ML22125A124
| ML22125A124 | |
| Person / Time | |
|---|---|
| Site: | Sequoyah  |
| Issue date: | 05/04/2022 |
| From: | Marshall T Tennessee Valley Authority |
| To: | Document Control Desk, Office of Nuclear Reactor Regulation |
| References | |
| Download: ML22125A124 (157) | |
Text
Sequoyah Nuclear Plant, Post Office Box 2000, Soddy Daisy, Tennessee 37384 May , 2022 10 CFR 50.4 10 CFR 50.71(e)
ATTN: Document Control Desk U.S. Nuclear Regulatory Commission Washington, D.C. 20555-0001 Sequoyah Nuclear Plant, Units 1 and 2 Renewed Facility Operating License Nos. DPR-77 and DPR-79 NRC Docket Nos. 50-327 and 50-328
Subject:
Revisions to the Sequoyah Nuclear Plant Units 1 and 2 Technical Requirements Manual
References:
- 1. NRC Letter to TVA, Issuance of Exemption to 10 CFR [50.] 71(e)(4) for the Sequoyah Nuclear Plant, Units 1 and 2 (TAC Nos. MA0646 and MA0647),
dated March 9, 1998
- 2. TVA Letter to NRC, Revisions to the Sequoyah Nuclear Plant Units 1 and 2 Technical Requirements Manual, dated October 28, 2020 Pursuant to 10 CFR 50.71(e) and the Reference 1 letter, updates to the Sequoyah Nuclear Plant (SQN) Updated Final Safety Analysis Report (UFSAR) for both Units 1 and 2 are to be submitted within 180 days following each Unit 2 refueling outage, but not to exceed 24 months between successive revisions. The SQN Technical Requirements Manual (TRM) is incorporated by reference into the SQN UFSAR. This letter provides NRC updates to the TRM since the update provided in the Reference 2 letter. The last Unit 2 refueling outage ended on November 9, 2021, and as such these updates are required by May 9, 2022. The enclosure to this letter provides a description of the TRM revisions and copy of the TRM including a revised effective page listing.
U.S. Nuclear Regulatory Commission Page 2 May , 2022 There are no new regulatory commitments contained in this letter. If you have any questions, please contact Mr. Jeffrey Sowa, SQN Licensing Manager, at (423) 843-8129.
I certify that I am duly authorized by TVA, and that, to the best of my knowledge and belief, the information contained herein accurately presents changes made since the previous submittal, necessary to reflect information and analyses submitted to the Commission or prepared pursuant to Commission requirements.
Respectfully, Digitally signed by Marshall, Marshall, Thomas B.
Date: 2022.05.04 17:28:28 Thomas B. -04'00' Thomas B. Marshall Site Vice President Sequoyah Nuclear Plant
Enclosure:
Description of Revisions for the Sequoyah Nuclear Plant (SQN) Units 1 and 2, Technical Requirements Manual (TRM) cc (Enclosure):
NRC Regional Administrator - Region II NRC Senior Resident Inspector - Sequoyah Nuclear Plant
ENCLOSURE DESCRIPTION OF REVISIONS FOR THE SEQUOYAH NUCLEAR PLANT (SQN)
UNITS 1 AND 2, TECHNICAL REQUIREMENTS MANUAL (TRM)
Technical Requirements Manual (TRM) Revisions TRM Revision 63 implemented a change to the Manipulator Crane auxiliary hoist of Technical Requirement (TR) 8.9.2. SQN acquired a new control rod drive shaft unlatching/latching tool that weighs more than the previous tool. To account for the weight of the new tool, the lifting capacity, load indicator, and the TR Verification of the load indicator were increased. TRM Revision 63 reflects these changes for use of this new tool.
TRM Revision 64 was a change to the Contingency Measures treatment of motor-operated valves with integral motor starter thermal overload protection devices of TR 8.8.2, Motor Operated Valve Thermal Overload Protection. The change eliminates the requirement to immediately declare a motor-operated valve inoperable when one or more thermal overload protection devices are nonfunctional. Instead, the condition directs evaluation of the condition through current programs and processes (e.g. the Corrective Action Program) similar for finding any condition of the Updated Final Safety Analysis Report (UFSAR) not being met. The revision also updated TR 8.3.2, Seismic Monitoring Instrumentation, Bases to be consistent with current vocabulary of TVAs Corrective Action Program.
TRM Revision 65 revised TR 8.7.5, Heating, Ventilating, and Air Conditioning (HVAC)
Maintenance Rule Equipment, and associated Bases. SQN updated its risk significance profile of certain HVAC equipment listed in Table 8.7.5-1 to non-risk significant. As a result, certain HVAC equipment no longer requires Maintenance Rule Unavailability tracking, and this revision removes the equipment from the TRM to reduce Operator burden.
Attachment:
Sequoyah Nuclear Plant, Technical Requirements Manual E1-1
ATTACHMENT SEQUOYAH NUCLEAR PLANT TECHNICAL REQUIREMENTS MANUAL
7(11(66((9$//(<
$87+25,7<
6(482<$+18&/($5
3/$17
81,76$1'
7(&+1,&$/
5(48,5(0(1760$18$/
6(482<$+18&/($53/$1781,76$1'
7(&+1,&$/5(48,5(0(1760$18$/
())(&7,9(3$*(/,67,1*
3DJH 5HYLVLRQ
7DEOHRI&RQWHQWVSDJHL
7DEOHRI&RQWHQWVSDJHLL
(3/ $XJXVW
6(482<$+18&/($53/$1781,76$1'
7(&+1,&$/5(48,5(0(1760$18$/
())(&7,9(3$*(/,67,1*
3DJH 5HYLVLRQ
$
(3/ 6HSWHPEHU
SEQUOYAH NUCLEAR PLANT UNITS 1 AND 2 TECHNICAL REQUIREMENTS MANUAL EFFECTIVE PAGE LISTING Page Revision 8.3.2-7 ............................................................................................................................ 03/22/21 8.3.2-8 ............................................................................................................................ 10/23/15 8.3.2-9 ............................................................................................................................ 10/23/15 8.3.3-1 ............................................................................................................................ 10/23/15 8.3.3-2 ............................................................................................................................ 10/23/15 8.3.3-3 ............................................................................................................................ 10/23/15 8.3.4-1 ............................................................................................................................ 11/25/15 8.3.4-2 ............................................................................................................................ 10/23/15 8.3.4-3 ............................................................................................................................ 08/23/17 8.3.4-4 ............................................................................................................................ 10/23/15 8.3.4-5 ............................................................................................................................ 10/23/15 8.3.4-6 ............................................................................................................................ 10/23/15 8.3.4-7 ............................................................................................................................ 10/23/15 8.3.4-8 ............................................................................................................................ 10/23/15 8.3.5-1 ............................................................................................................................ 10/23/15 8.3.5-2 ............................................................................................................................ 10/23/15 8.3.5-3 ............................................................................................................................ 10/23/15 8.3.6-1 (Deleted) ............................................................................................................. 08/31/16 8.3.6-2 (Deleted) ............................................................................................................. 08/31/16 8.4.1-1 ............................................................................................................................ 10/23/15 8.4.1-2 ............................................................................................................................ 10/23/15 8.4.1-3 ............................................................................................................................ 10/23/15 8.4.1-4 ............................................................................................................................ 10/23/15 8.4.2-1 ............................................................................................................................ 10/23/15 EPL-3 March 22, 2021
SEQUOYAH NUCLEAR PLANT UNITS 1 AND 2 TECHNICAL REQUIREMENTS MANUAL EFFECTIVE PAGE LISTING Page Revision 8.4.2-2 ............................................................................................................................ 10/23/15 8.4.2-3 ............................................................................................................................ 10/23/15 8.4.2-4 ............................................................................................................................ 10/23/15 8.4.2-5 ............................................................................................................................ 10/23/15 8.4.3-1 ............................................................................................................................ 10/07/16 8.4.3-2 ............................................................................................................................ 10/23/15 8.4.3-3 ............................................................................................................................ 10/07/16 8.6.1-1 ............................................................................................................................ 10/23/15 8.6.1-2 ............................................................................................................................ 10/23/15 8.6.1-3 ............................................................................................................................ 10/23/15 8.6.2-1 ............................................................................................................................ 07/11/19 8.6.2-2 ............................................................................................................................ 10/23/15 8.6.2-3 ............................................................................................................................ 10/23/15 8.6.3-1 ............................................................................................................................ 10/23/15 8.6.3-2 ............................................................................................................................ 10/23/15 8.6.3-3 ............................................................................................................................ 10/23/15 8.6.4-1 ............................................................................................................................ 10/23/15 8.6.4-2 ............................................................................................................................ 10/23/15 8.6.4-3 ............................................................................................................................ 10/23/15 8.7.1-1 ............................................................................................................................ 10/23/15 8.7.1-2 ............................................................................................................................ 10/23/15 8.7.1-3 ............................................................................................................................ 10/23/15 8.7.2-1 ............................................................................................................................ 10/23/15 8.7.2-2 ............................................................................................................................ 10/23/15 EPL-4 July 11, 2019
SEQUOYAH NUCLEAR PLANT UNITS 1 AND 2 TECHNICAL REQUIREMENTS MANUAL EFFECTIVE PAGE LISTING Page Revision 8.7.2-3 ............................................................................................................................ 10/23/15 8.7.3-1 ............................................................................................................................ 10/23/15 8.7.3-2 ............................................................................................................................ 10/23/15 8.7.3-3 ............................................................................................................................ 10/23/15 8.7.3-4 ............................................................................................................................ 10/23/15 8.7.3-5 ............................................................................................................................ 10/23/15 8.7.3-6 ............................................................................................................................ 10/23/15 8.7.3-7 ............................................................................................................................ 10/23/15 8.7.3-8 ............................................................................................................................ 10/23/15 8.7.3-9 ............................................................................................................................ 10/23/15 8.7.3-10........................................................................................................................... 10/23/15 8.7.3-11........................................................................................................................... 10/23/15 8.7.3-12........................................................................................................................... 10/23/15 8.7.3-13........................................................................................................................... 10/23/15 8.7.3-14........................................................................................................................... 10/23/15 8.7.4-1 ............................................................................................................................ 10/23/15 8.7.4-2 ............................................................................................................................ 10/23/15 8.7.4-3 ............................................................................................................................ 10/23/15 8.7.5-1 ............................................................................................................................ 10/23/15 8.7.5-2 ............................................................................................................................ 09/15/21 8.7.5-3 ............................................................................................................................ 09/15/21 8.7.5-4 ............................................................................................................................ 09/15/21 8.7.6-1 ............................................................................................................................ 10/23/15 8.7.6-2 ............................................................................................................................ 10/23/15 EPL-5 September 15, 2021
SEQUOYAH NUCLEAR PLANT UNITS 1 AND 2 TECHNICAL REQUIREMENTS MANUAL EFFECTIVE PAGE LISTING Page Revision 8.7.6-3 ............................................................................................................................ 10/23/15 8.7.7-1 ............................................................................................................................ 10/23/15 8.7.7-2 ............................................................................................................................ 10/23/15 8.7.7-3 ............................................................................................................................ 10/23/15 8.7.8-1 ............................................................................................................................ 10/23/15 8.7.8-2 ............................................................................................................................ 10/23/15 8.7.9-1 ............................................................................................................................ 10/23/15 8.7.9-2 ............................................................................................................................ 10/23/15 8.8.1-1 ............................................................................................................................ 10/23/15 8.8.1-2 ............................................................................................................................ 10/23/15 8.8.1-3 ............................................................................................................................ 04/24/17 8.8.1-4 ............................................................................................................................ 04/24/17 8.8.1-5 ............................................................................................................................ 04/24/17 8.8.2-1 ............................................................................................................................ 03/22/21 8.8.2-2 ............................................................................................................................ 10/23/15 8.8.3-1 ............................................................................................................................ 10/23/15 8.8.3-2 ............................................................................................................................ 04/24/17 8.8.3-3 ............................................................................................................................ 04/24/17 8.8.4-1 ............................................................................................................................ 10/23/15 8.8.4-2 ............................................................................................................................ 01/27/17 8.8.4-3 ............................................................................................................................ 01/27/17 8.9.1-1 ............................................................................................................................ 10/23/15 8.9.1-2 ............................................................................................................................ 10/23/15 8.9.2-1 ............................................................................................................................ 01/19/21 8.9.2-2 ............................................................................................................................ 01/19/21 EPL-6 March 22, 2021
6(482<$+18&/($53/$1781,76$1'
7(&+1,&$/5(48,5(0(1760$18$/
())(&7,9(3$*(/,67,1*
3DJH 5HYLVLRQ
(3/ $XJXVW
6(482<$+18&/($53/$1781,76$1'
7(&+1,&$/5(48,5(0(1760$18$/
5(9,6,21/,67,1*
5HYLVLRQ 'DWH
,QLWLDO,VVXH5HYLVLRQ
5HYLVLRQ
5HYLVLRQ
5HYLVLRQ
5HYLVLRQ
5HYLVLRQ
5HYLVLRQ
5HYLVLRQ
5HYLVLRQ
5HYLVLRQ
5HYLVLRQ
5HYLVLRQ
5HYLVLRQ
5HYLVLRQ
5HYLVLRQ
5HYLVLRQ
5HYLVLRQ
5HYLVLRQ
5HYLVLRQ
5HYLVLRQ
5HYLVLRQ
5HYLVLRQ
5HYLVLRQ
5HYLVLRQ
5HYLVLRQ
5HYLVLRQ
5HYLVLRQ
5HYLVLRQ
5HYLVLRQ
5HYLVLRQ
5HYLVLRQ
5HYLVLRQ
5HYLVLRQ
5HYLVLRQ
5HYLVLRQ
5HYLVLRQ
5HYLVLRQ
5HYLVLRQ
5HYLVLRQ
5HYLVLRQ
5HYLVLRQ
5HYLVLRQ
5HYLVLRQ
5HYLVLRQ
5HYLVLRQ
5HYLVLRQ
5HYLVLRQ
5HYLVLRQ
5HYLVLRQ
5HYLVLRQ
(3/ 2FWREHU
SEQUOYAH NUCLEAR PLANT UNITS 1 AND 2 TECHNICAL REQUIREMENTS MANUAL REVISION LISTING Revision Date Revision 50 ..................................................................................................................... 11/25/15 Revision 51 ..................................................................................................................... 07/01/16 Revision 52 ..................................................................................................................... 08/29/16 Revision 53 ..................................................................................................................... 08/31/16 Revision 54 ..................................................................................................................... 09/27/16 Revision 55 ..................................................................................................................... 10/07/16 Revision 56 ..................................................................................................................... 04/04/16 Revision 57 ..................................................................................................................... 01/27/17 Revision 58 ..................................................................................................................... 04/24/17 Revision 59 ..................................................................................................................... 08/23/17 Revision 60 ..................................................................................................................... 06/08/18 Revision 61 ..................................................................................................................... 02/21/19 Revision 62 ..................................................................................................................... 07/11/19 Revision 63 ..................................................................................................................... 01/19/21 Revision 64 ..................................................................................................................... 03/22/21 Revision 65 ..................................................................................................................... 09/15/21 EPL-9 September 15, 2021
6(482<$+81,76$1' 7507DEOHRI&RQWHQWV
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
$XJXVW
7DEOHRI&RQWHQWV
6(&7,21 7,7/( 3$*(
,1752'8&7,21
86($1'$33/,&$7,21
'HILQLWLRQV
/RJLFDO&RQQHFWRUV
5HVWRUDWLRQ7LPHV
)UHTXHQF\
7HFKQLFDO5HTXLUHPHQWV 75 $SSOLFDELOLW\
7HFKQLFDO5HTXLUHPHQWV9HULILFDWLRQ 759 $SSOLFDELOLW\
5($&7,9,7<&21752/6<67(0
%RUDWLRQ2SHUDWLQJ
%RUDWLRQ6KXWGRZQ
3RVLWLRQ,QGLFDWLRQ6\VWHP6KXWGRZQ
12786('
,167580(17$7,21
0RYDEOH,QFRUH'HWHFWRUV,QVWUXPHQWDWLRQ
6HLVPLF0RQLWRULQJ,QVWUXPHQWDWLRQ
0HWHRURORJLFDO0RQLWRULQJ,QVWUXPHQWDWLRQ
3ODQW&DORULPHWLF0HDVXUHPHQW
([SORVLYH*DV0RQLWRULQJ6\VWHP
5($&725&22/$176<67(0 5&6
&KHPLVWU\
3UHVVXUL]HU7HPSHUDWXUH/LPLWV
5HDFWRU&RRODQW6\VWHP+HDG9HQWV 5&6+9
12786('
&217$,10(176<67(0
&RPEXVWLEOH*DV&RQWURO+\GURJHQ0RQLWRUV
,FH%HG7HPSHUDWXUH0RQLWRULQJ6\VWHP
,QOHW'RRU3RVLWLRQ0RQLWRULQJ6\VWHP
/RZHU&RQWDLQPHQW9HQW&RROHUV
72&L
6(482<$+81,76$1' 7507DEOHRI&RQWHQWV
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
7DEOHRI&RQWHQWV
6(&7,21 7,7/( 3$*(
3/$176<67(06
6WHDP*HQHUDWRU3UHVVXUH7HPSHUDWXUH/LPLWDWLRQ
)ORRG3URWHFWLRQ
6QXEEHUV
6HDOHG6RXUFH&RQWDPLQDWLRQ
+HDWLQJ9HQWLODWLQJDQG$LU&RQGLWLRQLQJ +9$&
0DLQWHQDQFH5XOH(TXLSPHQW
([SORVLYH*DV0L[WXUHV
/LTXLG+ROGXS7DQNV
*DV'HFD\7DQNV
9HQWLODWLRQ)LOWHU7HVWLQJ
(/(&75,&$/6<67(0
&RQWDLQPHQW3HQHWUDWLRQ&RQGXFWRU2YHUFXUUHQW3URWHFWLYH
'HYLFHV
0RWRU2SHUDWHG9DOYHV7KHUPDO2YHUORDG3URWHFWLRQ
,VRODWLRQ'HYLFHV
(PHUJHQF\'LHVHO*HQHUDWRU)XHO2LO6WRUDJH7DQNV
5()8(/,1*23(5$7,216
&RPPXQLFDWLRQV
0DQLSXODWRU&UDQH
72&LL
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
,1752'8&7,21
%$&.*5281'
7KH7HFKQLFDO5HTXLUHPHQWV0DQXDO 750 LVD6HTXR\DK1XFOHDU3ODQW 641 FRQWUROOHG
GRFXPHQW7KH750FRQWDLQVUHTXLUHPHQWVVLPLODUWRWKH7HFKQLFDO6SHFLILFDWLRQVZKLFKDUH
QRWUHTXLUHGWREHORFDWHGLQWKH7HFKQLFDO6SHFLILFDWLRQVEHFDXVHWKH\GRQRWPHHWWKH
UHTXLUHPHQWVRI&)5$OWKRXJKWKHVHUHTXLUHPHQWVDUHH[FOXGHGIURP7HFKQLFDO
6SHFLILFDWLRQVWKH\DUHVWLOOUHTXLUHPHQWVSODFHGXSRQSODQWRSHUDWLRQGXHWRUHJXODWRU\LVVXHV
7KH750SURYLGHVRQHORFDWLRQIRUUHORFDWHGLWHPVLQDFRQVLVWHQWIRUPDW7KH7HFKQLFDO
5HTXLUHPHQWVDUHIRUPDWWHGLQDPDQQHUFRQVLVWHQWZLWK15&,QVSHFWLRQ0DQXDO&KDSWHU
2SHUDELOLW\'HWHUPLQDWLRQV )XQFWLRQDOLW\$VVHVVPHQWVIRU&RQGLWLRQV$GYHUVHWR4XDOLW\
$OWKRXJKPDQ\RIWKHWHUPVGHILQHGLQWKH7HFKQLFDO6SHFLILFDWLRQVDSSO\ZLWKLQWKH750WKH
750FRQWDLQVDGGLWLRQDO'HILQLWLRQVZKLFKDUHVSHFLILFWRWKH750DQGQRWGHILQHGLQWKH
7HFKQLFDO6SHFLILFDWLRQ'HILQLWLRQV
5(*8/$725<67$7865(48,5(0(176
7KHUHTXLUHPHQWVLQWKH750DUHSDUWRIWKHOLFHQVLQJEDVLVIRU6HTXR\DK8QLWVDQG
9LRODWLRQVRIWKH750UHTXLUHPHQWVVKRXOGEHGRFXPHQWHGLQWKHFRUUHFWLYHDFWLRQSURJUDP
'HYLDWLRQVIURPWKH750ZLOOEHVFUHHQHGIRUUHSRUWDELOLW\LQDFFRUGDQFHZLWKWKHFRUUHFWLYH
DFWLRQSURJUDP
&+$1*(6727+(750
'HVLJQPRGLILFDWLRQVSURFHGXUHFKDQJHVOLFHQVHDPHQGPHQWVHWFKDYHWKHSRWHQWLDOWRDIIHFW
WKH750,IWKLVRFFXUVWKHLQLWLDWLQJGHSDUWPHQWPXVWIROORZWKHDGPLQLVWUDWLYHFRQWUROVLQ13*
6337HFKQLFDO6SHFLILFDWLRQV/LFHQVHVDQG$PHQGPHQWV7KLVSURFHVVUHTXLUHVWKDW
WKH750 V7HFKQLFDO5HTXLUHPHQWVEHFRQVLGHUHGLQDPDQQHUVLPLODUWRWKH7HFKQLFDO
6SHFLILFDWLRQVZKHQHYDOXDWLQJFKDQJHV&KDQJHVWRWKH750ZLOOEHUHSRUWHGDVDPLQLPXP
WRWKH15&DWDIUHTXHQF\FRQVLVWHQWZLWK&)5 H 5HODWHG&)5 HYDOXDWLRQV
ZLOOEHUHSRUWHGDVSDUWRIWKH&)5 G UHSRUWWRWKH15&
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
86($1'$33/,&$7,21
'HILQLWLRQV
127(6
7HUPVDUHGHILQHGLQ6HFWLRQRIWKH7HFKQLFDO6SHFLILFDWLRQVDQGDUHDSSOLFDEOH
WKURXJKRXWWKH7HFKQLFDO5HTXLUHPHQWV0DQXDO 750 DQG%DVHV'HILQLWLRQVVSHFLILF
WRWKH750ZLOOEHGHILQHGLQWKLVVHFWLRQ
7KHGHILQHGWHUPVRIWKLVVHFWLRQDQGWKH7HFKQLFDO6SHFLILFDWLRQV 76 DSSHDULQ
FDSLWDOL]HGW\SHDQGDUHDSSOLFDEOHWKURXJKRXWWKH750DQGWKH750%DVHV
7HUP 'HILQLWLRQ
&+$11(/)81&7,21$/ $&+$11(/)81&7,21$/7(67FRQVLVWVRI
7(67
D$QDORJFKDQQHOVWKHLQMHFWLRQRIDVLPXODWHGVLJQDOLQWR
WKHFKDQQHODVFORVHWRWKHVHQVRUDVSUDFWLFDEOHWRYHULI\
)81&7,21$/,7<LQFOXGLQJDODUPDQGRUWULSIXQFWLRQV
E%LVWDEOHFKDQQHOVWKHLQMHFWLRQRIDVLPXODWHGVLJQDOLQWR
WKHVHQVRUWRYHULI\)81&7,21$/,7<LQFOXGLQJDODUP
DQGRUWULSIXQFWLRQV
F'LJLWDOFKDQQHOVWKHLQMHFWLRQRIDVLPXODWHGVLJQDOLQWR
WKHFKDQQHODVFORVHWRWKHVHQVRULQSXWWRWKHSURFHVV
UDFNVDVSUDFWLFDEOHWRYHULI\)81&7,21$/,7<LQFOXGLQJ
DODUPDQGRUWULSIXQFWLRQV
)81&7,21$/? )81&7,21$/,7<LVDQDWWULEXWHRIDQVWUXFWXUHVV\VWHPV
)81&7,21$/,7< DQGFRPSRQHQWV 66&V WKDWLVQRWFRQWUROOHGE\76V
$Q66&QRWFRQWUROOHGE\76VLV)81&7,21$/RUKDV
)81&7,21$/,7<ZKHQLWLVFDSDEOHRISHUIRUPLQJLWV
IXQFWLRQ V DVVHWIRUWKLQWKHFXUUHQWOLFHQVLQJEDVLV &/%
7KHVH&/%IXQFWLRQ V PD\LQFOXGHWKHFDSDELOLW\WRSHUIRUPD
QHFHVVDU\DQGUHODWHGVXSSRUWIXQFWLRQIRUDQ66&V
FRQWUROOHGE\76V
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
'HILQLWLRQV
02'( $02'(VKDOOFRUUHVSRQGWRDQ\RQHLQFOXVLYHFRPELQDWLRQ
RIFRUHUHDFWLYLW\FRQGLWLRQSRZHUOHYHODYHUDJHUHDFWRU
FRRODQWWHPSHUDWXUHDQGUHDFWRUYHVVHOKHDGFORVXUHEROW
WHQVLRQLQJVSHFLILHGLQ7DEOHZLWKIXHOLQWKHUHDFWRU
YHVVHO
7DEOH
02'(6
5($&7,9,7< 5$7(' $9(5$*(
&21',7,21 7+(50$/ 5($&725&22/$17
02'( 7,7/( N HII 32:(5 D 7(03(5$785(
)
3RZHU2SHUDWLRQ ! 1$
6WDUWXS 1$
+RW6WDQGE\ 1$
+RW6KXWGRZQ E 1$ !7 DYJ !
