$33/,&$%,/,7<

02'(6DQG





$&7,216

&21',7,21

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

&203/(7,217,0(



$

3UHVVXUHERXQGDU\\

/($.$*(H[LVWV





$

,VRODWHDIIHFWHG

FRPSRQHQWSLSHRU

YHVVHOIURPWKH5&6

E\\XVHRIDFORVHG

PDQXDOYDOYHFORVHG

DQGGHDFWLYDWHG

DXWRPDWLFYDOYHEOLQG

IODQJHRUFKHFNYDOYH



KRXUV



%$ 8QLGHQWLILHG/($.$*(QRW

ZLWKLQOLPLW





25





7RWDO/($.$*(QRWZLWKLQ

OLPLW





%$

5HGXFH/($.$*(WR

ZLWKLQOLPLWV



KRXUV



&% 8QLGHQWLILHG/($.$*(

LQFUHDVHQRWZLWKLQOLPLW





&%

5HGXFH/($.$*(

LQFUHDVHWRZLWKLQOLPLWV



KRXUV



FRQWLQXHG 

5&62SHUDWLRQDO/($.$*(







+$7&+81,7



$PHQGPHQW1R 

$&7,216 FRQWLQXHG 

&21',7,21

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

&203/(7,217,0(



'& 5HTXLUHG$FWLRQDQG

DVVRFLDWHG&RPSOHWLRQ

7LPHRI&RQGLWLRQ$RU%

QRWPHW





25





3UHVVXUHERXQGDU\\

/($.$*(H[LVWV







'&

%HLQ02'(



$1'



'&

%HLQ02'(



KRXUV







KRXUV







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

6859(,//$1&(

)5(48(1&<



65

9HULI\\5&6XQLGHQWLILHGDQGWRWDO/($.$*(DQG

XQLGHQWLILHG/($.$*(LQFUHDVHDUHZLWKLQOLPLWV







,QDFFRUGDQFHZLWK

WKH6XUYHLOODQFH

)UHTXHQF\\&RQWURO

3URJUDP





'HILQLWLRQV







+$7&+81,7



$PHQGPHQW1R

 'HILQLWLRQV FRQWLQXHG 





(0(5*(1&<

7KH(&&65(63216(7,0(VKDOOEHWKDWWLPHLQWHUYDOIURPZKHQ

&25(&22/,1*

WKHPRQLWRUHGSDUDPHWHUH[FHHGVLWV(&&6LQLWLDWLRQVHWSRLQWDWWKH

6<67(0 (&&6 

FKDQQHOVHQVRUXQWLOWKH(&&6HTXLSPHQWLVFDSDEOHRISHUIRUPLQJ

5(63216(

LWVVDIHW\\IXQFWLRQ LHWKHYDOYHVWUDYHOWRWKHLUUHTXLUHGSRVLWLRQV

7,0(

SXPSGLVFKDUJHSUHVVXUHVUHDFKWKHLUUHTXLUHGYDOXHVHWF 7LPHVVKDOO

LQFOXGHGLHVHOJHQHUDWRUVWDUWLQJDQGVHTXHQFHORDGLQJGHOD\\VZKHUH

DSSOLFDEOH7KHUHVSRQVHWLPHPD\\EHPHDVXUHGE\\PHDQVRIDQ\\VHULHV

RIVHTXHQWLDORYHUODSSLQJRUWRWDOVWHSVVRWKDWWKHHQWLUHUHVSRQVHWLPH

LVPHDVXUHG



(1'2)&<&/(

7KH(2&5376<67(05(63216(7,0(VKDOOEHWKDWWLPHLQWHUYDO

5(&,5&8/$7,21

IURPLQLWLDOVLJQDOJHQHUDWLRQE\\WKHDVVRFLDWHGWXUELQHVWRSYDOYHOLPLW

380375,3

VZLWFKRUIURPZKHQWKHWXUELQHFRQWUROYDOYHK\\GUDXOLFFRQWURORLO

(2&537 

SUHVVXUHGURSVEHORZWKHSUHVVXUHVZLWFKVHWSRLQWWRFRPSOHWH

6<67(0

VXSSUHVVLRQRIWKHHOHFWULFDUFEHWZHHQWKHIXOO\\RSHQFRQWDFWVRIWKH

5(63216(7,0(

UHFLUFXODWLRQSXPSFLUFXLWEUHDNHU7KHUHVSRQVHWLPHPD\\EHPHDVXUHG

E\\PHDQVRIDQ\\VHULHVRIVHTXHQWLDORYHUODSSLQJRUWRWDOVWHSVVRWKDW

WKHHQWLUHUHVSRQVHWLPHLVPHDVXUHG



,16(59,&(

7KH,16(59,&(7(67,1*352*5$0LVWKHOLFHQVHHSURJUDPWKDW

7(67,1*

IXOILOOVWKHUHTXLUHPHQWVRI&)5D I 

352*5$0



,62/$7,21

7KH,62/$7,216<67(05(63216(7,0(VKDOOEHWKDWWLPHLQWHUYDO

6<67(0

IURPZKHQWKHPRQLWRUHGSDUDPHWHUH[FHHGVLWVLVRODWLRQLQLWLDWLRQ

5(63216(7,0(

VHWSRLQWDWWKHFKDQQHOVHQVRUXQWLOWKHLVRODWLRQYDOYHVWUDYHOWRWKHLU

UHTXLUHGSRVLWLRQV7LPHVVKDOOLQFOXGHGLHVHOJHQHUDWRUVWDUWLQJDQG

VHTXHQFHORDGLQJGHOD\\VZKHUHDSSOLFDEOH7KHUHVSRQVHWLPHPD\\EH

PHDVXUHGE\\PHDQVRIDQ\\VHULHVRIVHTXHQWLDORYHUODSSLQJRUWRWDO

VWHSVVRWKDWWKHHQWLUHUHVSRQVHWLPHLVPHDVXUHG



/($.$*(

/($.$*(VKDOOEH





D

,GHQWLILHG/($.$*(









/($.$*(LQWRWKHGU\\ZHOOVXFKDVWKDWIURPSXPSVHDOV

RUYDOYHSDFNLQJWKDWLVFDSWXUHGDQGFRQGXFWHGWRDVXPS

RUFROOHFWLQJWDQNRU









/($.$*(LQWRWKHGU\\ZHOODWPRVSKHUHIURPVRXUFHVWKDW

DUHERWKVSHFLILFDOO\\ORFDWHGDQGNQRZQHLWKHUWRQRWWR

LQWHUIHUHZLWKWKHRSHUDWLRQRIOHDNDJHGHWHFWLRQV\\VWHPVRU

QRWWREHSUHVVXUHERXQGDU\\/($.$*(





E

8QLGHQWLILHG/($.$*(









$OO/($.$*(LQWRWKHGU\\ZHOOWKDWLVQRWLGHQWLILHG/($.$*(









FRQWLQXHG 

'HILQLWLRQV







+$7&+81,7



$PHQGPHQW1R

 'HILQLWLRQV





/($.$*(

F

7RWDO/($.$*(



FRQWLQXHG 







6XPRIWKHLGHQWLILHGDQGXQLGHQWLILHG/($.$*(DQG





G

3UHVVXUH%RXQGDU\\/($.$*(









/($.$*(WKURXJKDQRQLVRODEOHIDXOWLQD5HDFWRU&RRODQW

6\\VWHP 5&6 FRPSRQHQWERG\\SLSHZDOORUYHVVHOZDOO

/($.$*(SDVWVHDOVSDFNLQJDQGJDVNHWVLVQRWSUHVVXUH

ERXQGDU\\/($.$*(



/,1($5+($7

/,1($5+($7*(1(5$7,215$7( /+*5 VKDOOEHWKHSRZHUJHQHUDWLRQ

  • (1(5$7,21

LQDQDUELWUDU\\OHQJWKRIIXHOURGXVXDOO\\VL[LQFKHV,WLVWKHLQWHJUDORIWKH

5$7(

KHDWIOX[RYHUWKHKHDWWUDQVIHUDUHDDVVRFLDWHGZLWKWKHXQLWOHQJWK



/2*,&6<67(0

$/2*,&6<67(0)81&7,21$/7(67VKDOOEHDWHVWRIDOO

)81&7,21$/

UHTXLUHGORJLFFRPSRQHQWV LHDOOUHTXLUHGUHOD\\VDQGFRQWDFWVWULS

7(67

XQLWVVROLGVWDWHORJLFHOHPHQWVHWF RIDORJLFFLUFXLWIURPDVFORVHWR

WKHVHQVRUDVSUDFWLFDEOHXSWREXWQRWLQFOXGLQJWKHDFWXDWHGGHYLFHWR

YHULI\\23(5$%,/,7<7KH/2*,&6<67(0)81&7,21$/7(67PD\\EH

SHUIRUPHGE\\PHDQVRIDQ\\VHULHVRIVHTXHQWLDORYHUODSSLQJRUWRWDO

V\\VWHPVWHSVVRWKDWWKHHQWLUHORJLFV\\VWHPLVWHVWHG



0,1,080

7KH0&35VKDOOEHWKHVPDOOHVWFULWLFDOSRZHUUDWLR &35 WKDW

&5,7,&$/32:(5

H[LVWVLQWKHFRUHIRUHDFKFODVVRIIXHO7KH&35LVWKDWSRZHU

5$7,2 0&35 

LQWKHDVVHPEO\\WKDWLVFDOFXODWHGE\\DSSOLFDWLRQRIWKHDSSURSULDWH

FRUUHODWLRQ V WRFDXVHVRPHSRLQWLQWKHDVVHPEO\\WRH[SHULHQFHERLOLQJ

WUDQVLWLRQGLYLGHGE\\WKHDFWXDODVVHPEO\\RSHUDWLQJSRZHU



02'(

$02'(VKDOOFRUUHVSRQGWRDQ\\RQHLQFOXVLYHFRPELQDWLRQRIPRGH

VZLWFKSRVLWLRQDYHUDJHUHDFWRUFRRODQWWHPSHUDWXUHDQGUHDFWRUYHVVHO

KHDGFORVXUHEROWWHQVLRQLQJVSHFLILHGLQ7DEOHZLWKIXHOLQWKH

UHDFWRUYHVVHO



23(5$%/(

$V\\VWHPVXEV\\VWHPGLYLVLRQFRPSRQHQWRUGHYLFHVKDOOEH

23(5$%,/,7<

23(5$%/(RUKDYH23(5$%,/,7<ZKHQLWLVFDSDEOHRISHUIRUPLQJLWV

VSHFLILHGVDIHW\\IXQFWLRQ V DQGZKHQDOOQHFHVVDU\\DWWHQGDQW

LQVWUXPHQWDWLRQFRQWUROVQRUPDORUHPHUJHQF\\HOHFWULFDOSRZHUFRROLQJ

DQGVHDOZDWHUOXEULFDWLRQDQGRWKHUDX[LOLDU\\HTXLSPHQWWKDWDUH

UHTXLUHGIRUWKHV\\VWHPVXEV\\VWHPGLYLVLRQFRPSRQHQWRUGHYLFHWR

SHUIRUPLWVVSHFLILHGVDIHW\\IXQFWLRQ V DUHDOVRFDSDEOHRISHUIRUPLQJ

WKHLUUHODWHGVXSSRUWIXQFWLRQ V 











FRQWLQXHG 



5&62SHUDWLRQDO/($.$*(







+$7&+81,7



$PHQGPHQW1R

 5($&725&22/$176<67(0 5&6 



 5&62SHUDWLRQDO/($.$*(





/&2

5&6RSHUDWLRQDO/($.$*(VKDOOEHOLPLWHGWR





D

1RSUHVVXUHERXQGDU\\/($.$*(





E

JSPXQLGHQWLILHG/($.$*(





F

JSPWRWDO/($.$*(DYHUDJHGRYHUWKHSUHYLRXVKRXU

SHULRGDQG





G

JSPLQFUHDVHLQXQLGHQWLILHG/($.$*(ZLWKLQWKHSUHYLRXV





KRXUSHULRGLQ02'(





$33/,&$%,/,7<

02'(6DQG





$&7,216

&21',7,21

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

&203/(7,217,0(



$

3UHVVXUHERXQGDU\\

/($.$*(H[LVWV





$

,VRODWHDIIHFWHG

FRPSRQHQWSLSHRU

YHVVHOIURPWKH5&6

E\\XVHRIDFORVHG

PDQXDOYDOYHFORVHG

DQGGHDFWLYDWHG

DXWRPDWLFYDOYHEOLQG

IODQJHRUFKHFNYDOYH



KRXUV



%$ 8QLGHQWLILHG/($.$*(QRW

ZLWKLQOLPLW





25





7RWDO/($.$*(QRWZLWKLQ

OLPLW





%$

5HGXFH/($.$*(WR

ZLWKLQOLPLWV



KRXUV



&% 8QLGHQWLILHG/($.$*(

LQFUHDVHQRWZLWKLQOLPLW





&%

5HGXFH/($.$*(

LQFUHDVHWRZLWKLQOLPLWV



KRXUV



FRQWLQXHG 

5&62SHUDWLRQDO/($.$*(







+$7&+81,7



$PHQGPHQW1R

$&7,216 FRQWLQXHG 

&21',7,21

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

&203/(7,217,0(



'& 5HTXLUHG$FWLRQDQG

DVVRFLDWHG&RPSOHWLRQ

7LPHRI&RQGLWLRQ$RU%

QRWPHW





25





3UHVVXUHERXQGDU\\

/($.$*(H[LVWV







'&

%HLQ02'(



$1'



'&

%HLQ02'(



KRXUV







KRXUV







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

6859(,//$1&(

)5(48(1&<



65

9HULI\\5&6XQLGHQWLILHGDQGWRWDO/($.$*(DQG

XQLGHQWLILHG/($.$*(LQFUHDVHDUHZLWKLQOLPLWV







,QDFFRUGDQFHZLWK

WKH6XUYHLOODQFH

)UHTXHQF\\&RQWURO

3URJUDP









'HILQLWLRQV











FRQWLQXHG



9RJWOH8QLWVDQG



$PHQGPHQW1R 8QLW 



$PHQGPHQW1R 8QLW 

'HILQLWLRQV FRQWLQXHG 



 $9(5$*(

VKDOOEHWKHDYHUDJH ZHLJKWHGLQSURSRUWLRQWR

',6,17(*5$7,21(1(5*<

WKHFRQFHQWUDWLRQRIHDFKUDGLRQXFOLGHLQWKHUHDFWRUFRRODQW

DWWKHWLPHRIVDPSOLQJ RIWKHVXPRIWKHDYHUDJHEHWDDQG

JDPPDHQHUJLHVSHUGLVLQWHJUDWLRQ LQ0H9 IRULVRWRSHV

RWKHUWKDQLRGLQHVZLWKKDOIOLYHV!PLQXWHVPDNLQJXSDW

OHDVWRIWKHWRWDOQRQLRGLQHDFWLYLW\\LQWKHFRRODQW



(1*,1((5('6$)(7<

7KH(6)5(63216(7,0(VKDOOEHWKDWWLPH

)($785( (6) 5(63216(

LQWHUYDOIURPZKHQWKHPRQLWRUHGSDUDPHWHUH[FHHGVLWV

7,0(

(6)DFWXDWLRQVHWSRLQWDWWKHFKDQQHOVHQVRUXQWLOWKH(6)