&ROG6KXWGRZQ E 1$
5HIXHOLQJ F 1$ 1$ 1$
D ([FOXGLQJGHFD\KHDW
E $OOUHDFWRUYHVVHOKHDGFORVXUHEROWVIXOO\WHQVLRQHG
F 2QHRUPRUHUHDFWRUYHVVHOKHDGFORVXUHEROWVOHVVWKDQIXOO\WHQVLRQHG
23(5$%/(+/-23(5$%,/,7< $V\VWHPVXEV\VWHPWUDLQFRPSRQHQWRUGHYLFHVKDOOEH
23(5$%/(RUKDYH23(5$%,/,7<ZKHQLWLVFDSDEOHRI
SHUIRUPLQJLWVVSHFLILHGVDIHW\IXQFWLRQ V DQGZKHQDOO
QHFHVVDU\DWWHQGDQWLQVWUXPHQWDWLRQFRQWUROVQRUPDORU
HPHUJHQF\HOHFWULFDOSRZHUFRROLQJDQGVHDOZDWHU
OXEULFDWLRQDQGRWKHUDX[LOLDU\HTXLSPHQWWKDWDUHUHTXLUHG
IRUWKHV\VWHPVXEV\VWHPWUDLQFRPSRQHQWRUGHYLFHWR
SHUIRUPLWVVSHFLILHGVDIHW\IXQFWLRQ V DUHDOVRFDSDEOHRI
SHUIRUPLQJWKHLUUHODWHGVXSSRUWIXQFWLRQ V
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
'HILQLWLRQV
7(&+1,&$/5(48,5(0(17 7(&+1,&$/5(48,5(0(176VSHFLI\PLQLPXP
75 UHTXLUHPHQWVIRUHQVXULQJVDIHRSHUDWLRQRIWKHXQLW7KH
&RQWLQJHQF\0HDVXUHVDVVRFLDWHGZLWKD75VWDWH&RQGLWLRQV
WKDWW\SLFDOO\GHVFULEHWKHZD\VLQZKLFKWKHUHTXLUHPHQWVRI
WKH75FDQIDLOWREHPHW6SHFLILHGZLWKHDFKVWDWHG
FRQGLWLRQDUH&RQWLQJHQF\0HDVXUHVDQG5HVWRUDWLRQ
7LPH V
7(&+1,&$/5(48,5(0(176 7(&+1,&$/5(48,5(0(1769(5,),&$7,216DUH
9(5,),&$7,21 759 UHTXLUHPHQWVUHODWLQJWRWHVWFDOLEUDWLRQRULQVSHFWLRQWR
DVVXUHWKDWWKHQHFHVVDU\)81&7,21$/,7<RIV\VWHPVDQG
FRPSRQHQWVLVPDLQWDLQHGWKDWIDFLOLW\RSHUDWLRQZLOOEH
PDLQWDLQHGZLWKLQWKHFXUUHQWOLFHQVLQJEDVHVDQGWKDWWKH
7(&+1,&$/5(48,5(0(17 75 ZLOOEHPHW
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
86($1'$33/,&$7,21
/RJLFDO&RQQHFWRUV
385326( 7KHSXUSRVHRIWKLVVHFWLRQLVWRH[SODLQWKHPHDQLQJRIORJLFDO
FRQQHFWRUV
/RJLFDOFRQQHFWRUVDUHXVHGLQ7HFKQLFDO5HTXLUHPHQWV0DQXDO 750 WR
GLVFULPLQDWHEHWZHHQDQG\HWFRQQHFWGLVFUHWH&RQGLWLRQV&RQWLQJHQF\
0HDVXUHV5HVWRUDWLRQ7LPHV9HULILFDWLRQVDQG)UHTXHQFLHV7KHRQO\
ORJLFDOFRQQHFWRUVWKDWDSSHDULQWKH750DUH$1'DQG257KH
SK\VLFDODUUDQJHPHQWRIWKHVHFRQQHFWRUVFRQVWLWXWHVORJLFDOFRQYHQWLRQV
ZLWKVSHFLILFPHDQLQJV
%$&.*5281' 6HYHUDOOHYHOVRIORJLFPD\EHXVHGWRVWDWH&RQWLQJHQF\0HDVXUHV
7KHVHOHYHOVDUHLGHQWLILHGE\WKHSODFHPHQW RUQHVWLQJ RIWKHORJLFDO
FRQQHFWRUVDQGE\WKHQXPEHUDVVLJQHGWRHDFK&RQWLQJHQF\0HDVXUH
7KHILUVWOHYHORIORJLFLVLGHQWLILHGE\WKHILUVWGLJLWRIWKHQXPEHUDVVLJQHG
WRD&RQWLQJHQF\0HDVXUHDQGWKHSODFHPHQWRIWKHORJLFDOFRQQHFWRULQ
WKHILUVWOHYHORIQHVWLQJ LHOHIWMXVWLILHGZLWKWKHQXPEHURIWKH
&RQWLQJHQF\0HDVXUH 7KHVXFFHVVLYHOHYHOVRIORJLFDUHLGHQWLILHGE\
DGGLWLRQDOGLJLWVRIWKH&RQWLQJHQF\0HDVXUHQXPEHUDQGE\VXFFHVVLYH
LQGHQWDWLRQVRIWKHORJLFDOFRQQHFWRUV
:KHQORJLFDOFRQQHFWRUVDUHXVHGWRVWDWHD&RQGLWLRQ5HVWRUDWLRQ7LPH
9HULILFDWLRQRU)UHTXHQF\RQO\WKHILUVWOHYHORIORJLFLVXVHGDQGWKH
ORJLFDOFRQQHFWRULVOHIWMXVWLILHGZLWKWKHVWDWHPHQWRIWKH&RQGLWLRQ
5HVWRUDWLRQ7LPH9HULILFDWLRQRU)UHTXHQF\
(;$03/(6 7KHIROORZLQJH[DPSOHVLOOXVWUDWHWKHXVHRIORJLFDOFRQQHFWRUV
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
/RJLFDO&RQQHFWRUV
(;$03/(6 FRQWLQXHG
(;$03/(
&217,1*(1&<0($685(6
&21',7,21 &217,1*(1&<0($685(6 5(6725$7,217,0(
$ 75QRWPHW $ 9HULI\
$1'
$ 5HVWRUH
,QWKLVH[DPSOHWKHORJLFDOFRQQHFWRU$1'LVXVHGWRLQGLFDWHWKDWZKHQLQ
&RQGLWLRQ$ERWK&RQWLQJHQF\0HDVXUHV$DQG$PXVWEHFRPSOHWHG
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
/RJLFDO&RQQHFWRUV
(;$03/(6 FRQWLQXHG
(;$03/(
&217,1*(1&<0($685(6
&21',7,21 &217,1*(1&<0($685(6 5(6725$7,217,0(
$ 75QRWPHW $ 7ULS
25
$ 9HULI\
$1'
$ 5HGXFH
25
$ 3HUIRUP
25
$ $OLJQ
7KLVH[DPSOHUHSUHVHQWVDPRUHFRPSOLFDWHGXVHRIORJLFDOFRQQHFWRUV
&RQWLQJHQF\0HDVXUHV$$DQG$DUHDOWHUQDWLYHFKRLFHVRQO\RQH
RIZKLFKPXVWEHSHUIRUPHGDVLQGLFDWHGE\WKHXVHRIWKHORJLFDO
FRQQHFWRU25DQGWKHOHIWMXVWLILHGSODFHPHQW$Q\RQHRIWKHVHWKUHH
&RQWLQJHQF\0HDVXUHVPD\EHFKRVHQ,I$LVFKRVHQWKHQERWK$
DQG$PXVWEHSHUIRUPHGDVLQGLFDWHGE\WKHORJLFDOFRQQHFWRU$1'
&RQWLQJHQF\0HDVXUH$LVPHWE\SHUIRUPLQJ$RU$7KH
LQGHQWHGSRVLWLRQRIWKHORJLFDOFRQQHFWRU25LQGLFDWHVWKDW$
DQG$DUHDOWHUQDWLYHFKRLFHVRQO\RQHRIZKLFKPXVWEHSHUIRUPHG
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
86($1'$33/,&$7,21
5HVWRUDWLRQ7LPHV
385326( 7KHSXUSRVHRIWKLVVHFWLRQLVWRHVWDEOLVKWKH5HVWRUDWLRQ7LPH
FRQYHQWLRQDQGWRSURYLGHJXLGDQFHIRULWVXVH
%$&.*5281' 7(&+1,&$/5(48,5(0(176 75 VSHFLI\PLQLPXPUHTXLUHPHQWVIRU
HQVXULQJVDIHRSHUDWLRQRIWKHXQLW7KH&217,1*(1&<0($685(6
DVVRFLDWHGZLWKD75VWDWH&RQGLWLRQVWKDWW\SLFDOO\GHVFULEHWKHZD\VLQ
ZKLFKWKHUHTXLUHPHQWVRIWKH75FDQIDLOWREHPHW6SHFLILHGZLWKHDFK
VWDWHG&RQGLWLRQDUH&RQWLQJHQF\0HDVXUH V DQG5HVWRUDWLRQ7LPH V
'(6&5,37,21 7KH5HVWRUDWLRQ7LPHLVWKHDPRXQWRIWLPHDOORZHGIRUFRPSOHWLQJD
&RQWLQJHQF\0HDVXUH,WLVUHIHUHQFHGWRWKHWLPHRIGLVFRYHU\RID
VLWXDWLRQ HJQRQIXQFWLRQDOHTXLSPHQWRUYDULDEOHQRWZLWKLQOLPLWV WKDW
UHTXLUHVHQWHULQJD&217,1*(1&<0($685(6&RQGLWLRQXQOHVV
RWKHUZLVHVSHFLILHGSURYLGLQJWKHXQLWLVLQD02'(RUVSHFLILHGFRQGLWLRQ
VWDWHGLQWKH$SSOLFDELOLW\RIWKH75&RQWLQJHQF\0HDVXUHVPXVWEH
FRPSOHWHGSULRUWRWKHH[SLUDWLRQRIWKHVSHFLILHG5HVWRUDWLRQ7LPH$
&217,1*(1&<0($685(&RQGLWLRQUHPDLQVLQHIIHFWDQGWKH
&RQWLQJHQF\0HDVXUHVDSSO\XQWLOWKH&RQGLWLRQQRORQJHUH[LVWVRUWKH
XQLWLVQRWZLWKLQWKH75$SSOLFDELOLW\
,IVLWXDWLRQVDUHGLVFRYHUHGWKDWUHTXLUHHQWU\LQWRPRUHWKDQRQH
&RQGLWLRQDWDWLPHZLWKLQDVLQJOH75 PXOWLSOH&RQGLWLRQV WKH
&RQWLQJHQF\0HDVXUHVIRUHDFK&RQGLWLRQPXVWEHSHUIRUPHGZLWKLQWKH
DVVRFLDWHG5HVWRUDWLRQ7LPH:KHQLQPXOWLSOH&RQGLWLRQVVHSDUDWH
5HVWRUDWLRQ7LPHVDUHWUDFNHGIRUHDFK&RQGLWLRQVWDUWLQJIURPWKHWLPHRI
GLVFRYHU\RIWKHVLWXDWLRQWKDWUHTXLUHGHQWU\LQWRWKH&RQGLWLRQ
2QFHD&RQGLWLRQKDVEHHQHQWHUHGVXEVHTXHQWWUDLQVVXEV\VWHPV
FRPSRQHQWVRUYDULDEOHVH[SUHVVHGLQWKH&RQGLWLRQGLVFRYHUHGWREH
QRQIXQFWLRQDORUQRWZLWKLQOLPLWVZLOOQRWUHVXOWLQVHSDUDWHHQWU\LQWRWKH
&RQGLWLRQXQOHVVVSHFLILFDOO\VWDWHG7KH&RQWLQJHQF\0HDVXUHVRIWKH
&RQGLWLRQFRQWLQXHWRDSSO\WRHDFKDGGLWLRQDOIDLOXUHZLWK5HVWRUDWLRQ
7LPHVEDVHGRQLQLWLDOHQWU\LQWRWKH&RQGLWLRQ
+RZHYHUZKHQDVXEVHTXHQWWUDLQVXEV\VWHPFRPSRQHQWRUYDULDEOH
H[SUHVVHGLQWKH&RQGLWLRQLVGLVFRYHUHGWREHQRQIXQFWLRQDORUQRWZLWKLQ
OLPLWVWKH5HVWRUDWLRQ7LPH V PD\EHH[WHQGHG7RDSSO\WKLV
5HVWRUDWLRQ7LPHH[WHQVLRQWZRFULWHULDPXVWILUVWEHPHW7KH
VXEVHTXHQWQRQIXQFWLRQDOLW\
D 0XVWH[LVWFRQFXUUHQWZLWKWKHILUVWQRQIXQFWLRQDOLW\DQG
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
5HVWRUDWLRQ7LPHV
'(6&5,37,21 FRQWLQXHG
E 0XVWUHPDLQQRQIXQFWLRQDORUQRWZLWKLQOLPLWVDIWHUWKHILUVW
QRQIXQFWLRQDOLW\LVUHVROYHG
7KHWRWDO5HVWRUDWLRQ7LPHDOORZHGIRUFRPSOHWLQJD&RQWLQJHQF\
0HDVXUHWRDGGUHVVWKHVXEVHTXHQWQRQIXQFWLRQDOLW\VKDOOEHOLPLWHGWR
WKHPRUHUHVWULFWLYHRIHLWKHU
D 7KHVWDWHG5HVWRUDWLRQ7LPHDVPHDVXUHGIURPWKHLQLWLDOHQWU\
LQWRWKH&RQGLWLRQSOXVDQDGGLWLRQDOKRXUVRU
E 7KHVWDWHG5HVWRUDWLRQ7LPHDVPHDVXUHGIURPGLVFRYHU\RIWKH
VXEVHTXHQWQRQIXQFWLRQDOLW\
7KHDERYH5HVWRUDWLRQ7LPHH[WHQVLRQVGRQRWDSSO\WRWKRVH750
6HFWLRQVWKDWKDYHH[FHSWLRQVWKDWDOORZFRPSOHWHO\VHSDUDWHUHHQWU\LQWR
WKH&RQGLWLRQ IRUHDFKWUDLQVXEV\VWHPFRPSRQHQWRUYDULDEOH
H[SUHVVHGLQWKH&RQGLWLRQ DQGVHSDUDWHWUDFNLQJRI5HVWRUDWLRQ7LPHV
EDVHGRQWKLVUHHQWU\7KHVHH[FHSWLRQVDUHVWDWHGLQLQGLYLGXDO750
6HFWLRQV
7KHDERYH5HVWRUDWLRQ7LPHH[WHQVLRQGRHVQRWDSSO\WRD5HVWRUDWLRQ
7LPHZLWKDPRGLILHGWLPH]HUR7KLVPRGLILHGWLPH]HURPD\EH
H[SUHVVHGDVDUHSHWLWLYHWLPH LHRQFHSHUKRXUVZKHUHWKH
5HVWRUDWLRQ7LPHLVUHIHUHQFHGIURPDSUHYLRXVFRPSOHWLRQRIWKH
&RQWLQJHQF\0HDVXUHYHUVXVWKHWLPHRI&RQGLWLRQHQWU\ RUDVDWLPH
PRGLILHGE\WKHSKUDVHIURPGLVFRYHU\
(;$03/(6 7KHIROORZLQJH[DPSOHVLOOXVWUDWHWKHXVHRI5HVWRUDWLRQ7LPHVZLWK
GLIIHUHQWW\SHVRI&RQGLWLRQVDQGFKDQJLQJ&RQGLWLRQV
(;$03/(
&217,1*(1&<0($685(6
&21',7,21 &217,1*(1&<0($685(6 5(6725$7,217,0(
% &RQWLQJHQF\ %%HLQ02'( KRXUV
0HDVXUHDQG
DVVRFLDWHG $1'
5HVWRUDWLRQ7LPH
QRWPHW %%HLQ02'( KRXUV
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
5HVWRUDWLRQ7LPHV
(;$03/(6 FRQWLQXHG
&RQGLWLRQ%KDVWZR&RQWLQJHQF\0HDVXUHV(DFK&RQWLQJHQF\0HDVXUH
KDVLWVRZQVHSDUDWH5HVWRUDWLRQ7LPH(DFK5HVWRUDWLRQ7LPHLV
UHIHUHQFHGWRWKHWLPHWKDW&RQGLWLRQ%LVHQWHUHG
7KH&RQWLQJHQF\0HDVXUHVRI&RQGLWLRQ%DUHWREHLQ02'(ZLWKLQ
KRXUV$1'LQ02'(ZLWKLQKRXUV$WRWDORIKRXUVLVDOORZHGIRU
UHDFKLQJ02'(DQGDWRWDORIKRXUV QRWKRXUV LVDOORZHGIRU
UHDFKLQJ02'(IURPWKHWLPHWKDW&RQGLWLRQ%ZDVHQWHUHG,I02'(
LVUHDFKHGZLWKLQKRXUVWKHWLPHDOORZHGIRUUHDFKLQJ02'(LVWKH
QH[WKRXUVEHFDXVHWKHWRWDOWLPHDOORZHGIRUUHDFKLQJ02'(LV
KRXUV
,I&RQGLWLRQ%LVHQWHUHGZKLOHLQ02'(WKHWLPHDOORZHGIRUUHDFKLQJ
02'(LVWKHQH[WKRXUV
(;$03/(
&217,1*(1&<0($685(6
&21',7,21 &217,1*(1&<0($685(6 5(6725$7,217,0(
$ 2QHSXPS1RQIXQFWLRQDO $5HVWRUHSXPSWR GD\V
)81&7,21$/VWDWXV
% &RQWLQJHQF\0HDVXUHDQG %%HLQ02'( KRXUV
DVVRFLDWHG5HVWRUDWLRQ
7LPHQRWPHW $1'
%%HLQ02'( KRXUV
:KHQDSXPSLVGHFODUHG1RQIXQFWLRQDO&RQGLWLRQ$LVHQWHUHG,IWKH
SXPSLVQRWUHVWRUHGWR)81&7,21$/VWDWXVZLWKLQGD\V&RQGLWLRQ%LV
DOVRHQWHUHGDQGWKH5HVWRUDWLRQ7LPHFORFNVIRU&RQWLQJHQF\
0HDVXUHV%DQG%VWDUW,IWKH1RQIXQFWLRQDOSXPSLVUHVWRUHGWR
)81&7,21$/VWDWXVDIWHU&RQGLWLRQ%LVHQWHUHG&RQGLWLRQV$DQG%DUH
H[LWHGDQGWKHUHIRUHWKH&RQWLQJHQF\0HDVXUHVRI&RQGLWLRQ%PD\EH
WHUPLQDWHG
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
5HVWRUDWLRQ7LPHV
(;$03/(6 FRQWLQXHG
:KHQDVHFRQGSXPSLVGHFODUHG1RQIXQFWLRQDOZKLOHWKHILUVWSXPSLV
VWLOO1RQIXQFWLRQDO&RQGLWLRQ$LVQRWUHHQWHUHGIRUWKHVHFRQGSXPS75
LVHQWHUHGVLQFHWKH&217,1*(1&<0($685(6GRQRWLQFOXGHD
&RQGLWLRQIRUPRUHWKDQRQH1RQIXQFWLRQDOSXPS7KH5HVWRUDWLRQ7LPH
FORFNIRU&RQGLWLRQ$GRHVQRWVWRSDIWHU75LVHQWHUHGEXW
FRQWLQXHVWREHWUDFNHGIURPWKHWLPH&RQGLWLRQ$ZDVLQLWLDOO\HQWHUHG
:KLOHLQ75LIRQHRIWKH1RQIXQFWLRQDOSXPSVLVUHVWRUHGWR
)81&7,21$/VWDWXVDQGWKH5HVWRUDWLRQ7LPHIRU&RQGLWLRQ$KDVQRW
H[SLUHG75PD\EHH[LWHGDQGRSHUDWLRQFRQWLQXHGLQDFFRUGDQFH
ZLWK&RQGLWLRQ$
:KLOHLQ75LIRQHRIWKH1RQIXQFWLRQDOSXPSVLVUHVWRUHGWR
)81&7,21$/VWDWXVDQGWKH5HVWRUDWLRQ7LPHIRU&RQGLWLRQ$KDV
H[SLUHG75PD\EHH[LWHGDQGRSHUDWLRQFRQWLQXHGLQDFFRUGDQFH
ZLWK&RQGLWLRQ%7KH5HVWRUDWLRQ7LPHIRU&RQGLWLRQ%LVWUDFNHGIURP
WKHWLPHWKH&RQGLWLRQ$5HVWRUDWLRQ7LPHH[SLUHG
2QUHVWRULQJRQHRIWKHSXPSVWR)81&7,21$/VWDWXVWKH&RQGLWLRQ$
5HVWRUDWLRQ7LPHLVQRWUHVHWEXWFRQWLQXHVIURPWKHWLPHWKHILUVWSXPS
ZDVGHFODUHG1RQIXQFWLRQDO7KLV5HVWRUDWLRQ7LPHPD\EHH[WHQGHGLI
WKHSXPSUHVWRUHGWR)81&7,21$/VWDWXVZDVWKHILUVW1RQIXQFWLRQDO
SXPS$KRXUH[WHQVLRQWRWKHVWDWHGGD\VLVDOORZHGSURYLGHGWKLV
GRHVQRWUHVXOWLQWKHVHFRQGSXPSEHLQJQRQIXQFWLRQDOIRU!GD\V
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
5HVWRUDWLRQ7LPHV
(;$03/(6 FRQWLQXHG
(;$03/(
&217,1*(1&<0($685(6
&21',7,21 &217,1*(1&<0($685(6 5(6725$7,217,0(
$ 2QH)XQFWLRQ;WUDLQ $5HVWRUH)XQFWLRQ;WUDLQWR GD\V
1RQIXQFWLRQDO )81&7,21$/VWDWXV
% 2QH)XQFWLRQ<WUDLQ %5HVWRUH)XQFWLRQ<WUDLQWR KRXUV
1RQIXQFWLRQDO )81&7,21$/VWDWXV
& 2QH)XQFWLRQ;WUDLQ &5HVWRUH)XQFWLRQ;WUDLQWR KRXUV
1RQIXQFWLRQDO )81&7,21$/VWDWXV
$1' 25
2QH)XQFWLRQ<WUDLQ &5HVWRUH)XQFWLRQ<WUDLQWR
1RQIXQFWLRQDO )81&7,21$/VWDWXV KRXUV
- KHQRQH)XQFWLRQ;WUDLQDQGRQH)XQFWLRQ<WUDLQDUH1RQIXQFWLRQDO&RQGLWLRQ$DQG
&RQGLWLRQ%DUHFRQFXUUHQWO\DSSOLFDEOH7KH5HVWRUDWLRQ7LPHVIRU&RQGLWLRQ$DQG
&RQGLWLRQ%DUHWUDFNHGVHSDUDWHO\IRUHDFKWUDLQVWDUWLQJIURPWKHWLPHHDFKWUDLQZDVGHFODUHG
QRQIXQFWLRQDODQGWKH&RQGLWLRQZDVHQWHUHG$VHSDUDWH5HVWRUDWLRQ7LPHLVHVWDEOLVKHGIRU
&RQGLWLRQ&DQGWUDFNHGIURPWKHWLPHWKHVHFRQGWUDLQZDVGHFODUHG1RQIXQFWLRQDO LHWKH
WLPHWKHVLWXDWLRQGHVFULEHGLQ&RQGLWLRQ&ZDVGLVFRYHUHG
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
5HVWRUDWLRQ7LPHV
(;$03/(6 FRQWLQXHG
,I&RQWLQJHQF\0HDVXUH&LVFRPSOHWHGZLWKLQWKHVSHFLILHG5HVWRUDWLRQ7LPH
&RQGLWLRQV%DQG&DUHH[LWHG,IWKH5HVWRUDWLRQ7LPHIRU&RQWLQJHQF\0HDVXUH$
KDVQRWH[SLUHGRSHUDWLRQPD\FRQWLQXHLQDFFRUGDQFHZLWK&RQGLWLRQ$7KHUHPDLQLQJ
5HVWRUDWLRQ7LPHLQ&RQGLWLRQ$LVPHDVXUHGIURPWKHWLPHWKHDIIHFWHGWUDLQZDV
GHFODUHGQRQIXQFWLRQDO LHLQLWLDOHQWU\LQWR&RQGLWLRQ$
,WLVSRVVLEOHWRDOWHUQDWHEHWZHHQ&RQGLWLRQV$%DQG&LQVXFKDPDQQHUWKDW
RSHUDWLRQFRXOGFRQWLQXHLQGHILQLWHO\ZLWKRXWHYHUUHVWRULQJV\VWHPVWRPHHWWKH75
+RZHYHUGRLQJVRZRXOGEHLQFRQVLVWHQWZLWKWKHEDVLVRIWKH5HVWRUDWLRQ7LPHV
7KHUHIRUHWKHUHVKDOOEHDGPLQLVWUDWLYHFRQWUROVWROLPLWWKHPD[LPXPWLPHDOORZHGIRU
DQ\FRPELQDWLRQRI&RQGLWLRQVWKDWUHVXOWLQDVLQJOHFRQWLJXRXVRFFXUUHQFHRIIDLOLQJWR
PHHWWKH757KHVHDGPLQLVWUDWLYHFRQWUROVVKDOOHQVXUHWKDWWKH5HVWRUDWLRQ7LPHVIRU
WKRVH&RQGLWLRQVDUHQRWLQDSSURSULDWHO\H[WHQGHG
,00(',$7( :KHQ,PPHGLDWHO\LVXVHGDVD5HVWRUDWLRQ7LPH7KH&RQWLQJHQF\
5(6725$7,21 0HDVXUHVKRXOGEHSXUVXHGZLWKRXWGHOD\DQGLQDFRQWUROOHGPDQQHU
7,0(
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
86($1'$33/,&$7,21
)UHTXHQF\
385326( 7KHSXUSRVHRIWKLVVHFWLRQLVWRGHILQHWKHSURSHUXVHDQGDSSOLFDWLRQRI
)UHTXHQF\UHTXLUHPHQWV
'(6&5,37,21 (DFK7(&+1,&$/5(48,5(0(1769(5,),&$7,21 759 KDVD
VSHFLILHG)UHTXHQF\LQZKLFKWKH759PXVWEHPHWLQRUGHUWRPHHWWKH
DVVRFLDWHG75$QXQGHUVWDQGLQJRIWKHFRUUHFWDSSOLFDWLRQRIWKH
VSHFLILHG)UHTXHQF\LVQHFHVVDU\IRUFRPSOLDQFHZLWKWKH759
7KHVSHFLILHG)UHTXHQF\LVUHIHUUHGWRWKURXJKRXWWKLVVHFWLRQDQGHDFK
RIWKH756HFWLRQ759$SSOLFDELOLW\7KHVSHFLILHG)UHTXHQF\FRQVLVWV
RIWKHUHTXLUHPHQWVRIWKH)UHTXHQF\FROXPQRIHDFK759DVZHOODV
FHUWDLQ1RWHVLQWKH9HULILFDWLRQFROXPQWKDWPRGLI\SHUIRUPDQFH
UHTXLUHPHQWV
6RPHWLPHVVSHFLDOVLWXDWLRQVGLFWDWHZKHQWKHUHTXLUHPHQWVRID759DUH
WREHPHW7KH\DUHRWKHUZLVHVWDWHGFRQGLWLRQVDOORZHGE\759
7KH\PD\EHVWDWHGDVFODULI\LQJ1RWHVLQWKH759DVSDUWRIWKH759RU
ERWK
6LWXDWLRQVZKHUHD759FRXOGEHUHTXLUHG LHLWVIUHTXHQF\FRXOG
H[SLUH EXWZKHUHLWLVQRWSRVVLEOHRUQRWGHVLUHGWKDWLWEHSHUIRUPHG
XQWLOVRPHWLPHDIWHUWKHDVVRFLDWHG75LVZLWKLQLWV$SSOLFDELOLW\UHSUHVHQW
SRWHQWLDOFRQIOLFWV7RDYRLGWKHVHFRQIOLFWVWKH759 LHWKH759RUWKH
)UHTXHQF\ LVVWDWHGVXFKWKDWLWLVRQO\UHTXLUHGZKHQLWFDQEHDQG
VKRXOGEHSHUIRUPHG
7KHXVHRIPHWRUSHUIRUPHGLQWKHVHLQVWDQFHVFRQYH\VVSHFLILF
PHDQLQJV$759LVPHWRQO\ZKHQWKHDFFHSWDQFHFULWHULDDUH
VDWLVILHG.QRZQIDLOXUHRIWKHUHTXLUHPHQWVRID759HYHQZLWKRXWD
759VSHFLILFDOO\EHLQJSHUIRUPHGFRQVWLWXWHVD759QRWPHW
3HUIRUPDQFHUHIHUVRQO\WRWKHUHTXLUHPHQWWRVSHFLILFDOO\GHWHUPLQHWKH
DELOLW\WRPHHWWKHDFFHSWDQFHFULWHULD
6RPH759VFRQWDLQQRWHVWKDWPRGLI\WKH)UHTXHQF\RISHUIRUPDQFHRU
WKHFRQGLWLRQVGXULQJZKLFKWKHDFFHSWDQFHFULWHULDPXVWEHVDWLVILHG)RU
WKHVH759VWKH02'(HQWU\UHVWULFWLRQVPD\QRWDSSO\6XFKD759LV
QRWUHTXLUHGWREHSHUIRUPHGSULRUWRHQWHULQJD02'(RURWKHUVSHFLILHG
FRQGLWLRQLQWKH$SSOLFDELOLW\RIWKHDVVRFLDWHG75LIDQ\RIWKHIROORZLQJ
WKUHHFRQGLWLRQVDUHVDWLVILHG
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
)UHTXHQF\
'(6&5,37,21 FRQWLQXHG
D 7KH759LVQRWUHTXLUHGWREHPHWLQWKH02'(RURWKHUVSHFLILHG
FRQGLWLRQWREHHQWHUHGRU
E 7KH759LVUHTXLUHGWREHPHWLQWKH02'(RURWKHUVSHFLILHG
FRQGLWLRQWREHHQWHUHGEXWKDVEHHQSHUIRUPHGZLWKLQWKHVSHFLILHG
)UHTXHQF\ LHLWLVFXUUHQW DQGLVNQRZQQRWWREHIDLOHGRU
F 7KH759LVUHTXLUHGWREHPHWEXWQRWSHUIRUPHGLQWKH02'(RU
RWKHUVSHFLILHGFRQGLWLRQWREHHQWHUHGDQGLVNQRZQQRWWREHIDLOHG
([DPSOHVDQGGLVFXVVWKHVHVSHFLDOVLWXDWLRQV
(;$03/(6 7KHIROORZLQJH[DPSOHVLOOXVWUDWHWKHYDULRXVZD\VWKDW)UHTXHQFLHVDUH
VSHFLILHG,QWKHVHH[DPSOHVWKH$SSOLFDELOLW\RIWKH75 75QRWVKRZQ
LV02'(6DQG
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
)UHTXHQF\
(;$03/(6 FRQWLQXHG
(;$03/(
7(&+1,&$/5(48,5(0(1769(5,),&$7,21
9(5,),&$7,21 )5(48(1&<
3HUIRUP&+$11(/&+(&. KRXUV
([DPSOHFRQWDLQVWKHW\SHRI759PRVWRIWHQHQFRXQWHUHGLQWKH
7HFKQLFDO5HTXLUHPHQWV0DQXDO 750 7KH)UHTXHQF\VSHFLILHVDQ
LQWHUYDO KRXUV GXULQJZKLFKWKHDVVRFLDWHG759PXVWEHSHUIRUPHG
DWOHDVWRQHWLPH3HUIRUPDQFHRIWKH759LQLWLDWHVWKHVXEVHTXHQW
LQWHUYDO$OWKRXJKWKH)UHTXHQF\LVVWDWHGDVKRXUVDQH[WHQVLRQRI
WKHWLPHLQWHUYDOWRWLPHVWKHVWDWHG)UHTXHQF\LVDOORZHGE\759
IRURSHUDWLRQDOIOH[LELOLW\7KHPHDVXUHPHQWRIWKLVLQWHUYDO
FRQWLQXHVDWDOOWLPHVHYHQZKHQWKH759LVQRWUHTXLUHGWREHPHWSHU
759 VXFKDVZKHQWKHHTXLSPHQWLVQRQIXQFWLRQDODYDULDEOHLV
RXWVLGHVSHFLILHGOLPLWVRUWKHXQLWLVRXWVLGHWKH$SSOLFDELOLW\RIWKH75
,IWKHLQWHUYDOVSHFLILHGE\759LVH[FHHGHGZKLOHWKHXQLWLVLQD
02'(RURWKHUVSHFLILHGFRQGLWLRQLQWKH$SSOLFDELOLW\RIWKH75DQGWKH
SHUIRUPDQFHRIWKH759LVQRWRWKHUZLVHPRGLILHG UHIHUWR
([DPSOH WKHQ759EHFRPHVDSSOLFDEOH
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
)UHTXHQF\
(;$03/(6 FRQWLQXHG
(;$03/(
7(&+1,&$/5(48,5(0(1769(5,),&$7,21
9(5,),&$7,21 )5(48(1&<
9HULI\IORZLVZLWKLQOLPLWV 2QFHZLWKLQ
KRXUVDIWHU
573
$1'
KRXUVWKHUHDIWHU
([DPSOHKDVWZR)UHTXHQFLHV7KHILUVWLVDRQHWLPHSHUIRUPDQFH
)UHTXHQF\DQGWKHVHFRQGLVRIWKHW\SHVKRZQLQ([DPSOH7KH
ORJLFDOFRQQHFWRU$1'LQGLFDWHVWKDWERWK)UHTXHQF\UHTXLUHPHQWVPXVW
EHPHW(DFKWLPHUHDFWRUSRZHULVLQFUHDVHGIURPDSRZHUOHYHO
573WR573WKH759PXVWEHSHUIRUPHGZLWKLQKRXUV
7KHXVHRIRQFHLQGLFDWHVDVLQJOHSHUIRUPDQFHZLOOVDWLVI\WKHVSHFLILHG
)UHTXHQF\ DVVXPLQJQRRWKHU)UHTXHQFLHVDUHFRQQHFWHGE\$1'
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
)UHTXHQF\
(;$03/(6 FRQWLQXHG
(;$03/(
7(&+1,&$/5(48,5(0(1769(5,),&$7,21
9(5,),&$7,21 )5(48(1&<
127(
1RWUHTXLUHGWREHSHUIRUPHGXQWLOKRXUVDIWHU
573
3HUIRUPFKDQQHODGMXVWPHQW GD\V
7KHLQWHUYDOFRQWLQXHVZKHWKHURUQRWWKHXQLWRSHUDWLRQLV 573
EHWZHHQSHUIRUPDQFHV
$VWKH1RWHPRGLILHVWKHUHTXLUHGSHUIRUPDQFHRIWKH759LWLVFRQVWUXHG
WREHSDUWRIWKHVSHFLILHG)UHTXHQF\6KRXOGWKHGD\LQWHUYDOEH
H[FHHGHGZKLOHRSHUDWLRQLV 573WKLV1RWHDOORZVKRXUVDIWHU
SRZHUUHDFKHV573WRSHUIRUPWKH7597KH759LVVWLOO
FRQVLGHUHGWREHSHUIRUPHGZLWKLQWKHVSHFLILHG)UHTXHQF\7KHUHIRUH
LIWKH759ZHUHQRWSHUIRUPHGZLWKLQWKHGD\ SOXVWKHH[WHQVLRQ
DOORZHGE\759 LQWHUYDOEXWRSHUDWLRQZDV 573LWZRXOG
QRWFRQVWLWXWHDIDLOXUHRIWKH759RUIDLOXUHWRPHHWWKH75
2QFHWKHXQLWUHDFKHV573KRXUVZRXOGEHDOORZHGIRU
FRPSOHWLQJWKH759,IWKH759ZHUHQRWSHUIRUPHGZLWKLQWKLVKRXU
LQWHUYDO SOXVWKHH[WHQVLRQDOORZHGE\759 WKHUHZRXOGWKHQEHD
IDLOXUHWRSHUIRUPD759ZLWKLQWKHVSHFLILHG)UHTXHQF\
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
)UHTXHQF\
(;$03/(6 FRQWLQXHG
(;$03/(
7(&+1,&$/5(48,5(0(1769(5,),&$7,21
9(5,),&$7,21 )5(48(1&<
127(
2QO\UHTXLUHGWREHPHWLQ02'(
9HULI\OHDNDJHUDWHVDUHZLWKLQOLPLWV KRXUV
([DPSOHVSHFLILHVWKDWWKHUHTXLUHPHQWVRIWKLV759GRQRWKDYHWR
EHPHWXQWLOWKHXQLWLVLQ02'(7KHLQWHUYDOPHDVXUHPHQWIRUWKH
)UHTXHQF\RIWKLV759FRQWLQXHVDWDOOWLPHVDVGHVFULEHGLQ
([DPSOH+RZHYHUWKH1RWHFRQVWLWXWHVDQRWKHUZLVHVWDWHG
H[FHSWLRQWRWKH$SSOLFDELOLW\RIWKLV7597KHUHIRUHLIWKH759ZHUHQRW
SHUIRUPHGZLWKLQWKHKRXULQWHUYDO SOXVWKHH[WHQVLRQDOORZHGE\
759 EXWWKHXQLWZDVQRWLQ02'(WKHUHZRXOGEHQRIDLOXUHRI
WKH759QRUIDLOXUHWRPHHWWKH757KHUHIRUHQRYLRODWLRQRFFXUVZKHQ
FKDQJLQJ02'(6HYHQZLWKWKHKRXU)UHTXHQF\H[FHHGHGSURYLGHG
WKH02'(FKDQJHZDVQRWPDGHLQWR02'(
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
86($1'$33/,&$7,21
7(&+1,&$/5(48,5(0(17 75 $SSOLFDELOLW\
75 75VVKDOOEHPHWGXULQJWKH02'(6RURWKHUVSHFLILHGFRQGLWLRQVLQWKH
$SSOLFDELOLW\
75 8SRQGLVFRYHU\RIDIDLOXUHWRPHHWD75WKH&RQWLQJHQF\0HDVXUHVRIWKH
DVVRFLDWHG&RQGLWLRQVVKDOOEHPHW
75 :KHQD75LVQRWPHWDQGWKHDVVRFLDWHG&RQWLQJHQF\0HDVXUHVDUHQRW
VDWLVILHG RUDQDVVRFLDWHG&RQWLQJHQF\0HDVXUHLVQRWSURYLGHG WKHHTXLSPHQW
VXEMHFWWRWKH75LVLQDQRQFRQIRUPLQJFRQGLWLRQ,QWKLVVLWXDWLRQDSSURSULDWH
DFWLRQVVKDOOEHWDNHQDVQHFHVVDU\WRSURYLGHDVVXUDQFHRIFRQWLQXHGVDIHSODQW
RSHUDWLRQV,QDGGLWLRQD&RQGLWLRQ5HSRUWVKDOOEHLQLWLDWHGDQGDQDVVHVVPHQW
RIUHDVRQDEOHDVVXUDQFHRIVDIHW\VKDOOEHFRQGXFWHG,WHPVWREHFRQVLGHUHG
IRUWKLVDVVHVVPHQWLQFOXGHWKHIROORZLQJ
x $YDLODELOLW\RIUHGXQGDQWRUEDFNXSHTXLSPHQW
x &RPSHQVDWRU\PHDVXUHVLQFOXGLQJOLPLWHGDGPLQLVWUDWLYHFRQWUROV
x 6DIHW\IXQFWLRQDQGHYHQWVSURWHFWHGDJDLQVW
x 3UREDELOLW\RIQHHGLQJWKHVDIHW\IXQFWLRQ
x &RQVHUYDWLVPDQGPDUJLQV DQG
x 3UREDELOLVWLF5LVN$VVHVVPHQWRU,QGLYLGXDO3ODQW(YDOXDWLRQUHVXOWVWKDW
GHWHUPLQHKRZRSHUDWLQJWKHSODQWLQWKHPDQQHUSURSRVHGZLOOLPSDFWFRUH
GDPDJHIUHTXHQF\
,IWKLVDVVHVVPHQWFRQFOXGHVWKDWVDIHW\LVVXIILFLHQWO\DVVXUHGWKHIDFLOLW\PD\
FRQWLQXHWRRSHUDWHZKLOHSURPSWFRUUHFWLYHDFWLRQLVWDNHQ
75 :KHQD75LVQRWPHWHQWU\LQWRD02'(RURWKHUVSHFLILHGFRQGLWLRQLQWKH
$SSOLFDELOLW\VKDOORQO\EHPDGH
D :KHQWKHDVVRFLDWHG&RQWLQJHQF\0HDVXUHVWREHHQWHUHGSHUPLWFRQWLQXHG
RSHUDWLRQLQWKH02'(RURWKHUVSHFLILHGFRQGLWLRQLQWKH$SSOLFDELOLW\IRUDQ
XQOLPLWHGSHULRGRIWLPH
E $IWHUSHUIRUPDQFHRIDULVNDVVHVVPHQWDGGUHVVLQJ1RQIXQFWLRQDOV\VWHPV
DQGFRPSRQHQWVFRQVLGHUDWLRQRIWKHUHVXOWVGHWHUPLQDWLRQRIWKH
DFFHSWDELOLW\RIHQWHULQJWKH02'(RURWKHUVSHFLILHGFRQGLWLRQLQWKH
$SSOLFDELOLW\DQGHVWDEOLVKPHQWRIULVNPDQDJHPHQWDFWLRQVLIDSSURSULDWH
H[FHSWLRQVWRWKLV75DUHVWDWHGLQWKHLQGLYLGXDO75 RU
F :KHQDQDOORZDQFHLVVWDWHGLQWKHLQGLYLGXDOYDOXHSDUDPHWHURURWKHU75
7KLV75VKDOOQRWSUHYHQWHQWU\LQWR02'(6RURWKHUVSHFLILHGFRQGLWLRQVLQWKH
$SSOLFDELOLW\WKDWDUHUHTXLUHGWRFRPSO\ZLWK&RQWLQJHQF\0HDVXUHVRUWKDWDUH
SDUWRIDVKXWGRZQRIWKHXQLW
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
7(&+1,&$/5(48,5(0(17 75 $SSOLFDELOLW\
75 (TXLSPHQWUHPRYHGIURPVHUYLFHRUGHFODUHG1RQIXQFWLRQDOWRFRPSO\ZLWK
&RQWLQJHQF\0HDVXUHVPD\EHUHWXUQHGWRVHUYLFHXQGHUDGPLQLVWUDWLYHFRQWURO
VROHO\WRSHUIRUPWHVWLQJUHTXLUHGWRGHPRQVWUDWHLWV)81&7,21$/,7<RUWKH
)81&7,21$/,7<RIRWKHUHTXLSPHQW7KLVLVDQH[FHSWLRQWR75IRU
WKHV\VWHPUHWXUQHGWRVHUYLFHXQGHUDGPLQLVWUDWLYHFRQWUROWRSHUIRUPWKH
WHVWLQJUHTXLUHGWRGHPRQVWUDWH)81&7,21$/,7<
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
86($1'$33/,&$7,21
7(&+1,&$/5(48,5(0(1769(5,),&$7,21 759 $SSOLFDELOLW\
759 759VVKDOOEHPHWGXULQJWKH02'(6RURWKHUVSHFLILHGFRQGLWLRQVLQWKH
$SSOLFDELOLW\IRULQGLYLGXDO75VXQOHVVRWKHUZLVHVWDWHGLQWKH759)DLOXUHWR
PHHWD759ZKHWKHUVXFKIDLOXUHLVH[SHULHQFHGGXULQJWKHSHUIRUPDQFHRIWKH
759RUEHWZHHQSHUIRUPDQFHVRIWKH759VKDOOEHIDLOXUHWRPHHWWKH75
)DLOXUHWRSHUIRUPD759ZLWKLQWKHVSHFLILHG)UHTXHQF\VKDOOEHIDLOXUHWRPHHW
WKH75759VGRQRWKDYHWREHSHUIRUPHGRQQRQIXQFWLRQDOHTXLSPHQWRU
YDULDEOHVRXWVLGHVSHFLILHGOLPLWV
759 (DFK759VKDOOEHSHUIRUPHGZLWKLQWKHVSHFLILHGWLPHLQWHUYDOZLWKDPD[LPXP
DOORZDEOHH[WHQVLRQQRWWRH[FHHGRIWKHVSHFLILHG759LQWHUYDO
759 :KHQLWLVGLVFRYHUHGWKDWD759)UHTXHQF\ LQFOXGLQJWKHH[WHQVLRQ KDV
QRWEHHQPHWWKHHTXLSPHQWVXEMHFWWRWKH759LV1RQIXQFWLRQDO
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
5($&7,9,7<&21752/6<67(06
%RUDWLRQ6\VWHPV2SHUDWLQJ
7(&+1,&$/5(48,5(0(17 75
75 7KH%RUDWLRQ6\VWHPVKDOOEH)81&7,21$/FRQVLVWLQJRIDWOHDVWWZRRIWKH
IROORZLQJWKUHHIORZSDWKV
D 7KHIORZSDWKIURPDERULFDFLGWDQNYLDD)81&7,21$/ERULFDFLG
WUDQVIHUSXPSDQGD)81&7,21$/FKDUJLQJSXPSWRWKH5HDFWRU
&RRODQW6\VWHP 5&6
E 7ZRIORZSDWKVIURPWKH23(5$%/(UHIXHOLQJZDWHUVWRUDJHWDQNYLDWZR
)81&7,21$/FKDUJLQJSXPSVWRWKH5&6
127(
,Q02'(RQHFKDUJLQJSXPSPD\EHPDGHLQFDSDEOHRILQMHFWLQJWRVXSSRUWWUDQVLWLRQLQWRRU
IURPWKH$SSOLFDELOLW\RI7HFKQLFDO6SHFLILFDWLRQ/&2³/RZ7HPSHUDWXUH2YHUSUHVVXUH
3URWHFWLRQ /723 6\VWHP³IRUXSWRKRXUVRUXQWLOWKHWHPSHUDWXUHRIDOO5&6FROGOHJV
H[FHHGV/723DUPLQJWHPSHUDWXUH ) VSHFLILHGLQWKH3UHVVXUHDQG7HPSHUDWXUH/LPLWV
5HSRUW 37/5 SOXV)ZKLFKHYHUFRPHVILUVW
$33/,&$%,/,7< 02'(6DQG
&217,1*(1&<0($685(6
&21',7,21 &217,1*(1&<0($685(6 5(6725$7,217,0(
$ 2QHUHTXLUHGERURQ $ 5HVWRUHWKHUHTXLUHG KRXUV
LQMHFWLRQIORZSDWK 1RQIXQFWLRQDOIORZSDWKWR
1RQIXQFWLRQDO )81&7,21$/VWDWXV
% 5HTXLUHG&RQWLQJHQF\ % (YDOXDWHLQDFFRUGDQFH ,PPHGLDWHO\
0HDVXUHVDQGDVVRFLDWHG ZLWK75
5HVWRUDWLRQ7LPHRI
&RQGLWLRQ$
QRWPHW
25
7ZRUHTXLUHGERURQ
LQMHFWLRQIORZSDWKV
1RQIXQFWLRQDO
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
7(&+1,&$/5(48,5(0(1769(5,),&$7,21
759 9(5,),&$7,21 )5(48(1&<
127(
2QO\UHTXLUHGWREHPHWLIDERULFDFLGWDQNLVDUHTXLUHG
ZDWHUVRXUFH
9HULI\WKHWHPSHUDWXUHRIWKHERULFDFLGWDQNDUHDDQG GD\V
DUHDVFRQWDLQLQJIORZSDWKFRPSRQHQWVIURPWKHERULF
DFLGWDQNVWRWKHEOHQGLQJWHHLVJUHDWHUWKDQRUHTXDO $1'
WR)
2QFHZLWKLQKRXUV
DIWHUDUHDWHPSHUDWXUH
LVOHVVWKDQ)
$1'
KRXUVWKHUHDIWHU
XQWLODUHDWHPSHUDWXUH
LVJUHDWHUWKDQRUHTXDO
WR)
127(
2QO\UHTXLUHGWREHPHWLIDERULFDFLGWDQNLVDUHTXLUHG
ZDWHUVRXUFH
9HULI\WKHERURQFRQFHQWUDWLRQLQWKHERULFDFLGWDQNLV GD\V
LQDFFRUGDQFHZLWK)LJXUH
127(
2QO\UHTXLUHGWREHPHWLIDERULFDFLGWDQNLVDUHTXLUHG
ZDWHUVRXUFH
9HULI\WKHERUDWHGZDWHUYROXPHLQWKHERULFDFLGWDQNLV GD\V
LQDFFRUGDQFHZLWK)LJXUH
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
$SULO
7(&+1,&$/5(48,5(0(1769(5,),&$7,21 FRQWLQXHG
759 9(5,),&$7,21 )5(48(1&<
9HULI\HDFKPDQXDOSRZHURSHUDWHGRUDXWRPDWLF GD\V
YDOYHLQWKHERURQLQMHFWLRQIORZSDWKWKDWLVQRWORFNHG
VHDOHGRURWKHUZLVHVHFXUHGLQSRVLWLRQLVLQLWVFRUUHFW
SRVLWLRQ
9HULI\HDFKDXWRPDWLFYDOYHLQWKHERURQLQMHFWLRQIORZ PRQWKV
SDWKDFWXDWHVWRLWVFRUUHFWSRVLWLRQRQDVDIHW\LQMHFWLRQ
WHVWVLJQDO
9HULI\WKHIORZSDWKIURPWKHERULFDFLGWDQNVYLDDERULF PRQWKV
DFLGWUDQVIHUSXPSDQGDFKDUJLQJSXPSWRWKH5&6
GHOLYHUVJUHDWHUWKDQRUHTXDOWRJSP
9HULI\HDFKFKDUJLQJSXPSGHYHORSVDGLVFKDUJH ,QDFFRUGDQFHZLWKWKH
SUHVVXUHRIJUHDWHUWKDQRUHTXDOWRSVLJGXULQJ ,QVHUYLFH7HVWLQJ
UHFLUFXODWLRQIORZ 3URJUDP
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
750),*85( 8QLWV
%25,&$&,'7$1./,0,76
%$6('215:67%2521&21&(175$7,21
5(*,212)$&&(37$%/(23(5$7,21
5:67 SSP%
5:67 SSP%
5:67 SSP%
5:67 SSP%
,1',&$7('%25,&$&,'7$1.92/80(*$//216
5:67 SSP%
SSP 0LQLPXP
SSP 0D[LPXP
5(*,212)81$&&(37$%/(23(5$7,21
,QGLFDWHGYDOXHVLQFOXGHJDOXQXVDEOHYROXPHDQGJDOIRULQVWUXPHQWHUURU
%25,&$&,'7$1.&21&(175$7,21330%2521
5:67&RQFHQWUDWLRQ
330 330 330 330 330
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
$XJXVW $
%$6(6
%RUDWLRQ6\VWHPV+/-2SHUDWLQJ
7KHERURQLQMHFWLRQV\VWHPHQVXUHVWKDWQHJDWLYHUHDFWLYLW\FRQWUROLVDYDLODEOHGXULQJHDFK
PRGHRIIDFLOLW\RSHUDWLRQ7KHFRPSRQHQWVUHTXLUHGWRSHUIRUPWKLVIXQFWLRQLQFOXGH
ERUDWHGZDWHUVRXUFHV FKDUJLQJSXPSV VHSDUDWHIORZSDWKV ERULFDFLGWUDQVIHU
SXPSVDQG RIIVLWHSRZHUVXSSO\RUDQHPHUJHQF\SRZHUVXSSO\IURP23(5$%/(GLHVHO
JHQHUDWRUV
- LWKWKH5&6DYHUDJHWHPSHUDWXUHDERYH)DPLQLPXPRIWZRERURQLQMHFWLRQV\VWHPV
LQYROYLQJWZRFKDUJLQJSXPSV DUHUHTXLUHGWRHQVXUHVLQJOHIXQFWLRQDOFDSDELOLW\LQWKHHYHQW
DQDVVXPHGIDLOXUHUHQGHUVRQHRIWKHIORZSDWKVQRQIXQFWLRQDO7KHERUDWLRQFDSDELOLW\RI
HLWKHUIORZSDWKLVVXIILFLHQWWRSURYLGHD6+87'2:10$5*,1 6'0 IURPH[SHFWHGRSHUDWLQJ
FRQGLWLRQVRI¨NNDIWHU[HQRQGHFD\DQGFRROGRZQWR)7KHPD[LPXPH[SHFWHG
ERUDWLRQFDSDELOLW\UHTXLUHPHQWRFFXUVDWQHDU(2/IURPIXOOSRZHUSHDN[HQRQFRQGLWLRQVDQG
UHTXLUHVERUDWHGZDWHUIURPDERULFDFLGWDQNLQDFFRUGDQFHZLWK)LJXUHDQGDGGLWLRQDO
PDNHXSZDWHUIURPHLWKHU WKHFRPPRQERULFDFLGWDQNDQGRUEDWFKLQJRU DPLQLPXPRI
JDOORQVRISSPERUDWHGZDWHUIURPWKHUHIXHOLQJZDWHUVWRUDJHWDQN:LWKWKH
UHIXHOLQJZDWHUVWRUDJHWDQNDVWKHRQO\ERUDWHGZDWHUVRXUFHDPLQLPXPRIJDOORQVRI
SSPERUDWHGZDWHULVUHTXLUHG
75LVPRGLILHGE\D1RWH2SHUDWLRQLQ02'(ZLWKRQHFKDUJLQJSXPSPDGHLQFDSDEOH
RILQMHFWLQJLQRUGHUWRIDFLOLWDWHHQWU\LQWRRUH[LWIURPWKH$SSOLFDELOLW\RI7HFKQLFDO6SHFLILFDWLRQ
/&2³/RZ7HPSHUDWXUH2YHUSUHVVXUH3URWHFWLRQ /723 6\VWHP³LVQHFHVVDU\IRU
SODQWVZLWKDQ/723DUPLQJWHPSHUDWXUHDWRUQHDUWKH02'(ERXQGDU\WHPSHUDWXUHRI
)7HFKQLFDO6SHFLILFDWLRQV/&2UHTXLUHVWKDWFHUWDLQSXPSVEHUHQGHUHGLQFDSDEOH
RILQMHFWLQJDWDQGEHORZWKH/723DUPLQJWHPSHUDWXUH:KHQWKLVWHPSHUDWXUHLVDWRUQHDUWKH
02'(ERXQGDU\WHPSHUDWXUHWLPHLVQHHGHGWRPDNHDSXPSLQFDSDEOHRILQMHFWLQJSULRUWR
HQWHULQJWKH/723$SSOLFDELOLW\DQGSURYLGHWLPHWRUHVWRUHWKHQRQIXQFWLRQDOSXPSWR
)81&7,21$/VWDWXVRQH[LWLQJWKH/723$SSOLFDELOLW\
7KHERULFDFLGWDQNVSXPSVYDOYHVDQGSLSLQJFRQWDLQDERULFDFLGVROXWLRQFRQFHQWUDWLRQRI
EHWZHHQDQGE\ZHLJKW7RHQVXUHWKDWWKHERULFDFLGUHPDLQVLQVROXWLRQWKHDLU
WHPSHUDWXUHLVPRQLWRUHGLQVWUDWHJLFORFDWLRQV%\HQVXULQJWKHDLUWHPSHUDWXUHUHPDLQVDW
)RUDERYHD)PDUJLQLVSURYLGHGWRHQVXUHWKHERURQZLOOQRWSUHFLSLWDWHRXW7RSURYLGH
RSHUDWLRQDOIOH[LELOLW\LIWKHDUHDWHPSHUDWXUHVKRXOGIDOOEHORZWKHUHTXLUHGYDOXHWKHVROXWLRQ
WHPSHUDWXUH DVGHWHUPLQHGE\WKHSLSHRUWDQNZDOOWHPSHUDWXUH ZLOOEHPRQLWRUHGDWDQ
LQFUHDVHGIUHTXHQF\WRFRPSHQVDWHIRUWKHODFNRIVROXWLRQWHPSHUDWXUHDODUPLQWKHPDLQ
FRQWUROURRP
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
5($&7,9,7<&21752/6<67(06
%RUDWLRQ6\VWHPV6KXWGRZQ
7(&+1,&$/5(48,5(0(17 75
75 7KH%RUDWLRQ6\VWHPVKDOOEH)81&7,21$/FRQVLVWLQJRIWKHIROORZLQJ
D $IORZSDWKIURPDERULFDFLGWDQNYLDD)81&7,21$/ERULFDFLGWUDQVIHU
SXPSDQGD)81&7,21$/FKDUJLQJSXPSWRWKH5HDFWRU&RRODQW
6\VWHP 5&6 25
E $IORZSDWKIURPWKH)81&7,21$/UHIXHOLQJZDWHUVWRUDJHWDQN 5:67
YLDD)81&7,21$/FKDUJLQJSXPSWRWKH5&6
$33/,&$%,/,7< 02'(6DQG
&217,1*(1&<0($685(6
&21',7,21 &217,1*(1&<0($685(6 5(6725$7,217,0(
$ 127( $ 6XVSHQGRSHUDWLRQVWKDW ,PPHGLDWHO\
2QO\DSSOLFDEOHLQ02'( ZRXOGFDXVHLQWURGXFWLRQRI
DQG FRRODQWLQWRWKH5&6ZLWK
ERURQFRQFHQWUDWLRQOHVV
WKDQUHTXLUHGWRPHHWWKH
5HTXLUHGERURQLQMHFWLRQ 6'0RI7HFKQLFDO
IORZSDWK1RQIXQFWLRQDO 6SHFLILFDWLRQ
$1'
$ 5HVWRUHWKH1RQIXQFWLRQDO ,PPHGLDWHO\
IORZSDWKWR)81&7,21$/
VWDWXV
% 127( % 6XVSHQG&25( ,PPHGLDWHO\
2QO\DSSOLFDEOHLQ $/7(5$7,216
02'(
$1'
5HTXLUHGERURQLQMHFWLRQ % 6XVSHQGRSHUDWLRQVWKDW ,PPHGLDWHO\
IORZSDWK1RQIXQFWLRQDO ZRXOGFDXVHLQWURGXFWLRQRI
FRRODQWLQWRWKH5&6ZLWK
ERURQFRQFHQWUDWLRQOHVV
WKDQUHTXLUHGWRPHHW
7HFKQLFDO6SHFLILFDWLRQ
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
&21',7,21 &217,1*(1&<0($685(6 5(6725$7,217,0(
& 5HTXLUHG&RQWLQJHQF\ & (YDOXDWHLQDFFRUGDQFH ,PPHGLDWHO\
0HDVXUHVDQG ZLWK75
DVVRFLDWHG5HVWRUDWLRQ
7LPHRI&RQGLWLRQ$RU%
QRWPHW
7(&+1,&$/5(48,5(0(1769(5,),&$7,21
759 9(5,),&$7,21 )5(48(1&<
127(
2QO\UHTXLUHGWREHPHWLIWKH5:67LVWKHUHTXLUHG
ZDWHUVRXUFH
9HULI\WKHWHPSHUDWXUHRIWKH5:67VROXWLRQLVJUHDWHU KRXUV
WKDQRUHTXDOWR)
127(
2QO\UHTXLUHGWREHPHWLIDERULFDFLGWDQNLVWKH
UHTXLUHGZDWHUVRXUFH
9HULI\WKHWHPSHUDWXUHRIWKHERULFDFLGWDQNDUHDDQG GD\V
DUHDVFRQWDLQLQJIORZSDWKFRPSRQHQWVIURPWKHERULF
DFLGWDQNVWRWKHEOHQGLQJWHHLVJUHDWHUWKDQRUHTXDO $1'
WR)
2QFHZLWKLQKRXUV
DIWHUDUHDWHPSHUDWXUH
LVOHVVWKDQ)
$1'
KRXUVWKHUHDIWHU
XQWLODUHDWHPSHUDWXUH
LVJUHDWHUWKDQRUHTXDO
WR)
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
759 9(5,),&$7,21 )5(48(1&<
127(