HTXLSPHQWLVFDSDEOHRISHUIRUPLQJLWVVDIHW\\IXQFWLRQ LH

WKHYDOYHVWUDYHOWRWKHLUUHTXLUHGSRVLWLRQVSXPSGLVFKDUJH

SUHVVXUHVUHDFKWKHLUUHTXLUHGYDOXHVHWF 7LPHVVKDOO

LQFOXGHGLHVHOJHQHUDWRUVWDUWLQJDQGVHTXHQFHORDGLQJ

GHOD\\VZKHUHDSSOLFDEOH7KHUHVSRQVHWLPHPD\\EH

PHDVXUHGE\\PHDQVRIDQ\\VHULHVRIVHTXHQWLDORYHUODSSLQJ

RUWRWDOVWHSVVRWKDWWKHHQWLUHUHVSRQVHWLPHLVPHDVXUHG

,QOLHXRIPHDVXUHPHQWUHVSRQVHWLPHPD\\EHYHULILHGIRU

VHOHFWHGFRPSRQHQWVSURYLGHGWKDWWKHFRPSRQHQWVDQGWKH

PHWKRGRORJ\\IRUYHULILFDWLRQKDYHEHHQSUHYLRXVO\\UHYLHZHG

DQGDSSURYHGE\\WKH15&RUWKHFRPSRQHQWVKDYHEHHQ

HYDOXDWHGLQDFFRUGDQFHZLWKDQ15&DSSURYHG

PHWKRGRORJ\\



,16(59,&(7(67,1*

7KH,16(59,&(7(67,1*352*5$0LVWKHOLFHQVHH

352*5$0

SURJUDPWKDWIXOILOOVWKHUHTXLUHPHQWVRI&)5D I 



/($.$*(

/($.$*(VKDOOEH



D

,GHQWLILHG/($.$*(





/($.$*(VXFKDVWKDWIURPSXPSVHDOVRUYDOYH

SDFNLQJ H[FHSWUHDFWRUFRRODQWSXPS 5&3 VHDO

ZDWHULQMHFWLRQRUOHDNRII WKDWLVFDSWXUHGDQG

FRQGXFWHGWRFROOHFWLRQV\\VWHPVRUDVXPSRU

FROOHFWLQJWDQN





/($.$*(LQWRWKHFRQWDLQPHQWDWPRVSKHUHIURP

VRXUFHVWKDWDUHERWKVSHFLILFDOO\\ORFDWHGDQG

NQRZQHLWKHUWRQRWWRLQWHUIHUHZLWKWKHRSHUDWLRQRI

OHDNDJHGHWHFWLRQV\\VWHPVRUQRWWREHSUHVVXUH

ERXQGDU\\/($.$*(RU





5HDFWRU&RRODQW6\\VWHP 5&6 /($.$*(WKURXJK

DVWHDPJHQHUDWRUWRWKH6HFRQGDU\\6\\VWHP

SULPDU\\WRVHFRQGDU\\/($.$*( 





'HILQLWLRQV











FRQWLQXHG



9RJWOH8QLWVDQG



$PHQGPHQW1R 8QLW 



$PHQGPHQW1R 8QLW 

'HILQLWLRQV



/($.$*(

E

8QLGHQWLILHG/($.$*(



FRQWLQXHG 

$OO/($.$*( H[FHSW5&3VHDOZDWHULQMHFWLRQRU

OHDNRII WKDWLVQRWLGHQWLILHG/($.$*(



F

3UHVVXUH%RXQGDU\\/($.$*(



/($.$*( H[FHSWSULPDU\\WRVHFRQGDU\\/($.$*( 

WKURXJKDQRQLVRODEOHIDXOWLQDQ5&6FRPSRQHQWERG\\

SLSHZDOORUYHVVHOZDOO/($.$*(SDVWVHDOVSDFNLQJ

DQGJDVNHWVLVQRWSUHVVXUHERXQGDU\\/($.$*(



0$67(55(/$<7(67

$0$67(55(/$<7(67VKDOOFRQVLVWRIHQHUJL]LQJHDFK

PDVWHUUHOD\\DQGYHULI\\LQJWKH23(5$%,/,7<RIHDFKUHOD\\

7KH0$67(55(/$<7(67VKDOOLQFOXGHDFRQWLQXLW\\FKHFN

RIHDFKDVVRFLDWHGVODYHUHOD\\



02'(

$02'(VKDOOFRUUHVSRQGWRDQ\\RQHLQFOXVLYHFRPELQDWLRQ

RIFRUHUHDFWLYLW\\FRQGLWLRQSRZHUOHYHODYHUDJHUHDFWRU

FRRODQWWHPSHUDWXUHDQGUHDFWRUYHVVHOKHDGFORVXUHEROW

WHQVLRQLQJVSHFLILHGLQ7DEOHZLWKIXHOLQWKHUHDFWRU

YHVVHO



23(5$%/( ²23(5$%,/,7<

$V\\VWHPVXEV\\VWHPWUDLQFRPSRQHQWRUGHYLFHVKDOOEH

23(5$%/(RUKDYH23(5$%,/,7<ZKHQLWLVFDSDEOHRI

SHUIRUPLQJLWVVSHFLILHGVDIHW\\IXQFWLRQ V DQGZKHQDOO

QHFHVVDU\\DWWHQGDQWLQVWUXPHQWDWLRQFRQWUROVQRUPDORU

HPHUJHQF\\HOHFWULFDOSRZHUFRROLQJDQGVHDOZDWHU

OXEULFDWLRQDQGRWKHUDX[LOLDU\\HTXLSPHQWWKDWDUHUHTXLUHGIRU

WKHV\\VWHPVXEV\\VWHPWUDLQFRPSRQHQWRUGHYLFHWR

SHUIRUPLWVVSHFLILHGVDIHW\\IXQFWLRQ V DUHDOVRFDSDEOHRI

SHUIRUPLQJWKHLUUHODWHGVXSSRUWIXQFWLRQ V 



3+<6,&67(676

3+<6,&67(676VKDOOEHWKRVHWHVWVSHUIRUPHGWRPHDVXUH

WKHIXQGDPHQWDOQXFOHDUFKDUDFWHULVWLFVRIWKHUHDFWRUFRUH

DQGUHODWHGLQVWUXPHQWDWLRQ7KHVHWHVWVDUH





D

'HVFULEHGLQ&KDSWHURIWKH)6$5



E

$XWKRUL]HGXQGHUWKHSURYLVLRQVRI&)5RU



F

2WKHUZLVHDSSURYHGE\\WKH1XFOHDU5HJXODWRU\\

&RPPLVVLRQ







5&62SHUDWLRQDO/($.$*(











9RJWOH8QLWVDQG



$PHQGPHQW1R 8QLW 

$PHQGPHQW1R 8QLW 

5($&725&22/$176<67(0 5&6 



5&62SHUDWLRQDO/($.$*(



/&2

5&6RSHUDWLRQDO/($.$*(VKDOOEHOLPLWHGWR



D

1RSUHVVXUHERXQGDU\\/($.$*(



E

JSPXQLGHQWLILHG/($.$*(



F

JSPLGHQWLILHG/($.$*(DQG



G

JDOORQVSHUGD\\SULPDU\\WRVHFRQGDU\\/($.$*(WKURXJKDQ\\

RQHVWHDPJHQHUDWRU 6* 





$33/,&$%,/,7<

02'(6DQG





$&7,216



&21',7,21



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

&203/(7,217,0(



$

3UHVVXUHERXQGDU\\

/($.$*(H[LVWV





$ 

,VRODWHDIIHFWHG

FRPSRQHQWSLSHRU

YHVVHOIURPWKH5&6E\\

XVHRIDFORVHGPDQXDO

YDOYHFORVHGDQG

GHDFWLYDWHGDXWRPDWLF

YDOYHEOLQGIODQJHRU

FKHFNYDOYH





KRXUV



%$ 5&6RSHUDWLRQDO

/($.$*(QRWZLWKLQ

OLPLWVIRUUHDVRQVRWKHU

WKDQSUHVVXUHERXQGDU\\

/($.$*(RUSULPDU\\WR

VHFRQGDU\\/($.$*(





%$

5HGXFH/($.$*(WR

ZLWKLQOLPLWV





KRXUV



FRQWLQXHG 



5&62SHUDWLRQDO/($.$*(











9RJWOH8QLWVDQG



$PHQGPHQW1R 8QLW 

$PHQGPHQW1R 8QLW 

$&7,216 FRQWLQXHG 



&21',7,21



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

&203/(7,217,0(



&% 5HTXLUHG$FWLRQDQG

DVVRFLDWHG&RPSOHWLRQ

7LPHRI&RQGLWLRQ$QRW

PHW



25





3UHVVXUHERXQGDU\\

/($.$*(H[LVWV



25





3ULPDU\\WRVHFRQGDU\\

/($.$*(QRWZLWKLQ

OLPLW







&%

%HLQ02'(



$1'



&%

127(





/&2DLVQRW

DSSOLFDEOHZKHQHQWHULQJ

02'(













%HLQ02'(





KRXUV



















KRXUV





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



6859(,//$1&(

 )5(48(1&<



65

127(6

 1RWUHTXLUHGWREHSHUIRUPHGLQ02'(RU

XQWLOKRXUVRIVWHDG\\VWDWHRSHUDWLRQ



 2QO\\UHTXLUHGWREHSHUIRUPHGGXULQJVWHDG\\

VWDWHRSHUDWLRQ



 1RWDSSOLFDEOHWRSULPDU\\WRVHFRQGDU\\

/($.$*(



3HUIRUP5&6ZDWHULQYHQWRU\\EDODQFH

























2QFHZLWKLQKRXUV

DIWHUDFKLHYLQJVWHDG\\

VWDWHRSHUDWLRQ



$1'



,QDFFRUGDQFHZLWKWKH

6XUYHLOODQFH

)UHTXHQF\\&RQWURO

3URJUDP



























-RVHSK0)DUOH\\1XFOHDU3ODQW8QLWVDQG

(GZLQ,+DWFK1XFOHDU3ODQW8QLWVDQG

9RJWOH(OHFWULF*HQHUDWLQJ3ODQW8QLWVDQG

$SSOLFDWLRQWR5HYLVH7HFKQLFDO6SHFLILFDWLRQVWR$GRSW767)

5HYLVH5HDFWRU&RRODQW/HDNDJH5HTXLUHPHQWV



$WWDFKPHQW



)13+13DQG9(*35HYLVHG7HFKQLFDO6SHFLILFDWLRQV3DJHV







'HILQLWLRQV









FRQWLQXHG 



)DUOH\\8QLWVDQG



$PHQGPHQW1R 8QLW 





$PHQGPHQW1R 8QLW 

'HILQLWLRQV



²$9(5$*(

VKDOOEHWKHDYHUDJH ZHLJKWHGLQSURSRUWLRQWRWKH

',6,17(*5$7,21(1(5*<

FRQFHQWUDWLRQRIHDFKUDGLRQXFOLGHLQWKHUHDFWRUFRRODQWDW

WKHWLPHRIVDPSOLQJ RIWKHVXPRIWKHDYHUDJHEHWDDQG

JDPPDHQHUJLHVSHUGLVLQWHJUDWLRQ LQ0H9 IRULVRWRSHV

RWKHUWKDQLRGLQHVZLWKKDOIOLYHV!PLQXWHVPDNLQJXSDW

OHDVWRIWKHWRWDOQRQLRGLQHDFWLYLW\\LQWKHFRRODQW



(1*,1((5('6$)(7<

7KH(6)5(63216(7,0(VKDOOEHWKDWWLPHLQWHUYDOIURP

)($785( (6) 5(63216(

ZKHQWKHPRQLWRUHGSDUDPHWHUH[FHHGVLWV(6)DFWXDWLRQ

7,0(

VHWSRLQWDWWKHFKDQQHOVHQVRUXQWLOWKH(6)HTXLSPHQWLV

FDSDEOHRISHUIRUPLQJLWVVDIHW\\IXQFWLRQ LHWKHYDOYHV

WUDYHOWRWKHLUUHTXLUHGSRVLWLRQVSXPSGLVFKDUJHSUHVVXUHV

UHDFKWKHLUUHTXLUHGYDOXHVHWF 7LPHVVKDOOLQFOXGHGLHVHO

JHQHUDWRUVWDUWLQJDQGVHTXHQFHORDGLQJGHOD\\VZKHUH

DSSOLFDEOH7KHUHVSRQVHWLPHPD\\EHPHDVXUHGE\\PHDQV

RIDQ\\VHULHVRIVHTXHQWLDORYHUODSSLQJRUWRWDOVWHSVVRWKDW

WKHHQWLUHUHVSRQVHWLPHLVPHDVXUHG,QOLHXRI

PHDVXUHPHQWUHVSRQVHWLPHPD\\EHYHULILHGIRUVHOHFWHG

FRPSRQHQWVSURYLGHGWKDWWKHFRPSRQHQWVDQGWKH

PHWKRGRORJ\\IRUYHULILFDWLRQKDYHEHHQSUHYLRXVO\\UHYLHZHG

DQGDSSURYHGE\\WKH15&RUWKHFRPSRQHQWVKDYHEHHQ

HYDOXDWHGLQDFFRUGDQFHZLWKDQ15&DSSURYHG

PHWKRGRORJ\\



,16(59,&(7(67,1*

7KH,16(59,&(7(67,1*352*5$0LVWKHOLFHQVHH

352*5$0

SURJUDPWKDWIXOILOOVWKHUHTXLUHPHQWVRI&)5D I 



/($.$*(

/($.$*(VKDOOEH





D

,GHQWLILHG/($.$*(









/($.$*(VXFKDVWKDWIURPSXPSVHDOVRUYDOYH

SDFNLQJ H[FHSWUHDFWRUFRRODQWSXPS 5&3 VHDO

ZDWHULQMHFWLRQRUOHDNRII WKDWLVFDSWXUHGDQG

FRQGXFWHGWRFROOHFWLRQV\\VWHPVRUDVXPSRU

FROOHFWLQJWDQN









/($.$*(LQWRWKHFRQWDLQPHQWDWPRVSKHUHIURP

VRXUFHVWKDWDUHERWKVSHFLILFDOO\\ORFDWHGDQG

NQRZQWRQRWLQWHUIHUHZLWKWKHRSHUDWLRQRIOHDNDJH

GHWHFWLRQV\\VWHPVRU



'HILQLWLRQV











)DUOH\\8QLWVDQG



$PHQGPHQW1R 8QLW 





$PHQGPHQW1R 8QLW 

'HILQLWLRQV



/($.$*(





5HDFWRU&RRODQW6\\VWHP 5&6 /($.$*(



FRQWLQXHG 





WKURXJKDVWHDPJHQHUDWRU 6* WRWKH6HFRQGDU\\

6\\VWHP





E

8QLGHQWLILHG/($.$*(







$OO/($.$*( H[FHSW5&3VHDOZDWHULQMHFWLRQRU

OHDNRII WKDWLVQRWLGHQWLILHG/($.$*(





F

3UHVVXUH%RXQGDU\\/($.$*(







/($.$*( H[FHSWSULPDU\\WRVHFRQGDU\\/($.$*( 

WKURXJKDIDXOWLQDQ5&6FRPSRQHQWERG\\SLSHZDOORU

YHVVHOZDOO/($.$*(SDVWVHDOVSDFNLQJDQGJDVNHWV

LVQRWSUHVVXUHERXQGDU\\/($.$*(



0$67(55(/$<7(67

$0$67(55(/$<7(67VKDOOFRQVLVWRIHQHUJL]LQJHDFK

PDVWHUUHOD\\DQGYHULI\\LQJWKH23(5$%,/,7<RIHDFKUHOD\\

7KH0$67(55(/$<7(67VKDOOLQFOXGHDFRQWLQXLW\\FKHFN

RIHDFKDVVRFLDWHGVODYHUHOD\\



02'(

$02'(VKDOOFRUUHVSRQGWRDQ\\RQHLQFOXVLYHFRPELQDWLRQ

RIFRUHUHDFWLYLW\\FRQGLWLRQSRZHUOHYHODYHUDJHUHDFWRU

FRRODQWWHPSHUDWXUHDQGUHDFWRUYHVVHOKHDGFORVXUHEROW

WHQVLRQLQJVSHFLILHGLQ7DEOHZLWKIXHOLQWKHUHDFWRU

YHVVHO



23(5$%/( ² 23(5$%,/,7<

$V\\VWHPVXEV\\VWHPWUDLQFRPSRQHQWRUGHYLFHVKDOOEH

23(5$%/(RUKDYH23(5$%,/,7<ZKHQLWLVFDSDEOHRI

SHUIRUPLQJLWVVSHFLILHGVDIHW\\IXQFWLRQ V DQGZKHQDOO

QHFHVVDU\\DWWHQGDQWLQVWUXPHQWDWLRQFRQWUROVQRUPDORU

HPHUJHQF\\HOHFWULFDOSRZHUFRROLQJDQGVHDOZDWHU

OXEULFDWLRQDQGRWKHUDX[LOLDU\\HTXLSPHQWWKDWDUHUHTXLUHGIRU

WKHV\\VWHPVXEV\\VWHPWUDLQFRPSRQHQWRUGHYLFHWR

SHUIRUPLWVVSHFLILHGVDIHW\\IXQFWLRQ V DUHDOVRFDSDEOHRI

SHUIRUPLQJWKHLUUHODWHGVXSSRUWIXQFWLRQ V 



3+<6,&67(676

3+<6,&67(676VKDOOEHWKRVHWHVWVSHUIRUPHGWRPHDVXUH

WKHIXQGDPHQWDOQXFOHDUFKDUDFWHULVWLFVRIWKHUHDFWRUFRUH

DQGUHODWHGLQVWUXPHQWDWLRQ7KHVHWHVWVDUH





D

'HVFULEHGLQ&KDSWHU,QLWLDO7HVWVDQG2SHUDWLRQ





RIWKH)6$5





E

$XWKRUL]HGXQGHUWKHSURYLVLRQVRI&)5RU





F

2WKHUZLVHDSSURYHGE\\WKH1XFOHDU5HJXODWRU\\





&RPPLVVLRQ



5&62SHUDWLRQDO/($.$*(











)DUOH\\8QLWVDQG



$PHQGPHQW1R 8QLW 





$PHQGPHQW1R 8QLW 

5($&725&22/$176<67(0 5&6 



5&62SHUDWLRQDO/($.$*(





/&2

5&6RSHUDWLRQDO/($.$*(VKDOOEHOLPLWHGWR





D

1RSUHVVXUHERXQGDU\\/($.$*(





E

JSPXQLGHQWLILHG/($.$*(





F

JSPLGHQWLILHG/($.$*(DQG





G

JDOORQVSHUGD\\SULPDU\\WRVHFRQGDU\\/($.$*(WKURXJKDQ\\



RQHVWHDPJHQHUDWRU 6* 







$33/,&$%,/,7<

02'(6DQG





$&7,216



&21',7,21



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

&203/(7,217,0(

$

3UHVVXUHERXQGDU\\

/($.$*(H[LVWV

$

,VRODWHDIIHFWHG

FRPSRQHQWSLSHRU

YHVVHOIURPWKH5&6E\\

XVHRIDFORVHGPDQXDO

YDOYHFORVHGDQG

GHDFWLYDWHGDXWRPDWLF

YDOYHEOLQGIODQJHRU

FKHFNYDOYH

KRXUV

%

5&6RSHUDWLRQDO

/($.$*(QRWZLWKLQOLPLWV

IRUUHDVRQVRWKHUWKDQ

SUHVVXUHERXQGDU\\

/($.$*(RUSULPDU\\WR

VHFRQGDU\\/($.$*(

%

5HGXFH/($.$*(WR

ZLWKLQOLPLWV



KRXUV





5&62SHUDWLRQDO/($.$*(











)DUOH\\8QLWVDQG



$PHQGPHQW1R 8QLW 





$PHQGPHQW1R 8QLW 

$&7,216



&21',7,21



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

&203/(7,217,0(

&

5HTXLUHG$FWLRQDQG

DVVRFLDWHG&RPSOHWLRQ

7LPHQRWPHW





25





3ULPDU\\WRVHFRQGDU\\

/($.$*(QRWZLWKLQOLPLW



&

%HLQ02'(



$1'