2QO\UHTXLUHGWREHPHWLIDERULFDFLGWDQNLVWKH
UHTXLUHGZDWHUVRXUFH
9HULI\WKHERURQFRQFHQWUDWLRQLQWKHERULFDFLGWDQNLV GD\V
JUHDWHUWKDQSSPDQGOHVVWKDQ SSP
127(
2QO\UHTXLUHGWREHPHWLIDERULFDFLGWDQNLVWKH
UHTXLUHGZDWHUVRXUFH
9HULI\WKHERUDWHGZDWHUYROXPHLQWKHERULFDFLGWDQNLV GD\V
JUHDWHUWKDQRUHTXDOWRJDOORQV
127(
2QO\UHTXLUHGWREHPHWLIWKH5:67LVWKHUHTXLUHG
ZDWHUVRXUFH
9HULI\WKH5:67ERURQFRQFHQWUDWLRQLVJUHDWHUWKDQRU GD\V
HTXDOWRSSP
127(
2QO\UHTXLUHGWREHPHWLIWKH5:67LVWKHUHTXLUHG
ZDWHUVRXUFH
9HULI\WKHERUDWHGZDWHUYROXPHLQWKH5:67LVJUHDWHU GD\V
WKDQRUHTXDOWRJDOORQV
9HULI\HDFKPDQXDOSRZHURSHUDWHGRUDXWRPDWLF GD\V
YDOYHLQWKHUHTXLUHGERURQLQMHFWLRQIORZSDWKWKDWLV
QRWORFNHGVHDOHGRURWKHUZLVHVHFXUHGLQSRVLWLRQLV
LQLWVFRUUHFWSRVLWLRQ
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
759 9(5,),&$7,21 )5(48(1&<
9HULI\WKHFKDUJLQJSXPSGHYHORSVDGLVFKDUJH ,QDFFRUGDQFHZLWKWKH
SUHVVXUHRIJUHDWHUWKDQRUHTXDOWRSVLJGXULQJ ,QVHUYLFH7HVWLQJ
UHFLUFXODWLRQIORZ 3URJUDP
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
$XJXVW
5($&7,9,7<&21752/6<67(06
%RUDWLRQ6\VWHPV6KXWGRZQ
%$6(6
7KHERURQLQMHFWLRQV\VWHPHQVXUHVWKDWQHJDWLYHUHDFWLYLW\FRQWUROLVDYDLODEOHGXULQJHDFK
PRGHRIIDFLOLW\RSHUDWLRQ7KHFRPSRQHQWVUHTXLUHGWRSHUIRUPWKLVIXQFWLRQLQFOXGH ERUDWHG
ZDWHUVRXUFHV FKDUJLQJSXPSV VHSDUDWHIORZSDWKV ERULFDFLGWUDQVIHUSXPSVDQG
RIIVLWHSRZHUVXSSO\RUDQHPHUJHQF\SRZHUVXSSO\IURP23(5$%/(GLHVHOJHQHUDWRUV
7KHERULFDFLGWDQNVSXPSVYDOYHVDQGSLSLQJFRQWDLQDERULFDFLGVROXWLRQFRQFHQWUDWLRQRI
EHWZHHQDQGE\ZHLJKW7RHQVXUHWKDWWKHERULFDFLGUHPDLQVLQVROXWLRQWKHDLU
WHPSHUDWXUHLVPRQLWRUHGLQVWUDWHJLFORFDWLRQV%\HQVXULQJWKHDLUWHPSHUDWXUHUHPDLQVDW
)RUDERYHD)PDUJLQLVSURYLGHGWRHQVXUHWKHERURQZLOOQRWSUHFLSLWDWHRXW7RSURYLGH
RSHUDWLRQDOIOH[LELOLW\LIWKHDUHDWHPSHUDWXUHVKRXOGIDOOEHORZWKHUHTXLUHGYDOXHWKHVROXWLRQ
WHPSHUDWXUH DVGHWHUPLQHGE\WKHSLSHRUWDQNZDOOWHPSHUDWXUH ZLOOEHPRQLWRUHGDWDQ
LQFUHDVHGIUHTXHQF\WRFRPSHQVDWHIRUWKHODFNRIVROXWLRQWHPSHUDWXUHDODUPLQWKHPDLQ
FRQWUROURRP
- LWKWKH5&6WHPSHUDWXUHEHORZ)RQHLQMHFWLRQV\VWHPLVDFFHSWDEOHZLWKRXWVLQJOH
IDLOXUHFRQVLGHUDWLRQRQWKHEDVLVRIWKHVWDEOHUHDFWLYLW\FRQGLWLRQRIWKHUHDFWRUDQGWKH
DGGLWLRQDOUHVWULFWLRQVSURKLELWLQJ&25($/7(5$7,216DQGRSHUDWLRQVLQYROYLQJSRVLWLYH
UHDFWLYLW\DGGLWLRQVWKDWFRXOGUHVXOWLQORVVRIUHTXLUHGVKXWGRZQPDUJLQ 6'0 02'(RU
RUERURQFRQFHQWUDWLRQ 02'( LQWKHHYHQWWKHVLQJOHLQMHFWLRQV\VWHPEHFRPHV
QRQIXQFWLRQDO6XVSHQGLQJSRVLWLYHUHDFWLYLW\DGGLWLRQVWKDWFRXOGUHVXOWLQIDLOXUHWRPHHW
PLQLPXP6'0RUERURQFRQFHQWUDWLRQOLPLWLVUHTXLUHGWRDVVXUHFRQWLQXHGVDIHRSHUDWLRQ
,QWURGXFWLRQRIFRRODQWLQYHQWRU\PXVWEHIURPVRXUFHVWKDWKDYHDERURQFRQFHQWUDWLRQJUHDWHU
WKDQRUHTXDOWRWKDWUHTXLUHGLQWKH5&6IRUPLQLPXP6'0RUUHIXHOLQJERURQFRQFHQWUDWLRQ
7KLVPD\UHVXOWLQDQRYHUDOOUHGXFWLRQLQ5&6ERURQFRQFHQWUDWLRQEXWSURYLGHVDFFHSWDEOH
PDUJLQWRPDLQWDLQLQJVXEFULWLFDORSHUDWLRQ,QWURGXFWLRQRIWHPSHUDWXUHFKDQJHVLQFOXGLQJ
WHPSHUDWXUHLQFUHDVHVZKHQRSHUDWLQJZLWKSRVLWLYH07&PXVWEHHYDOXDWHGWRHQVXUHWKH\GR
QRWUHVXOWLQDORVVRIUHTXLUHG6'0
7KHERURQFDSDELOLW\UHTXLUHGEHORZ)LVVXIILFLHQWWRSURYLGHD6'0RI¨NNDIWHU
[HQRQGHFD\DQGFRROGRZQIURP)WR)DQGD6'0RI¨NNDIWHU[HQRQGHFD\DQG
FRROGRZQIURP)WR)7KLVFRQGLWLRQUHTXLUHVHLWKHUJDOORQVRISSP
ERUDWHGZDWHUIURPWKHERULFDFLGVWRUDJHWDQNVRUJDOORQVRISSPERUDWHGZDWHU
IURPWKHUHIXHOLQJZDWHUVWRUDJHWDQN 5:67
7KHFRQWDLQHGZDWHUYROXPHOLPLWVLQFOXGHDOORZDQFHIRUZDWHUQRWDYDLODEOHEHFDXVHRI
GLVFKDUJHOLQHORFDWLRQDQGRWKHUSK\VLFDOFKDUDFWHULVWLFV7KHJDOORQOLPLWLQWKHERULFDFLG
WDQNIRU0RGHVDQGLVEDVHGRQJDOORQVUHTXLUHGIRU6'0JDOORQVIRUWKH
XQXVDEOHYROXPHLQWKHKHHORIWKHWDQNJDOORQVIRULQVWUXPHQWHUURUDQGDQDGGLWLRQDO
JDOORQVGXHWRURXQGLQJXS7KHJDOORQOLPLWLQWKHUHIXHOLQJZDWHUVWRUDJHWDQNIRU
PRGHVDQGLVEDVHGXSRQJDOORQVWKDWLVXQGHWHFWDEOHGXHWRORZHUWDSORFDWLRQ
JDOORQVIRULQVWUXPHQWHUURUJDOORQVUHTXLUHGIRU6'0DQGDQDGGLWLRQDO
JDOORQVGXHWRURXQGLQJXS
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
%$6(6
%RUDWLRQ6\VWHPV+/-6KXWGRZQ FRQWLQXHG
7KHOLPLWVRQFRQWDLQHGZDWHUYROXPHDQGERURQFRQFHQWUDWLRQRIWKH5:67DOVRHQVXUHDS+
YDOXHRIEHWZHHQDQG IRUWKHVROXWLRQUHFLUFXODWHGZLWKLQFRQWDLQPHQWDIWHUDORVVRI
FRRODQWDFFLGHQW7KLVS+EDQGPLQLPL]HVWKHHYROXWLRQRILRGLQHDQGPLQLPL]HVWKHHIIHFWRI
FKORULGHDQGFDXVWLFVWUHVVFRUURVLRQRQPHFKDQLFDOV\VWHPVDQGFRPSRQHQWV
7KH)81&7,21$/,7<RIRQHERURQLQMHFWLRQV\VWHPGXULQJUHIXHOLQJHQVXUHVWKDWWKLVV\VWHPLV
DYDLODEOHIRUUHDFWLYLW\FRQWUROZKLOHLQ02'(
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
5($&7,9,7<&21752/6<67(06
3RVLWLRQ,QGLFDWLRQ6\VWHP6KXWGRZQ
7(&+1,&$/5(48,5(0(17 75
75 7KHJURXSGHPDQGSRVLWLRQLQGLFDWRUVKDOOEH)81&7,21$/DQGFDSDEOHRI
GHWHUPLQLQJZLWKLQVWHSVWKHGHPDQGSRVLWLRQIRUHDFKVKXWGRZQRUFRQWURO
URGQRWIXOO\LQVHUWHG
$33/,&$%,/,7< 02'(6DQGZLWKWKHUHDFWRUWULSEUHDNHUVLQWKHFORVHGSRVLWLRQ
&217,1*(1&<0($685(6
&21',7,21 &217,1*(1&<0($685(6 5(6725$7,217,0(
$ /HVVWKDQUHTXLUHG $ 2SHQWKHUHDFWRUWULS ,PPHGLDWHO\
JURXSGHPDQGSRVLWLRQ EUHDNHUV
LQGLFDWRU V
)81&7,21$/
7(&+1,&$/5(48,5(0(1769(5,),&$7,21
759 9(5,),&$7,21 )5(48(1&<
9HULI\HDFKUHTXLUHGJURXSGHPDQGSRVLWLRQLQGLFDWRU V GD\V
LV)81&7,21$/E\PRYHPHQWRIWKHDVVRFLDWHG
FRQWUROURGDWOHDVWVWHSVLQDQ\RQHGLUHFWLRQ
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
5($&7,9,7<&21752/6<67(06
3RVLWLRQ,QGLFDWLRQ6\VWHP6KXWGRZQ
%$6(6
%$&.*5281' ,QVWUXPHQWDWLRQWRPRQLWRUYDULDEOHVDQGV\VWHPVRYHUWKHLURSHUDWLQJ
UDQJHVGXULQJQRUPDORSHUDWLRQDQWLFLSDWHGRSHUDWLRQDORFFXUUHQFHVDQG
DFFLGHQWFRQGLWLRQVPXVWEH)81&7,21$/75LVUHTXLUHGWR
HQVXUH)81&7,21$/,7<RIWKHFRQWUROURGJURXSGHPDQGSRVLWLRQ
LQGLFDWRUVWRGHWHUPLQHFRQWUROURGSRVLWLRQVRIURGJURXSVQRWIXOO\
LQVHUWHGZLWKWKH5HDFWRU7ULS6\VWHPEUHDNHUVLQWKHFORVHGSRVLWLRQ
7KH23(5$%,/,7<LQFOXGLQJJURXSGHPDQGSRVLWLRQLQGLFDWLRQRIWKH
VKXWGRZQDQGFRQWUROURGVDUHLQLWLDODVVXPSWLRQVLQDOOVDIHW\DQDO\VHV
WKDWDVVXPHURGLQVHUWLRQXSRQUHDFWRUWULS5RGSRVLWLRQLQGLFDWLRQLV
UHTXLUHGWRDVVHVVFRQWURODQGVKXWGRZQURG23(5$%,/,7<DQG
PLVDOLJQPHQW7KHVHVDIHW\DQDO\VHVDUHQRWDSSOLFDEOHWRVKXWGRZQ
FRQGLWLRQV5RG'URS7LPHVDQGRWKHUWHVWVUHTXLULQJFRQWUROURG
23(5$%,/,7<KRZHYHUDUHSHUIRUPHGDWVKXWGRZQ$GGLWLRQDOO\
SRVLWLYHUHDFWLYLW\DGGLWLRQGXHWRURGZLWKGUDZDOPXVWEHFRPSHQVDWHG
IRUE\ERURQDGGLWLRQ5RGSRVLWLRQVDUHPRQLWRUHGDQGFRQWUROOHGZKHQ
ZLWKGUDZQGXULQJVKXWGRZQFRQGLWLRQVWRHQVXUH6+87'2:10$5*,1
LVPDLQWDLQHG7KHD[LDOSRVLWLRQRIVKXWGRZQURGVDQGFRQWUROURGVLV
GHWHUPLQHGE\WKHJURXSGHPDQGSRVLWLRQLQGLFDWRUV
7KHJURXSGHPDQGSRVLWLRQLQGLFDWRUVFRXQWWKHSXOVHVJHQHUDWHGLQWKH
5RG&RQWURO6\VWHPWRSURYLGHDUHDGRXWRIWKHGHPDQGEDQNSRVLWLRQ
7KHUHLVRQHVWHSFRXQWHUIRUHDFKJURXSRIURGV,QGLYLGXDOURGVLQD
JURXSDOOUHFHLYHWKHVDPHVLJQDOWRPRYHDQGVKRXOGWKHUHIRUHDOOEHDW
WKHVDPHSRVLWLRQLQGLFDWHGE\WKHJURXSVWHSFRXQWHUIRUWKDWJURXS7KH
JURXSGHPDQGSRVLWLRQLQGLFDWRUVDUHFRQVLGHUHGKLJKO\SUHFLVH VWHS
RULQFK ,IDURGGRHVQRWPRYHVWHSIRUHDFKGHPDQGSXOVHWKH
VWHSFRXQWHUZLOOVWLOOFRXQWWKHSXOVHDQGLQFRUUHFWO\UHIOHFWWKHSRVLWLRQRI
WKHURG
$33/,&$%/( 7KH5RG3RVLWLRQ,QGLFDWLRQ6\VWHPLVDV\VWHPZKLFKSURYLGHV
6$)(7< LQIRUPDWLRQWRWKHRSHUDWRUZKLFKFRXOGEHXVHGWRLQLWLDWHRSHUDWRUDFWLRQ
$1$/<6(6 +RZHYHUQRGHVLJQEDVLVDFFLGHQW '%$ RUWUDQVLHQWDVVXPHVRSHUDWRU
DFWLRQWRPDQXDOO\WULSWKHUHDFWRURUWRWDNHVRPHDOWHUQDWLYHDFWLRQLIDQ
DXWRPDWLFUHDFWRUWULSGRHVQRWRFFXU+HQFHWKHVKXWGRZQDQGFRQWURO
URGVLQFOXGLQJSRVLWLRQLQGLFDWLRQDUHQRWDVVXPHGWREH)81&7,21$/
WRPLWLJDWHWKHFRQVHTXHQFHVRID'%$RUWUDQVLHQWGXULQJVKXWGRZQ
FRQGLWLRQV3RVLWLYHUHDFWLYLW\DGGLWLRQGXHWRZLWKGUDZDORIFRQWUROURGVLV
FRPSHQVDWHGIRUE\ERURQFRQFHQWUDWLRQ
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
%$6(6
7(&+1,&$/ 75VSHFLILHVWKDWWKHJURXSGHPDQGSRVLWLRQLQGLFDWRUVEH
5(48,5(0(17 )81&7,21$/DQGFDSDEOHRIGHWHUPLQLQJZLWKLQVWHSVWKHGHPDQG
SRVLWLRQIRUHDFKVKXWGRZQRUFRQWUROURGQRWIXOO\LQVHUWHG)RUWKH
FRQWUROURGSRVLWLRQLQGLFDWRUVWREH)81&7,21$/UHTXLUHVPHHWLQJWKH
YHULILFDWLRQUHTXLUHPHQWRIWKH757KLVUHTXLUHPHQWSURYLGHVDGHTXDWH
DVVXUDQFHWKDWFRQWUROURGSRVLWLRQLQGLFDWLRQGXULQJVKXWGRZQFRQGLWLRQV
DQGURGWHVWLQJLVDFFXUDWHDQGWKDWGHVLJQDVVXPSWLRQVDUHQRW
FKDOOHQJHG)81&7,21$/,7<RIWKHUHTXLUHGSRVLWLRQLQGLFDWRUVHQVXUHV
WKDWQRQIXFWLRQDOPLVDOLJQHGRUPLVSRVLWLRQHGFRQWUROURGVFDQEH
GHWHFWHG
$33/,&$%,/,7< 75FRYHUVRQO\WKHUHTXLUHPHQWVRQ5RG3RVLWLRQ,QGLFDWLRQGXULQJ
02'(6DQGZLWKWKHUHDFWRUWULSEUHDNHUVFORVHG5RG3RVLWLRQ
,QGLFDWLRQGXULQJ02'(6DQGDUHFRYHUHGE\7HFKQLFDO6SHFLILFDWLRQ
,Q02'(DQGLQ02'(6DQGZLWKWULSEUHDNHUVRSHQRU
DOOURGVRQWKHERWWRP5RG3RVLWLRQ,QGLFDWLRQLVQRWUHTXLUHGWREH
)81&7,21$/5RG3RVLWLRQ,QGLFDWLRQ)81&7,21$/,7<LVUHTXLUHGRQO\
ZKHQURGVDUHZLWKGUDZQIURPIXOO\LQVHUWHG
&217,1*(1&< $
0($685(6
- LWKRQHRUPRUHJURXSGHPDQGSRVLWLRQLQGLFDWRUVQRQIXQFWLRQDOWKH
SODQWPXVWEHSODFHGLQDFRQGLWLRQZKHUHWKHGHPDQGSRVLWLRQLQGLFDWRUV
DUHQRWUHTXLUHG7KLVLVDFFRPSOLVKHGE\RSHQLQJWKHUHDFWRUWULS
EUHDNHUVLPPHGLDWHO\
7KHLPPHGLDWH5HVWRUDWLRQ7LPHLVFRQVLVWHQWZLWKWKHUHTXLUHGWLPHIRU
&RQWLQJHQF\0HDVXUHVWREHSXUVXHGZLWKRXWGHOD\DQGLQDFRQWUROOHG
PDQQHU
7(&+1,&$/ 759
5(48,5(0(176
9(5,),&$7,21 ([HUFLVLQJURGVDWD)UHTXHQF\RIGD\VDOORZVWKHRSHUDWRUWR
GHWHUPLQHWKDWDOOZLWKGUDZQURGVLQFOXGLQJWKHJURXSVWHSFRXQWHU
GHPDQGSRVLWLRQLQGLFDWRUFRQWLQXHWREH)81&7,21$/$PRYHPHQWRI
VWHSVLVDGHTXDWHWRGHPRQVWUDWHPRWLRQDQGYHULI\DFRUUHVSRQGLQJ
VWHSFKDQJHLQWKHJURXSVWHSFRXQWHUGHPDQGSRVLWLRQLQGLFDWRU7KH
GD\)UHTXHQF\WDNHVLQWRFRQVLGHUDWLRQRWKHULQIRUPDWLRQDYDLODEOHWR
WKHRSHUDWRULQWKHFRQWUROURRPDQGWKHUHPRWHOLNHOLKRRGWKDWURGVZRXOG
EHZLWKGUDZQIURPIXOO\LQVHUWHGIRUH[WHQGHGSHULRGVRIWLPHGXULQJ
VKXWGRZQFRQGLWLRQV
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
,167580(17$7,21
0RYDEOH,QFRUH'HWHFWRUV
7(&+1,&$/5(48,5(0(17 75
75 7KH0RYDEOH,QFRUH'HWHFWLRQ6\VWHPVKDOOEH)81&7,21$/ZLWK
D RIWKHGHWHFWRUWKLPEOHV
E GHWHFWRUWKLPEOHVSHUFRUHTXDGUDQWDQG
F 6XIILFLHQWPRYDEOHGHWHFWRUVGULYHDQGUHDGRXWHTXLSPHQWWRPDSWKHVH
WKLPEOHV
$33/,&$%,/,7< :KHQWKH0RYDEOH,QFRUH'HWHFWLRQ6\VWHPLVXVHGIRU
D 5HFDLOEUDWLRQRIWKHH[FRUHQHXWURQIOX[GHWHFWLRQV\VWHP
E 0RQLWRULQJWKH48$'5$1732:(57,/75$7,2RU
1 F 0HDVXUHPHQWRI) DQG) =
¨+ 4
&217,1*(1&<0($685(6
&21',7,21 &217,1*(1&<0($685(6 5(6725$7,217,0(
$ /HVVWKDQWKHVSHFLILHG $ 'RQRWXVHWKH0RYDEOH ,PPHGLDWHO\
QXPEHURILQFRUH ,QFRUH0RQLWRULQJ6\VWHP
GHWHFWRUV IRUWKHDERYHDSSOLFDEOH
)81&7,21$/ PRQLWRULQJRUFDOLEUDWLRQV
$1'
$ (YDOXDWHLQDFFRUGDQFH ,PPHGLDWHO\
ZLWK75
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
7(&+1,&$/5(48,5(0(1769(5,),&$7,21
759 9(5,),&$7,21 )5(48(1&<
9HULI\WKHQRUPDOL]DWLRQRIHDFKUHTXLUHGGHWHFWRU 3ULRUWRXVHIRUWKH
RXWSXW IROORZLQJ
5HFDOLEUDWLRQRIWKH
H[FRUHQHXWURQIOX[
GHWHFWLRQV\VWHP
25
0RQLWRULQJWKH
48$'5$1732:(5
7,/75$7,2
25
0HDVXUHPHQWRI
1
) DQG) =
¨+ 4
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
,167580(17$7,21
0RYDEOH,QFRUH'HWHFWRUV
%$6(6
%$&.*5281' 7KH)81&7,21$/,7<RIWKHPRYDEOHLQFRUHGHWHFWRUVZLWKWKHVSHFLILHG
PLQLPXPFRPSOHPHQWRIHTXLSPHQWHQVXUHVWKDWWKHPHDVXUHPHQWV
REWDLQHGIURPXVHRIWKLVV\VWHPDFFXUDWHO\UHSUHVHQWWKHVSDWLDOQHXWURQ
IOX[GLVWULEXWLRQRIWKHUHDFWRUFRUH7KH)81&7,21$/,7<RIWKLVV\VWHP
LVGHPRQVWUDWHGE\LUUDGLDWLQJHDFKGHWHFWRUXVHGDQGGHWHUPLQLQJWKH
DFFHSWDELOLW\RILWVYROWDJHFXUYH
)RUWKHSXUSRVHRIPHDVXULQJ) 4 ;<= RU) + ;< DIXOOLQFRUHIOX[PDS
LVXVHG4XDUWHUFRUHIOX[PDSVDVGHILQHGLQ:&$3-XQH
PD\EHXVHGLQUHFDOLEUDWLRQRIWKHH[FRUHQHXWURQIOX[GHWHFWLRQV\VWHP
DQGIXOOLQFRUHIOX[PDSVRUV\PPHWULFLQFRUHWKLPEOHVPD\EHXVHGIRU
PRQLWRULQJWKH48$'5$1732:(57,/75$7,2ZKHQRQH3RZHU
5DQJH&KDQQHOLVLQRSHUDEOH
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
,167580(17$7,21
6HLVPLF0RQLWRULQJ,QVWUXPHQWDWLRQ
7(&+1,&$/5(48,5(0(17 75
75 7KHVHLVPLFPRQLWRULQJLQVWUXPHQWDWLRQLQ7DEOHVKDOOEH
)81&7,21$/
$33/,&$%,/,7< $WDOOWLPHV
&217,1*(1&<0($685(6
127(
6HSDUDWH&RQGLWLRQHQWU\LVDOORZHGIRUHDFKLQVWUXPHQW
&21',7,21 &217,1*(1&<0($685(6 5(6725$7,217,0(
$ 127( $ 5HWULHYHDQGDQDO\]HGDWD KRXUV
&RQWLQJHQF\0HDVXUH IURPDFWXDWHGLQVWUXPHQW V
$VKDOOEHFRPSOHWHG DQG;7%WR
ZKHQHYHUWKLV&RQGLWLRQ GHWHUPLQHWKHPDJQLWXGHRI
LVHQWHUHG WKHYLEUDWRU\JURXQGPRWLRQ
$1'
2QHRUPRUHVHLVPLF
PRQLWRULQJLQVWUXPHQW V $ 3HUIRUPSODQWZDONGRZQRI KRXUV
1RQIXQFWLRQDOGXHWR DFFHVVLEOHSODQWDUHDV
EHLQJDFWXDWHGGXULQJD
VHLVPLFHYHQW $1'
$ 5HVWRUHLQVWUXPHQW V WR KRXUV
)81&7,21$/VWDWXV
$1'
$ 3HUIRUP759 GD\V
% ;7%RUSDQHO % 5HVWRUHLQVWUXPHQWWR GD\V
51RQIXQFWLRQDO )81&7,21$/VWDWXV
IRUUHDVRQVRWKHUWKDQ
&RQGLWLRQ$
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
&21',7,21 &217,1*(1&<0($685(6 5(6725$7,217,0(
& 2QHRUPRUHVHLVPLF & 5HVWRUHLQVWUXPHQWWR GD\V
PRQLWRULQJLQVWUXPHQW V )81&7,21$/VWDWXV
1RQIXQFWLRQDOIRURWKHU
WKDQ&RQGLWLRQ$RU%
' 5HTXLUHG&RQWLQJHQF\ ' (YDOXDWHLQDFFRUGDQFHZLWK ,PPHGLDWHO\
0HDVXUHVDQG 75
DVVRFLDWHG5HVWRUDWLRQ
7LPHRI&RQGLWLRQ$%
RU&QRWPHW
7(&+1,&$/5(48,5(0(1769(5,),&$7,21
759 9(5,),&$7,21 )5(48(1&<
127(
&+$11(/&+(&.GRHVQRWLQFOXGHDFFHOHUDWLRQ
WULJJHU
3HUIRUP&+$11(/&+(&. GD\V
127(
&+$11(/)81&7,21$/7(67GRHVQRWLQFOXGH
VHWSRLQWYHULILFDWLRQ
3HUIRUP&+$11(/)81&7,21$/7(67 GD\V
127(
&+$11(/&$/,%5$7,21LQFOXGHVDFFHOHUDWLRQWULJJHU
3HUIRUP&+$11(/&$/,%5$7,21 :LWKLQGD\VRID
VHLVPLFDFWXDWLRQ
$1'
PRQWKV
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
7DEOH
6HLVPLF0RQLWRULQJ,QVWUXPHQWDWLRQ
3DJHRI
,167580(176 0,1,080 0($685(0(17
$1' ,167580(176 5$1*(
6(1625/2&$7,216 )81&7,21$/
7ULD[LDO7LPH+LVWRU\$FFHOHURJUDSKV
;7%$QQXOXV(OHY J
;7$&RQWDLQPHQW(OHY J
;5'LHVHO%XLOGLQJ(OHY J
;5 $X[LOLDU\%XLOGLQJ(OHY J
:LWKUHDFWRUFRQWUROURRPLQGLFDWLRQ
:LWKDVVRFLDWHGDFFHOHUDWLRQWULJJHUVDQGLQGLFDWLRQRQ;5DQGUHFRUGLQJDQG
DQDO\]LQJFRPSRQHQWVRQ5
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
6HSWHPEHU
,167580(17$7,21
6HLVPLF0RQLWRULQJ,QVWUXPHQWDWLRQ
%$6(6
%$&.*5281' 7KHVHLVPLFLQVWUXPHQWDWLRQLVPDGHXSRIVHYHUDOLQVWUXPHQWVVXFKDV
DFFHOHURPHWHUVDFFHOHURJUDSKVUHFRUGHUVHWF7KHVHLQVWUXPHQWVDUH
SODFHGLQVHYHUDODSSURSULDWHORFDWLRQVWKURXJKRXWWKHSODQWLQRUGHUWR
SURYLGH GDWDRQWKHVHLVPLFLQSXWWRFRQWDLQPHQW GDWDRQWKH
IUHTXHQF\DPSOLWXGHDQGSKDVHUHODWLRQVKLSRIWKHVHLVPLFUHVSRQVHRI
WKHFRQWDLQPHQWVWUXFWXUHDQG GDWDRQWKHVHLVPLFLQSXWWRDQG
UHVSRQVHRIRWKHU6HLVPLF&DWHJRU\,VWUXFWXUHV 5HI
7KLVLQVWUXPHQWDWLRQLVFRQVLVWHQWZLWKWKHLQWHQWRI5HJXODWRU\
- XLGH5HYLVLRQ
7KHRULJLQDOVHLVPLFLQVWUXPHQWDWLRQZDVUHSODFHGZLWKVWDWHRIWKHDUW
GLJLWDOLQVWUXPHQWDWLRQLQRUGHUWRIDFLOLWDWHDSSOLFDWLRQRI(35,2%( LH
VDIHVKXWGRZQHDUWKTXDNH 66( IRU6HTXR\DK ([FHHGDQFH&ULWHULD
DVGHOLQHDWHGLQ5HIHUHQFHVDQG7KHUHSODFHPHQWLQVWUXPHQWDWLRQLV
FDSDEOHRIUHFRUGLQJDVHLVPLFHYHQWDQGSHUIRUPLQJDSSURSULDWH
DQDO\VHVRIWKHUHFRUGHGGDWDWRSURYLGHDWLPHO\EDVLVIRUGHWHUPLQLQJ
ZKHWKHUDSRWHQWLDOO\GDPDJLQJRSHUDWLQJEDVLVHDUWKTXDNH 2%(
H[FHHGDQFHKDVRFFXUUHG7KLVLQIRUPDWLRQPXVWEHHYDOXDWHGZLWKLQ
KRXUVDIWHUDQHYHQWDQGDZDONGRZQRIDFFHVVLEOHSODQWIHDWXUHVPXVWEH
DFFRPSOLVKHGZLWKLQKRXUVDIWHUDQHYHQW
7KHGHWHUPLQDWLRQDVWRZKHWKHUDQ66(([FHHGDQFHKDVRFFXUUHGLV
PDGHE\FRPSDULQJWKHFDOFXODWHGVSHFWUDIRUWKHHYHQWZLWKWKH
DSSOLFDEOHVLWHGHVLJQEDVLVVSHFWUDZKLFKLVGHILQHGDWWRSRIURFNIRU
6HTXR\DK 5HI 7KHUHIRUHWKHH[FHHGDQFHGHWHUPLQDWLRQIRU641
ZLOOEHPDGHXVLQJXQFRUUHFWHGHYHQWGDWDIURPDFFHOHURPHWHU;7
%LQWKHFRQWDLQPHQWDQQXOXV7KHXVHRIXQFRUUHFWHGHYHQWGDWDLV
NQRZQWREHFRQVHUYDWLYHEHFDXVHRIWKHLQKHUHQWUHVSRQVH
FKDUDFWHULVWLFVRIWKHDFFHOHURPHWHU'DWDIURPWKLVLQVWUXPHQWLV
UHFRUGHGDWWKHWRSRIWKHFRQWDLQPHQWIRXQGDWLRQZKLFKLVURFN
VXSSRUWHG7KHUHFRUGHUIRUWKLVDFFHOHURPHWHULVORFDWHGLQSDQHO5
$VQRWHGDERYHWKLVDFFHOHURPHWHUDQGUHFRUGHUDUHWKHNH\
FRPSRQHQWVXVHGWRGHWHFWDQGUHFRUGWKHHYHQWLQRUGHUWRPDNHD
VKXWGRZQGHFLVLRQ7KHUHFRUGHUFDQIXQFWLRQIRUPLQLPXPKRXUVIURP
LQWHUQDOUHFKDUJHDEOHEDWWHULHVZKLFKDUHFRQVWDQWO\UHFKDUJHGIURP
9$&,QVWUXPHQW3RZHU3DQHO5DOVRFRQWDLQVWKHFRPSXWHU/&'
GLVSOD\DQGSULQWHUXVHGWRFDOFXODWHDQGGLVSOD\WKHVSHFWUDOFRQWHQWRI
WKHHYHQWDQGWKHDODUPSDQHOXVHGWRDQQXQFLDWHLQWKHFRQWUROURRP
7KHVHGHYLFHVDUHDOVRSRZHUHGE\9$&,QVWUXPHQW3RZHUEXWKDYH
QREDFNXSEDWWHU\SRZHU3RZHUWRWKHVHGHYLFHVPD\EHPDQXDOO\
UHVWRUHGLQWKHXQOLNHO\HYHQWRIORVVRI$&SRZHU
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
%$6(6
$33/,&$%/( 7KH)81&7,21$/,7<RIWKHVHLVPLFLQVWUXPHQWDWLRQHQVXUHVWKDW
6$)(7< VXIILFLHQWFDSDELOLW\LVDYDLODEOHWRSURPSWO\GHWHUPLQHWKHPDJQLWXGHRID
$1$/<6(6 VHLVPLFHYHQWDQGWRGHWHUPLQHWKHLPSDFWRQWKRVHIHDWXUHVLPSRUWDQWWR
VDIHW\7KLVFDSDELOLW\LVUHTXLUHGWRSHUPLWFRPSDULVRQRIWKHPHDVXUHG
UHVSRQVHWRWKDWXVHGLQWKHGHVLJQEDVLVIRUWKHXQLWWRGHWHUPLQHLISODQW
HTXLSPHQWLQVSHFWLRQLVUHTXLUHGSXUVXDQWWR$SSHQGL[$RI&)5
SULRUWRUHVWDUW6HLVPLFULVNVZKLFKDSSHDUDVGRPLQDQWVHTXHQFHVLQ
SUREDELOLVWLFULVNDVVHVVPHQW 35$V RFFXUIRUYHU\VHYHUHHDUWKTXDNHV
ZLWKPDJQLWXGHVZKLFKDUHDIDFWRURIWZRRUWKUHHDERYHWKH6DIH
6KXWGRZQ(DUWKTXDNHDQG'HVLJQ%DVLV(DUWKTXDNH7KH6HLVPLF
,QVWUXPHQWDWLRQ6\VWHPZDVQRWGHVLJQHGWRIXQFWLRQRUWRSURYLGH
FRPSDUDWLYHLQIRUPDWLRQIRUVXFKVHYHUHHDUWKTXDNHV7KLV
LQVWUXPHQWDWLRQLVPRUHSHUWLQHQWWRGHWHUPLQLQJWKHQHHGWRVKXWGRZQ
IROORZLQJDVHLVPLFHYHQWDQGWKHDELOLW\WRUHVWDUWWKHSODQWDIWHUVHLVPLF
HYHQWVZKLFKDUHQRWULVNFRQWULEXWRUVDQGLVWKHUHIRUHQRWRISULPH
LPSRUWDQFHLQULVNGRPLQDQWVHTXHQFHV 5HI
7(&+1,&$/ 7KHVHLVPLFPRQLWRULQJLQVWUXPHQWDWLRQVKRZQLQ7DEOHVKDOOEH
5(48,5(0(17 )81&7,21$/7KLVUHTXLUHPHQWHQVXUHVWKDWDQDVVHVVPHQWFDQEH
PDGHRIWKHHIIHFWVRQWKHSODQWRIHDUWKTXDNHVZKLFKPD\RFFXUWKDW
H[FHHGWKHGHVLJQEDVLVVSHFWUDIRUWKH2SHUDWLQJ%DVLV(DUWKTXDNH
5HI
$33/,&$%,/,7< 6LQFHWKHSRVVLELOLW\RIHDUWKTXDNHVLVQRW02'(GHSHQGHQW
)81&7,21$/,7<RIWKHVHLVPLFLQVWUXPHQWDWLRQLVUHTXLUHGDWDOOWLPHV
&217,1*(1&< 7KHGHWHUPLQDWLRQDVWRZKHWKHUDQ2%(H[FHHGDQFHKDVRFFXUUHGLV
0($685(6 PDGHE\FRPSDULQJWKHFDOFXODWHGVSHFWUDIRUWKHHYHQWZLWKWKH
DSSOLFDEOHGHVLJQEDVLVVSHFWUDIRUWKDWEXLOGLQJDQGORFDWLRQ)RU
6HTXR\DKWKLVGHWHUPLQDWLRQLVWREHPDGHFRQVLGHULQJWKHGDWDIURP
LQVWUXPHQWVORFDWHGRQWKHFRQWDLQPHQWIRXQGDWLRQ7KHUHIRUHWKH
H[FHHGDQFHGHWHUPLQDWLRQIRU6HTXR\DKZLOOEHPDGHXVLQJHYHQWGDWD
IURP;7%LQWKHFRQWDLQPHQWDQQXOXV'DWDIURPWKLVLQVWUXPHQW
LVUHFRUGHGDWSDQHO5ZKLFKDOVRFRQWDLQVWKHFRPSXWHUXVHGWR
FDOFXODWHWKHVSHFWUDOFRQWHQWDQGWKHDODUPSDQHOXVHGWRDQQXQFLDWHLQ
WKHFRQWUROURRP7KHVHGHYLFHVDUHWKHNH\FRPSRQHQWVXVHGWRGHWHFW
WKHHYHQWDQGPDNHDVKXWGRZQGHWHUPLQDWLRQ
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
%$6(6
&217,1*(1&<0($685(6 FRQWLQXHG
$$$DQG$
- KHQRQHRUPRUHVHLVPLFPRQLWRULQJLQVWUXPHQWVDFWXDWHGXULQJD
VHLVPLFHYHQWZLWKJUHDWHUWKDQRUHTXDOWRJJURXQGDFFHOHUDWLRQWKH
GDWDUHWULHYHGIURPWKHDFWXDWHGLQVWUXPHQWVPXVWEHDQDO\]HGWR
GHWHUPLQHWKHPDJQLWXGHRIWKHYLEUDWRU\JURXQGPRWLRQ
7KHUHSODFHPHQWGLJLWDOLQVWUXPHQWDWLRQSURYLGHVWKHFDSDELOLW\WRDQDO\]H
WKHHYHQWGDWDRQVLWHDQGJHQHUDWHHYHQWVSHFWUDWREHXVHGLQ
GHWHUPLQLQJZKHWKHUDQ66(H[FHHGDQFHKDVRFFXUUHG
5HIHUHQFHVDQGGLUHFWWKDWWKLVHYDOXDWLRQVKRXOGRFFXUZLWKLQKRXUV
DIWHUWKHHYHQW5HIHUHQFHDOVRUHTXLUHVSHUIRUPDQFHRIDOLPLWHGVFRSH
ZDONGRZQWRGHWHUPLQHWKHH[WHQWRIDFWXDOGDPDJHZLWKLQKRXUV
IROORZLQJWKHHYHQW7KHLQIRUPDWLRQSURYLGHGE\WKLVZDONGRZQDQGWKH
VSHFWUDODQDO\VLVDUHWREHXVHGLQPDNLQJDGHWHUPLQDWLRQDVWRZKHWKHU
WRSURFHHGZLWKSODQWVKXWGRZQLIDVKXWGRZQKDVQRWDOUHDG\RFFXUUHG
(DFKDFWXDWHGPRQLWRULQJLQVWUXPHQWPXVWEHUHVWRUHGWR)81&7,21$/
VWDWXVZLWKLQKRXUV:LWKLQGD\VRIWKHDFWXDWLRQD&+$11(/
&$/,%5$7,21PXVWEHSHUIRUPHGRQHDFKDFWXDWHGPRQLWRULQJ
LQVWUXPHQW7KHFRPSOHWLRQWLPHRIGD\VWRSHUIRUP&+$11(/
&$/,%5$7,21LVUHDVRQDEOHDQGLVEDVHGRQHQJLQHHULQJMXGJPHQW
6XEVHTXHQWDQDO\VLVPXVWWKHQEHSHUIRUPHGXVLQJGDWDIURPWKH
UHPDLQLQJVHLVPLFPRQLWRULQJLQVWUXPHQWVWRHYDOXDWHWKHSODQWUHVSRQVH
LQFRPSDULVRQZLWKSUHYLRXVO\JHQHUDWHGGHVLJQEDVLVVSHFWUDDWWKH
ORFDWLRQVRIWKRVHLQVWUXPHQWV
%
- LWKDFFHOHURPHWHU;7%RUSDQHO51RQIXQFWLRQDO
GD\VDUHDOORZHGWRUHVWRUHWKHLQVWUXPHQW V WR)81&7,21$/VWDWXV
&
- LWKRQHRUPRUHRIWKHUHPDLQLQJVHLVPLFLQVWUXPHQWVLQ7DEOH
1RQIXQFWLRQDOGD\VDUHDOORZHGWRUHVWRUHWKHLQVWUXPHQW V WR
)81&7,21$/VWDWXV$ORQJHUSHULRGRIQRQIXQFWLRQDOLW\LVDOORZHGIRU
WKHVHLQVWUXPHQWVVLQFHWKH\DUHXVHGRQO\IRUHYDOXDWLQJSODQWFRQGLWLRQ
IROORZLQJDQHYHQWDQGQRWIRULQSXWWRWKHVKXWGRZQGHFLVLRQ
SEQUOYAH UNITS 1 AND 2 TRM 8.3.2 TECHNICAL REQUIREMENTS MANUAL Revision 64 March 22, 2021 BASES CONTINGENCY MEASURES (continued)
D.1 If Condition A, B or C is not met, then the associated Nonfunctional instrument(s) are evaluated per TR 7.5.3 and condition is entered into the Corrective Action Program.
TECHNICAL TRV 8.3.2.1 REQUIREMENTS VERIFICATION A CHANNEL CHECK on seismic instrumentation once every 31 days ensues that a gross failure of instrumentation has not occurred. A CHANNEL CHECK is a comparison of the parameter indicated on one channel to a similar parameter on other channels. It is based on the assumption that instrument channels monitoring the same parameter should read approximately the same value. Significant deviations between the instrument channels could be an indication of excessive instrument drift in one of the channels or of even something more serious.
CHANNEL CHECK will detect gross channel failure; thus, it is key to verifying that the instrumentation continues to operate properly between each CHANNEL CALIBRATION.
The Verification Frequency of 31 days is based on operating experience related to channel FUNCTIONALITY and drift, which demonstrates that failure of more than one channel of a given function in any 31 day interval is a rare event.
TRV 8.3.2.1 is modified by a Note stating that this test does not include the acceleration trigger.
TRV 8.3.2.2 A CHANNEL FUNCTIONAL TEST is to be performed on each required channel to ensure the entire channel will perform the intended function. A CHANNEL FUNCTIONAL TEST is the comparison of the response of the instrumentation, including all components of the instrument except the sensor, to a known signal. The Verification Frequency of 184 days is based upon the known reliability of the monitoring instrumentation and has been shown to be acceptable through operating experience.
TRV 8.3.2.2 is modified by a Note stating that this test does not include setpoint verification.
8.3.2-7
SEQUOYAH UNITS 1 AND 2 TRM 8.3.2 TECHNICAL REQUIREMENTS MANUAL Revision 49 October 23, 2015 TECHNICAL REQUIREMENTS VERIFICATION (continued)
TRV 8.3.2.3 A CHANNEL CALIBRATION is a complete check of the instrument loop and the sensor by comparing the response of the instrument to a known input on the sensor. This test verifies the capability of the seismic instrumentation to correctly determine the magnitude of a seismic event and evaluate the response of those features important to safety. The Verification Frequency of 18 months is based upon operating experience and consistency with the typical industry refueling cycle.
TRV 8.3.2.3 is modified by a Note stating that this test does include the acceleration trigger.
8.3.2-8
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
%$6(6
5()(5(1&(6 5HJXODWRU\*XLGH,QVWUXPHQWDWLRQIRU(DUWKTXDNHV
5HYLVLRQ$SULO
(35,13 -XO\ $&ULWHULRQIRU'HWHUPLQLQJ([FHHGDQFH
RIWKH2SHUDWLQJ%DVLV(DUWKTXDNH
(35,75 -XQH 6HLVPLF,QVWUXPHQWDWLRQLQ1XFOHDU
3RZHU3ODQWVIRU5HVSRQVHWR2%(([FHHGDQFH *XLGHOLQHIRU
,PSOHPHQWDWLRQ
6HTXR\DK8)6$56HFWLRQVDQG
(35,13 'HFHPEHU *XLGHOLQHVIRU1XFOHDU3ODQW
5HVSRQVHWRDQ(DUWKTXDNH
&)5$SSHQGL[$
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
,167580(17$7,21
0HWHRURORJLFDO0RQLWRULQJ,QVWUXPHQWDWLRQ
7(&+1,&$/5(48,5(0(17 75
75 7KHPHWHRURORJLFDOPRQLWRULQJLQVWUXPHQWDWLRQFKDQQHOVIRUHDFKIXQFWLRQ
VKRZQLQ7DEOHVKDOOEH)81&7,21$/
$33/,&$%,/,7< $WDOOWLPHV
&217,1*(1&<0($685(6
&21',7,21 &217,1*(1&<0($685(6 5(6725$7,217,0(
$ :LWKOHVVWKDQWKH $ 5HVWRUHFKDQQHO V WR ,PPHGLDWHO\
UHTXLUHG)81&7,21$/ )81&7,21$/VWDWXV
PHWHRURORJLFDO
PRQLWRULQJ $1'
LQVWUXPHQWDWLRQ
FKDQQHOVDYDLODEOH $ (YDOXDWHLQDFFRUGDQFHZLWK ,PPHGLDWHO\
75
7(&+1,&$/5(48,5(0(1769(5,),&$7,21
759 9(5,),&$7,21 )5(48(1&<
3HUIRUP&+$11(/&+(&.IRUHDFKUHTXLUHGFKDQQHO KRXUV
3HUIRUP&+$11(/&$/,%5$7,21IRUHDFKUHTXLUHG GD\V
FKDQQHO
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
7DEOH
0HWHRURORJLFDO0RQLWRULQJ,QVWUXPHQWDWLRQ
)81&7,21 /2&$7,21 5(48,5('
1RPLQDO(OHY &+$11(/6
:LQG6SHHG
D &KDQQHO 06/
$Q\WZRFKDQQHOV
RIWKHWKUHH:LQG
E &KDQQHO 06/
6SHHG&KDQQHOV
F &KDQQHO 06/
:LQG'LUHFWLRQ
D &KDQQHO 06/
$Q\WZRFKDQQHOV
E &KDQQHO 06/ RIWKHWKUHH:LQG
'LUHFWLRQ&KDQQHOV
F &KDQQHO 06/
$LU7HPSHUDWXUH'HOWD7
D &KDQQHO WR 06/ $Q\FKDQQHORIWKH
WKUHH$LU
E &KDQQHO WR06/ 7HPSHUDWXUH
F &KDQQHO WR06/ 'HOWD7&KDQQHOV
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
,167580(17$7,21
0HWHRURORJLFDO,QVWUXPHQWDWLRQ
%$6(6
%$&.*5281' 7KH)81&7,21$/,7<RIWKHPHWHRURORJLFDOPRQLWRULQJLQVWUXPHQWDWLRQ
FKDQQHOVHQVXUHVWKDWVXIILFLHQWPHWHRURORJLFDOGDWDLVDYDLODEOHIRU
HVWLPDWLQJSRWHQWLDOUDGLDWLRQGRVHVWRWKHSXEOLFDVDUHVXOWRIURXWLQHRU
DFFLGHQWDOUHOHDVHRIUDGLRDFWLYHPDWHULDOVWRWKHDWPRVSKHUH7KLV
FDSDELOLW\LVUHTXLUHGWRHYDOXDWHWKHQHHGIRULQLWLDWLQJSURWHFWLYH
PHDVXUHVWRSURWHFWWKHKHDOWKDQGVDIHW\RIWKHSXEOLFDQGLVFRQVLVWHQW
ZLWKWKHUHFRPPHQGDWLRQVRI5HJXODWRU\*XLGH2QVLWH
0HWHRURORJLFDO3URJUDPV)HEUXDU\
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
1RYHPEHU
,167580(17$7,21
3ODQW&DORULPHWULF0HDVXUHPHQW
7(&+1,&$/5(48,5(0(17 75
75 /HDGLQJ(GJH)ORZ0HWHU /()0 VKDOOEH)81&7,21$/IRUWKHSHUIRUPDQFH
RI7HFKQLFDO6SHFLILFDWLRQ65
$33/,&$%,/,7< 02'(!573
&217,1*(1&<0($685(6
&21',7,21 &217,1*(1&<0($685(6 5(6725$7,217,0(
$ :LWKWKH/()0 $ 5HVWRUH/()0WR 3ULRUWRWKH
1RQIXQFWLRQDO )81&7,21$/VWDWXV SHUIRUPDQFHRI
7HFKQLFDO6SHFLILFDWLRQ
$1' 65
$ 5HIHUWR&2/5IRU$)'DQG ,PPHGLDWHO\
FRQWUROURGLQVHUWLRQOLPLWV
% 127( % 5HGXFHWKHUPDOSRZHUWR ,PPHGLDWHO\
&RQWLQJHQF\0HDVXUH 573
%VKDOOEHFRPSOHWHG
ZKHQHYHUWKLV&RQGLWLRQ $1'
LVHQWHUHG
% 5HIHUWR&2/5IRU$)'DQG ,PPHGLDWHO\
FRQWUROURGLQVHUWLRQOLPLWV
5HTXLUHG&RQWLQJHQF\
0HDVXUHVDQG $1'
DVVRFLDWHG5HVWRUDWLRQ
7LPHRI&RQGLWLRQ$QRW % 3HUIRUP7HFKQLFDO ,PPHGLDWHO\
PHW 6SHFLILFDWLRQ65
XVLQJDOWHUQDWHPHWKRG
$1'
% 3HUIRUP7HFKQLFDO 3ULRUWRUDLVLQJ
6SHFLILFDWLRQ65 7+(50$/32:(5
XVLQJWKH)81&7,21$/ ! 573
/()0
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
7(&+1,&$/5(48,5(0(1769(5,),&$7,21
759 9(5,),&$7,21 )5(48(1&<
9HULI\/()01RUPDO)DLOVWDWXVLQGLFDWLRQLVQRWLQWKH 3ULRUWRWKH
)DLOVWDWXVDQGIHHGZDWHUWHPSHUDWXUHLV) SHUIRUPDQFHRI
7HFKQLFDO6SHFLILFDWLRQ
65
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
$XJXVW
,167580(17$7,21
3ODQW&DORULPHWULF0HDVXUHPHQW
%$6(6
%$&.*5281' 7KHSUHGRPLQDQWFRQWULEXWLRQWRWKHVHFRQGDU\SODQWFDORULPHWULF
PHDVXUHPHQWXQFHUWDLQW\LVWKHXQFHUWDLQW\DVVRFLDWHGZLWKWKHIHHGZDWHU
IORZPHDVXUHPHQW7UDGLWLRQDOO\DGLIIHUHQWLDOSUHVVXUH '3 WUDQVPLWWHU
DFURVVDYHQWXULLQHDFKPDLQIHHGZDWHUOLQHKDVEHHQXVHGWRSURYLGHWKH
IHHGZDWHUIORZ+RZHYHUWKHYHQWXULVDUHVXEMHFWWRIRXOLQJDQGWKH
XQFHUWDLQW\DVVRFLDWHGZLWKWKHIORZGHULYHGIURPWKH'3LQGLFDWLRQFDQEH
ODUJHDQGLQFUHDVHDVWKHIORZGHYLDWHVIURPWKHRSWLPXPFRQGLWLRQVIRU
ZKLFKWKH'3WUDQVPLWWHUZDVFDOLEUDWHG
0RUHUHFHQWO\/HDGLQJ(GJH)ORZ0HWHUV /()0 KDYHEHHQXVHGWR
SURYLGHWKHIHHGZDWHUIORZLQSXWWRWKHVHFRQGDU\SODQWFDORULPHWULF
PHDVXUHPHQW7KHXQFHUWDLQW\DVVRFLDWHGZLWKWKH/()0LVUHODWLYHO\
VPDOODQGLVLQGHSHQGHQWRIWKHDFWXDOIHHGZDWHUIORZ
0RVWRIWKHRULJLQDOVDIHW\DQDO\VHVVXSSRUWLQJSODQWRSHUDWLRQ LQFOXGLQJ
ORVVRIFRRODQWDFFLGHQWDQDO\VHVUHTXLUHGE\&)5$SSHQGL[.
ZHUHSHUIRUPHGDWDPD[LPXPSRZHUOHYHORI0:WSOXVDQ
DOORZDQFHIRUWKHVHFRQGDU\SODQWFDORULPHWULFXQFHUWDLQW\DVVXPHGWREH
DERYH5$7('7+(50$/32:(5+HQFHLWLVSRVVLEOHWRVXSSRUW
RSHUDWLRQDWDKLJKHUSRZHUOHYHOZKLOHUHPDLQLQJZLWKLQWKHRULJLQDO
DQDO\VHV
7KH5$7('7+(50$/32:(5 573 IRU8QLWVDQGLV0:W
ZKLFKUHSUHVHQWVWKHLQFUHDVHRI573IURPWKHRULJLQDOO\OLFHQVHG
YDOXHRI0:W7KLVXSUDWHLVEDVHGRQUHGXFHGXQFHUWDLQWLHV
DVVRFLDWHGZLWKWKHVHFRQGDU\SODQWFDORULPHWULFPHDVXUHPHQWWKDWLV
DWWDLQHGWKURXJKWKHXVHRIWKH/()0&KHFN0DQ\RIWKHDFFLGHQW
DQDO\VHVDUHSHUIRUPHGDWRI0:WRU 0:WZKHUHWKH
573LVDQDOORZDQFHIRUWKHXQFHUWDLQW\DVVRFLDWHGZLWKWKHSRZHU
FDORULPHWULFPHDVXUHPHQW:LWKWKH/()0&KHFNWKHSRZHUFDORULPHWULF
PHDVXUHPHQWXQFHUWDLQW\LVOHVVWKDQ573:LWKRXWSHUIRUPLQJ
QHZ$SSHQGL[.DFFLGHQWDQDO\VHVWKH/()0&KHFNFDQEHXVHGWR
DOORZWKHSODQWWREHRSHUDWHGDWDUHGHILQHG573RI0:W
+RZHYHUWKLVDOORZDQFHLVSUHGLFDWHGRQWKHDYDLODELOLW\RIWKH/()0
&KHFNIRUSHUIRUPDQFHRIWKHFDORULPHWULFPHDVXUHPHQW:KHQWKH
/()0&KHFNLVXQDYDLODEOHWKHXQFHUWDLQWLHVDVVRFLDWHGZLWKWKH
IHHGZDWHUYHQWXULEDVHGPHDVXUHPHQW 573 PXVWEHXVHGWRHQVXUH
FRPSOLDQFHZLWKWKHVDIHW\DQDO\VHVYDOXHRIWKHFRUHSRZHURI
0:W
7HFKQLFDO6SHFLILFDWLRQ 76 6XUYHLOODQFH5HTXLUHPHQW 65 IRU
3RZHU5DQJH1HXWURQ)OX[&KDQQHOFDOLEUDWLRQE\KHDWEDODQFH
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
%$6(6
%$&.*5281' FRQWLQXHG
FRPSDULVRQUHTXLUHVWKHSHUIRUPDQFHRIDFRPSDULVRQRIWKHUHVXOWVRI
WKHFDORULPHWULFKHDWEDODQFHFDOFXODWLRQWR1XFOHDU,QVWUXPHQWDWLRQ
6\VWHP 1,6 FKDQQHORXWSXW7KH7665UHTXLUHVWKDWWKH1,6FKDQQHOV
EHDGMXVWHGLIWKHDEVROXWHGLIIHUHQFHLVJUHDWHUWKDQ573
7665IRU3RZHU5DQJH1HXWURQ)OX[&KDQQHOFDOLEUDWLRQE\KHDW
EDODQFHFRPSDULVRQLVUHTXLUHGWREHSHUIRUPHGHYHU\KRXUV GDLO\
$WWKDWWLPHWKH1,6LQGLFDWLRQPXVWEHQRUPDOL]HGWRLQGLFDWHZLWKLQDW
OHDVW573RIWKHFDORULPHWULFPHDVXUHPHQW7KHSODQWPD\WKHQEH
UXQIRUWKHQH[WKRXUSHULRGXVLQJWKLVQRUPDOL]HG1,6LQGLFDWLRQVXFK
WKDWWKHFDORULPHWULFSRZHUGRHVQRWH[FHHG573$OWKRXJKWKH