&

127(





/&2DLVQRW

DSSOLFDEOHZKHQHQWHULQJ

02'(











%HLQ02'(



KRXUV



















KRXUV







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



6859(,//$1&(



)5(48(1&<

65

127(6

 1RWUHTXLUHGWREHSHUIRUPHGLQ02'(RU

XQWLOKRXUVRIVWHDG\\VWDWHRSHUDWLRQ



 1RWDSSOLFDEOHWRSULPDU\\WRVHFRQGDU\\/($.$*(







9HULI\\5&6RSHUDWLRQDO/($.$*(LVZLWKLQOLPLWVE\\

SHUIRUPDQFHRI5&6ZDWHULQYHQWRU\\EDODQFH



127(

2QO\\UHTXLUHGWR

EHSHUIRUPHG

GXULQJVWHDG\\

VWDWHRSHUDWLRQ



,QDFFRUGDQFH

ZLWKWKH

6XUYHLOODQFH

)UHTXHQF\\

&RQWURO3URJUDP



65

127(

1RWUHTXLUHGWREHSHUIRUPHGXQWLOKRXUVDIWHU

HVWDEOLVKPHQWRIVWHDG\\VWDWHRSHUDWLRQ







9HULI\\SULPDU\\WRVHFRQGDU\\/($.$*(LV

JDOORQVSHUGD\\WKURXJKDQ\\RQH6*













,QDFFRUGDQFH

ZLWKWKH

6XUYHLOODQFH

)UHTXHQF\\

&RQWURO3URJUDP



'HILQLWLRQV







+$7&+81,7



$PHQGPHQW1R

 'HILQLWLRQV FRQWLQXHG 





(1'2)&<&/(

7KH(2&5376<67(05(63216(7,0(VKDOOEHWKDWWLPHLQWHUYDO

5(&,5&8/$7,21

IURPLQLWLDOVLJQDOJHQHUDWLRQE\\WKHDVVRFLDWHGWXUELQHVWRSYDOYHOLPLW

380375,3

VZLWFKRUIURPZKHQWKHWXUELQHFRQWUROYDOYHK\\GUDXOLFFRQWURO

(2&537 

RLOSUHVVXUHGURSVEHORZWKHSUHVVXUHVZLWFKVHWSRLQWWRFRPSOHWH

6<67(0

VXSSUHVVLRQRIWKHHOHFWULFDUFEHWZHHQWKHIXOO\\RSHQFRQWDFWVRIWKH

5(63216(7,0(

UHFLUFXODWLRQSXPSFLUFXLWEUHDNHU7KHUHVSRQVHWLPHPD\\EHPHDVXUHG

E\\PHDQVRIDQ\\VHULHVRIVHTXHQWLDORYHUODSSLQJRUWRWDOVWHSVVRWKDW

WKHHQWLUHUHVSRQVHWLPHLVPHDVXUHG



,16(59,&(

7KH,16(59,&(7(67,1*352*5$0LVWKHOLFHQVHHSURJUDPWKDWIXOILOOV

7(67,1*

WKHUHTXLUHPHQWVRI&)5D I 

352*5$0



/($.$*(

/($.$*(VKDOOEH





D

,GHQWLILHG/($.$*(









/($.$*(LQWRWKHGU\\ZHOOVXFKDVWKDWIURPSXPSVHDOV

RUYDOYHSDFNLQJWKDWLVFDSWXUHGDQGFRQGXFWHGWRDVXPS

RUFROOHFWLQJWDQNRU









/($.$*(LQWRWKHGU\\ZHOODWPRVSKHUHIURPVRXUFHVWKDW

DUHERWKVSHFLILFDOO\\ORFDWHGDQGNQRZQWRQRWLQWHUIHUHZLWK

WKHRSHUDWLRQRIOHDNDJHGHWHFWLRQV\\VWHPV





E

8QLGHQWLILHG/($.$*(







$OO/($.$*(LQWRWKHGU\\ZHOOWKDWLVQRWLGHQWLILHG/($.$*(





F

7RWDO/($.$*(







6XPRIWKHLGHQWLILHGDQGXQLGHQWLILHG/($.$*(DQG





G

3UHVVXUH%RXQGDU\\/($.$*(









/($.$*(WKURXJKDIDXOWLQD5HDFWRU&RRODQW6\\VWHP 5&6 

FRPSRQHQWERG\\SLSHZDOORUYHVVHOZDOO/($.$*(SDVWVHDOV

SDFNLQJDQGJDVNHWVLVQRWSUHVVXUHERXQGDU\\/($.$*(



/,1($5+($7

/,1($5+($7*(1(5$7,215$7( /+*5 VKDOOEHWKHSRZHUJHQHUDWLRQ

  • (1(5$7,21

LQDQDUELWUDU\\OHQJWKRIIXHOURGXVXDOO\\VL[LQFKHV,WLVWKHLQWHJUDORIWKH

5$7(

KHDWIOX[RYHUWKHKHDWWUDQVIHUDUHDDVVRFLDWHGZLWKWKHXQLWOHQJWK



/2*,&6<67(0

$/2*,&6<67(0)81&7,21$/7(67VKDOOEHDWHVWRIDOO

)81&7,21$/

UHTXLUHGORJLFFRPSRQHQWV LHDOOUHTXLUHGUHOD\\VDQGFRQWDFWVWULS

7(67

XQLWVVROLGVWDWHORJLFHOHPHQWVHWF RIDORJLFFLUFXLWIURPDVFORVHWR

WKHVHQVRUDVSUDFWLFDEOHXSWREXWQRWLQFOXGLQJWKHDFWXDWHGGHYLFHWR

YHULI\\23(5$%,/,7<7KH/2*,&6<67(0)81&7,21$/7(67PD\\EH

SHUIRUPHGE\\PHDQVRIDQ\\VHULHVRIVHTXHQWLDORYHUODSSLQJRUWRWDO

V\\VWHPVWHSVVRWKDWWKHHQWLUHORJLFV\\VWHPLVWHVWHG



FRQWLQXHG 

5&62SHUDWLRQDO/($.$*(







+$7&+81,7



$PHQGPHQW1R



 5($&725&22/$176<67(0 5&6 



 5&62SHUDWLRQDO/($.$*(





/&2

5&6RSHUDWLRQDO/($.$*(VKDOOEHOLPLWHGWR





D

1RSUHVVXUHERXQGDU\\/($.$*(





E

JSPXQLGHQWLILHG/($.$*(





F

JSPWRWDO/($.$*(DYHUDJHGRYHUWKHSUHYLRXVKRXU

SHULRGDQG





G

JSPLQFUHDVHLQXQLGHQWLILHG/($.$*(ZLWKLQWKHSUHYLRXV

 KRXUSHULRGLQ02'(





$33/,&$%,/,7<

02'(6DQG





$&7,216

&21',7,21

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

&203/(7,217,0(



$

3UHVVXUHERXQGDU\\

/($.$*(H[LVWV





$

,VRODWHDIIHFWHG

FRPSRQHQWSLSHRU

YHVVHOIURPWKH5&6

E\\XVHRIDFORVHG

PDQXDOYDOYHFORVHG

DQGGHDFWLYDWHG

DXWRPDWLFYDOYHEOLQG

IODQJHRUFKHFNYDOYH



KRXUV



%

8QLGHQWLILHG/($.$*(QRW

ZLWKLQOLPLW





25





7RWDO/($.$*(QRWZLWKLQ

OLPLW





%

5HGXFH/($.$*(WR

ZLWKLQOLPLWV



KRXUV



&

8QLGHQWLILHG/($.$*(

LQFUHDVHQRWZLWKLQOLPLW





&

5HGXFH/($.$*(

LQFUHDVHWRZLWKLQOLPLWV



KRXUV



FRQWLQXHG 

5&62SHUDWLRQDO/($.$*(







+$7&+81,7



$PHQGPHQW1R



$&7,216 FRQWLQXHG 

&21',7,21

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

&203/(7,217,0(



'

5HTXLUHG$FWLRQDQG

DVVRFLDWHG&RPSOHWLRQ

7LPHQRWPHW





'

%HLQ02'(



$1'



'