FDORULPHWULFSRZHULQGLFDWLRQPD\EHPRQLWRUHGFRQWLQXRXVO\IRUFRQWURORI
WKHXQLWSRZHUWKHFDORULPHWULFSRZHULQGLFDWLRQLVQRWUHTXLUHGWREH
FRQVXOWHGDJDLQXQWLOWKHGDLO\FDORULPHWULFFRPSDULVRQVRIWKH1,6
LQGLFDWLRQDUHSHUIRUPHG
7KHIROORZLQJJHQHUDOJXLGDQFHLVSURYLGHGIRURSHUDWLRQRI6418QLWV
DQG
:KHQWKH/()0&KHFNLVDYDLODEOHWKHSODQWVKRXOGEHRSHUDWHGLQD
PDQQHUFRQVLVWHQWZLWKWKH/()0&KHFNEDVHGFDORULPHWULF
PHDVXUHPHQWDQGDW0:W 573
,IWKH/()0&KHFNLVXQDYDLODEOHWKHSODQWPD\EHRSHUDWHGDW
0:W 573 XVLQJWKH1,6LQGLFDWLRQXQWLOWKHQH[WSHUIRUPDQFH
RI7665IRU3RZHU5DQJH1HXWURQ)OX[&KDQQHOFDOLEUDWLRQ
E\KHDWEDODQFHFRPSDULVRQLVGXH
,IWKH/()0&KHFNEDVHGFDORULPHWULFPHDVXUHPHQWLVXQDYDLODEOHDW
WKHWLPH7665IRU3RZHU5DQJH1HXWURQ)OX[&KDQQHO
FDOLEUDWLRQE\KHDWEDODQFHFRPSDULVRQLVGXHWKHIHHGZDWHUYHQWXUL
EDVHGFDORULPHWULFPHDVXUHPHQWRURWKHUDFFHSWDEOHPHWKRGVKRXOG
EHXVHGIRUWKHSHUIRUPDQFHRIWKH7665+RZHYHUWRPDLQWDLQ
FRQVLVWHQF\ZLWKWKHXQFHUWDLQW\DQDO\VLVWKHPD[LPXPDOORZDEOH
SRZHUVKDOOEHUHGXFHGWR0:WRU 5737KH1,6
LQGLFDWLRQRURWKHUYDOLGSRZHULQGLFDWLRQVXFKDVIHHGZDWHUYHQWXULRU
5&6GHOWD7PD\EHXVHGWRFRQWUROWKHXQLWSRZHU
,IWKH/()0EDVHGFDORULPHWULFFDOFXODWLRQLVXQDYDLODEOHWRSURYLGH
WKHSRZHUFDORULPHWULFPHDVXUHPHQWGLVSOD\HGE\SODQWFRPSXWHU3,'
8WKH$[LDO)OX['LIIHUHQFH $)' /LPLWVZLOODXWRPDWLFDOO\EH
PDGHPRUHUHVWULFWLYHE\$)'LQWKHSODQWFRPSXWHU$)'PRQLWRU
,IWKH/()0EDVHGFDORULPHWULFFDOFXODWLRQLVXQDYDLODEOHWRSURYLGH
WKHSRZHUFDORULPHWULFPHDVXUHPHQWGLVSOD\HGE\SODQWFRPSXWHU3,'
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
%$6(6
%$&.*5281' FRQWLQXHG
8WKH5RG,QVHUWLRQ/LPLWVZLOODXWRPDWLFDOO\EHLQFUHDVHGE\VWHSV
LQWKHSODQWFRPSXWHU5RG,QVHUWLRQ/LPLWPRQLWRU
$33/,&$%/( (DFKRIWKHDQDO\]HGDFFLGHQWVDUHHYDOXDWHGIRUWKHUDQJHRISRZHU
6$)(7< OHYHOVRYHUZKLFKWKHUHDFWRULVDOORZHGWREHRSHUDWHG7\SLFDOO\WKH
$1$/<6(6 DQDO\VHVDUHPRVWOLPLWLQJZKHQLQLWLDWHGIURPDKLJKHUSRZHUOHYHO)RU
641WKHPDMRULW\RIWKHRULJLQDODQDO\VHVZHUHSHUIRUPHGIRUDFRUH
SRZHURIDWOHDVW0:WSOXVDQDOORZDQFHIRUWKHVHFRQGDU\SRZHU
FDORULPHWULFPHDVXUHPHQWRI573,QJHQHUDOWKHVHVDPHDQDO\VHV
DUHXVHGWRVXSSRUWWKHUHYLVHG5$7('7+(50$/32:(5GHILQLWLRQRI
DFRUHSRZHURI0:W:LWKWKHDSSOLFDWLRQRID573
XQFHUWDLQW\ EDVHGRQWKHXVHRIWKH/()0&KHFNIHHGZDWHUIORZDQG
IHHGZDWHUWHPSHUDWXUHLQSXWLQWRWKHVHFRQGDU\FDORULPHWULF
PHDVXUHPHQW WKHDQDO\VHVDUHHYDOXDWHGDWDSRZHUOHYHORI 0:W
$QDO\VHVWKDWXVHVWDWLVWLFDOPHWKRGVVXFKDVWKHDQDO\VLVRIWKHGURSSHG
UHDFWRUURGFOXVWHUFRQWURODVVHPEO\ 5&&$ HYHQWDUHH[SOLFLWO\
HYDOXDWHGIRURSHUDWLRQDW0:WZLWKD573XQFHUWDLQW\
DOORZDQFHDQGIRURSHUDWLRQDW0:WZLWKD573XQFHUWDLQW\
DOORZDQFH
7KH$[LDO)OX['LIIHUHQFH $)' OLPLWVDUHEDVHGRQ/RVV2I&RRODQW
$FFLGHQW /2&$ DQGLQLWLDOFRQGLWLRQ'HSDUWXUHIURP1XFOHDWH%RLOLQJ
'1% SHDNLQJPDUJLQV7KH/2&$PDUJLQVDW0:WZLWK
FDORULPHWULFXQFHUWDLQW\DQG0:WZLWKFDORULPHWULFXQFHUWDLQW\
ZLOOEHWKHVDPHIRUWKHVDPHSRZHUGLVWULEXWLRQ7KHUHLVQRFKDQJHLQ
WKH) 4 OLPLWWKHUHIRUHWKH/2&$/LQHDU+HDW5DWH /+5 OLPLWLVLQFUHDVHG
E\WKHLQFUHDVHLQFRUHDYHUDJHOLQHDUKHDWUDWH6LQFHWKHFDOFXODWHG
OLQHDUKHDWUDWHLVLQFUHDVHGE\WKHVDPHDPRXQWGXHWRWKHXSUDWHWKH
HIIHFWFDQFHOVDQGWKHPDUJLQLVWKHVDPH7KXVWKHD[LDORIIVHWOLPLWDW
RI0:WVKRXOGEHPDLQWDLQHGDWWKHVDPHYDOXHDVRI
0:WZKHQWKH/()0LVQRWEHLQJXVHG7KLVSUHVHUYHVWKHPDUJLQ
DWWKHVDPHDVVXPHGDFWXDOFRUHWKHUPDOSRZHU ;;
;; 0:W 7KLVPHDQVWKDWHDFKSRLQWRQWKH
$)'OLPLWOLQHV LQWHUPVRIRIIVHW VKRXOGEHUHGXFHGE\WKHGLIIHUHQFH
EHWZHHQDQG SRZHU ZKHQ/()0LVQRWRSHUDEOH
5HGXFLQJWKHDOORZDEOHSRZHUOHYHOE\DQGPDNLQJWKH$)'OLPLW
OLQHVPRUHUHVWULFWLYHE\LQ$)'ERXQGVWKHUHTXLUHGFKDQJHV
- KHQWKH/()0EDVHGSRZHUFDORULPHWULFPHDVXUHPHQWLVQRWDYDLODEOH
DVLQGLFDWHGE\FRPSXWHUSRLQW,'8EHLQJ1&DO RUXQUHOLDEOH WKLV
UHGXFWLRQLQWKH$)'OLPLWOLQHLVDXWRPDWLFDOO\DSSOLHGLQWKH
LQWHJUDWHGFRPSXWHUV\VWHP ,&6
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
%$6(6
$33/,&$%/(6$)(7<$1$/<6(6 FRQWLQXHG
7KHFRQWUROURGLQVHUWLRQOLPLWVLQWKH&RUH2SHUDWLQJ/LPLWV5HSRUW
&2/5 SUHVHUYHSRZHUSHDNLQJFULWHULDDQGPLQLPXPUHTXLUHGVKXWGRZQ
PDUJLQ8SRQORVVRIWKH/()0IXQFWLRQWKHDOORZDEOHSRZHUDWHDFK
SRLQWDORQJWKHLQVHUWLRQOLPLWZRXOGEHUHGXFHGE\DSSUR[LPDWHO\
5HGXFLQJWKHDOORZDEOHSRZHUOHYHOE\DQGLQFUHDVLQJWKHURG
LQVHUWLRQOLPLWOLQHVE\VWHSVZLWKGUDZQZLOOERXQGWKHUHTXLUHGFKDQJHV
- KHQWKH/()0EDVHGSRZHUFDORULPHWULFPHDVXUHPHQWLVQRWDYDLODEOH
DVLQGLFDWHGE\FRPSXWHU3,'8EHLQJ1FDO RUXQUHOLDEOH WKLV
DGMXVWPHQWLQWKHURGLQVHUWLRQOLPLWOLQHLVDXWRPDWLFDOO\DSSOLHGLQWKH
,&6
7KHVHWSRLQWVIRUWKRVHIXQFWLRQVRIWKH5HDFWRU3URWHFWLRQ6\VWHPWKDW
DUHEDVHGRQSHUFHQWDJHRISRZHU LHWKH1,6 KDYHEHHQFDOFXODWHG
EDVHGRQDQDO\WLFDOPDUJLQVDYDLODEOHDWWKH0:WGHILQLWLRQRI
5732SHUDWLRQEDFNDW0:WGRHVQRWUHTXLUHWKHVHVHWSRLQWVWREH
DGMXVWHG
7(&+1,&$/ 7KH75UHTXLUHVWKH/()0WREH)81&7,21$/IRUWKHFRPSOHWLRQRIWKH
5(48,5(0(17 GDLO\VHFRQGDU\SODQWFDORULPHWULFPHDVXUHPHQWUHTXLUHGLQ7665
IRU3RZHU5DQJH1HXWURQ)OX[&KDQQHOFDOLEUDWLRQE\KHDWEDODQFH
FRPSDULVRQ7KHXVHRIWKH/()0&KHFNHQVXUHVWKDWWKHEDVLVIRU
RSHUDWLRQDWWKH5$7('7+(50$/32:(5RI0:WLVPDLQWDLQHG
)81&7,21$/,7<RIWKH/()0LVGHSHQGHQWRQIHHGZDWHUWHPSHUDWXUHV
RIGHJUHHV)RUJUHDWHUWRHQVXUHGHVLJQEDVLVDFFXUDF\%HORZWKLV
WHPSHUDWXUHWKH,&6FRPSXWHUZLOOVKRZ3,'8DVQRWDYDLODEOHRU
XQUHOLDEOH
$33/,&$%,/,7< 7KHUHTXLUHPHQWWRXVHWKH/()0&KHFNIRUWKHSHUIRUPDQFHRIWKH
VHFRQGDU\SODQWFDORULPHWULFPHDVXUHPHQWUHTXLUHGE\7665IRU
3RZHU5DQJH1HXWURQ)OX[&KDQQHOFDOLEUDWLRQE\KHDWEDODQFH
FRPSDULVRQLVDSSOLFDEOHWRWKHXQLWLQ0RGHDQGDERYH573
FRQVLVWHQWZLWKWKHDSSOLFDELOLW\RI76657KHJUHDWHUWKDQ
573OHYHOWKUHVKROGLVFKRVHQWRHQVXUHWKDWWKH/()0LVZLWKLQLWV
VSHFLILHGRSHUDWLQJUDQJH
&217,1*(1&< $DQG$
0($685(6
,IWKH/()0EHFRPHV1RQIXQFWLRQDOGXULQJWKHLQWHUYDOVEHWZHHQ
SHUIRUPDQFHRI7665IRU3RZHU5DQJH1HXWURQ)OX[&KDQQHO
FDOLEUDWLRQE\KHDWEDODQFHFRPSDULVRQSODQWRSHUDWLRQPD\FRQWLQXH
XVLQJWKHSRZHULQGLFDWLRQVIURPWKH1,6V\VWHP+RZHYHULQRUGHUWR
UHPDLQLQFRPSOLDQFHZLWKWKHEDVHVIRURSHUDWLRQDWD5$7('7+(50$/
32:(5RI0:WWKH/()0PXVWEHUHWXUQHGWRVHUYLFHSULRUWR
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
%$6(6
&217,1*(1&<0($685(6 FRQWLQXHG
SHUIRUPDQFHRI7665IRU3RZHU5DQJH1HXWURQ)OX[&KDQQHO
FDOLEUDWLRQE\KHDWEDODQFHFRPSDULVRQ
%DQG%
,IWKH&RQWLQJHQF\0HDVXUHRU5HVWRUDWLRQ7LPHRI&RQGLWLRQ$LVQRWPHW
LHWKH/()0LVQRW)81&7,21$/SULRUWRWKHQH[WSHUIRUPDQFHRI76
65IRU3RZHU5DQJH1HXWURQ)OX[&KDQQHOFDOLEUDWLRQE\KHDW
EDODQFHFRPSDULVRQ &RQGLWLRQ%LVHQWHUHG5HTXLUHG&RQWLQJHQF\
0HDVXUH%UHTXLUHVWKDWWKHUHDFWRUSRZHUEHUHGXFHGWRRUPDLQWDLQHG
DWDSRZHUOHYHO 573 0:W 7KLVSRZHUUHGXFWLRQLV
SHUIRUPHGSULRUWR7665IRU3RZHU5DQJH1HXWURQ)OX[&KDQQHO
FDOLEUDWLRQE\KHDWEDODQFHFRPSDULVRQLQRUGHUWRUHPDLQZLWKLQWKH
SODQW VGHVLJQEDVHVLPPHGLDWHO\XSRQSHUIRUPDQFHRI7665
%
7KHSHUIRUPDQFHRI7665IRU3RZHU5DQJH1HXWURQ)OX[
&KDQQHOFDOLEUDWLRQE\KHDWEDODQFHFRPSDULVRQXVLQJDFFHSWDEOH
DOWHUQDWHPHWKRGV$WORZHUSRZHUOHYHOVWKLVFRXOGLQFOXGHWKHXVHRI
5&6GHOWDWHPSHUDWXUHLQGLFDWLRQV$WKLJKHUSRZHUOHYHOVWKHIHHGZDWHU
YHQWXULLQGLFDWLRQVIRUIHHGZDWHUIORZDUHXVHGWRSHUIRUPWKHFDORULPHWULF
FRPSDULVRQ2QFH7665LVSHUIRUPHGXVLQJWKHIHHGZDWHU
YHQWXULLQGLFDWLRQVRIIHHGZDWHUIORZWKHUHTXLUHGSRZHUXQFHUWDLQW\LV
573,QRUGHUWRPDLQWDLQFRPSOLDQFHZLWKWKHVDIHW\DQDO\VHVLWLV
QHFHVVDU\WRRSHUDWHWKHSODQWDWDPD[LPXPFRUHWKHUPDOSRZHURI
0:W
%
7KDWWKHFRUHSRZHUEHPDLQWDLQHGDWDYDOXHOHVVWKDQRUHTXDOWR
0:WXQWLOWKH/()0LVUHWXUQHGWRVHUYLFHDQG7665IRU3RZHU
5DQJH1HXWURQ)OX[&KDQQHOFDOLEUDWLRQE\KHDWEDODQFHFRPSDULVRQ
KDVEHHQSHUIRUPHGXVLQJWKH/()0LQGLFDWLRQRIIHHGZDWHUIORZ2QFH
7665KDVEHHQSHUIRUPHGXVLQJWKH/()0WKHQWKHSODQWFDQ
DJDLQEHRSHUDWHGDW0:W
7(&+1,&$/ 759UHTXLUHVWKDWWKHDYDLODELOLW\RIWKH/()0EHYHULILHGSULRUWR
5(48,5(0(176 LW VXVHIRUWKHSHUIRUPDQFHRI7665IRU3RZHU5DQJH1HXWURQ
9(5,),&$7,21 )OX[&KDQQHOFDOLEUDWLRQE\KHDWEDODQFHFRPSDULVRQ7KHVHOI
GLDJQRVWLFVIHDWXUHVRIWKH/()0&KHFNLVXVHGIRUWKLVYHULILFDWLRQDORQJ
ZLWKIHHGZDWHUWHPSHUDWXUHLQGLFDWLRQV,IWKH/()01RUPDO)DLOVWDWXV
LQGLFDWLRQLVQRWLQ)DLOVWDWXVLWLVFRQVLGHUHG)81&7,21$/SURYLGHG
IHHGZDWHUWHPSHUDWXUHLVJUHDWHUWKDQRUHTXDOWRGHJUHHV)7KH
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
%$6(6
7(&+1,&$/5(48,5(0(1769(5,),&$7,21 FRQWLQXHG
/()0VWDWXVLQGLFDWLRQLVGLVSOD\HGRQWKHSODQWFRPSXWHUV\VWHPDQG
DOVRPD\EHYHULILHGRQWKHORFDOWRXFKVFUHHQPRQLWRU
5()(5(1&(6 /LFHQVH$PHQGPHQW5HTXHVW79$64176LQFUHDVHVWKH
OLFHQVHGSRZHUIRURSHUDWLRQRI6418QLWV WR0:W'RFNHW
1R
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
,167580(17$7,21
([SORVLYH*DV0RQLWRULQJ6\VWHP
7(&+1,&$/5(48,5(0(17 75
75 7KH([SORVLYH*DV0RQLWRULQJ6\VWHPZLWKRQHK\GURJHQPRQLWRUDQGRQH
R[\JHQPRQLWRUFKDQQHOVKDOOEH)81&7,21$/ZLWKDODUPVHWSRLQWVVHWWR
HQVXUHWKHFRQFHQWUDWLRQOLPLWVRI75DUHQRWH[FHHGHG
$33/,&$%,/,7< 'XULQJZDVWHJDVFRPSUHVVRURSHUDWLRQ
&217,1*(1&<0($685(6
&21',7,21 &217,1*(1&<0($685(6 5(6725$7,217,0(
$ 2QHRUPRUHH[SORVLYHJDV $ 2SHUDWLRQRIWKHZDVWH (YHU\KRXUVGXULQJ
PRQLWRULQJFKDQQHO V JDVGLVSRVDOV\VWHPPD\ GHJDVVLQJRSHUDWLRQV
1RQIXQFWLRQDO FRQWLQXHGSURYLGHGJUDE RIWKHUHDFWRUFRRODQW
VDPSOHVDUHWDNHQDQG V\VWHP
DQDO\]HG
$1'
KRXUVGXULQJRWKHU
RSHUDWLRQV
$1'
$ 5HVWRUHH[SORVLYHJDV GD\V
PRQLWRULQJFKDQQHO V WR
)81&7,21$/VWDWXV
% 5HTXLUHG&RQWLQJHQF\ % 3UHSDUHDQGVXEPLWD ,QDFFRUGDQFHZLWK
0HDVXUHVDQGDVVRFLDWHG 6SHFLDO5HSRUWWRWKH 2'&06HFWLRQ
5HVWRUDWLRQ7LPHRI &RPPLVVLRQDQGH[SODLQ
&RQGLWLRQ$QRWPHW ZK\WKH1RQIXQFWLRQDOLW\
ZDVQRWFRUUHFWHGLQD
WLPHO\PDQQHU
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
7(&+1,&$/5(48,5(0(1769(5,),&$7,21
759 9(5,),&$7,21 )5(48(1&<
3HUIRUPD&+$11(/&+(&.RQ+\GURJHQ0RQLWRU KRXUV
3HUIRUPD&+$11(/&+(&.RQ2[\JHQ0RQLWRU KRXUV
3HUIRUPD&+$11(/)81&7,21$/7(67RQ GD\V
+\GURJHQ0RQLWRU
3HUIRUP&+$11(/)81&7,21$/7(67RQ2[\JHQ GD\V
0RQLWRU
3HUIRUP&+$11(/&$/,%5$7,21RQ+\GURJHQ GD\V
0RQLWRUXVLQJVWDQGDUGJDVVDPSOHVFRQWDLQLQJD
QRPLQDO
D YROXPHK\GURJHQEDODQFHQLWURJHQ DQG
E YROXPHK\GURJHQEDODQFHQLWURJHQ
3HUIRUP&+$11(/&$/,%5$7,21RQ2[\JHQ0RQLWRU GD\V
XVLQJVWDQGDUGJDVVDPSOHVFRQWDLQLQJDQRPLQDO
D YROXPHR[\JHQEDODQFHQLWURJHQ DQG
E YROXPHR[\JHQEDODQFHQLWURJHQ
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
,167580(17$7,21
([SORVLYH*DV0RQLWRULQJ6\VWHP
%$6(6
%$&.*5281' 7KHLQVWUXPHQWDWLRQLQFOXGHVSURYLVLRQVIRUPRQLWRULQJWKH
FRQFHQWUDWLRQVRISRWHQWLDOO\H[SORVLYHJDVPL[WXUHVLQWKHZDVWHJDV
KROGXSV\VWHP7KH)81&7,21$/,7<DQGXVHRIWKLVLQVWUXPHQWDWLRQ
LVFRQVLVWHQWZLWKWKHUHTXLUHPHQWVIRUPRQLWRULQJSRWHQWLDOO\H[SORVLYH
JDVPL[WXUHV
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
5($&725&22/$176<67(0 5&6
&KHPLVWU\
7(&+1,&$/5(48,5(0(17 75
75 7KH5&6FKHPLVWU\VKDOOEHPDLQWDLQHGZLWKLQWKHOLPLWVVSHFLILHGLQ
7DEOH
$33/,&$%,/,7< $WDOOWLPHV
&217,1*(1&<0($685(6
&21',7,21 &217,1*(1&<0($685(6 5(6725$7,217,0(
$ 127( $ 5HVWRUHWKHSDUDPHWHU V WR KRXUV
2QO\DSSOLFDEOHLQ ZLWKLQLWV6WHDG\6WDWH/LPLW
02'(6DQG
2QHRUPRUHFKHPLVWU\
SDUDPHWHU V LQH[FHVVRI
LWV6WHDG\6WDWH/LPLWEXW
ZLWKLQLWV7UDQVLHQW/LPLW
% 127( % %HLQ02'( KRXUV
2QO\DSSOLFDEOHLQ
02'(6DQG $1'
% %HLQ02'( KRXUV
5HTXLUHG&RQWLQJHQF\
0HDVXUHDQGDVVRFLDWHG
5HVWRUDWLRQ7LPHRI
&RQGLWLRQ$QRWPHW
25
2QHRUPRUHFKHPLVWU\
SDUDPHWHU V LQH[FHVVRI
LWV7UDQVLHQW/LPLW
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
&21',7,21 &217,1*(1&<0($685(6 5(6725$7,217,0(
& 127( & 5HGXFHWKH3UHVVXUL]HU ,PPHGLDWHO\
2QO\DSSOLFDEOHLQ SUHVVXUHWRSVLJLI
02'(6DQG DSSOLFDEOH
:LWKWKHFRQFHQWUDWLRQ $1'
RIHLWKHUFKORULGHRU
IOXRULGHLQWKH5HDFWRU & 3HUIRUPDQHQJLQHHULQJ ,PPHGLDWHO\
&RRODQW6\VWHPLQ HYDOXDWLRQWRGHWHUPLQHWKH
H[FHVVRILWV6WHDG\ HIIHFWVRIWKHRXWRIOLPLW
6WDWH/LPLWIRUPRUHWKDQ FRQGLWLRQRQWKHVWUXFWXUDO
KRXUVRULQH[FHVVRI LQWHJULW\RIWKH5HDFWRU
LWV7UDQVLHQW/LPLW &RRODQW6\VWHP
$1'
& 'HWHUPLQHWKDWWKH5HDFWRU 3ULRUWRLQFUHDVLQJWKH
&RRODQW6\VWHPUHPDLQV SUHVVXUL]HUSUHVVXUH
DFFHSWDEOHIRUFRQWLQXHG DERYHSVLJRU
RSHUDWLRQ SULRUWRSURFHHGLQJWR
02'(
7(&+1,&$/5(48,5(0(1769(5,),&$7,21
759 9(5,),&$7,21 )5(48(1&<
'HWHUPLQHE\DQDO\VLVWKHSDUDPHWHUVOLVWHGLQ7DEOH KRXUV
DUHZLWKLQWKHLUVSHFLILHGOLPLWV
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
7$%/(
5($&725&22/$176<67(0&+(0,675</,0,76
3$5$0(7(5 67($'<67$7( 75$16,(17
/,0,7 /,0,7
'LVVROYHG2[\JHQ SSP SSP
&KORULGH SSP SSP
)OXRULGH SSP SSP
/LPLWQRWDSSOLFDEOHZLWK7 DYJ q)
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
5($&725&22/$176<67(0 5&6
&KHPLVWU\
%$6(6
%$&.*5281' 7KHOLPLWDWLRQVRQ5HDFWRU&RRODQW6\VWHP 5&6 FKHPLVWU\HQVXUHWKDW
FRUURVLRQRIWKH5&6LVPLQLPL]HGDQGUHGXFHVWKHSRWHQWLDOIRU5&6
OHDNDJHRUIDLOXUHGXHWRVWUHVVFRUURVLRQ0DLQWDLQLQJWKHFKHPLVWU\
ZLWKLQWKH6WHDG\6WDWH/LPLWVSURYLGHVDGHTXDWHFRUURVLRQSURWHFWLRQWR
HQVXUHWKHVWUXFWXUDOLQWHJULW\RIWKH5&6RYHUWKHOLIHRIWKHSODQW7KH
DVVRFLDWHGHIIHFWVRIH[FHHGLQJWKHR[\JHQFKORULGHDQGIOXRULGHOLPLWV
DUHWLPHDQGWHPSHUDWXUHGHSHQGHQW&RUURVLRQVWXGLHVVKRZWKDW
RSHUDWLRQPD\EHFRQWLQXHGZLWKFRQWDLQPHQWFRQFHQWUDWLRQOHYHOVLQ
H[FHVVRIWKH6WHDG\6WDWH/LPLWVXSWRWKH7UDQVLHQW/LPLWVIRUWKH
VSHFLILHGOLPLWHGWLPHLQWHUYDOVZLWKRXWKDYLQJDVLJQLILFDQWHIIHFWRQWKH
VWUXFWXUDOLQWHJULW\RIWKH5&67KHWLPHLQWHUYDOSHUPLWWLQJFRQWLQXHG
RSHUDWLRQZLWKLQWKHUHVWULFWLRQVRIWKH7UDQVLHQW/LPLWVSURYLGHVWLPHIRU
WDNLQJFRUUHFWLYHDFWLRQVWRUHVWRUHWKHFRQWDLQPHQWFRQFHQWUDWLRQVWR
ZLWKLQWKH6WHDG\6WDWH/LPLWV
7KHYHULILFDWLRQUHTXLUHPHQWVSURYLGHDGHTXDWHDVVXUDQFHWKDW
FRQFHQWUDWLRQVLQH[FHVVRIWKHOLPLWVZLOOEHGHWHFWHGLQVXIILFLHQWWLPHWR
WDNHFRUUHFWLYHDFWLRQ
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
5($&725&22/$176<67(0 5&6
3UHVVXUL]HU7HPSHUDWXUH/LPLWV
7(&+1,&$/5(48,5(0(17 75
75 7KHSUHVVXUL]HUWHPSHUDWXUHVKDOOEHOLPLWHGWR
D $PD[LPXPKHDWXSRIq)LQDQ\RQHKRXUSHULRG
E $PD[LPXPFRROGRZQRIq)LQDQ\RQHKRXUSHULRGDQG
F $PD[LPXPVSUD\ZDWHUWHPSHUDWXUHGLIIHUHQWLDORI)
$33/,&$%,/,7< $WDOOWLPHV
&217,1*(1&<0($685(6
&21',7,21 &217,1*(1&<0($685(6 5(6725$7,217,0(
$ 127( $ 5HVWRUHWKHWHPSHUDWXUHWR PLQXWHV
&RQWLQJHQF\0HDVXUH ZLWKLQOLPLWV
$VKDOOEHFRPSOHWHG
ZKHQHYHUWKLV&RQGLWLRQ $1'
LVHQWHUHG
$ 3HUIRUPDQHQJLQHHULQJ ,PPHGLDWHO\
HYDOXDWLRQWRGHWHUPLQHWKH
3UHVVXUL]HUWHPSHUDWXUH HIIHFWVRIWKHRXWRIOLPLW
OLPLWVLQH[FHVVRIDQ\RI FRQGLWLRQRQWKHIUDFWXUH
WKHDERYHOLPLWV WRXJKQHVVSURSHUWLHVRIWKH
SUHVVXUL]HU
% &RQWLQJHQF\0HDVXUH % %HLQ02'( KRXUV
DQGDVVRFLDWHG
5HVWRUDWLRQ7LPHRI $1'
&RQGLWLRQ$QRWPHW
% 5HGXFHSUHVVXUL]HUSUHVVXUH KRXUV
25 WROHVVWKDQSVLJ
3UHVVXUL]HUQRW
DFFHSWDEOHIRUFRQWLQXHG
RSHUDWLRQ
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
7(&+1,&$/5(48,5(0(1769(5,),&$7,21
759 9(5,),&$7,21 )5(48(1&<
127(
2QO\UHTXLUHGWREHSHUIRUPHGGXULQJKHDWXSRU
FRROGRZQRSHUDWLRQ
'HWHUPLQHSUHVVXUL]HUWHPSHUDWXUHZLWKLQOLPLWV PLQXWHV
5HFRUGDQGHYDOXDWHLIF\FOLFOLPLWVKDYHEHHQ :KHQHYHUVSUD\
H[FHHGHGSHU&RPSRQHQW&\FOLFDQG7UDQVLHQW/LPLW RSHUDWLRQGLIIHUHQWLDO
3URJUDP WHPSHUDWXUHLV!)