%HLQ02'(



KRXUV







KRXUV





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

6859(,//$1&(

)5(48(1&<



65

9HULI\\5&6XQLGHQWLILHGDQGWRWDO/($.$*(DQG

XQLGHQWLILHG/($.$*(LQFUHDVHDUHZLWKLQOLPLWV







,QDFFRUGDQFHZLWK

WKH6XUYHLOODQFH

)UHTXHQF\\&RQWURO

3URJUDP





'HILQLWLRQV







+$7&+81,7



$PHQGPHQW1R

 'HILQLWLRQV FRQWLQXHG 





(0(5*(1&<

7KH(&&65(63216(7,0(VKDOOEHWKDWWLPHLQWHUYDOIURPZKHQ

&25(&22/,1*

WKHPRQLWRUHGSDUDPHWHUH[FHHGVLWV(&&6LQLWLDWLRQVHWSRLQWDWWKH

6<67(0 (&&6 

FKDQQHOVHQVRUXQWLOWKH(&&6HTXLSPHQWLVFDSDEOHRISHUIRUPLQJ

5(63216(

LWVVDIHW\\IXQFWLRQ LHWKHYDOYHVWUDYHOWRWKHLUUHTXLUHGSRVLWLRQV

7,0(

SXPSGLVFKDUJHSUHVVXUHVUHDFKWKHLUUHTXLUHGYDOXHVHWF 7LPHVVKDOO

LQFOXGHGLHVHOJHQHUDWRUVWDUWLQJDQGVHTXHQFHORDGLQJGHOD\\VZKHUH

DSSOLFDEOH7KHUHVSRQVHWLPHPD\\EHPHDVXUHGE\\PHDQVRIDQ\\VHULHV

RIVHTXHQWLDORYHUODSSLQJRUWRWDOVWHSVVRWKDWWKHHQWLUHUHVSRQVHWLPH

LVPHDVXUHG



(1'2)&<&/(

7KH(2&5376<67(05(63216(7,0(VKDOOEHWKDWWLPHLQWHUYDO

5(&,5&8/$7,21

IURPLQLWLDOVLJQDOJHQHUDWLRQE\\WKHDVVRFLDWHGWXUELQHVWRSYDOYHOLPLW

380375,3

VZLWFKRUIURPZKHQWKHWXUELQHFRQWUROYDOYHK\\GUDXOLFFRQWURORLO

(2&537 

SUHVVXUHGURSVEHORZWKHSUHVVXUHVZLWFKVHWSRLQWWRFRPSOHWH

6<67(0

VXSSUHVVLRQRIWKHHOHFWULFDUFEHWZHHQWKHIXOO\\RSHQFRQWDFWVRIWKH

5(63216(7,0(

UHFLUFXODWLRQSXPSFLUFXLWEUHDNHU7KHUHVSRQVHWLPHPD\\EHPHDVXUHG

E\\PHDQVRIDQ\\VHULHVRIVHTXHQWLDORYHUODSSLQJRUWRWDOVWHSVVRWKDW

WKHHQWLUHUHVSRQVHWLPHLVPHDVXUHG



,16(59,&(

7KH,16(59,&(7(67,1*352*5$0LVWKHOLFHQVHHSURJUDPWKDW

7(67,1*

IXOILOOVWKHUHTXLUHPHQWVRI&)5D I 

352*5$0



,62/$7,21

7KH,62/$7,216<67(05(63216(7,0(VKDOOEHWKDWWLPHLQWHUYDO

6<67(0

IURPZKHQWKHPRQLWRUHGSDUDPHWHUH[FHHGVLWVLVRODWLRQLQLWLDWLRQ

5(63216(7,0(

VHWSRLQWDWWKHFKDQQHOVHQVRUXQWLOWKHLVRODWLRQYDOYHVWUDYHOWRWKHLU

UHTXLUHGSRVLWLRQV7LPHVVKDOOLQFOXGHGLHVHOJHQHUDWRUVWDUWLQJDQG

VHTXHQFHORDGLQJGHOD\\VZKHUHDSSOLFDEOH7KHUHVSRQVHWLPHPD\\EH

PHDVXUHGE\\PHDQVRIDQ\\VHULHVRIVHTXHQWLDORYHUODSSLQJRUWRWDO

VWHSVVRWKDWWKHHQWLUHUHVSRQVHWLPHLVPHDVXUHG



/($.$*(

/($.$*(VKDOOEH





D

,GHQWLILHG/($.$*(









/($.$*(LQWRWKHGU\\ZHOOVXFKDVWKDWIURPSXPSVHDOV

RUYDOYHSDFNLQJWKDWLVFDSWXUHGDQGFRQGXFWHGWRDVXPS

RUFROOHFWLQJWDQNRU









/($.$*(LQWRWKHGU\\ZHOODWPRVSKHUHIURPVRXUFHVWKDW

DUHERWKVSHFLILFDOO\\ORFDWHGDQGNQRZQWRQRWLQWHUIHUHZLWK

WKHRSHUDWLRQRIOHDNDJHGHWHFWLRQV\\VWHPV





E

8QLGHQWLILHG/($.$*(









$OO/($.$*(LQWRWKHGU\\ZHOOWKDWLVQRWLGHQWLILHG/($.$*(









FRQWLQXHG 

'HILQLWLRQV







+$7&+81,7



$PHQGPHQW1R

 'HILQLWLRQV





/($.$*(

F

7RWDO/($.$*(



FRQWLQXHG 







6XPRIWKHLGHQWLILHGDQGXQLGHQWLILHG/($.$*(DQG





G

3UHVVXUH%RXQGDU\\/($.$*(









/($.$*(WKURXJKDIDXOWLQD5HDFWRU&RRODQW6\\VWHP 5&6 

FRPSRQHQWERG\\SLSHZDOORUYHVVHOZDOO/($.$*(SDVWVHDOV

SDFNLQJDQGJDVNHWVLVQRWSUHVVXUHERXQGDU\\/($.$*(



/,1($5+($7

/,1($5+($7*(1(5$7,215$7( /+*5 VKDOOEHWKHSRZHUJHQHUDWLRQ

  • (1(5$7,21

LQDQDUELWUDU\\OHQJWKRIIXHOURGXVXDOO\\VL[LQFKHV,WLVWKHLQWHJUDORIWKH

5$7(

KHDWIOX[RYHUWKHKHDWWUDQVIHUDUHDDVVRFLDWHGZLWKWKHXQLWOHQJWK



/2*,&6<67(0

$/2*,&6<67(0)81&7,21$/7(67VKDOOEHDWHVWRIDOO

)81&7,21$/

UHTXLUHGORJLFFRPSRQHQWV LHDOOUHTXLUHGUHOD\\VDQGFRQWDFWVWULS

7(67

XQLWVVROLGVWDWHORJLFHOHPHQWVHWF RIDORJLFFLUFXLWIURPDVFORVHWR

WKHVHQVRUDVSUDFWLFDEOHXSWREXWQRWLQFOXGLQJWKHDFWXDWHGGHYLFHWR

YHULI\\23(5$%,/,7<7KH/2*,&6<67(0)81&7,21$/7(67PD\\EH

SHUIRUPHGE\\PHDQVRIDQ\\VHULHVRIVHTXHQWLDORYHUODSSLQJRUWRWDO

V\\VWHPVWHSVVRWKDWWKHHQWLUHORJLFV\\VWHPLVWHVWHG



0,1,080

7KH0&35VKDOOEHWKHVPDOOHVWFULWLFDOSRZHUUDWLR &35 WKDW

&5,7,&$/32:(5

H[LVWVLQWKHFRUHIRUHDFKFODVVRIIXHO7KH&35LVWKDWSRZHU

5$7,2 0&35 

LQWKHDVVHPEO\\WKDWLVFDOFXODWHGE\\DSSOLFDWLRQRIWKHDSSURSULDWH

FRUUHODWLRQ V WRFDXVHVRPHSRLQWLQWKHDVVHPEO\\WRH[SHULHQFHERLOLQJ

WUDQVLWLRQGLYLGHGE\\WKHDFWXDODVVHPEO\\RSHUDWLQJSRZHU



02'(

$02'(VKDOOFRUUHVSRQGWRDQ\\RQHLQFOXVLYHFRPELQDWLRQRIPRGH

VZLWFKSRVLWLRQDYHUDJHUHDFWRUFRRODQWWHPSHUDWXUHDQGUHDFWRUYHVVHO

KHDGFORVXUHEROWWHQVLRQLQJVSHFLILHGLQ7DEOHZLWKIXHOLQWKH

UHDFWRUYHVVHO



23(5$%/(

$V\\VWHPVXEV\\VWHPGLYLVLRQFRPSRQHQWRUGHYLFHVKDOOEH

23(5$%,/,7<

23(5$%/(RUKDYH23(5$%,/,7<ZKHQLWLVFDSDEOHRISHUIRUPLQJLWV

VSHFLILHGVDIHW\\IXQFWLRQ V DQGZKHQDOOQHFHVVDU\\DWWHQGDQW

LQVWUXPHQWDWLRQFRQWUROVQRUPDORUHPHUJHQF\\HOHFWULFDOSRZHUFRROLQJ

DQGVHDOZDWHUOXEULFDWLRQDQGRWKHUDX[LOLDU\\HTXLSPHQWWKDWDUH

UHTXLUHGIRUWKHV\\VWHPVXEV\\VWHPGLYLVLRQFRPSRQHQWRUGHYLFHWR

SHUIRUPLWVVSHFLILHGVDIHW\\IXQFWLRQ V DUHDOVRFDSDEOHRISHUIRUPLQJ

WKHLUUHODWHGVXSSRUWIXQFWLRQ V 











FRQWLQXHG 



5&62SHUDWLRQDO/($.$*(







+$7&+81,7



$PHQGPHQW1R

 5($&725&22/$176<67(0 5&6 



 5&62SHUDWLRQDO/($.$*(





/&2

5&6RSHUDWLRQDO/($.$*(VKDOOEHOLPLWHGWR





D

1RSUHVVXUHERXQGDU\\/($.$*(





E

JSPXQLGHQWLILHG/($.$*(





F

JSPWRWDO/($.$*(DYHUDJHGRYHUWKHSUHYLRXVKRXU

SHULRGDQG





G

JSPLQFUHDVHLQXQLGHQWLILHG/($.$*(ZLWKLQWKHSUHYLRXV





KRXUSHULRGLQ02'(





$33/,&$%,/,7<

02'(6DQG





$&7,216

&21',7,21

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

&203/(7,217,0(



$

3UHVVXUHERXQGDU\\

/($.$*(H[LVWV





$

,VRODWHDIIHFWHG

FRPSRQHQWSLSHRU

YHVVHOIURPWKH5&6

E\\XVHRIDFORVHG

PDQXDOYDOYHFORVHG

DQGGHDFWLYDWHG

DXWRPDWLFYDOYHEOLQG

IODQJHRUFKHFNYDOYH



KRXUV



%

8QLGHQWLILHG/($.$*(QRW

ZLWKLQOLPLW





25





7RWDO/($.$*(QRWZLWKLQ

OLPLW





%

5HGXFH/($.$*(WR

ZLWKLQOLPLWV



KRXUV



&

8QLGHQWLILHG/($.$*(

LQFUHDVHQRWZLWKLQOLPLW





&

5HGXFH/($.$*(

LQFUHDVHWRZLWKLQOLPLWV



KRXUV



FRQWLQXHG 

5&62SHUDWLRQDO/($.$*(







+$7&+81,7



$PHQGPHQW1R

$&7,216 FRQWLQXHG 

&21',7,21

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

&203/(7,217,0(



'

5HTXLUHG$FWLRQDQG

DVVRFLDWHG&RPSOHWLRQ

7LPHQRWPHW







'

%HLQ02'(



$1'



'

%HLQ02'(



KRXUV







KRXUV





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

6859(,//$1&(

)5(48(1&<



65

9HULI\\5&6XQLGHQWLILHGDQGWRWDO/($.$*(DQG

XQLGHQWLILHG/($.$*(LQFUHDVHDUHZLWKLQOLPLWV







,QDFFRUGDQFHZLWK

WKH6XUYHLOODQFH

)UHTXHQF\\&RQWURO

3URJUDP









'HILQLWLRQV











FRQWLQXHG



9RJWOH8QLWVDQG



$PHQGPHQW1R 8QLW 



$PHQGPHQW1R 8QLW 

'HILQLWLRQV FRQWLQXHG 



 $9(5$*(

VKDOOEHWKHDYHUDJH ZHLJKWHGLQSURSRUWLRQWR

',6,17(*5$7,21(1(5*<

WKHFRQFHQWUDWLRQRIHDFKUDGLRQXFOLGHLQWKHUHDFWRUFRRODQW

DWWKHWLPHRIVDPSOLQJ RIWKHVXPRIWKHDYHUDJHEHWDDQG

JDPPDHQHUJLHVSHUGLVLQWHJUDWLRQ LQ0H9 IRULVRWRSHV

RWKHUWKDQLRGLQHVZLWKKDOIOLYHV!PLQXWHVPDNLQJXSDW

OHDVWRIWKHWRWDOQRQLRGLQHDFWLYLW\\LQWKHFRRODQW



(1*,1((5('6$)(7<

7KH(6)5(63216(7,0(VKDOOEHWKDWWLPH

)($785( (6) 5(63216(

LQWHUYDOIURPZKHQWKHPRQLWRUHGSDUDPHWHUH[FHHGVLWV

7,0(

(6)DFWXDWLRQVHWSRLQWDWWKHFKDQQHOVHQVRUXQWLOWKH(6)

HTXLSPHQWLVFDSDEOHRISHUIRUPLQJLWVVDIHW\\IXQFWLRQ LH

WKHYDOYHVWUDYHOWRWKHLUUHTXLUHGSRVLWLRQVSXPSGLVFKDUJH

SUHVVXUHVUHDFKWKHLUUHTXLUHGYDOXHVHWF 7LPHVVKDOO

LQFOXGHGLHVHOJHQHUDWRUVWDUWLQJDQGVHTXHQFHORDGLQJ

GHOD\\VZKHUHDSSOLFDEOH7KHUHVSRQVHWLPHPD\\EH

PHDVXUHGE\\PHDQVRIDQ\\VHULHVRIVHTXHQWLDORYHUODSSLQJ

RUWRWDOVWHSVVRWKDWWKHHQWLUHUHVSRQVHWLPHLVPHDVXUHG

,QOLHXRIPHDVXUHPHQWUHVSRQVHWLPHPD\\EHYHULILHGIRU

VHOHFWHGFRPSRQHQWVSURYLGHGWKDWWKHFRPSRQHQWVDQGWKH

PHWKRGRORJ\\IRUYHULILFDWLRQKDYHEHHQSUHYLRXVO\\UHYLHZHG

DQGDSSURYHGE\\WKH15&RUWKHFRPSRQHQWVKDYHEHHQ

HYDOXDWHGLQDFFRUGDQFHZLWKDQ15&DSSURYHG

PHWKRGRORJ\\



,16(59,&(7(67,1*

7KH,16(59,&(7(67,1*352*5$0LVWKHOLFHQVHH

352*5$0

SURJUDPWKDWIXOILOOVWKHUHTXLUHPHQWVRI&)5D I 



/($.$*(

/($.$*(VKDOOEH



D

,GHQWLILHG/($.$*(





/($.$*(VXFKDVWKDWIURPSXPSVHDOVRUYDOYH

SDFNLQJ H[FHSWUHDFWRUFRRODQWSXPS 5&3 VHDO

ZDWHULQMHFWLRQRUOHDNRII WKDWLVFDSWXUHGDQG

FRQGXFWHGWRFROOHFWLRQV\\VWHPVRUDVXPSRU

FROOHFWLQJWDQN





/($.$*(LQWRWKHFRQWDLQPHQWDWPRVSKHUHIURP

VRXUFHVWKDWDUHERWKVSHFLILFDOO\\ORFDWHGDQG

NQRZQWRQRWLQWHUIHUHZLWKWKHRSHUDWLRQRIOHDNDJH

GHWHFWLRQV\\VWHPVRU





5HDFWRU&RRODQW6\\VWHP 5&6 /($.$*(WKURXJK

DVWHDPJHQHUDWRUWRWKH6HFRQGDU\\6\\VWHP

SULPDU\\WRVHFRQGDU\\/($.$*( 





'HILQLWLRQV











FRQWLQXHG



9RJWOH8QLWVDQG



$PHQGPHQW1R 8QLW 



$PHQGPHQW1R 8QLW 

'HILQLWLRQV



/($.$*(

E

8QLGHQWLILHG/($.$*(



FRQWLQXHG 

$OO/($.$*( H[FHSW5&3VHDOZDWHULQMHFWLRQRU

OHDNRII WKDWLVQRWLGHQWLILHG/($.$*(



F

3UHVVXUH%RXQGDU\\/($.$*(



/($.$*( H[FHSWSULPDU\\WRVHFRQGDU\\/($.$*( 

WKURXJKDIDXOWLQDQ5&6FRPSRQHQWERG\\SLSHZDOORU

YHVVHOZDOO/($.$*(SDVWVHDOVSDFNLQJDQGJDVNHWV

LVQRWSUHVVXUHERXQGDU\\/($.$*(



0$67(55(/$<7(67

$0$67(55(/$<7(67VKDOOFRQVLVWRIHQHUJL]LQJHDFK

PDVWHUUHOD\\DQGYHULI\\LQJWKH23(5$%,/,7<RIHDFKUHOD\\

7KH0$67(55(/$<7(67VKDOOLQFOXGHDFRQWLQXLW\\FKHFN

RIHDFKDVVRFLDWHGVODYHUHOD\\



02'(

$02'(VKDOOFRUUHVSRQGWRDQ\\RQHLQFOXVLYHFRPELQDWLRQ

RIFRUHUHDFWLYLW\\FRQGLWLRQSRZHUOHYHODYHUDJHUHDFWRU

FRRODQWWHPSHUDWXUHDQGUHDFWRUYHVVHOKHDGFORVXUHEROW

WHQVLRQLQJVSHFLILHGLQ7DEOHZLWKIXHOLQWKHUHDFWRU

YHVVHO



23(5$%/( ²23(5$%,/,7<

$V\\VWHPVXEV\\VWHPWUDLQFRPSRQHQWRUGHYLFHVKDOOEH

23(5$%/(RUKDYH23(5$%,/,7<ZKHQLWLVFDSDEOHRI

SHUIRUPLQJLWVVSHFLILHGVDIHW\\IXQFWLRQ V DQGZKHQDOO

QHFHVVDU\\DWWHQGDQWLQVWUXPHQWDWLRQFRQWUROVQRUPDORU

HPHUJHQF\\HOHFWULFDOSRZHUFRROLQJDQGVHDOZDWHU

OXEULFDWLRQDQGRWKHUDX[LOLDU\\HTXLSPHQWWKDWDUHUHTXLUHGIRU

WKHV\\VWHPVXEV\\VWHPWUDLQFRPSRQHQWRUGHYLFHWR

SHUIRUPLWVVSHFLILHGVDIHW\\IXQFWLRQ V DUHDOVRFDSDEOHRI

SHUIRUPLQJWKHLUUHODWHGVXSSRUWIXQFWLRQ V 



3+<6,&67(676

3+<6,&67(676VKDOOEHWKRVHWHVWVSHUIRUPHGWRPHDVXUH

WKHIXQGDPHQWDOQXFOHDUFKDUDFWHULVWLFVRIWKHUHDFWRUFRUH

DQGUHODWHGLQVWUXPHQWDWLRQ7KHVHWHVWVDUH





D

'HVFULEHGLQ&KDSWHURIWKH)6$5



E

$XWKRUL]HGXQGHUWKHSURYLVLRQVRI&)5RU



F

2WKHUZLVHDSSURYHGE\\WKH1XFOHDU5HJXODWRU\\

&RPPLVVLRQ







5&62SHUDWLRQDO/($.$*(











9RJWOH8QLWVDQG



$PHQGPHQW1R 8QLW 

$PHQGPHQW1R 8QLW 

5($&725&22/$176<67(0 5&6 



5&62SHUDWLRQDO/($.$*(



/&2

5&6RSHUDWLRQDO/($.$*(VKDOOEHOLPLWHGWR



D

1RSUHVVXUHERXQGDU\\/($.$*(



E

JSPXQLGHQWLILHG/($.$*(



F

JSPLGHQWLILHG/($.$*(DQG



G

JDOORQVSHUGD\\SULPDU\\WRVHFRQGDU\\/($.$*(WKURXJKDQ\\

RQHVWHDPJHQHUDWRU 6* 





$33/,&$%,/,7<

02'(6DQG





$&7,216



&21',7,21



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

&203/(7,217,0(



$

3UHVVXUHERXQGDU\\

/($.$*(H[LVWV





$ 

,VRODWHDIIHFWHG

FRPSRQHQWSLSHRU

YHVVHOIURPWKH5&6E\\

XVHRIDFORVHGPDQXDO

YDOYHFORVHGDQG

GHDFWLYDWHGDXWRPDWLF

YDOYHEOLQGIODQJHRU

FKHFNYDOYH





KRXUV



%

5&6RSHUDWLRQDO

/($.$*(QRWZLWKLQ

OLPLWVIRUUHDVRQVRWKHU

WKDQSUHVVXUHERXQGDU\\

/($.$*(RUSULPDU\\WR

VHFRQGDU\\/($.$*(





% 

5HGXFH/($.$*(WR

ZLWKLQOLPLWV





KRXUV



FRQWLQXHG 



5&62SHUDWLRQDO/($.$*(











9RJWOH8QLWVDQG



$PHQGPHQW1R 8QLW 

$PHQGPHQW1R 8QLW 

$&7,216 FRQWLQXHG 



&21',7,21



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

&203/(7,217,0(



&

5HTXLUHG$FWLRQDQG

DVVRFLDWHG&RPSOHWLRQ

7LPHQRWPHW



25





3ULPDU\\WRVHFRQGDU\\

/($.$*(QRWZLWKLQ

OLPLW







& 

%HLQ02'(



$1'



& 

127(





/&2DLVQRW

DSSOLFDEOHZKHQHQWHULQJ

02'(













%HLQ02'(





KRXUV



















KRXUV





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



6859(,//$1&(

 )5(48(1&<



65

127(6

 1RWUHTXLUHGWREHSHUIRUPHGLQ02'(RU

XQWLOKRXUVRIVWHDG\\VWDWHRSHUDWLRQ



 2QO\\UHTXLUHGWREHSHUIRUPHGGXULQJVWHDG\\

VWDWHRSHUDWLRQ



 1RWDSSOLFDEOHWRSULPDU\\WRVHFRQGDU\\

/($.$*(



3HUIRUP5&6ZDWHULQYHQWRU\\EDODQFH

























2QFHZLWKLQKRXUV

DIWHUDFKLHYLQJVWHDG\\

VWDWHRSHUDWLRQ



$1'



,QDFFRUGDQFHZLWKWKH

6XUYHLOODQFH

)UHTXHQF\\&RQWURO

3URJUDP



FRQWLQXHG



5&62SHUDWLRQDO/($.$*(











9RJWOH8QLWVDQG



$PHQGPHQW1R 8QLW 

$PHQGPHQW1R 8QLW 

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



6859(,//$1&(

 )5(48(1&<



65

127(



1RWUHTXLUHGWREHSHUIRUPHGXQWLOKRXUVDIWHU

HVWDEOLVKPHQWRIVWHDG\\VWDWHRSHUDWLRQ





9HULI\\SULPDU\\WRVHFRQGDU\\/($.$*(LV

JDOORQVSHUGD\\WKURXJKDQ\\RQH6*















,QDFFRUGDQFHZLWKWKH

6XUYHLOODQFH

)UHTXHQF\\&RQWURO

3URJUDP





























-RVHSK0)DUOH\\1XFOHDU3ODQW8QLWVDQG

(GZLQ,+DWFK1XFOHDU3ODQW8QLWVDQG

9RJWOH(OHFWULF*HQHUDWLQJ3ODQW8QLWVDQG

$SSOLFDWLRQWR5HYLVH7HFKQLFDO6SHFLILFDWLRQVWR$GRSW767)