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
5($&725&22/$176<67(0 5&6
3UHVVXUL]HU7HPSHUDWXUH/LPLWV
%$6(6
%$&.*5281' 7KHSUHVVXUL]HULVDQ$60(6HFWLRQ,,,YHUWLFDOYHVVHOZLWKKHPLVSKHULFDO
WRSDQGERWWRPKHDGVFRQVWUXFWHGRIFDUERQVWHHO7KHYHVVHOLVFODG
ZLWKDXVWHQLWLFVWDLQOHVVVWHHORQDOOVXUIDFHVH[SRVHGWRWKHUHDFWRU
FRRODQW$VWDLQOHVVVWHHOOLQHURUWXEHPD\EHXVHGLQOLHXRIFODGGLQJLQ
VRPHQR))OHV7KHVXUJHOLQHQR))OHDQGUHPRYDEOHHOHFWULFKHDWHUVDUH
LQVWDOOHGLQWKHERWWRPKHDG6SUD\OLQHQR))OHVUHOLHIDQGVDIHW\YDOYHV
DUHORFDWHGLQWKHWRSKHDGRIWKHYHVVHO$VPDOOFRQWLQXRXVVSUD\LV
SURYLGHGWKURXJKDPDQXDOE\SDVVYDOYHDURXQGWKHSRZHURSHUDWHG
VSUD\YDOYHV7KHWHPSHUDWXUHDQGKHQFHWKHSUHVVXUHDUHFRQWUROOHGE\
YDU\LQJWKHSRZHULQSXWWRVHOHFWHGKHDWHUHOHPHQWV7KHSUHVVXUL]HULV
GHVLJQHGWRZLWKVWDQGWKHHIIHFWVRIF\FOLFORDGVGXHWRSUHVVXUHDQG
WHPSHUDWXUHFKDQJHV7KHVHORDGVDUHLQWURGXFHGE\VWDUWXSDQG
VKXWGRZQRSHUDWLRQVSRZHUWUDQVLHQWVDQGUHDFWRUWULSV'XULQJVWDUWXS
DQGVKXWGRZQWKHUDWHRIWHPSHUDWXUHFKDQJHLVFRQWUROOHGE\WKH
RSHUDWRU+HDWXSUDWHLVFRQWUROOHGE\WKHLQSXWWRWKHKHDWHUHOHPHQWV
DQGFRROGRZQLVFRQWUROOHGE\VSUD\:KHQWKHSUHVVXUL]HULVILOOHGZLWK
ZDWHULHGXULQJLQLWLDOV\VWHPKHDWXSDQGQHDUWKHHQGRIWKHVHFRQG
SKDVHRISODQWFRROGRZQ5&6SUHVVXUHLVPDLQWDLQHGE\WKHOHWGRZQIORZ
UDWHYLDWKH5HVLGXDO+HDW5HPRYDO6\VWHP
7KHVH%DVHVDGGUHVVWKHFRQWURORIWKHUDWHRIFKDQJHRIWHPSHUDWXUH
DQGWKHHIIHFWRIWKHWKHUPDOF\FOLQJRQFULWLFDODUHDVRIWKHSUHVVXUH
ERXQGDU\RIWKHSUHVVXUL]HU7KH5HDFWRU&RRODQW3UHVVXUH%RXQGDU\
ZKLFKLQFOXGHVWKHSUHVVXUL]HULVGHILQHGLQ&)5VHFWLRQ
5HI *HQHUDOUXOHVIRUGHVLJQDQGIDEULFDWLRQDUHSURYLGHGLQ
&)5VHFWLRQD 5HI 7KHVHGHVLJQDQGIDEULFDWLRQUXOHV
DUHEDVHGRQWKH$60(%RLOHUDQG3UHVVXUH9HVVHO&RGH
$33/,&$%/( 7KHOLPLWVRQWKHUDWHRIFKDQJHRIWHPSHUDWXUHIRUWKHKHDWXSDQG
6$)(7< FRROGRZQRIWKHSUHVVXUL]HUDQGWKHWHPSHUDWXUHGLIIHUHQWLDODVVRFLDWHG
$1$/<6(6 ZLWKSUHVVXUL]HUVSUD\DUHQRWGHULYHGIURP'HVLJQ%DVLV$FFLGHQW
DQDO\VHV 5HI 7KHOLPLWVDUHSUHVFULEHGGXULQJQRUPDORSHUDWLRQWR
OLPLWWKHF\FOLFWKHUPDOORDGLQJRQFULWLFDODUHDVLQWKHSUHVVXUHERXQGDU\
7KHWHPSHUDWXUHOLPLWVKDYHEHHQHVWDEOLVKHGXVLQJDSSURYHG
PHWKRGRORJ\WRSUHFOXGHRSHUDWLRQLQDQXQDQDO\]HGFRQGLWLRQ 5HI
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
%$6(6
7(&+1,&$/ 75VSHFLILHVWKHDFFHSWDEOHUDWHVRIKHDWXSDQGFRROGRZQRIWKH
5(48,5(0(17 SUHVVXUL]HUDQGDPD[LPXPGLIIHUHQWLDOWHPSHUDWXUHDOORZHGDFURVVWKH
SUHVVXUL]HUVSUD\QR))OH7KHVHOLPLWVGHILQHDOORZDEOHRSHUDWLQJUHJLRQV
DQGSHUPLWDODUJHQXPEHURIRSHUDWLQJF\FOHVZKLOHSURYLGLQJDZLGH
PDUJLQWRF\FOLFLQGXFHGIDLOXUHLQWKHSUHVVXUHERXQGDU\RIWKH
SUHVVXUL]HU
$33/,&$%,/,7< 7KHSUHVVXUL]HUWHPSHUDWXUHOLPLWVSURYLGHDGHILQLWLRQRIDFFHSWDEOH
RSHUDWLRQWROLPLWF\FOLFWHPSHUDWXUHORDGLQJWRDQDO\]HGFRQGLWLRQV
$OWKRXJKWKHVHOLPLWVZHUHGHYHORSHGWRSURYLGHUXOHVIRURSHUDWLRQGXULQJ
KHDWXSDQGFRROGRZQ 02'(6DQG WKH\DUHDSSOLFDEOHDWDOO
WLPHV
&217,1*1(&< ,IWKHUDWHRIFKDQJHRIWHPSHUDWXUHRUWHPSHUDWXUHGLIIHUHQWLDOLVRXWVLGH
0($685(6 WKHOLPLWVWKHRXWRIOLPLWFRQGLWLRQPXVWEHUHVWRUHGWRZLWKLQOLPLWVLQ
PLQXWHV7KHPLQXWH5HVWRUDWLRQ7LPHUHIOHFWVWKHXUJHQF\RIUHVWRULQJ
WKHSDUDPHWHUVWRZLWKLQWKHDQDO\]HGUDQJH0RVWYLRODWLRQVZLOOQRWEH
VHYHUHDQGWKHFRUUHFWLYHDFWLRQVFDQEHDFFRPSOLVKHGLQWKLVWLPHLQD
FRQWUROOHGPDQQHU,QDGGLWLRQWRUHVWRULQJRSHUDWLRQWRZLWKLQOLPLWVDQ
HYDOXDWLRQLVUHTXLUHGWRGHWHUPLQHLIRSHUDWLRQPD\FRQWLQXH7KLVPD\
UHTXLUHHYHQWVSHFLILFVWUHVVDQDO\VHVRULQVSHFWLRQV$IDYRUDEOH
HYDOXDWLRQPXVWEHFRPSOHWHGEHIRUHFRQWLQXLQJRSHUDWLRQ
,IWKHSUHVVXUL]HUWHPSHUDWXUHOLPLWVDUHQRWUHVWRUHGZLWKLQPLQXWHV
WKHSODQWPXVWEHSODFHGLQDORZHU02'(DQGWKHSUHVVXUHUHGXFHG
7KLVZLOODOORZDPRUHFDUHIXOH[DPLQDWLRQRIWKHHYHQW7KHKRXU
VKXWGRZQWLPHLVUHDVRQDEOHFRQVLGHULQJRSHUDWLQJH[SHULHQFHWRUHDFK
02'(IURPIXOOSRZHU7KHDGGLWLRQDOKRXUVWRUHGXFHWKHSUHVVXUH
WRSVLJLQDQRUGHUO\PDQQHUDOVRFRQVLGHUVRSHUDWLQJH[SHULHQFH
7KLVUHGXFWLRQLQSUHVVXUHLVSRVVLEOHZLWKRXWFKDOOHQJLQJWKHSODQW
V\VWHPVRUYLRODWLQJDQ\RSHUDWLQJOLPLWV
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
%$6(6
7(&+1,&$/ 759
5(48,5(0(176
9(5,),&$7,21 9HULILHVWKDWWKHUDWHRIKHDWXSDQGWKHUDWHRIFRROGRZQDUHZLWKLQOLPLWV
6WHSZLVHFRROLQJPXVWEHDYRLGHGDVGLVFXVVHGLQ5HIHUHQFH7KH
PLQXWH)UHTXHQF\LVFRQVLGHUHGUHDVRQDEOHLQYLHZRIWKH
LQVWUXPHQWDWLRQDYDLODEOHLQWKHFRQWUROURRPWRPRQLWRUWKHVWDWXVRIWKH
5&6
759
9HULILHVWKDWDQ\VSUD\RSHUDWLRQZLWKDGLIIHUHQWLDOWHPSHUDWXUHJUHDWHU
WKDQ)EHUHFRUGHGIRUHYDOXDWLRQRIWKHF\FOLFOLPLWVLQDFFRUGDQFH
ZLWK&RPSRQHQW&\FOLFDQG7UDQVLHQW/LPLW3URJUDP7KHQXPEHURIKLJK
WHPSHUDWXUHGLIIHUHQWLDOVSUD\DFWXDWLRQVPXVWEHPDLQWDLQHGZLWKLQWKH
F\FOLFRUWUDQVLHQWOLPLWVLQDFFRUGDQFHZLWK&RPSRQHQW&\FOLFDQG
7UDQVLHQW/LPLW3URJUDP
5()(5(1&(6 &)5'HILQLWLRQV
&)5D&RGHVDQG6WDQGDUGV
:&$30(5,763URJUDP3KDVH,,7DVN&ULWHULD
$SSOLFDWLRQLQFOXGLQJ$GGHQGXPGDWHG$SULO
:HVWLQJKRXVHOHWWHU79$ 5HDFWRU&RRODQW6\VWHP
$FFHOHUDWHG&RROGRZQGDWHG1RYHPEHU
:HVWLQJKRXVH(TXLSPHQW6SHFLILFDWLRQ5HYLVLRQ1R
GDWHG-DQXDU\
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
5($&725&22/$176<67(0 5&6
5HDFWRU&RRODQW6\VWHP+HDG9HQWV 5&6+9V
7(&+1,&$/5(48,5(0(17 75
75 7ZR5&6+9SDWKVVKDOOEH)81&7,21$/
$33/,&$%,/,7< 02'(6DQG
&217,1*(1&<0($685(6
&21',7,21 &217,1*(1&<0($685(6 5(6725$7,217,0(
$ 2QH5&6+9SDWK $ 9HULI\1RQIXQFWLRQDO5&6+9 KRXU
1RQIXQFWLRQDO SDWKLVRODWHGZLWKSRZHU
UHPRYHGIURPWKHDVVRFLDWHG
5&6+9YDOYHDFWXDWRUV
% :LWKQR5&6+9SDWK % 9HULI\5&6+9SDWKVLVRODWHG KRXU
)81&7,21$/ ZLWKSRZHUUHPRYHGIURPWKH
DVVRFLDWHG5&6+9YDOYH
DFWXDWRUV
$1'
% 5HVWRUHDWOHDVWRQH5&6+9 GD\V
SDWKWR)81&7,21$/
VWDWXV
&5HTXLUHG&RQWLQJHQF\ & (YDOXDWHLQDFFRUGDQFHZLWK ,PPHGLDWHO\
0HDVXUHVDQGDVVRFLDWHG 75
5HVWRUDWLRQ7LPHRI
&RQGLWLRQ$RU%QRWPHW
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
7(&+1,&$/5(48,5(0(1769(5,),&$7,21
759 9(5,),&$7,21 )5(48(1&<
9HULI\WKHXSVWUHDPPDQXDOLVRODWLRQYDOYHVRIHDFK PRQWKV
5&6+9SDWKDUHORFNHGLQWKHRSHQSRVLWLRQ
&\FOHHDFKUHPRWHO\RSHUDWHGYDOYHLQHDFK5&6+9 PRQWKV
SDWKWKURXJKDWOHDVWRQHFRPSOHWHF\FOHRIIXOOWUDYHO
IURPWKH&RQWURO5RRP
9HULI\IORZWKURXJKHDFK5&6+9SDWK PRQWKV
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
5($&725&22/$176<67(0 5&6
5HDFWRU&RRODQW6\VWHP+HDG9HQWV 5&6+9V
%$6(6
%$&.*5281' 7KHIXQFWLRQRIWKH5&6+9VLVWRUHPRYHQRQFRQGHQVDEOHVRUVWHDP
IURPWKHUHDFWRUYHVVHOKHDG7KLVV\VWHPLVGHVLJQHGWRPLWLJDWHD
SRVVLEOHFRQGLWLRQRILQDGHTXDWHFRUHFRROLQJLQDGHTXDWHQDWXUDO
FLUFXODWLRQRULQDELOLW\WRGHSUHVVXUL]HWKH5+56\VWHPLQLWLDWHG
FRQGLWLRQVUHVXOWLQJIURPWKHDFFXPXODWLRQRIQRQFRQGHQVDEOHJDVHVLQ
WKH5&67KH5&6+9LVGHVLJQHGZLWKUHGXQGDQWVDIHW\JUDGHYHQW
SDWKV
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
&217$,10(176<67(0
&RPEXVWLEOH*DV&RQWURO+\GURJHQ0RQLWRUV
7(&+1,&$/5(48,5(0(17 75
75 7ZRLQGHSHQGHQWFRQWDLQPHQWK\GURJHQPRQLWRUVVKDOOEH)81&7,21$/
$33/,&$%,/,7< 02'(6DQG
&217,1*(1&<0($685(6
&21',7,21 &217,1*(1&<0($685(6 5(6725$7,217,0(
$ 2QHK\GURJHQPRQLWRU $ 5HVWRUHK\GURJHQPRQLWRUWR GD\V
1RQIXQFWLRQDO )81&7,21$/VWDWXV
% %RWKK\GURJHQPRQLWRUV % 5HVWRUHDWOHDVWRQH GD\V
1RQIXQFWLRQDO K\GURJHQPRQLWRUWR
)81&7,21$/VWDWXV
&5HTXLUHG&RQWLQJHQF\ & (YDOXDWHLQDFFRUGDQFHZLWK ,PPHGLDWHO\
0HDVXUHVDQGDVVRFLDWHG 75
5HVWRUDWLRQ7LPHRI
&RQGLWLRQ$RU%QRWPHW
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
7(&+1,&$/5(48,5(0(1769(5,),&$7,21
759 9(5,),&$7,21 )5(48(1&<
3HUIRUPD&+$11(/&+(&. KRXUV
3HUIRUP&+$11(/)81&7,21$/7(67 GD\V
3HUIRUP&+$11(/&$/,%5$7,21XVLQJVDPSOHJDV GD\VRQD
FRQWDLQLQJ 67$**(5('7(67
%$6,6
D YROXPHK\GURJHQEDODQFHQLWURJHQ DQG
E YROXPHK\GURJHQEDODQFHQLWURJHQ
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
&217$,10(176<67(0
&RPEXVWLEOH*DV&RQWURO+\GURJHQ0RQLWRUV
%$6(6
%$&.*5281' 7KH)81&7,21$/,7<RIWKHHTXLSPHQWDQGV\VWHPVUHTXLUHGIRUWKH
GHWHFWLRQRIK\GURJHQJDVHQVXUHVWKDWWKLVHTXLSPHQWZLOOEHDYDLODEOHWR
PRQLWRUWKHK\GURJHQFRQFHQWUDWLRQZLWKLQFRQWDLQPHQWGXULQJVLJQLILFDQW
EH\RQGGHVLJQEDVLVDFFLGHQWFRQGLWLRQV7KHK\GURJHQPRQLWRUVRI
75DUHSDUWRIWKHDFFLGHQWPRQLWRULQJLQVWUXPHQWDWLRQUHTXLUHGE\
&)5³6WDQGDUGVIRU&RPEXVWLEOH*DV&RQWURO6\VWHPLQ/LJKW
- DWHU&RROHG3RZHU5HDFWRUV'2FWREHU
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
-XO\
&217$,10(176<67(0
,FH%HG7HPSHUDWXUH0RQLWRULQJ6\VWHP
7(&+1,&$/5(48,5(0(17 75
75 ,FHEHGWHPSHUDWXUHPRQLWRULQJV\VWHPVKDOOEH)81&7,21$/ZLWKDWOHDVW
)81&7,21$/UHVLVWDQFHWHPSHUDWXUHGHWHFWRU 57' FKDQQHOVLQWKHLFHEHG
DWHDFKRIEDVLFHOHYDWLRQV DQG DERYHWKHIORRURIWKHLFH
FRQGHQVHU IRUHDFKRQHWKLUGRIWKHLFHFRQGHQVHU
$33/,&$%,/,7< 02'(6DQG
&217,1*(1&<0($685(6
&21',7,21 &217,1*(1&<0($685(6 5(6725$7,217,0(
$ 0DLQFRQWUROURRPLFH $ 'HWHUPLQHLFHEHG 2QFHSHUKRXUV
EHGWHPSHUDWXUH WHPSHUDWXUHDWORFDOLFH
LQGLFDWLRQ1RQIXQFWLRQDO FRQGHQVHUPRQLWRULQJSDQHO
% ,FHEHGWHPSHUDWXUH % 9HULI\LFHFRPSDUWPHQWORZHU ,PPHGLDWHO\
PRQLWRULQJV\VWHP LQOHWGRRUVDUHFORVHG
1RQIXQFWLRQDODQGQR
DOWHUQDWHPHDQVRI $1'
PRQLWRULQJLFHEHG
WHPSHUDWXUH % 9HULI\LQWHUPHGLDWHGHFN ,PPHGLDWHO\
GRRUVDUHFORVHG
$1'
% 9HULI\WRSGHFNGRRUVDUH ,PPHGLDWHO\
FORVHG
$1'
% 9HULI\WKHODVWUHFRUGHG ,PPHGLDWHO\
PHDQLFHEHGWHPSHUDWXUH
ZDVq)DQGVWHDG\
$1'
% 5HVWRUHWR)81&7,21$/ GD\V
VWDWXV
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
&21',7,21 &217,1*(1&<0($685(6 5(6725$7,217,0(
&5HTXLUHG&RQWLQJHQF\ & (YDOXDWHLQDFFRUGDQFHZLWK ,PPHGLDWHO\
0HDVXUHVDQGDVVRFLDWHG 75
5HVWRUDWLRQ7LPHRI
&RQGLWLRQ$RU%QRWPHW
7(&+1,&$/5(48,5(0(1769(5,),&$7,21
759 9(5,),&$7,21 )5(48(1&<
3HUIRUP&+$11(/&+(&. KRXUV
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
&217$,10(176<67(0
,FH%HG7HPSHUDWXUH0RQLWRULQJ6\VWHP
%$6(6
%$&.*5281' 7KH)81&7,21$/,7<RIWKHLFHEHGWHPSHUDWXUHPRQLWRULQJV\VWHP
HQVXUHVWKDWWKHFDSDELOLW\LVDYDLODEOHIRUPRQLWRULQJWKHLFHWHPSHUDWXUH
,QWKHHYHQWWKHLFHEHGWHPSHUDWXUHPRQLWRULQJV\VWHPLV1RQIXQFWLRQDO
WKH&RQWLQJHQF\0HDVXUHVSURYLGHDVVXUDQFHWKDWWKHLFHEHGKHDW
UHPRYDOFDSDFLW\ZLOOEHUHWDLQHGZLWKLQWKHVSHFLILHGWLPHOLPLWV
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
&217$,10(176<67(0
,QOHW'RRU3RVLWLRQ0RQLWRULQJ6\VWHP
7(&+1,&$/5(48,5(0(17 75
75 7KHLQOHWGRRUPRQLWRULQJV\VWHPVKDOOEH)81&7,21$/
$33/,&$%,/,7< 02'(6DQG
&217,1*(1&<0($685(6
&21',7,21 &217,1*(1&<0($685(6 5(6725$7,217,0(
$ ,QOHWGRRUSRVLWLRQ $ 9HULI\LFHEHGWHPSHUDWXUH ,PPHGLDWHO\
PRQLWRULQJV\VWHP PRQLWRULQJV\VWHPLV
1RQIXQFWLRQDO )81&7,21$/
$1'
$ 9HULI\LFHEHGWHPSHUDWXUHLV 2QFHSHUKRXUV
)
$1'
$ 5HVWRUHLQOHWGRRUPRQLWRULQJ GD\V
V\VWHPWR)81&7,21$/
VWDWXV
25
$ 5HVWRUHLQOHWGRRUPRQLWRULQJ KRXUV
V\VWHPWR)81&7,21$/
VWDWXV
% 5HTXLUHG&RQWLQJHQF\ % (YDOXDWHLQDFFRUGDQFHZLWK ,PPHGLDWHO\
0HDVXUHVDQG 75
DVVRFLDWHG5HVWRUDWLRQ
7LPHRI&RQGLWLRQ$QRW
PHW
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
7(&+1,&$/5(48,5(0(1769(5,),&$7,21
759 9(5,),&$7,21 )5(48(1&<
3HUIRUP&+$11(/&+(&. KRXUV
3HUIRUP&+$11(/)81&7,21$/7(67 PRQWKV
127(
&KDQQHOFDOLEUDWLRQFRQVLVWVRIF\FOLQJRIWKHLQOHWGRRU
DQGYHULI\LQJSRVLWLRQLQGLFDWLRQUHIOHFWVGRRUSRVLWLRQ
3HUIRUP&+$11(/&$/,%5$7,21 PRQWKV
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
&217$,10(176<67(0
,QOHW'RRU3RVLWLRQ0RQLWRULQJ6\VWHP
%$6(6
%$&.*5281' 7KH)81&7,21$/,7<RIWKHLQOHWGRRUSRVLWLRQPRQLWRULQJV\VWHP
HQVXUHVWKDWWKHFDSDELOLW\LVDYDLODEOHIRUPRQLWRULQJWKHLQGLYLGXDOLQOHW
GRRUSRVLWLRQ,QWKHHYHQWWKHPRQLWRULQJV\VWHPLV1RQIXQFWLRQDOWKH
&RQWLQJHQF\0HDVXUHVSURYLGHDVVXUDQFHWKDWWKHLFHEHGKHDWUHPRYDO
FDSDFLW\ZLOOEHUHWDLQHGZLWKLQWKHVSHFLILHGWLPHOLPLWV
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
&217$,10(176<67(0
/RZHU&RQWDLQPHQW9HQW&RROHUV
7(&+1,&$/5(48,5(0(176 75
75 7ZRLQGHSHQGHQWWUDLQVRIORZHUFRQWDLQPHQWYHQWFRROHUVVKDOOEH
)81&7,21$/ZLWKWZRFRROHUVWRHDFKWUDLQ
$33/,&$%,/,7< 02'(6DQG
&217,1*(1&<0($685(6
&21',7,21 &217,1*(1&<0($685(6 5(6725$7,217,0(
$ 2QHUHTXLUHGORZHU $ 5HVWRUHWR)81&7,21$/ GD\V
FRQWDLQPHQWYHQWFRROHU VWDWXV
1RQIXQFWLRQDO
% 7ZRUHTXLUHGORZHU % 5HVWRUHWR)81&7,21$/ KRXUV
FRQWDLQPHQWYHQW VWDWXV
FRROHUVLQWKHVDPHWUDLQ
1RQIXQFWLRQDO
&5HTXLUHG&RQWLQJHQF\ & (YDOXDWHLQDFFRUGDQFHZLWK ,PPHGLDWHO\
0HDVXUHVDQGDVVRFLDWHG 75
5HVWRUDWLRQ7LPHRI
&RQGLWLRQ$RU%QRWPHW
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
7(&+1,&$/5(48,5(0(1769(5,),&$7,21
759 9(5,),&$7,21 )5(48(1&<
9HULI\HDFKORZHUFRQWDLQPHQWYHQWFRROHUIDQRSHUDWHV GD\V
IRUJUHDWHUWKDQRUHTXDOWRPLQXWHV
9HULI\HDFKORZHUFRQWDLQPHQWYHQWFRROHUIDQVWDUWV PRQWKV
IURPWKHFRQWUROURRP
9HULI\DFRROLQJZDWHUIORZUDWHRIJSPWRHDFK PRQWKV
FRROHU
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
&217$,10(176<67(0
/RZHU&RQWDLQPHQW9HQW&RROHUV
%$6(6
%$&.*5281' 7KH)81&7,21$/,7<RIWKHORZHUFRQWDLQPHQWYHQWFRROHUVHQVXUHVWKDW
DGHTXDWHKHDWUHPRYDOFDSDFLW\LVDYDLODEOHWRSURYLGHORQJWHUPFRROLQJ
IROORZLQJDQRQ/2&$HYHQW3RVWDFFLGHQWXVHRIWKHVHFRROHUVHQVXUHV
FRQWDLQPHQWWHPSHUDWXUHVUHPDLQZLWKLQHQYLURQPHQWDOTXDOLILFDWLRQOLPLWV
IRUDOOVDIHW\UHODWHGHTXLSPHQWUHTXLUHGWRUHPDLQ)81&7,21$/
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
3/$176<67(06
6WHDP*HQHUDWRU3UHVVXUH7HPSHUDWXUH/LPLWDWLRQ
7(&+1,&$/5(48,5(0(17 75
75 7KHWHPSHUDWXUHRIWKHSULPDU\DQGVHFRQGDU\FRRODQWVLQWKHVWHDP
JHQHUDWRUVVKDOOEH!q)ZKHQWKHSUHVVXUHRIHLWKHUFRRODQWLQWKHVWHDP
JHQHUDWRULV!SVLJ
$33/,&$%,/,7< $WDOOWLPHV
&217,1*(1&<0($685(6
&21',7,21 &217,1*(1&<0($685(6 5(6725$7,217,0(
$ 127( $ 5HGXFHWKHVWHDP PLQXWHV
&RQWLQJHQF\0HDVXUH JHQHUDWRUSUHVVXUHRIWKH
$DQG$VKDOOEH DSSOLFDEOHVLGHWR
FRPSOHWHGZKHQHYHU SVLJ
WKLV&RQGLWLRQLVHQWHUHG
$1'
75QRWPHW $ 'HWHUPLQHE\HQJLQHHULQJ 3ULRUWRLQFUHDVLQJ
HYDOXDWLRQWKHHIIHFWVRI VWHDPJHQHUDWRU
WKHRYHUSUHVVXUL]DWLRQRQ WHPSHUDWXUHV!)
WKHVWUXFWXUDOLQWHJULW\RI
WKHVWHDPJHQHUDWRU
$1'
$ 'HWHUPLQHWKDWWKHVWHDP 3ULRUWRLQFUHDVLQJ
JHQHUDWRUUHPDLQV VWHDPJHQHUDWRU
DFFHSWDEOHIRUFRQWLQXHG WHPSHUDWXUHV!)