5HYLVH5HDFWRU&RRODQW/HDNDJH5HTXLUHPHQWV



$WWDFKPHQW



)13+13DQG9(*33URSRVHG7HFKQLFDO6SHFLILFDWLRQ%DVHV&KDQJHV 0DUN8S 

IRU,QIRUPDWLRQ2QO\\



5&62SHUDWLRQDO/($.$*(

%









)DUOH\\8QLWVDQG

%

5HYLVLRQ

%$6(6



/&2

5&6RSHUDWLRQDO/($.$*(VKDOOEHOLPLWHGWR





D

3UHVVXUH%RXQGDU\\/($.$*(







1RS3UHVVXUHERXQGDU\\/($.$*(LVSURKLELWHGDOORZHGEHLQJ

LQGLFDWLYHRIPDWHULDOGHWHULRUDWLRQ/($.$*(RIWKLVW\\SHLV

XQDFFHSWDEOHDVWKHOHDNLWVHOIFRXOGFDXVHIXUWKHU5&3%

GHWHULRUDWLRQUHVXOWLQJLQKLJKHU/($.$*(9LRODWLRQRIWKLV/&2

FRXOGUHVXOWLQFRQWLQXHGGHJUDGDWLRQRIWKH5&3%/($.$*(

SDVWVHDOVDQGJDVNHWVLVQRWSUHVVXUHERXQGDU\\/($.$*(





E

8QLGHQWLILHG/($.$*(







2QHJDOORQSHUPLQXWH JSP RIXQLGHQWLILHG/($.$*(LVDOORZHG

DVDUHDVRQDEOHPLQLPXPGHWHFWDEOHDPRXQWWKDWWKHFRQWDLQPHQW

DLUPRQLWRULQJDQGFRQWDLQPHQWVXPSOHYHOPRQLWRULQJHTXLSPHQW

FDQGHWHFWZLWKLQDUHDVRQDEOHWLPHSHULRG6HSDUDWLQJWKH

VRXUFHVRIOHDNDJH LHOHDNDJHIURPDQLGHQWLILHGVRXUFHYHUVXV

OHDNDJHIURPDQXQLGHQWLILHGVRXUFH LVQHFHVVDU\\IRUSURPSW

LGHQWLILFDWLRQRISRWHQWLDOO\\DGYHUVHFRQGLWLRQVDVVHVVPHQWRIWKH

VDIHW\\VLJQLILFDQFHDQGFRUUHFWLYHDFWLRQ9LRODWLRQRIWKLV/&2

FRXOGUHVXOWLQFRQWLQXHGGHJUDGDWLRQRIWKH5&3%LIWKH

/($.$*(LVIURPWKHSUHVVXUHERXQGDU\\





F

,GHQWLILHG/($.$*(







8SWRJSPRILGHQWLILHG/($.$*(LVFRQVLGHUHGDOORZDEOH

EHFDXVH/($.$*(LVIURPNQRZQVRXUFHVWKDWGRQRWLQWHUIHUH

ZLWKGHWHFWLRQRIXQLGHQWLILHG/($.$*(DQGLVZHOOZLWKLQWKH

FDSDELOLW\\RIWKH5&60DNHXS6\\VWHP,GHQWLILHG/($.$*(

LQFOXGHV/($.$*(WRWKHFRQWDLQPHQWIURPVSHFLILFDOO\\NQRZQDQG

ORFDWHGVRXUFHVEXWGRHVQRWLQFOXGHSUHVVXUHERXQGDU\\

/($.$*(RUFRQWUROOHGUHDFWRUFRRODQWSXPS 5&3 VHDOOHDNRII D

QRUPDOIXQFWLRQQRWFRQVLGHUHG/($.$*( 9LRODWLRQRIWKLV/&2

FRXOGUHVXOWLQFRQWLQXHGGHJUDGDWLRQRIDFRPSRQHQWRUV\\VWHP



G

3ULPDU\\WR6HFRQGDU\\/($.$*(7KURXJK$Q\\2QH6*



7KHOLPLWRIJSGSHUHDFK6*LVEDVHGRQWKHRSHUDWLRQDO

/($.$*(SHUIRUPDQFHFULWHULRQLQ1(,6WHDP*HQHUDWRU

3URJUDP*XLGHOLQHV 5HI 7KH6WHDP*HQHUDWRU3URJUDP

RSHUDWLRQDO/($.$*(SHUIRUPDQFHFULWHULRQLQ1(,VWDWHV

³7KH5&6RSHUDWLRQDOSULPDU\\WRVHFRQGDU\\OHDNDJHWKURXJKDQ\\

RQH6*VKDOOEHOLPLWHGWRJDOORQVSHUGD\\'7KHOLPLWLVEDVHG

RQRSHUDWLQJH[SHULHQFHZLWK6*WXEHGHJUDGDWLRQPHFKDQLVPV

WKDWUHVXOWLQWXEHOHDNDJH7KHRSHUDWLRQDOOHDNDJHUDWHFULWHULRQ

5&62SHUDWLRQDO/($.$*(

%









)DUOH\\8QLWVDQG

%

5HYLVLRQ

%$6(6



$33/,&$%,/,7<

,Q02'(6DQGWKHSRWHQWLDOIRU5&3%/($.$*(LVJUHDWHVW

ZKHQWKH5&6LVSUHVVXUL]HG





,Q02'(6DQG/($.$*(OLPLWVDUHQRWUHTXLUHGEHFDXVHWKH

UHDFWRUFRRODQWSUHVVXUHLVIDUORZHUUHVXOWLQJLQORZHUVWUHVVHVDQG

UHGXFHGSRWHQWLDOVIRU/($.$*(





/&25&63UHVVXUH,VRODWLRQ9DOYH 3,9 /HDNDJHPHDVXUHV

OHDNDJHWKURXJKHDFKLQGLYLGXDO3,9DQGFDQLPSDFWWKLV/&22IWKH

WZR3,9VLQVHULHVLQHDFKLVRODWHGOLQHOHDNDJHPHDVXUHGWKURXJK

RQH3,9GRHVQRWUHVXOWLQ5&6/($.$*(ZKHQWKHRWKHULVOHDNWLJKW

,IERWKYDOYHVOHDNDQGUHVXOWLQDORVVRIPDVVIURPWKH5&6WKHORVV

PXVWEHLQFOXGHGLQWKHDOORZDEOHLGHQWLILHG/($.$*(







$&7,216

$



,ISUHVVXUHERXQGDU\\/($.$*(H[LVWVWKHDIIHFWHGFRPSRQHQWSLSH

RUYHVVHOPXVWEHLVRODWHGIURPWKH5&6E\\DFORVHGPDQXDOYDOYH

FORVHGDQGGHDFWLYDWHGDXWRPDWLFYDOYHEOLQGIODQJHRUFKHFNYDOYH

ZLWKLQKRXUV:KLOHLQWKLVFRQGLWLRQVWUXFWXUDOLQWHJULW\\RIWKHV\\VWHP

VKRXOGEHFRQVLGHUHGEHFDXVHWKHVWUXFWXUDOLQWHJULW\\RIWKHSDUWRIWKH

V\\VWHPZLWKLQWKHLVRODWLRQERXQGDU\\PXVWEHPDLQWDLQHGXQGHUDOO

OLFHQVLQJEDVLVFRQGLWLRQVLQFOXGLQJFRQVLGHUDWLRQRIWKHSRWHQWLDOIRU

IXUWKHUGHJUDGDWLRQRIWKHLVRODWHGORFDWLRQ1RUPDO/($.$*(SDVW

WKHLVRODWLRQGHYLFHLVDFFHSWDEOHDVLWZLOOOLPLW5&6/($.$*(DQGLV

LQFOXGHGLQLGHQWLILHGRUXQLGHQWLILHG/($.$*(7KLVDFWLRQLV

QHFHVVDU\\WRSUHYHQWIXUWKHUGHWHULRUDWLRQRIWKH5&3%





%$





8QLGHQWLILHG/($.$*(RULGHQWLILHG/($.$*(LQH[FHVVRIWKH/&2



OLPLWVPXVWEHUHGXFHGWRZLWKLQOLPLWVZLWKLQKRXUV7KLV&RPSOHWLRQ

7LPHDOORZVWLPHWRYHULI\\OHDNDJHUDWHVDQGHLWKHULGHQWLI\\XQLGHQWLILHG

/($.$*(RUUHGXFH/($.$*(WRZLWKLQOLPLWVEHIRUHWKHUHDFWRUPXVW

EHVKXWGRZQ7KLVDFWLRQLVQHFHVVDU\\WRSUHYHQWIXUWKHUGHWHULRUDWLRQ

RIWKH5&3%





&DQG&%DQG%





,IDQ\\SUHVVXUHERXQGDU\\/($.$*(H[LVWVRUSULPDU\\WRVHFRQGDU\\

/($.$*(LVQRWZLWKLQOLPLWRULIDQ\\RIWKH5HTXLUHG$FWLRQVDQG

DVVRFLDWHG&RPSOHWLRQ7LPHVFDQQRWEHPHWXQLGHQWLILHGRU

FRQWLQXHG 

5&62SHUDWLRQDO/($.$*(

%







FRQWLQXHG 



)DUOH\\8QLWVDQG

%

5HYLVLRQ

%$6(6



$&7,216

&DQG&%DQG% FRQWLQXHG 





LGHQWLILHG/($.$*(FDQQRWEHUHGXFHGWRZLWKLQOLPLWVZLWKLQKRXUV

WKHUHDFWRUPXVWEHEURXJKWWRORZHUSUHVVXUHFRQGLWLRQVWRUHGXFHWKH

VHYHULW\\RIWKH/($.$*(DQGLWVSRWHQWLDOFRQVHTXHQFHV,WVKRXOGEH

QRWHGWKDW/($.$*(SDVWVHDOVDQGJDVNHWVLVQRWSUHVVXUHERXQGDU\\

/($.$*(7KHUHDFWRUPXVWEHEURXJKWWR02'(ZLWKLQKRXUV

DQG02'(ZLWKLQKRXUV7KLVDFWLRQUHGXFHVWKH/($.$*(DQG

DOVRUHGXFHVWKHIDFWRUVWKDWWHQGWRGHJUDGHWKHSUHVVXUHERXQGDU\\





7KHDOORZHG&RPSOHWLRQ7LPHVDUHUHDVRQDEOHEDVHGRQRSHUDWLQJ

H[SHULHQFHWRUHDFKWKHUHTXLUHGSODQWFRQGLWLRQVIURPIXOOSRZHU

FRQGLWLRQVLQDQRUGHUO\\PDQQHUDQGZLWKRXWFKDOOHQJLQJSODQWV\\VWHPV

,Q02'(WKHSUHVVXUHVWUHVVHVDFWLQJRQWKH5&3%DUHPXFK

ORZHUDQGIXUWKHUGHWHULRUDWLRQLVPXFKOHVVOLNHO\\





5HPDLQLQJZLWKLQWKHDSSOLFDELOLW\\RIWKH/&2LVDFFHSWDEOHWR

DFFRPSOLVKVKRUWGXUDWLRQUHSDLUVWRUHVWRUHLQRSHUDEOHHTXLSPHQW

EHFDXVHWKHSODQWULVNLQ02'(LVVLPLODUWRRUORZHUWKDQ02'(

5HI ,Q02'(WKH6WHDP*HQHUDWRUVDQG5HVLGXDO+HDW

5HPRYDO6\\VWHPDUHDYDLODEOHWRUHPRYHGHFD\\KHDWZKLFKSURYLGHV

GLYHUVLW\\DQGGHIHQVHLQGHSWK$VVWDWHGLQ5HIHUHQFHWKHVWHDP

WXUELQHGULYHQ$X[LOLDU\\)HHGZDWHU3XPSPXVWEHDYDLODEOHWRUHPDLQ

LQ02'(6KRXOG6WHDP*HQHUDWRUFRROLQJEHORVWZKLOHUHO\\LQJRQ

WKLV5HTXLUHG$FWLRQWKHUHDUHSUHSODQQHGDFWLRQVWRHQVXUHORQJWHUP

GHFD\\KHDWUHPRYDO9ROXQWDU\\HQWU\\LQWR02'(PD\\EHPDGHDVLW

LVDOVRDFFHSWDEOHIURPDULVNSHUVSHFWLYH





5HTXLUHG$FWLRQ%&LVPRGLILHGE\\D1RWHWKDWVWDWHVWKDW/&2

DLVQRWDSSOLFDEOHZKHQHQWHULQJ02'(7KLV1RWHSURKLELWV

WKHXVHRI/&2DWRHQWHU02'(GXULQJVWDUWXSZLWKWKH/&2

QRWPHW+RZHYHUWKHUHLVQRUHVWULFWLRQRQWKHXVHRI/&2ELI

DSSOLFDEOHEHFDXVH/&2EUHTXLUHVSHUIRUPDQFHRIDULVN

DVVHVVPHQWDGGUHVVLQJLQRSHUDEOHV\\VWHPVDQGFRPSRQHQWV

FRQVLGHUDWLRQRIWKHUHVXOWVGHWHUPLQDWLRQRIWKHDFFHSWDELOLW\\RI

HQWHULQJ02'(DQGHVWDEOLVKPHQWRIULVNPDQDJHPHQWDFWLRQVLI

DSSURSULDWH/&2LVQRWDSSOLFDEOHWRDQGWKH1RWHGRHVQRW

SUHFOXGHFKDQJHVLQ02'(6RURWKHUVSHFLILHGFRQGLWLRQVLQWKH

$SSOLFDELOLW\\WKDWDUHUHTXLUHGWRFRPSO\\ZLWK$&7,216RUWKDWDUHSDUW

RIDVKXWGRZQRIWKHXQLW



5&62SHUDWLRQDO/($.$*(

%







FRQWLQXHG 



)DUOH\\8QLWVDQG

%

5HYLVLRQ

%$6(6



6859(,//$1&(

65

5(48,5(0(176



9HULI\\LQJ5&6/($.$*(WREHZLWKLQWKH/&2OLPLWVHQVXUHVWKH

LQWHJULW\\RIWKH5&3%LVPDLQWDLQHG3UHVVXUHERXQGDU\\/($.$*(

ZRXOGDWILUVWDSSHDUDVXQLGHQWLILHG/($.$*(DQGFDQRQO\\EH

SRVLWLYHO\\LGHQWLILHGE\\LQVSHFWLRQ,WVKRXOGEHQRWHGWKDW/($.$*(

SDVWVHDOVDQGJDVNHWVLVQRWSUHVVXUHERXQGDU\\/($.$*(

8QLGHQWLILHG/($.$*(DQGLGHQWLILHG/($.$*(DUHGHWHUPLQHGE\\

SHUIRUPDQFHRIDQ5&6ZDWHULQYHQWRU\\EDODQFH





7KH5&6ZDWHULQYHQWRU\\EDODQFHPXVWEHPHWZLWKWKHUHDFWRUDW

VWHDG\\VWDWHRSHUDWLQJFRQGLWLRQVDQGQHDURSHUDWLQJSUHVVXUH7KH

6XUYHLOODQFHLVPRGLILHGE\\WZR1RWHV1RWHVWDWHVWKDWWKLV65LVQRW

UHTXLUHGWREHSHUIRUPHGLQ02'(6DQGXQWLOKRXUVRIVWHDG\\

VWDWHRSHUDWLRQQHDURSHUDWLQJSUHVVXUHKDYHEHHQHVWDEOLVKHG





6WHDG\\VWDWHRSHUDWLRQLVUHTXLUHGWRSHUIRUPDSURSHULQYHQWRU\\

EDODQFHFDOFXODWLRQVGXULQJPDQHXYHULQJDUHQRWXVHIXODQGD1RWH

UHTXLUHVWKH6XUYHLOODQFHWREHPHWZKHQVWHDG\\VWDWHLVHVWDEOLVKHG

)RU5&6RSHUDWLRQDO/($.$*(GHWHUPLQDWLRQE\\ZDWHULQYHQWRU\\

EDODQFHVWHDG\\VWDWHLVGHILQHGDVVWDEOH5&6SUHVVXUHWHPSHUDWXUH

SRZHUOHYHOSUHVVXUL]HUDQGPDNHXSWDQNOHYHOVPDNHXSDQGOHWGRZQ

DQG5&3VHDOLQMHFWLRQDQGUHWXUQIORZV





$QHDUO\\ZDUQLQJRISUHVVXUHERXQGDU\\/($.$*(RUXQLGHQWLILHG

/($.$*(LVSURYLGHGE\\WKHDXWRPDWLFV\\VWHPVWKDWPRQLWRUWKH

FRQWDLQPHQWDWPRVSKHUHUDGLRDFWLYLW\\DQGWKHFRQWDLQPHQWDLUFRROHU

FRQGHQVDWHIORZUDWH,WVKRXOGEHQRWHGWKDW/($.$*(SDVWVHDOV

DQGJDVNHWVLVQRWSUHVVXUHERXQGDU\\/($.$*(7KHVHOHDNDJH

GHWHFWLRQV\\VWHPVDUHVSHFLILHGLQ/&25&6/HDNDJH

'HWHFWLRQ,QVWUXPHQWDWLRQ



1RWHVWDWHVWKDWWKLV65LVQRWDSSOLFDEOHWRSULPDU\\WRVHFRQGDU\\

/($.$*(7KLVLVEHFDXVH/($.$*(RIJSGFDQQRWEH

PHDVXUHGDFFXUDWHO\\E\\DQ5&6ZDWHULQYHQWRU\\EDODQFH





7KH6XUYHLOODQFH)UHTXHQF\\LVFRQWUROOHGXQGHUWKH6XUYHLOODQFH

)UHTXHQF\\&RQWURO3URJUDP$1RWHXQGHUWKH)UHTXHQF\\FROXPQ

VWDWHVWKDWWKLV65LVUHTXLUHGWREHSHUIRUPHGGXULQJVWHDG\\VWDWH

RSHUDWLRQ





5&62SHUDWLRQDO/($.$*(

%







FRQWLQXHG



+$7&+81,7

%

5(9,6,21

%$6(6



$33/,&$%/(

DQGWKHGHWHFWLRQFDSDELOLW\\RIWKHLQVWUXPHQWDWLRQIRUGHWHUPLQLQJ

6$)(7<$1$/<6(6

V\\VWHP/($.$*(ZHUHDOVRFRQVLGHUHG7KHHYLGHQFHIURP



FRQWLQXHG 

H[SHULPHQWVVXJJHVWVWKDWIRU/($.$*(HYHQJUHDWHUWKDQWKH

VSHFLILHGXQLGHQWLILHG/($.$*(OLPLWVWKHSUREDELOLW\\LVVPDOOWKDWWKH

LPSHUIHFWLRQRUFUDFNDVVRFLDWHGZLWKVXFK/($.$*(ZRXOGJURZ

UDSLGO\\







7KHXQLGHQWLILHG/($.$*(IORZOLPLWDOORZVWLPHIRUFRUUHFWLYHDFWLRQ

EHIRUHWKH5&3%FRXOGEHVLJQLILFDQWO\\FRPSURPLVHG7KHJSPOLPLW

LVDVPDOOIUDFWLRQRIWKHFDOFXODWHGIORZIURPDFULWLFDOFUDFNLQWKH

SULPDU\\V\\VWHPSLSLQJ&UDFNEHKDYLRUIURPH[SHULPHQWDOSURJUDPV

5HIVDQG VKRZVWKDWOHDNDJHUDWHVRIKXQGUHGVRIJDOORQVSHU

PLQXWHZLOOSUHFHGHFUDFNLQVWDELOLW\\ 5HI 







7KHORZOLPLWRQLQFUHDVHLQXQLGHQWLILHG/($.$*(DVVXPHVDIDLOXUH

PHFKDQLVPRILQWHUJUDQXODUVWUHVVFRUURVLRQFUDFNLQJ ,*6&& WKDW

SURGXFHVWLJKWFUDFNV7KLVIORZLQFUHDVHOLPLWLVFDSDEOHRISURYLGLQJ

DQHDUO\\ZDUQLQJRIVXFKGHWHULRUDWLRQ







1RDSSOLFDEOHVDIHW\\DQDO\\VLVDVVXPHVWKHWRWDO/($.$*(OLPLW7KH

WRWDO/($.$*(OLPLWFRQVLGHUV5&6LQYHQWRU\\PDNHXSFDSDELOLW\\DQG

GU\\ZHOOIORRUVXPSFDSDFLW\\







5&6RSHUDWLRQDO/($.$*(VDWLVILHV&ULWHULRQRIWKH15&3ROLF\\

6WDWHPHQW 5HI 







/&2

5&6RSHUDWLRQDO/($.$*(VKDOOEHOLPLWHGWR







D

3UHVVXUH%RXQGDU\\/($.$*(









1RS3UHVVXUHERXQGDU\\/($.$*(LVSURKLELWHGDOORZHG

EHLQJLQGLFDWLYHRIPDWHULDOGHJUDGDWLRQ/($.$*(RIWKLV

W\\SHLVXQDFFHSWDEOHDVWKHOHDNLWVHOIFRXOGFDXVHIXUWKHU

5&3%GHWHULRUDWLRQUHVXOWLQJLQKLJKHU/($.$*(9LRODWLRQRI

WKLV/&2FRXOGUHVXOWLQFRQWLQXHGGHJUDGDWLRQRIWKH5&3%

/($.$*(SDVWVHDOVDQGJDVNHWVLVQRWSUHVVXUHERXQGDU\\

/($.$*(







E

8QLGHQWLILHG/($.$*(









7KHJSPRIXQLGHQWLILHG/($.$*(LVDOORZHGDVDUHDVRQDEOH

PLQLPXPGHWHFWDEOHDPRXQWWKDWWKHFRQWDLQPHQWDLUPRQLWRULQJ

DQGGU\\ZHOOVXPSOHYHOPRQLWRULQJHTXLSPHQWFDQ

5&62SHUDWLRQDO/($.$*(

%







FRQWLQXHG



+$7&+81,7

%

5(9,6,21

%$6(6



/&2

E

8QLGHQWLILHG/($.$*( FRQWLQXHG 









GHWHFWZLWKLQDUHDVRQDEOHWLPHSHULRG6HSDUDWLQJWKH

VRXUFHVRIOHDNDJH LHOHDNDJHIURPDQLGHQWLILHGVRXUFH

YHUVXVOHDNDJHIURPDQXQLGHQWLILHGVRXUFH LVQHFHVVDU\\IRU

SURPSWLGHQWLILFDWLRQRISRWHQWLDOO\\DGYHUVHFRQGLWLRQV

DVVHVVPHQWRIWKHVDIHW\\VLJQLILFDQFHDQGFRUUHFWLYHDFWLRQ

9LRODWLRQRIWKLV/&2FRXOGUHVXOWLQFRQWLQXHGGHJUDGDWLRQRI

WKH5&3%









F

7RWDO/($.$*(









7KHWRWDO/($.$*(OLPLWLVEDVHGRQDUHDVRQDEOHPLQLPXP

GHWHFWDEOHDPRXQW7KHOLPLWDOVRDFFRXQWVIRU/($.$*(

IURPNQRZQVRXUFHV LGHQWLILHG/($.$*( 9LRODWLRQRIWKLV

/&2LQGLFDWHVDQXQH[SHFWHGDPRXQWRI/($.$*(DQG

WKHUHIRUHFRXOGLQGLFDWHQHZRUDGGLWLRQDOGHJUDGDWLRQLQDQ

5&3%FRPSRQHQWRUV\\VWHP







G

8QLGHQWLILHG/($.$*(,QFUHDVH









$QXQLGHQWLILHG/($.$*(LQFUHDVHRI!JSPZLWKLQWKH

SUHYLRXVKRXUSHULRGLQGLFDWHVDSRWHQWLDOIODZLQWKH5&3%

DQGPXVWEHTXLFNO\\HYDOXDWHGWRGHWHUPLQHWKHVRXUFHDQG

H[WHQWRIWKH/($.$*(7KHLQFUHDVHLVPHDVXUHGUHODWLYHWR

WKHVWHDG\\VWDWHYDOXHWHPSRUDU\\FKDQJHVLQ/($.$*(UDWH

DVDUHVXOWRIWUDQVLHQWFRQGLWLRQV HJVWDUWXS DUHQRW

FRQVLGHUHG$VVXFKWKHJSPLQFUHDVHOLPLWLVRQO\\

DSSOLFDEOHLQ02'(ZKHQRSHUDWLQJSUHVVXUHVDQG

WHPSHUDWXUHVDUHHVWDEOLVKHG9LRODWLRQRIWKLV/&2FRXOG

UHVXOWLQFRQWLQXHGGHJUDGDWLRQRIWKH5&3%







$33/,&$%,/,7<

,Q02'(6DQGWKH5&6RSHUDWLRQDO/($.$*(/&2DSSOLHV

EHFDXVHWKHSRWHQWLDOIRU5&3%/($.$*(LVJUHDWHVWZKHQWKH

UHDFWRULVSUHVVXUL]HG







,Q02'(6DQG5&6RSHUDWLRQDO/($.$*(OLPLWVDUHQRW

UHTXLUHGVLQFHWKHUHDFWRULVQRWSUHVVXUL]HGDQGVWUHVVHVLQWKH

5&3%PDWHULDOVDQGSRWHQWLDOIRU/($.$*(DUHUHGXFHG







$&7,216

$









,ISUHVVXUHERXQGDU\\/($.$*(H[LVWVWKHDIIHFWHGFRPSRQHQWSLSH

5&62SHUDWLRQDO/($.$*(

%







FRQWLQXHG



+$7&+81,7

%

5(9,6,21

RUYHVVHOPXVWEHLVRODWHGIURPWKH5&6E\\DFORVHGPDQXDOYDOYH

FORVHGDQGGHDFWLYDWHGDXWRPDWLFYDOYHEOLQGIODQJHRUFKHFNYDOYH

ZLWKLQKRXUV:KLOHLQWKLVFRQGLWLRQVWUXFWXUDOLQWHJULW\\RIWKH

V\\VWHPVKRXOGEHFRQVLGHUHGEHFDXVHWKHVWUXFWXUDOLQWHJULW\\RIWKH

SDUWRIWKHV\\VWHPZLWKLQWKHLVRODWLRQERXQGDU\\PXVWEHPDLQWDLQHG

XQGHUDOOOLFHQVLQJEDVLVFRQGLWLRQVLQFOXGLQJFRQVLGHUDWLRQRIWKH

SRWHQWLDOIRUIXUWKHUGHJUDGDWLRQRIWKHLVRODWHGORFDWLRQ1RUPDO

/($.$*(SDVWWKHLVRODWLRQGHYLFHLVDFFHSWDEOHDVLWZLOOOLPLW5&6

/($.$*(DQGLVLQFOXGHGLQLGHQWLILHGRUXQLGHQWLILHG/($.$*(

7KLVDFWLRQLVQHFHVVDU\\WRSUHYHQWIXUWKHUGHWHULRUDWLRQRIWKH5&3%











%$









LWK5&6XQLGHQWLILHGRUWRWDO/($.$*(JUHDWHUWKDQWKHOLPLWV

DFWLRQVPXVWEHWDNHQWRUHGXFHWKHOHDN%HFDXVHWKH/($.$*(

OLPLWVDUHFRQVHUYDWLYHO\\EHORZWKH/($.$*(WKDWZRXOGFRQVWLWXWHD

FULWLFDOFUDFNVL]HKRXUVLVDOORZHGWRUHGXFHWKH/($.$*(UDWHV

EHIRUHWKHUHDFWRUPXVWEHVKXWGRZQ,IDQXQLGHQWLILHG/($.$*(

5&62SHUDWLRQDO/($.$*(

%







FRQWLQXHG



+$7&+81,7

%

5(9,6,21

%$6(6



$&7,216

%$ FRQWLQXHG 







KDVEHHQLGHQWLILHGDQGTXDQWLILHGLWPD\\EHUHFODVVLILHGDQG

FRQVLGHUHGDVLGHQWLILHG/($.$*(KRZHYHUWKHWRWDO/($.$*(

ZRXOGUHPDLQXQFKDQJHG7KHWRWDO/($.$*(PXVWEHDYHUDJHG

RYHUWKHSUHYLRXVKRXUVIRUFRPSDULVRQWRWKHOLPLW









&%







$QXQLGHQWLILHG/($.$*(LQFUHDVHRI!JSPZLWKLQDKRXUSHULRG

LVDQLQGLFDWLRQRIDSRWHQWLDOIODZLQWKH5&3%DQGPXVWEHTXLFNO\\

HYDOXDWHG$OWKRXJKWKHLQFUHDVHGRHVQRWQHFHVVDULO\\YLRODWHWKH

DEVROXWHXQLGHQWLILHG/($.$*(OLPLWFHUWDLQVXVFHSWLEOHFRPSRQHQWV

PXVWEHGHWHUPLQHGQRWWREHWKHVRXUFHRIWKH/($.$*(LQFUHDVH

ZLWKLQWKHUHTXLUHG&RPSOHWLRQ7LPH







7KHKRXU&RPSOHWLRQ7LPHLVUHDVRQDEOHWRSURSHUO\\UHGXFHWKH

/($.$*(LQFUHDVHEHIRUHWKHUHDFWRUPXVWEHVKXWGRZQZLWKRXW

XQGXO\\MHRSDUGL]LQJSODQWVDIHW\\









'DQG'&DQG&







,IDQ\\5HTXLUHG$FWLRQDQGDVVRFLDWHG&RPSOHWLRQ7LPHRI

&RQGLWLRQ$RU%LVQRWPHWRULISUHVVXUHERXQGDU\\/($.$*(

H[LVWVWKHSODQWPXVWEHEURXJKWWRD02'(LQZKLFKWKH/&2

GRHVQRWDSSO\\7RDFKLHYHWKLVVWDWXVWKHSODQWPXVWEHEURXJKW

WR02'(ZLWKLQKRXUVDQGWR02'(ZLWKLQKRXUV7KH

DOORZHG&RPSOHWLRQ7LPHVDUHUHDVRQDEOHEDVHGRQRSHUDWLQJ

H[SHULHQFHWRUHDFKWKHUHTXLUHGSODQWFRQGLWLRQVIURPIXOOSRZHU

FRQGLWLRQVLQDQRUGHUO\\PDQQHUDQGZLWKRXWFKDOOHQJLQJSODQW

VDIHW\\V\\VWHPV







6859(,//$1&(

65

5(48,5(0(176





7KH5&6/($.$*(LVPRQLWRUHGE\\DYDULHW\\RILQVWUXPHQWVGHVLJQHG

WRSURYLGHDODUPVZKHQ/($.$*(LVLQGLFDWHGDQGWRTXDQWLI\\WKH

YDULRXVW\\SHVRI/($.$*(/HDNDJHGHWHFWLRQLQVWUXPHQWDWLRQLV

GLVFXVVHGLQPRUHGHWDLOLQWKH%DVHVIRU/&25&6/HDNDJH

'HWHFWLRQ,QVWUXPHQWDWLRQ6XPSOHYHODQGIORZUDWHDUHW\\SLFDOO\\

PRQLWRUHGWRGHWHUPLQHDFWXDO/($.$*(UDWHVKRZHYHUDQ\\PHWKRG

PD\\EHXVHGWRTXDQWLI\\/($.$*(ZLWKLQWKHJXLGHOLQHVRI

5HIHUHQFH7KH6XUYHLOODQFH)UHTXHQF\\LVFRQWUROOHGXQGHUWKH

5&62SHUDWLRQDO/($.$*(

%







FRQWLQXHG



+$7&+81,7

%

5(9,6,21

%$6(6



$33/,&$%/(

DQGWKHGHWHFWLRQFDSDELOLW\\RIWKHLQVWUXPHQWDWLRQIRUGHWHUPLQLQJ

6$)(7<$1$/<6(6

V\\VWHP/($.$*(ZHUHDOVRFRQVLGHUHG7KHHYLGHQFHIURP



FRQWLQXHG 

H[SHULPHQWVVXJJHVWVWKDWIRU/($.$*(HYHQJUHDWHUWKDQWKH

VSHFLILHGXQLGHQWLILHG/($.$*(OLPLWVWKHSUREDELOLW\\LVVPDOOWKDWWKH

LPSHUIHFWLRQRUFUDFNDVVRFLDWHGZLWKVXFK/($.$*(ZRXOGJURZ

UDSLGO\\





7KHXQLGHQWLILHG/($.$*(IORZOLPLWDOORZVWLPHIRUFRUUHFWLYHDFWLRQ

EHIRUHWKH5&3%FRXOGEHVLJQLILFDQWO\\FRPSURPLVHG7KHJSPOLPLW

LVDVPDOOIUDFWLRQRIWKHFDOFXODWHGIORZIURPDFULWLFDOFUDFNLQWKH

SULPDU\\V\\VWHPSLSLQJ&UDFNEHKDYLRUIURPH[SHULPHQWDOSURJUDPV

5HIVDQG VKRZVWKDWOHDNDJHUDWHVRIKXQGUHGVRIJDOORQVSHU

PLQXWHZLOOSUHFHGHFUDFNLQVWDELOLW\\ 5HI 





7KHORZOLPLWRQLQFUHDVHLQXQLGHQWLILHG/($.$*(DVVXPHVDIDLOXUH

PHFKDQLVPRILQWHUJUDQXODUVWUHVVFRUURVLRQFUDFNLQJ ,*6&& WKDW

SURGXFHVWLJKWFUDFNV7KLVIORZLQFUHDVHOLPLWLVFDSDEOHRISURYLGLQJ

DQHDUO\\ZDUQLQJRIVXFKGHWHULRUDWLRQ





1RDSSOLFDEOHVDIHW\\DQDO\\VLVDVVXPHVWKHWRWDO/($.$*(OLPLW7KH

WRWDO/($.$*(OLPLWFRQVLGHUV5&6LQYHQWRU\\PDNHXSFDSDELOLW\\DQG

GU\\ZHOOIORRUVXPSFDSDFLW\\





5&6RSHUDWLRQDO/($.$*(VDWLVILHV&ULWHULRQRIWKH15&3ROLF\\

6WDWHPHQW 5HI 







/&2

5&6RSHUDWLRQDO/($.$*(VKDOOEHOLPLWHGWR





D

3UHVVXUH%RXQGDU\\/($.$*(







1RS3UHVVXUHERXQGDU\\/($.$*(LVSURKLELWHGDOORZHGEHLQJ

LQGLFDWLYHRIPDWHULDOGHJUDGDWLRQ/($.$*(RIWKLVW\\SHLV

XQDFFHSWDEOHDVWKHOHDNLWVHOIFRXOGFDXVHIXUWKHU5&3%





GHWHULRUDWLRQUHVXOWLQJLQKLJKHU/($.$*(9LRODWLRQRIWKLV





/&2FRXOGUHVXOWLQFRQWLQXHGGHJUDGDWLRQRIWKH5&3%

/($.$*(SDVWVHDOVDQGJDVNHWVLVQRWSUHVVXUHERXQGDU\\

/($.$*(





E

8QLGHQWLILHG/($.$*(







7KHJSPRIXQLGHQWLILHG/($.$*(LVDOORZHGDVDUHDVRQDEOH





PLQLPXPGHWHFWDEOHDPRXQWWKDWWKHFRQWDLQPHQWDLUPRQLWRULQJ

DQGGU\\ZHOOVXPSOHYHOPRQLWRULQJHTXLSPHQWFDQ





5&62SHUDWLRQDO/($.$*(

%







FRQWLQXHG



+$7&+81,7

%

5(9,6,21

%$6(6



/&2

E

8QLGHQWLILHG/($.$*( FRQWLQXHG 







GHWHFWZLWKLQDUHDVRQDEOHWLPHSHULRG6HSDUDWLQJWKHVRXUFHV

RIOHDNDJH LHOHDNDJHIURPDQLGHQWLILHGVRXUFHYHUVXVOHDNDJH

IURPDQXQLGHQWLILHGVRXUFH LVQHFHVVDU\\IRUSURPSWLGHQWLILFDWLRQ

RISRWHQWLDOO\\DGYHUVHFRQGLWLRQVDVVHVVPHQWRIWKHVDIHW\\

VLJQLILFDQFHDQGFRUUHFWLYHDFWLRQ9LRODWLRQRIWKLV/&2FRXOG

UHVXOWLQFRQWLQXHGGHJUDGDWLRQRIWKH5&3%





F

7RWDO/($.$*(







7KHWRWDO/($.$*(OLPLWLVEDVHGRQDUHDVRQDEOHPLQLPXP

GHWHFWDEOHDPRXQW7KHOLPLWDOVRDFFRXQWVIRU/($.$*(

IURPNQRZQVRXUFHV LGHQWLILHG/($.$*( 9LRODWLRQRIWKLV

/&2LQGLFDWHVDQXQH[SHFWHGDPRXQWRI/($.$*(DQG

WKHUHIRUHFRXOGLQGLFDWHQHZRUDGGLWLRQDOGHJUDGDWLRQLQDQ

5&3%FRPSRQHQWRUV\\VWHP





G

8QLGHQWLILHG/($.$*(,QFUHDVH







$QXQLGHQWLILHG/($.$*(LQFUHDVHRI!JSPZLWKLQWKH





SUHYLRXVKRXUSHULRGLQGLFDWHVDSRWHQWLDOIODZLQWKH5&3%





DQGPXVWEHTXLFNO\\HYDOXDWHGWRGHWHUPLQHWKHVRXUFHDQG





H[WHQWRIWKH/($.$*(7KHLQFUHDVHLVPHDVXUHGUHODWLYHWR





WKHVWHDG\\VWDWHYDOXHWHPSRUDU\\FKDQJHVLQ/($.$*(UDWH

DVDUHVXOWRIWUDQVLHQWFRQGLWLRQV HJVWDUWXS DUHQRW

FRQVLGHUHG$VVXFKWKHJSPLQFUHDVHOLPLWLVRQO\\

DSSOLFDEOHLQ02'(ZKHQRSHUDWLQJSUHVVXUHVDQG

WHPSHUDWXUHVDUHHVWDEOLVKHG9LRODWLRQRIWKLV/&2FRXOG

UHVXOWLQFRQWLQXHGGHJUDGDWLRQRIWKH5&3%







$33/,&$%,/,7<

,Q02'(6DQGWKH5&6RSHUDWLRQDO/($.$*(/&2DSSOLHV

EHFDXVHWKHSRWHQWLDOIRU5&3%/($.$*(LVJUHDWHVWZKHQWKH

UHDFWRULVSUHVVXUL]HG





,Q02'(6DQG5&6RSHUDWLRQDO/($.$*(OLPLWVDUHQRW

UHTXLUHGVLQFHWKHUHDFWRULVQRWSUHVVXUL]HGDQGVWUHVVHVLQWKH

5&3%PDWHULDOVDQGSRWHQWLDOIRU/($.$*(DUHUHGXFHG







$&7,216

$







,ISUHVVXUHERXQGDU\\/($.$*(H[LVWVWKHDIIHFWHGFRPSRQHQWSLSH

RUYHVVHOPXVWEHLVRODWHGIURPWKH5&6E\\DFORVHGPDQXDOYDOYH

5&62SHUDWLRQDO/($.$*(

%







FRQWLQXHG



+$7&+81,7

%

5(9,6,21

FORVHGDQGGHDFWLYDWHGDXWRPDWLFYDOYHEOLQGIODQJHRUFKHFNYDOYH

ZLWKLQKRXUV:KLOHLQWKLVFRQGLWLRQVWUXFWXUDOLQWHJULW\\RIWKH

V\\VWHPVKRXOGEHFRQVLGHUHGEHFDXVHWKHVWUXFWXUDOLQWHJULW\\RIWKH

SDUWRIWKHV\\VWHPZLWKLQWKHLVRODWLRQERXQGDU\\PXVWEHPDLQWDLQHG

XQGHUDOOOLFHQVLQJEDVLVFRQGLWLRQVLQFOXGLQJFRQVLGHUDWLRQRIWKH

SRWHQWLDOIRUIXUWKHUGHJUDGDWLRQRIWKHLVRODWHGORFDWLRQ1RUPDO

/($.$*(SDVWWKHLVRODWLRQGHYLFHLVDFFHSWDEOHDVLWZLOOOLPLW5&6

/($.$*(DQGLVLQFOXGHGLQLGHQWLILHGRUXQLGHQWLILHG/($.$*(

7KLVDFWLRQLVQHFHVVDU\\WRSUHYHQWIXUWKHUGHWHULRUDWLRQRIWKH5&3%









%$





LWK5&6XQLGHQWLILHGRUWRWDO/($.$*(JUHDWHUWKDQWKHOLPLWV

DFWLRQVPXVWEHWDNHQWRUHGXFHWKHOHDN%HFDXVHWKH/($.$*(

OLPLWVDUHFRQVHUYDWLYHO\\EHORZWKH/($.$*(WKDWZRXOGFRQVWLWXWHD

FULWLFDOFUDFNVL]HKRXUVLVDOORZHGWRUHGXFHWKH/($.$*(UDWHV

EHIRUHWKHUHDFWRUPXVWEHVKXWGRZQ,IDQXQLGHQWLILHG/($.$*(

5&62SHUDWLRQDO/($.$*(

%







FRQWLQXHG



+$7&+81,7

%

5(9,6,21

%$6(6



$&7,216

%$ FRQWLQXHG 





KDVEHHQLGHQWLILHGDQGTXDQWLILHGLWPD\\EHUHFODVVLILHGDQG

FRQVLGHUHGDVLGHQWLILHG/($.$*(KRZHYHUWKHWRWDO/($.$*(

ZRXOGUHPDLQXQFKDQJHG7KHWRWDO/($.$*(PXVWEHDYHUDJHG

RYHUWKHSUHYLRXVKRXUVIRUFRPSDULVRQWRWKHOLPLW







&%





$QXQLGHQWLILHG/($.$*(LQFUHDVHRI!JSPZLWKLQDKRXUSHULRG

LVDQLQGLFDWLRQRIDSRWHQWLDOIODZLQWKH5&3%DQGPXVWEHTXLFNO\\

HYDOXDWHG$OWKRXJKWKHLQFUHDVHGRHVQRWQHFHVVDULO\\YLRODWHWKH

DEVROXWHXQLGHQWLILHG/($.$*(OLPLWFHUWDLQVXVFHSWLEOHFRPSRQHQWV

PXVWEHGHWHUPLQHGQRWWREHWKHVRXUFHRIWKH/($.$*(LQFUHDVH

ZLWKLQWKHUHTXLUHG&RPSOHWLRQ7LPH





7KHKRXU&RPSOHWLRQ7LPHLVUHDVRQDEOHWRSURSHUO\\UHGXFHWKH

/($.$*(LQFUHDVHEHIRUHWKHUHDFWRUPXVWEHVKXWGRZQZLWKRXW

XQGXO\\MHRSDUGL]LQJSODQWVDIHW\\







'DQG'&DQG&





,IDQ\\5HTXLUHG$FWLRQDQGDVVRFLDWHG&RPSOHWLRQ7LPHRI

&RQGLWLRQ$RU%LVQRWPHWRULISUHVVXUHERXQGDU\\/($.$*(

H[LVWVWKHSODQWPXVWEHEURXJKWWRD02'(LQZKLFKWKH/&2

GRHVQRWDSSO\\7RDFKLHYHWKLVVWDWXVWKHSODQWPXVWEHEURXJKW

WR02'(ZLWKLQKRXUVDQGWR02'(ZLWKLQKRXUV7KH

DOORZHG&RPSOHWLRQ7LPHVDUHUHDVRQDEOHEDVHGRQRSHUDWLQJ

H[SHULHQFHWRUHDFKWKHUHTXLUHGSODQWFRQGLWLRQVIURPIXOOSRZHU

FRQGLWLRQVLQDQRUGHUO\\PDQQHUDQGZLWKRXWFKDOOHQJLQJSODQW

VDIHW\\V\\VWHPV







6859(,//$1&(

65

5(48,5(0(176



7KH5&6/($.$*(LVPRQLWRUHGE\\DYDULHW\\RILQVWUXPHQWVGHVLJQHG

WRSURYLGHDODUPVZKHQ/($.$*(LVLQGLFDWHGDQGWRTXDQWLI\\WKH

YDULRXVW\\SHVRI/($.$*(/HDNDJHGHWHFWLRQLQVWUXPHQWDWLRQLV

GLVFXVVHGLQPRUHGHWDLOLQWKH%DVHVIRU/&25&6/HDNDJH

'HWHFWLRQ,QVWUXPHQWDWLRQ6XPSOHYHODQGIORZUDWHDUHW\\SLFDOO\\

PRQLWRUHGWRGHWHUPLQHDFWXDO/($.$*(UDWHVKRZHYHUDQ\\PHWKRG

PD\\EHXVHGWRTXDQWLI\\/($.$*(ZLWKLQWKHJXLGHOLQHVRI



5HIHUHQFH7KH6XUYHLOODQFH)UHTXHQF\\LVFRQWUROOHGXQGHUWKH





5&62SHUDWLRQDO/($.$*(



%





FRQWLQXHG 



9RJWOH8QLWVDQG

%

5HY

%$6(6 FRQWLQXHG 



$33/,&$%/(

 ([FHSWIRUSULPDU\\WRVHFRQGDU\\/($.$*(WKHVDIHW\\DQDO\\VHV

6$)(7<$1$/<6(6  GRQRWDGGUHVVRSHUDWLRQDO/($.$*(+RZHYHURWKHURSHUDWLRQDO

/($.$*(LVUHODWHGWRWKHVDIHW\\DQDO\\VHVIRU/2&$WKHDPRXQWRI

OHDNDJHFDQDIIHFWWKHSUREDELOLW\\RIVXFKDQHYHQW7KHVDIHW\\

DQDO\\VHVIRUDQHYHQWUHVXOWLQJLQVWHDPGLVFKDUJHWRWKHDWPRVSKHUH

DVVXPHVWKDWSULPDU\\WRVHFRQGDU\\/($.$*(IURPDOOVWHDP

JHQHUDWRUV 6*V LVRQHJDOORQSHUPLQXWHRULQFUHDVHVWRRQHJDOORQ

SHUPLQXWHDVDUHVXOWRIDFFLGHQWLQGXFHGFRQGLWLRQV7KH/&2

UHTXLUHPHQWWROLPLWSULPDU\\WRVHFRQGDU\\/($.$*(WKURXJKDQ\\RQH

6*WROHVVWKDQRUHTXDOWRJDOORQVSHUGD\\LVVLJQLILFDQWO\\OHVV

WKDQWKHFRQGLWLRQVDVVXPHGLQWKHVDIHW\\DQDO\\VLV







 7KH5&6RSHUDWLRQDO/($.$*(VDWLVILHV&ULWHULRQRI&)5

F  LL 







/&2

 5&6RSHUDWLRQDO/($.$*(VKDOOEHOLPLWHGWR







 D

3UHVVXUH%RXQGDU\\/($.$*(







 

1RS3UHVVXUHERXQGDU\\/($.$*(LVSURKLELWHGDOORZHGEHLQJ

LQGLFDWLYHRIDQRIIQRUPDOFRQGLWLRQ/($.$*(RIWKLVW\\SHLV

XQDFFHSWDEOHDVWKHOHDNLWVHOIFRXOGFDXVHIXUWKHU5&3%

GHWHULRUDWLRQUHVXOWLQJLQKLJKHU/($.$*(9LRODWLRQRIWKLV

/&2FRXOGUHVXOWLQFRQWLQXHGGHJUDGDWLRQRIWKH5&3%

/($.$*(SDVWVHDOVDQGJDVNHWVLVQRWSUHVVXUHERXQGDU\\

/($.$*(







 E

8QLGHQWLILHG/($.$*(







 

2QHJDOORQSHUPLQXWH JSP RIXQLGHQWLILHG/($.$*(LV

DOORZHGDVDUHDVRQDEOHPLQLPXPGHWHFWDEOHDPRXQWWKDWWKH

FRQWDLQPHQWDLUPRQLWRULQJDQGFRQWDLQPHQWVXPSOHYHO

PRQLWRULQJHTXLSPHQWFDQGHWHFWZLWKLQDUHDVRQDEOHWLPH

SHULRG6HSDUDWLQJWKHVRXUFHVRIOHDNDJH LHOHDNDJHIURPDQ

LGHQWLILHGVRXUFHYHUVXVOHDNDJHIURPDQXQLGHQWLILHGVRXUFH LV

QHFHVVDU\\IRUSURPSWLGHQWLILFDWLRQRISRWHQWLDOO\\DGYHUVH

FRQGLWLRQVDVVHVVPHQWRIWKHVDIHW\\VLJQLILFDQFHDQGFRUUHFWLYH

DFWLRQ9LRODWLRQRIWKLV/&2FRXOGUHVXOWLQFRQWLQXHG

GHJUDGDWLRQRIWKH5&3%LIWKH/($.$*(LVIURPWKHSUHVVXUH

ERXQGDU\\







 





5&62SHUDWLRQDO/($.$*(



%





FRQWLQXHG 



9RJWOH8QLWVDQG

%

5HY

%$6(6



/&2

 F

,GHQWLILHG/($.$*(







 

8SWRJSPRILGHQWLILHG/($.$*(LVFRQVLGHUHGDOORZDEOH

EHFDXVH/($.$*(LVIURPNQRZQVRXUFHVWKDWGRQRWLQWHUIHUH

ZLWKGHWHFWLRQRIXQLGHQWLILHG/($.$*(DQGLVZHOOZLWKLQWKH

FDSDELOLW\\RIWKH5&60DNHXS6\\VWHP,GHQWLILHG/($.$*(

LQFOXGHV/($.$*(WRWKHFRQWDLQPHQWIURPVSHFLILFDOO\\NQRZQ

DQGORFDWHGVRXUFHVEXWGRHVQRWLQFOXGHSUHVVXUHERXQGDU\\

/($.$*(RUFRQWUROOHGUHDFWRUFRRODQWSXPS 5&3 VHDOOHDNRII

DQRUPDOIXQFWLRQQRWFRQVLGHUHG/($.$*( 9LRODWLRQRIWKLV

/&2FRXOGUHVXOWLQFRQWLQXHGGHJUDGDWLRQRIDFRPSRQHQWRU

V\\VWHP



G

3ULPDU\\WR6HFRQGDU\\/($.$*(WKURXJK$Q\\2QH6*







 

7KHOLPLWRIJDOORQVSHUGD\\SHU6*LVEDVHGRQWKH

RSHUDWLRQDO/($.$*(SHUIRUPDQFHFULWHULRQLQ1(,

6WHDP*HQHUDWRU3URJUDP*XLGHOLQHV 5HI 7KH6WHDP

  • HQHUDWRU3URJUDPRSHUDWLRQDO/($.$*(SHUIRUPDQFHFULWHULRQ

LQ1(,VWDWHV³7KH5&6RSHUDWLRQDOSULPDU\\WRVHFRQGDU\\

OHDNDJHWKURXJKDQ\\RQH6*VKDOOEHOLPLWHGWRJDOORQVSHU

GD\\'7KHOLPLWLVEDVHGRQRSHUDWLQJH[SHULHQFHZLWK6*WXEH

GHJUDGDWLRQPHFKDQLVPVWKDWUHVXOWLQWXEHOHDNDJH7KH

RSHUDWLRQDOOHDNDJHUDWHFULWHULRQLQFRQMXQFWLRQZLWKWKH

LPSOHPHQWDWLRQRIWKH6WHDP*HQHUDWRU3URJUDPLVDQHIIHFWLYH

PHDVXUHIRUPLQLPL]LQJWKHIUHTXHQF\\RIVWHDPJHQHUDWRUWXEH

UXSWXUHV







$33/,&$%,/,7<

,Q02'(6DQGWKHSRWHQWLDOIRU5&3%/($.$*(LV

JUHDWHVWZKHQWKH5&6LVSUHVVXUL]HG







,Q02'(6DQG/($.$*(OLPLWVDUHQRWUHTXLUHGEHFDXVHWKH

UHDFWRUFRRODQWSUHVVXUHLVIDUORZHUUHVXOWLQJLQORZHUVWUHVVHVDQG

UHGXFHGSRWHQWLDOVIRU/($.$*(







 /&25&63UHVVXUH,VRODWLRQ9DOYH 3,9 /HDNDJH

PHDVXUHVOHDNDJHWKURXJKHDFKLQGLYLGXDO3,9DQGFDQLPSDFWWKLV

/&22IWKHWZR3,9VLQVHULHVLQHDFKLVRODWHGOLQHOHDNDJH

PHDVXUHGWKURXJKRQH3,9GRHVQRWUHVXOWLQ5&6/($.$*(ZKHQ

WKHRWKHULVOHDNWLJKW,IERWKYDOYHVOHDNDQGUHVXOWLQDORVVRIPDVV

IURPWKH5&6WKHORVVPXVWEHLQFOXGHGLQWKHDOORZDEOHLGHQWLILHG

/($.$*(







5&62SHUDWLRQDO/($.$*(



%





FRQWLQXHG 



9RJWOH8QLWVDQG

%

5(9,6,21

%$6(6 FRQWLQXHG 



$&7,216

 $







,ISUHVVXUHERXQGDU\\/($.$*(H[LVWVWKHDIIHFWHGFRPSRQHQWSLSH

RUYHVVHOPXVWEHLVRODWHGIURPWKH5&6E\\DFORVHGPDQXDOYDOYH

FORVHGDQGGHDFWLYDWHGDXWRPDWLFYDOYHEOLQGIODQJHRUFKHFNYDOYH

ZLWKLQKRXUV:KLOHLQWKLVFRQGLWLRQVWUXFWXUDOLQWHJULW\\RIWKH

V\\VWHPVKRXOGEHFRQVLGHUHGEHFDXVHWKHVWUXFWXUDOLQWHJULW\\RIWKH

SDUWRIWKHV\\VWHPZLWKLQWKHLVRODWLRQERXQGDU\\PXVWEHPDLQWDLQHG

XQGHUDOOOLFHQVLQJEDVLVFRQGLWLRQVLQFOXGLQJFRQVLGHUDWLRQRIWKH

SRWHQWLDOIRUIXUWKHUGHJUDGDWLRQRIWKHLVRODWHGORFDWLRQ1RUPDO

/($.$*(SDVWWKHLVRODWLRQGHYLFHLVDFFHSWDEOHDVLWZLOOOLPLW5&6

/($.$*(DQGLVLQFOXGHGLQLGHQWLILHGRUXQLGHQWLILHG/($.$*(

7KLVDFWLRQLVQHFHVVDU\\WRSUHYHQWIXUWKHUGHWHULRUDWLRQRIWKH5&3%









 %$







 8QLGHQWLILHG/($.$*(RULGHQWLILHG/($.$*(LQH[FHVVRIWKH/&2

OLPLWVPXVWEHUHGXFHGWRZLWKLQOLPLWVZLWKLQKRXUV7KLV&RPSOHWLRQ

7LPHDOORZVWLPHWRYHULI\\OHDNDJHUDWHVDQGHLWKHULGHQWLI\\XQLGHQWLILHG

/($.$*(RUUHGXFH/($.$*(WRZLWKLQOLPLWVEHIRUHWKHUHDFWRU

PXVWEHVKXWGRZQ7KLVDFWLRQLVQHFHVVDU\\WRSUHYHQWIXUWKHU

GHWHULRUDWLRQRIWKH5&3%









 &DQG&%DQG%







,IDQ\\SUHVVXUHERXQGDU\\/($.$*(H[LVWVRUSULPDU\\WRVHFRQGDU\\

/($.$*(LVQRWZLWKLQOLPLWRULIDQ\\RIWKH5HTXLUHG$FWLRQVDQG

DVVRFLDWHG&RPSOHWLRQ7LPHVFDQQRWEHPHWXQLGHQWLILHGRULGHQWLILHG

/($.$*(FDQQRWEHUHGXFHGWRZLWKLQOLPLWVZLWKLQKRXUVWKH

UHDFWRUPXVWEHEURXJKWWRORZHUSUHVVXUHFRQGLWLRQVWRUHGXFHWKH

VHYHULW\\RIWKH/($.$*(DQGLWVSRWHQWLDOFRQVHTXHQFHV,WVKRXOG

EHQRWHGWKDW/($.$*(SDVWVHDOVDQGJDVNHWVLVQRWSUHVVXUH

ERXQGDU\\/($.$*(7KHUHDFWRUPXVWEHSODFHGLQD02'(LQ

ZKLFKRYHUDOOSODQWULVNLVUHGXFHG7KLVLVGRQHE\\SODFLQJWKHXQLWLQ

DWOHDVW02'(ZLWKLQKRXUVDQG02'(ZLWKLQWKHQH[WKRXUV

7KLVDFWLRQUHGXFHVWKH/($.$*(DQGDOVRUHGXFHVWKHIDFWRUVWKDW

WHQGWRGHJUDGHWKHSUHVVXUHERXQGDU\\







 5HPDLQLQJZLWKLQWKH$SSOLFDELOLW\\RIWKH/&2LVDFFHSWDEOHWR

DFFRPSOLVKVKRUWGXUDWLRQUHSDLUVWRUHVWRUHLQRSHUDEOHHTXLSPHQW

EHFDXVHWKHSODQWULVNLQ02'(LVVLPLODUWRRUORZHUWKDQ02'(

5HI ,Q02'(WKH6WHDP*HQHUDWRUVDQG5HVLGXDO+HDW

5HPRYDO6\\VWHPDUHDYDLODEOHWRUHPRYHGHFD\\KHDWZKLFKSURYLGHV

GLYHUVLW\\DQGGHIHQVHLQGHSWK$VVWDWHGLQ5HIHUHQFHWKHVWHDP

WXUELQHGULYHQ$X[LOLDU\\)HHGZDWHU3XPSPXVWEHDYDLODEOHWRUHPDLQ

%$6(6 FRQWLQXHG 



5&62SHUDWLRQDO/($.$*(



%





FRQWLQXHG 



9RJWOH8QLWVDQG

%

5(9,6,21



$&7,216

 &DQG&%DQG% FRQWLQXHG 







 LQ02'(6KRXOG6WHDP*HQHUDWRUFRROLQJEHORVWZKLOHUHO\\LQJRQ

WKLV5HTXLUHG$FWLRQWKHUHDUHSUHSODQQHGDFWLRQVWRHQVXUHORQJ

WHUPGHFD\\KHDWUHPRYDO9ROXQWDU\\HQWU\\LQWR02'(PD\\EHPDGH

DVLWLVDOVRDFFHSWDEOHIURPDULVNSHUVSHFWLYH







 5HTXLUHG$FWLRQ&%LVPRGLILHGE\\D1RWHWKDWVWDWHVWKDW/&2

DLVQRWDSSOLFDEOHZKHQHQWHULQJ02'(7KLV1RWHSURKLELWV

WKHXVHRI/&2DWRHQWHU02'(GXULQJVWDUWXSZLWKWKH/&2

QRWPHW+RZHYHUWKHUHLVQRUHVWULFWLRQRQWKHXVHRI/&2ELI

DSSOLFDEOHEHFDXVH/&2EUHTXLUHVSHUIRUPDQFHRIDULVN

DVVHVVPHQWDGGUHVVLQJLQRSHUDEOHV\\VWHPVDQGFRPSRQHQWV

FRQVLGHUDWLRQRIWKHUHVXOWVGHWHUPLQDWLRQRIWKHDFFHSWDELOLW\\RI

HQWHULQJ02'(DQGHVWDEOLVKPHQWRIULVNPDQDJHPHQWDFWLRQVLI

DSSURSULDWH/&2LVQRWDSSOLFDEOHWRDQGWKH1RWHGRHVQRW

SUHFOXGHFKDQJHVLQ02'(6RURWKHUVSHFLILHGFRQGLWLRQVLQWKH

$SSOLFDELOLW\\WKDWDUHUHTXLUHGWRFRPSO\\ZLWK$&7,216RUWKDWDUHSDUW

RIDVKXWGRZQRIWKHXQLW







 7KHDOORZHG&RPSOHWLRQ7LPHVDUHUHDVRQDEOHEDVHGRQRSHUDWLQJ

H[SHULHQFHWRUHDFKWKHUHTXLUHGSODQWFRQGLWLRQVIURPIXOOSRZHU

FRQGLWLRQVLQDQRUGHUO\\PDQQHUDQGZLWKRXWFKDOOHQJLQJSODQW

V\\VWHPV





5&62SHUDWLRQDO/($.$*(



%







FRQWLQXHG 



9RJWOH8QLWVDQG

%

5(9,6,21

%$6(6



6859(,//$1&(

 65

5(48,5(0(176







 9HULI\\LQJ5&6/($.$*(WREHZLWKLQWKH/&2OLPLWVHQVXUHVWKH

LQWHJULW\\RIWKH5&3%LVPDLQWDLQHG3UHVVXUHERXQGDU\\/($.$*(

ZRXOGDWILUVWDSSHDUDVXQLGHQWLILHG/($.$*(DQGFDQRQO\\EH

SRVLWLYHO\\LGHQWLILHGE\\LQVSHFWLRQ,WVKRXOGEHQRWHGWKDW/($.$*(

SDVWVHDOVDQGJDVNHWVLVQRWSUHVVXUHERXQGDU\\/($.$*(

8QLGHQWLILHG/($.$*(DQGLGHQWLILHG/($.$*(DUHGHWHUPLQHGE\\

SHUIRUPDQFHRIDQ5&6ZDWHULQYHQWRU\\EDODQFH





 7KH5&6ZDWHULQYHQWRU\\EDODQFHPXVWEHSHUIRUPHGZLWKWKHUHDFWRU

DWVWHDG\\VWDWHRSHUDWLQJFRQGLWLRQV7KH6XUYHLOODQFHLVPRGLILHGE\\

WKUHH1RWHV1RWHVWDWHVWKDWWKLV65LVQRWUHTXLUHGWREH

SHUIRUPHGLQ02'(6DQGXQWLOKRXUVRIVWHDG\\VWDWHRSHUDWLRQ

KDYHEHHQHVWDEOLVKHG,QDOOFDVHVWKLV65LVUHTXLUHGWREH

SHUIRUPHGSULRUWRHQWHULQJ02'(WRHQVXUHWKHDVVHVVPHQWRI

5&6OHDNDJHSULRUWRFULWLFDORSHUDWLRQ







 6WHDG\\VWDWHRSHUDWLRQLVUHTXLUHGWRSHUIRUPDSURSHULQYHQWRU\\

EDODQFHFDOFXODWLRQVGXULQJPDQHXYHULQJDUHQRWXVHIXODQG1RWH

UHTXLUHVWKH6XUYHLOODQFHWREHSHUIRUPHGZKHQVWHDG\\VWDWHLV

HVWDEOLVKHG)RU5&6RSHUDWLRQDO/($.$*(GHWHUPLQDWLRQE\\ZDWHU

LQYHQWRU\\EDODQFHVWHDG\\VWDWHLVGHILQHGDVVWDEOH5&6SUHVVXUH

WHPSHUDWXUHSRZHUOHYHOSUHVVXUL]HUDQGPDNHXSWDQNOHYHOV

PDNHXSDQGOHWGRZQDQG5&3VHDOLQMHFWLRQDQGUHWXUQIORZV







 $QHDUO\\ZDUQLQJRISUHVVXUHERXQGDU\\/($.$*(RUXQLGHQWLILHG

/($.$*(LVSURYLGHGE\\WKHDXWRPDWLFV\\VWHPVWKDWPRQLWRUWKH

FRQWDLQPHQWDWPRVSKHUHUDGLRDFWLYLW\\DQGWKHFRQWDLQPHQWVXPS

OHYHO,WVKRXOGEHQRWHGWKDW/($.$*(SDVWVHDOVDQGJDVNHWVLVQRW

SUHVVXUHERXQGDU\\/($.$*(7KHVHOHDNDJHGHWHFWLRQV\\VWHPVDUH

VSHFLILHGLQ/&25&6/HDNDJH'HWHFWLRQ,QVWUXPHQWDWLRQ







 1RWHVWDWHVWKDWWKLV65LVQRWDSSOLFDEOHWRSULPDU\\WRVHFRQGDU\\

/($.$*(EHFDXVH/($.$*(RIJDOORQVSHUGD\\FDQQRWEH

PHDVXUHGDFFXUDWHO\\E\\DQ5&6ZDWHULQYHQWRU\\EDODQFH