RSHUDWLRQ
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
7(&+1,&$/5(48,5(0(1769(5,),&$7,21
759 9(5,),&$7,21 )5(48(1&<
127(
2QO\UHTXLUHGWREHSHUIRUPHGZKHQWKHWHPSHUDWXUHRI
HLWKHUWKHSULPDU\RUVHFRQGDU\FRRODQWLV q)
9HULI\SUHVVXUHRIHDFKVLGHRIWKHVWHDPJHQHUDWRULV KRXU
SVLJ
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
3/$176<67(06
6WHDP*HQHUDWRU3UHVVXUH7HPSHUDWXUH/LPLWDWLRQ
%$6(6
%$&.*5281' 7KHOLPLWDWLRQRQVWHDPJHQHUDWRUSUHVVXUHDQGWHPSHUDWXUHHQVXUHVWKDW
WKHSUHVVXUHLQGXFHGVWUHVVHVLQWKHVWHDPJHQHUDWRUVGRQRWH[FHHGWKH
PD[LPXPDOORZDEOHIUDFWXUHWRXJKQHVVVWUHVVOLPLWV7KHOLPLWDWLRQVRI
)DQGSVLJDUHEDVHGRQDVWHDPJHQHUDWRU5HIHUHQFH
7HPSHUDWXUH1LO'XFWLOLW\7UDQVLWLRQ 57 1'7 RI)DQGDUHVXIILFLHQWWR
SUHYHQWEULWWOHIUDFWXUH
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
3/$176<67(06
)ORRG3URWHFWLRQ
7(&+1,&$/5(48,5(0(17 75
75 7KHIORRGSURWHFWLRQSODQVKDOOEHUHDG\IRULPSOHPHQWDWLRQWRPDLQWDLQWKH
SODQWLQDVDIHFRQGLWLRQ
$33/,&$%,/,7< :KHQRQHRUPRUHRIWKHIROORZLQJFRQGLWLRQVH[LVW
D (DUO\ZDUQLQJRIPDMRUIORRGSURGXFLQJUDLQIDOOFRQGLWLRQVLQWKHHDVW
7HQQHVVHHZDWHUVKHG
E (DUO\ZDUQLQJWKDWDFULWLFDOFRPELQDWLRQRIIORRGDQGRUKLJKHUWKDQ
QRUPDOVXPPHUSRROOHYHOVSOXVSRVVLEOHGDPIDLOXUHVRURWKHUGDP
VDIHW\HPHUJHQFLHVPD\RUKDYHGHYHORSHGRU
F :DUQLQJVWKDWIORRGHOHYDWLRQLVSUHGLFWHGWRH[FHHGSODQWJUDGH
6WDJHV,DQG,,
&217,1*(1&<0($685(6
&21',7,21 &217,1*(1&<0($685(6 5(6725$7,217,0(
$ (DUO\ZDUQLQJLVLVVXHG 127(
&RPSOHWLRQRI$DQG$DUH
QRWUHTXLUHGLIFRPPXQLFDWLRQVDUH
YHULILHG
$ 9HULI\FRPPXQLFDWLRQV KRXUV
EHWZHHQ6HTXR\DK
1XFOHDU3ODQWDQG79$
5LYHU6\VWHPV2SHUDWLRQV
562
25
$ &RPSOHWH6WDJH,IORRG KRXUV
SURWHFWLRQSURFHGXUH
$1'
$ &RPSOHWH6WDJH,,IORRG KRXUV
SURWHFWLRQSURFHGXUH
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
&21',7,21 &217,1*(1&<0($685(6 5(6725$7,217,0(
% 6WDJH,IORRGZDUQLQJ % %HLQ02'( KRXUV
LVVXHG
$1'
% 7 DYJ ) KRXUV
$1'
% 9HULI\6'0LV¨NN KRXUV
$1'
% &RPSOHWH6WDJH, KRXUV
SURWHFWLRQSURFHGXUH
$1'
% 9HULI\FRPPXQLFDWLRQV KRXUV
EHWZHHQ6HTXR\DK
1XFOHDU3ODQWDQG79$
562
25
% &RPSOHWH6WDJH,,IORRG KRXUV
SURWHFWLRQSURFHGXUH
& 6WDJH,,IORRGZDUQLQJ & ,QLWLDWH6WDJH,,IORRG KRXUVSULRUWRWKH
LVVXHG SURWHFWLRQSURFHGXUH SUHGLFWHGDUULYDOWLPH
RIWKHLQLWLDOFULWLFDO
IORRGOHYHO IW
0HDQ6HD/HYHO 06/
ZLQWHUDQGVXPPHU
$1'
& &RPSOHWH6WDJH,,IORRG 3ULRUWRSUHGLFWHG
SURWHFWLRQSURFHGXUH 6WDJH,,IORRGOHYHO
7(&+1,&$/5(48,5(0(1769(5,),&$7,21
759 9(5,),&$7,21 )5(48(1&<
9HULI\FRPPXQLFDWLRQVEHWZHHQ6HTXR\DK1XFOHDU (YHU\KRXUV
3ODQWDQG79$5LYHU6\VWHP2SHUDWLRQV 562
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
3/$176<67(06
)ORRG3URWHFWLRQ
%$6(6
%$&.*5281' 7KHUHTXLUHPHQWVIRUIORRGSURWHFWLRQHQVXUHVWKDWIDFLOLW\SURWHFWLYH
DFWLRQVZLOOEHWDNHQDQGRSHUDWLRQZLOOEHWHUPLQDWHGLQWKHHYHQWRIIORRG
FRQGLWLRQV$6WDJHIORRGZDUQLQJLVLVVXHGZKHQWKHZDWHULQWKH
IRUHED\LVSUHGLFWHGWRH[FHHG IHHW0HDQ6HD/HYHO86*6GDWXP
GXULQJ2FWREHUWKURXJK$SULORU)HHW0HDQ6HD/HYHO86*6
GDWXPGXULQJ$SULOWKURXJK6HSWHPEHUGXHWRDPDMRUIORRG
SURGXFLQJVWRUPQRWFRPELQHGZLWKDQ\GDPIDLOXUHVRUHPHUJHQFLHV$
6WDJH,IORRGZDUQLQJLVDOVRLVVXHGZKHQWKHZDWHUOHYHOLVSUHGLFWHGWR
H[FHHGHOHYDWLRQIURPDFRPELQDWLRQRIIORRGDQGGDPIDLOXUHVZLQWHU
RUVXPPHU$6WDJH,,IORRGZDUQLQJLVLVVXHGZKHQWKHZDWHULQWKH
IRUHED\LVSUHGLFWHGWRH[FHHGIHHW0HDQ6HD/HYHO86*6GDWXP$
PD[LPXPDOORZHGZDWHUOHYHORIIHHW0HDQ6HD/HYHO86*6GDWXP
SURYLGHVVXIILFLHQWPDUJLQWRHQVXUHZDYHVGXHWRKLJKZLQGVFDQQRW
GLVUXSWWKHIORRGPRGHSUHSDUDWLRQ$6WDJH,RU6WDJH,,IORRGZDUQLQJ
UHTXLUHVWKHLPSOHPHQWDWLRQRISURFHGXUHVZKLFKLQFOXGHSODQWVKXWGRZQ
)XUWKHULQWKHHYHQWRIDORVVRIFRPPXQLFDWLRQVVLPXOWDQHRXVZLWKD
FULWLFDOIORRGRUFRPELQDWLRQRIIORRGDQGGDPIDLOXUHWKHSODQWZLOOEH
VKXWGRZQDQGIORRGSURWHFWLRQPHDVXUHVZLOOEHLPSOHPHQWHG
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
3/$176<67(06
6QXEEHUV
7(&+1,&$/5(48,5(0(17 75
75 (DFKVDIHW\UHODWHGVQXEEHUVKDOOEH)81&7,21$/
$33/,&$%,/,7< 02'(6DQG
02'(6DQGIRUVQXEEHUVORFDWHGRQV\VWHPVRUSDUWLDOV\VWHPV
UHTXLUHG23(5$%/()81&7,21$/LQWKRVH02'(6
&217,1*(1&<0($685(6
&21',7,21 &217,1*(1&<0($685(6 5(6725$7,217,0(
$ 2QHRUPRUHUHTXLUHG $ 5HSODFHRUUHVWRUH KRXUV
VQXEEHU V DVVRFLDWHG 1RQIXQFWLRQDOVQXEEHU V
ZLWKD750V\VWHP WR)81&7,21$/VWDWXV
1RQIXQFWLRQDO
$1'
$ 3HUIRUPHQJLQHHULQJ KRXUV
HYDOXDWLRQRQWKHDWWDFKHG
FRPSRQHQW
25
$ 'HFODUHWKHDWWDFKHG ,PPHGLDWHO\
V\VWHP1RQIXQFWLRQDODQG
HQWHUDSSURSULDWH750
&RQWLQJHQF\0HDVXUH
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
&21',7,21 &217,1*(1&<0($685(6 5(6725$7,217,0(
% 2QHRUPRUHUHTXLUHG % (YDOXDWHHQWU\LQWR ,PPHGLDWHO\
VQXEEHU V DVVRFLDWHG 7HFKQLFDO6SHFLILFDWLRQ
ZLWKD7HFKQLFDO /&2
6SHFLILFDWLRQVWUXFWXUH
V\VWHPRUFRPSRQHQW $1'
1RQIXQFWLRQDO
% (YDOXDWHWKHULVN ,PPHGLDWHO\
DVVRFLDWHGZLWKWKH
1RQIXQFWLRQDOVQXEEHUDQG
WKHDELOLW\WRSURSHUO\
PDQDJHWKHULVN
$1'
% (YDOXDWH$X[LOLDU\ ,PPHGLDWHO\
)HHGZDWHU23(5$%,/,7<
DQGRUDOWHUQDWLYHFRUH
FRROLQJFDSDELOLW\
$1'
% (YDOXDWHQRQVHLVPLF ,PPHGLDWHO\
FDSDELOLW\DVVRFLDWHGZLWK
WKH1RQIXQFWLRQDOVQXEEHU
$1'
% 3HUIRUPDQHQJLQHHULQJ KRXUV
HYDOXDWLRQRQWKHDWWDFKHG
FRPSRQHQWWRGHWHUPLQH
SRWHQWLDOV\VWHP
GHJUDGDWLRQ
25
% 'HFODUHWKHDIIHFWHGSODQW ,PPHGLDWHO\
V\VWHP V LQRSHUDEOH
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
7(&+1,&$/5(48,5(0(1769(5,),&$7,21
759 9(5,),&$7,21 )5(48(1&<
3HUIRUPVQXEEHULQVHUYLFHLQVSHFWLRQVLQDFFRUGDQFH ,QDFFRUGDQFHZLWK
ZLWK$SSHQGL[ $SSHQGL[
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
$SSHQGL[
$XJPHQWHG,QVHUYLFH,QVSHFWLRQ3URJUDP
D ,QVSHFWLRQ*URXSV
7KHVQXEEHUVPD\EHFDWHJRUL]HGLQWRWZRPDMRUJURXSVEDVHGRQZKHWKHUWKHVQXEEHUV
DUHDFFHVVLEOHRULQDFFHVVLEOHGXULQJUHDFWRURSHUDWLRQ7KHVHPDMRUJURXSVPD\EH
IXUWKHUVXEGLYLGHGLQWRVXEJURXSVEDVHGRQGHVLJQHQYLURQPHQWRURWKHUIHDWXUHVZKLFK
PD\EHH[SHFWHGWRDIIHFWWKH)81&7,21$/,7<RIWKHVQXEEHUVZLWKLQWKHVXEJURXS
(DFKVXEJURXSPD\EHWHVWHGLQGHSHQGHQWO\LQDFFRUGDQFHZLWK$SSHQGL[ G
WKURXJK K
E 9LVXDO,QVSHFWLRQ6FKHGXOHDQG/RW6L]H
$OORIWKHVDIHW\UHODWHGVQXEEHUVVKDOOEHLQFOXGHGLQRQHSRSXODWLRQRUWKH\VKDOOEH
FDWHJRUL]HGDVDFFHVVLEOHRULQDFFHVVLEOHIRUYLVXDOLQVSHFWLRQ,IXVHGWKHDFFHVVLEOH
RULQDFFHVVLEOHFDWHJRULHVVKDOOEHFRQVLGHUHGVHSDUDWHO\IRUYLVXDOLQVSHFWLRQV
- KHQUHFRPELQLQJFDWHJRULHVLQWRRQHSRSXODWLRQWKHVKRUWHULQWHUYDORIWKHFDWHJRULHV
VKDOOEHXVHG
7KHYLVXDOLQVSHFWLRQLQWHUYDOIRUWKHSRSXODWLRQRUHDFKFDWHJRU\VKDOOEHGHWHUPLQHG
EDVHGXSRQWKHFULWHULDSURYLGHGLQ7DEOHDQGWKHILUVWLQVSHFWLRQLQWHUYDO
GHWHUPLQHGXVLQJWKLVFULWHULDVKDOOEHEDVHGXSRQWKHSUHYLRXVLQVSHFWLRQLQWHUYDODV
HVWDEOLVKHGE\WKHUHTXLUHPHQWVLQHIIHFWEHIRUHWKHDPHQGPHQWZKLFKLQFRUSRUDWHGWKLV
FKDQJHZDVLVVXHGE\WKH15&
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
7DEOH
618%%(59,68$/,163(&7,21,17(59$/
180%(52)81$&&(37$%/(618%%(56
3RSXODWLRQRU &ROXPQ$ &ROXPQ% &ROXPQ&
&DWHJRU\ ([WHQGHG,QWHUYDO 5HSHDW,QWHUYDO 5HGXFH,QWHUYDO
1RWHVDQG 1RWHVDQG 1RWHVDQG 1RWHVDQG
RUJUHDWHU
1RWH 7KHQH[WYLVXDOLQVSHFWLRQLQWHUYDOIRUDVQXEEHUSRSXODWLRQRUFDWHJRU\VL]H
VKDOOEHGHWHUPLQHGEDVHGXSRQWKHSUHYLRXVLQVSHFWLRQLQWHUYDODQGWKH
QXPEHURIXQDFFHSWDEOHVQXEEHUVIRXQGGXULQJWKDWLQWHUYDO6QXEEHUV
PD\EHFDWHJRUL]HGEDVHGXSRQWKHLUDFFHVVLELOLW\GXULQJSRZHURSHUDWLRQ
DVDFFHVVLEOHRULQDFFHVVLEOH7KHVHFDWHJRULHVPD\EHH[DPLQHG
VHSDUDWHO\RUMRLQWO\+RZHYHUWKHOLFHQVHHPXVWPDNHDQGGRFXPHQWWKDW
GHFLVLRQEHIRUHDQ\LQVSHFWLRQDQGVKDOOXVHWKDWGHFLVLRQDVWKHEDVLV
XSRQZKLFKWRGHWHUPLQHWKHQH[WLQVSHFWLRQLQWHUYDOIRUWKDWFDWHJRU\
1RWH ,QWHUSRODWLRQEHWZHHQSRSXODWLRQRUFDWHJRU\VL]HDQGWKHQXPEHURI
XQDFFHSWDEOHVQXEEHUVLVSHUPLVVLEOH8VHQH[WORZHULQWHJHUIRUWKHYDOXH
RIWKHOLPLWIRU&ROXPQV$%RU&LIWKDWLQWHJHULQFOXGHVDIUDFWLRQDOYDOXH
RIXQDFFHSWDEOHVQXEEHUVDVGHVFULEHGE\LQWHUSRODWLRQ
1RWH ,IWKHQXPEHURIXQDFFHSWDEOHVQXEEHUVLVHTXDOWRRUOHVVWKDQWKHQXPEHU
LQ&ROXPQ$WKHQH[WLQVSHFWLRQLQWHUYDOPD\EHWZLFHWKHSUHYLRXVLQWHUYDO
EXWQRWJUHDWHUWKDQPRQWKV
1RWH ,IWKHQXPEHURIXQDFFHSWDEOHVQXEEHUVLVHTXDOWRRUOHVVWKDQWKHQXPEHU
LQ&ROXPQ%EXWJUHDWHUWKDQWKHQXPEHULQ&ROXPQ$WKHQH[WLQVSHFWLRQ
LQWHUYDOVKDOOEHWKHVDPHDVWKHSUHYLRXVLQWHUYDO
1RWH ,IWKHQXPEHURIXQDFFHSWDEOHVQXEEHUVLVHTXDOWRRUJUHDWHUWKDQWKH
QXPEHULQ&ROXPQ&WKHQH[WLQVSHFWLRQLQWHUYDOVKDOOEHWZRWKLUGVRIWKH
SUHYLRXVLQWHUYDO+RZHYHULIWKHQXPEHURIXQDFFHSWDEOHVQXEEHUVLVOHVV
WKDQWKHQXPEHULQ&ROXPQ&EXWJUHDWHUWKDQWKHQXPEHULQ&ROXPQ%WKH
QH[WLQWHUYDOVKDOOEHUHGXFHGSURSRUWLRQDOO\E\LQWHUSRODWLRQ WKDWLVWKH
SUHYLRXVLQWHUYDOVKDOOEHUHGXFHGE\DIDFWRUWKDWLVRQHWKLUGRIWKHUDWLRRI
WKHGLIIHUHQFHEHWZHHQWKHQXPEHURIXQDFFHSWDEOHVQXEEHUVIRXQGGXULQJ
WKHSUHYLRXVLQWHUYDODQGWKHQXPEHULQ&ROXPQ%WRWKHGLIIHUHQFHLQWKH
QXPEHUVLQ&ROXPQV%DQG&
1RWH 7KHSURYLVLRQVRI7HFKQLFDO5HTXLUHPHQW9HULILFDWLRQDUHDSSOLFDEOH
IRUDOOLQVSHFWLRQLQWHUYDOVXSWRDQGLQFOXGLQJPRQWKV
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
F 9LVXDO,QVSHFWLRQ3HUIRUPDQFHDQG(YDOXDWLRQ
9LVXDOLQVSHFWLRQVVKDOOYHULI\ WKDWWKHUHDUHQRYLVLEOHLQGLFDWLRQVRIGDPDJHRU
LPSDLUHG)81&7,21$/,7< EROWVDWWDFKLQJWKHVQXEEHUWRWKHIRXQGDWLRQRU
VXSSRUWLQJVWUXFWXUHDUHVHFXUHDQG VQXEEHUVDWWDFKHGWRVHFWLRQVRIVDIHW\UHODWHG
V\VWHPVWKDWKDYHH[SHULHQFHGXQH[SHFWHGSRWHQWLDOO\GDPDJLQJWUDQVLHQWVVLQFHWKH
ODVWLQVSHFWLRQSHULRGVKDOOEHHYDOXDWHGIRUWKHSRVVLELOLW\RIFRQFHDOHGGDPDJHDQG
IXQFWLRQDOO\WHVWHGLIDSSOLFDEOHWRFRQILUP)81&7,21$/,7<
6QXEEHUVZKLFKDSSHDU1RQIXQWLRQDODVDUHVXOWRIYLVXDOLQVSHFWLRQVPD\EH
GHWHUPLQHG)81&7,21$/IRUWKHSXUSRVHRIHVWDEOLVKLQJWKHQH[WYLVXDOLQVSHFWLRQ
LQWHUYDOSURYLGLQJWKDW WKHFDXVHRIWKHUHMHFWLRQLVFOHDUO\HVWDEOLVKHGDQGUHPHGLHG
IRUWKDWSDUWLFXODUVQXEEHUDQGIRURWKHUVQXEEHUVWKDWPD\EHJHQHULFDOO\VXVFHSWLEOH
DQG WKHDIIHFWHGVQXEEHULVIXQFWLRQDOO\WHVWHGLQWKHDVIRXQGFRQGLWLRQDQG
GHWHUPLQHG)81&7,21$/SHU$SSHQGL[ H +\GUDXOLFVQXEEHUVZLWK1RQIXQFWLRQDO
VLQJOHRUFRPPRQIOXLGUHVHUYRLUVZKLFKKDYHXQFRYHUHGIOXLGSRUWVVKDOOEHGHFODUHG
1RQIXQFWLRQDO
$OVRVQXEEHUVZKLFKKDYHEHHQPDGH1RQIXQFWLRQDODVWKHUHVXOWRIXQH[SHFWHG
WUDQVLHQWVLVRODWHGGDPDJHRURWKHUVXFKUDQGRPHYHQWVZKHQWKHSURYLVLRQVRI
$SSHQGL[ J DQG K KDYHEHHQPHWDQGDQ\RWKHUDSSURSULDWHFRUUHFWLYHDFWLRQ
LPSOHPHQWHGVKDOOQRWEHFRXQWHGLQGHWHUPLQLQJWKHQH[WYLVXDOLQVSHFWLRQLQWHUYDO
G )81&7,21$/7HVW6FKHGXOH/RW6L]HDQG&RPSRVLWLRQ
$WDQLQWHUYDOFRPPHQVXUDWHZLWKHDFKUHIXHOLQJRXWDJHDUHSUHVHQWDWLYHVDPSOHRI
RIWKHWRWDORIWKHVDIHW\UHODWHGVQXEEHUVLQXVHLQWKHSODQWVKDOOEHIXQFWLRQDOO\
WHVWHGHLWKHULQSODFHRULQDEHQFKWHVW7KHUHSUHVHQWDWLYHVDPSOHVHOHFWHGIRU
)81&7,21$/WHVWLQJVKDOOLQFOXGHWKHYDULRXVFRQILJXUDWLRQRSHUDWLQJHQYLURQPHQWV
DQGWKHUDQJHRIVL]HDQGFDSDFLW\RIVQXEEHUVZLWKLQWKHJURXSVRUVXEJURXSV7KH
UHSUHVHQWDWLYHVDPSOHVKRXOGEHZHLJKWHGWRLQFOXGHPRUHVQXEEHUVIURPVHYHUHVHUYLFH
DUHDVVXFKDVQHDUKHDY\HTXLSPHQW8QOHVVDIDLOXUHDQDO\VLVDVUHTXLUHGE\
$SSHQGL[ I LQGLFDWHVRWKHUZLVHWKHVDPSOHVKDOOEHDFRPSRVLWHEDVHGRQWKHUDWLRRI
HDFKJURXSWRWKHWRWDOQXPEHURIVQXEEHUVLQVWDOOHGLQWKHSODQW6QXEEHUVSODFHGLQ
WKHVDPHORFDWLRQDVVQXEEHUVZKLFKIDLOHGWKHSUHYLRXV)81&7,21$/WHVWVKDOOEH
LQFOXGHGLQWKHQH[WORWLIWKHIDLOXUHDQDO\VLVVKRZVWKDWIDLOXUHZDVGXHWRORFDWLRQ
7KHVHFXULW\RIIDVWHQHUVIRUDWWDFKPHQWRIWKHVQXEEHUVWRWKHFRPSRQHQWDQGWRWKH
VQXEEHUDQFKRUDJHVKDOOEHYHULILHGRQVQXEEHUVVHOHFWHGIRU)81&7,21$/WHVWV
7KHSURYLVLRQVRI7HFKQLFDO5HTXLUHPHQW9HULILFDWLRQDUHDSSOLFDEOHWRWKHLQWHUYDO
IRUSHUIRUPLQJIXQFWLRQDOWHVWV'XULQJSODQWRSHUDWLQJ02'(6WKURXJK DQG
02'(6DQGIRUVQXEEHUVORFDWHGRQV\VWHPVRUSDUWLDOV\VWHPVUHTXLUHG
23(5$%/()81&7,21$/LQWKH02'(6 DGPLQLVWUDWLYHFRQWUROVDUHUHTXLUHGIRU
SHUIRUPLQJVQXEEHUIXQFWLRQDOWHVWLQJIRUWKHSXUSRVHRIVDWLVI\LQJWKHIXQFWLRQDOWHVW
LQWHUYDOUHTXLUHPHQW
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
H )XQFWLRQDO7HVW$FFHSWDQFH&ULWHULD
7KHVQXEEHUIXQFWLRQDOWHVWVKDOOYHULI\WKDW
$FWLYDWLRQ UHVWUDLQLQJDFWLRQ LVDFKLHYHGZLWKLQWKHVSHFLILHGUDQJHLQERWKWHQVLRQ
DQGFRPSUHVVLRQH[FHSWWKDWLQHUWLDGHSHQGHQWDFFHOHUDWLRQOLPLWLQJPHFKDQLFDO
VQXEEHUVPD\EHWHVWHGWRYHULI\RQO\WKDWDFWLYDWLRQWDNHVSODFHLQERWKGLUHFWLRQVRI
WUDYHO
6QXEEHUEOHHGRUUHOHDVHZKHUHUHTXLUHGLVSUHVHQWLQERWKWHQVLRQDQG
FRPSUHVVLRQZLWKLQWKHVSHFLILHGUDQJH
7KHIRUFHUHTXLUHGWRLQLWLDWHRUPDLQWDLQPRWLRQRIWKHVQXEEHULVZLWKLQWKHVSHFLILHG
UDQJHLQERWKGLUHFWLRQVRIWUDYHO
7HVWLQJPHWKRGVPD\EHXVHGWRPHDVXUHSDUDPHWHUVLQGLUHFWO\RUSDUDPHWHUVRWKHU
WKDQWKRVHVSHFLILHGLIWKRVHUHVXOWVFDQEHFRUUHODWHGWRWKHVSHFLILHGSDUDPHWHUV
WKURXJKHVWDEOLVKHGPHWKRGV
I )XQFWLRQDO7HVW)DLOXUH$QDO\VLVDQG$GGLWLRQDO7HVW/RWV
,IDQ\VQXEEHUVHOHFWHGIRUIXQFWLRQDOWHVWLQJHLWKHUIDLOVWRORFNXSRUIDLOVWRPRYHGXHWR
PDQXIDFWXUHRUGHVLJQGHILFLHQF\DOOVQXEEHUVRIWKHVDPHGHVLJQVXEMHFWWRWKHVDPH
GHIHFWVKDOOEHIXQFWLRQDOO\WHVWHG,IDVQXEEHUGRHVQRWPHHWWKHIXQFWLRQDOWHVW
DFFHSWDQFHFULWHULDDQDGGLWLRQDOORWHTXDOWRRQHKDOIWKHRULJLQDOORWVL]HVKDOOEH
IXQFWLRQDOO\WHVWHGIRUHDFKIDLOHGVQXEEHU$QHQJLQHHULQJHYDOXDWLRQVKDOOEHPDGHRI
HDFKIDLOXUHWRPHHWWKHIXQFWLRQDOWHVWDFFHSWDQFHFULWHULDWRGHWHUPLQHWKHFDXVHRIWKH
IDLOXUH7KHUHVXOWRIWKLVDQDO\VLVVKDOOEHXVHGLIDSSOLFDEOHLQVHOHFWLQJVQXEEHUVWR
EHWHVWHGLQWKHVXEVHTXHQWORWLQDQHIIRUWWRGHWHUPLQHWKHIXQFWLRQDOLW\RIRWKHU
VQXEEHUVZKLFKPD\EHVXEMHFWWRWKHVDPHIDLOXUHPRGH 6HOHFWLRQRIVQXEEHUVIRU
IXWXUHWHVWLQJPD\DOVREHEDVHGRQWKHIDLOXUHDQDO\VLV 7HVWLQJVKDOOFRQWLQXHXQWLOQR
DGGLWLRQDOQRQIXQFWLRQDOVQXEEHULVIRXQGZLWKLQDVXEVHTXHQWUHTXLUHGORWRUDOO
VQXEEHUVRIWKHRULJLQDOLQVSHFWLRQJURXSKDYHEHHQWHVWHGRUDOOVXVSHFWVQXEEHUV
LGHQWLILHGE\WKHIDLOXUHDQDO\VLVKDYHEHHQWHVWHGDVDSSOLFDEOH
7KHGLVFRYHU\RIORRVHRUPLVVLQJDWWDFKPHQWIDVWHQHUVZLOOEHHYDOXDWHGWRGHWHUPLQH
ZKHWKHUWKHFDXVHPD\EHORFDOL]HGRUJHQHULF7KHUHVXOWRIWKHHYDOXDWLRQZLOOEHXVHG
WRVHOHFWRWKHUVXVSHFWVQXEEHUVIRUYHULI\LQJWKHDWWDFKPHQWIDVWHQHUVDVDSSOLFDEOH
6QXEEHUVVKDOOQRWEHVXEMHFWHGWRSULRUPDLQWHQDQFHVSHFLILFDOO\IRUWKHSXUSRVHRI
PHHWLQJIXQFWLRQDOWHVWUHTXLUHPHQWV
J )XQFWLRQDO7HVW)DLOXUH+/-$WWDFKHG&RPSRQHQW$QDO\VLV
)RUVQXEEHU V IRXQGQRQIXQFWLRQDODQHQJLQHHULQJHYDOXDWLRQVKDOOEHSHUIRUPHGRQWKH
FRPSRQHQWVZKLFKDUHUHVWUDLQHGE\WKHVQXEEHU V 7KHSXUSRVHRIWKLVHQJLQHHULQJ
HYDOXDWLRQVKDOOEHWRGHWHUPLQHLIWKHFRPSRQHQWVUHVWUDLQHGE\WKHVQXEEHU V ZHUH
DGYHUVHO\DIIHFWHGE\WKHQRQIXQFWLRQDOLW\RIWKHVQXEEHU V DQGLQRUGHUWRHQVXUHWKDW
WKHUHVWUDLQHGFRPSRQHQWUHPDLQVFDSDEOHRIPHHWLQJWKHGHVLJQHGVHUYLFH
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
K )XQFWLRQDO7HVWLQJRI5HSDLUHGDQG6SDUH6QXEEHUV
6QXEEHUVZKLFKIDLOWKHYLVXDOLQVSHFWLRQRUWKHIXQFWLRQDOWHVWDFFHSWDQFHFULWHULDVKDOO
EHUHSDLUHGRUUHSODFHG5HSODFHPHQWVQXEEHUVDQGVQXEEHUVZKLFKKDYHUHSDLUVZKLFK
PLJKWDIIHFWWKHIXQFWLRQDOWHVWUHVXOWVVKDOOEHWHVWHGWRPHHWWKHIXQFWLRQDOWHVWFULWHULD
EHIRUHLQVWDOODWLRQLQWKHXQLW7KHVHVQXEEHUVVKDOOKDYHPHWWKHDFFHSWDQFHFULWHULD
VXEVHTXHQWWRWKHLUPRVWUHFHQWVHUYLFHDQGWKHIXQFWLRQDOWHVWPXVWKDYHEHHQ
SHUIRUPHGZLWKLQPRQWKVEHIRUHEHLQJLQVWDOOHGLQWKHXQLW
L 6QXEEHU6HUYLFH/LIH3URJUDP
7KHVHUYLFHOLIHRIK\GUDXOLFDQGPHFKDQLFDOVQXEEHUVVKDOOEHPRQLWRUHGWRHQVXUHWKDW
WKHVHUYLFHOLIHLVQRWH[FHHGHGEHWZHHQYHULILFDWLRQLQVSHFWLRQV7KHPD[LPXP
H[SHFWHGVHUYLFHOLIHIRUWKHYDULRXVVHDOVVSULQJVDQGRWKHUFULWLFDOSDUWVVKDOOEH
GHWHUPLQHGDQGHVWDEOLVKHGEDVHGRQHQJLQHHULQJLQIRUPDWLRQDQGVKDOOEHH[WHQGHGRU
VKRUWHQHGEDVHGRQPRQLWRUHGWHVWUHVXOWVDQGIDLOXUHKLVWRU\&ULWLFDOSDUWVVKDOOEH
UHSODFHGVRWKDWWKHPD[LPXPVHUYLFHOLIHZLOOQRWEHH[FHHGHGGXULQJDSHULRGZKHQWKH
VQXEEHULVUHTXLUHGWREH)81&7,21$/7KHSDUWVUHSODFHPHQWVVKDOOEHGRFXPHQWHG
DQGWKHGRFXPHQWDWLRQVKDOOEHUHWDLQHGLQDFFRUGDQFHZLWK$SSHQGL[%7DEOHRIWKH
1XFOHDU4XDOLW\$VVXUDQFH3ODQ
M ([HPSWLRQ)URP9LVXDO,QVSHFWLRQRU)XQFWLRQDO7HVWV
3HUPDQHQWRURWKHUH[HPSWLRQVIURPWKHYHULILFDWLRQSURJUDPIRULQGLYLGXDOVQXEEHUV
PD\EHJUDQWHGE\WKH&RPPLVVLRQLIDMXVWLILDEOHEDVLVIRUH[HPSWLRQLVSUHVHQWHGDQGLI
DSSOLFDEOHVQXEEHUOLIHGHVWUXFWLYHWHVWLQJZDVSHUIRUPHGWRTXDOLI\VQXEEHUIXQFWLRQDOLW\
IRUWKHDSSOLFDEOHGHVLJQFRQGLWLRQVDWHLWKHUWKHFRPSOHWLRQRIWKHLUIDEULFDWLRQRUDWD
VXEVHTXHQWGDWH
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
3/$176<67(06
6QXEEHUV
%$6(6
%$&.*5281' 6QXEEHUVDUHGHVLJQHGWRSUHYHQWXQUHVWUDLQHGSLSHRUFRPSRQHQW
PRWLRQXQGHUG\QDPLFORDGVDVPLJKWRFFXUGXULQJDQHDUWKTXDNHRU
VHYHUHWUDQVLHQWZKLOHDOORZLQJQRUPDOWKHUPDOPRWLRQGXULQJVWDUWXSDQG
VKXWGRZQ7KHFRQVHTXHQFHRID1RQIXQFWLRQDOVQXEEHULVDQLQFUHDVH
LQWKHSUREDELOLW\RIVWUXFWXUDOGDPDJHWRSLSLQJRUFRPSRQHQWVDVDUHVXOW
RIDVHLVPLFRURWKHUHYHQWLQLWLDWLQJG\QDPLFORDGV,WLVWKHUHIRUH
UHTXLUHGWKDWDOOVQXEEHUVSURWHFWLQJWKHSULPDU\FRRODQWV\VWHPRUDQ\
RWKHUVDIHW\V\VWHPRUFRPSRQHQWEH)81&7,21$/GXULQJUHDFWRU
RSHUDWLRQ
%HFDXVHWKHVQXEEHUSURWHFWLRQLVUHTXLUHGRQO\GXULQJUHODWLYHO\ORZ
SUREDELOLW\HYHQWVDSHULRGRIKRXUVLVDOORZHGWRUHSODFHRUUHVWRUH
WKH1RQIXQFWLRQDOVQXEEHU V DVVRFLDWHGZLWKD750V\VWHPWR
)81&7,21$/VWDWXVDQGSHUIRUPDQHQJLQHHULQJHYDOXDWLRQRQWKH
VXSSRUWHGFRPSRQHQWRUGHFODUHWKHVXSSRUWHGV\VWHPLQRSHUDEOHDQG
IROORZWKHDSSURSULDWHOLPLWLQJFRQGLWLRQIRURSHUDWLRQVWDWHPHQWIRUWKDW
V\VWHP7KHHQJLQHHULQJHYDOXDWLRQLVSHUIRUPHGWRGHWHUPLQHZKHWKHU
WKHPRGHRIIDLOXUHRIWKHVQXEEHUKDVDGYHUVHO\DIIHFWHGDQ\VDIHW\
UHODWHGFRPSRQHQWRUV\VWHP
,QGLYLGXDOVQXEEHUVDVVRFLDWHGZLWK750V\VWHPVPD\EHUHPRYHGIURP
VHUYLFHIRUIXQFWLRQDOWHVWLQJGXULQJSODQWRSHUDWLQJ02'(6WKURXJK
DQG02'(6DQGIRUVQXEEHUVORFDWHGRQV\VWHPVRUSDUWLDOV\VWHPV
UHTXLUHG)81&7,21$/LQWKHVH02'(6 SURYLGHGWKHIROORZLQJ
DGPLQLVWUDWLYHFRQWUROVDUHLPSOHPHQWHG
x &RQWLQJHQF\0HDVXUHV for &RQGLWLRQ$VKDOOEHPHW
x 6QXEEHUVRQWUDLQHGV\VWHPVRUSRUWLRQVRIWUDLQHGV\VWHPVPD\EH
UHPRYHGRQO\RQWKHVFKHGXOHGWUDLQZRUNZHHN6QXEEHUVRQQRQ
WUDLQHGV\VWHPVRUSRUWLRQVRQQRQWUDLQHGV\VWHPVPD\RQO\EH
UHPRYHGIROORZLQJDGRFXPHQWHGULVNDVVHVVPHQW6QXEEHUVPD\QRW
EHUHPRYHGIURPVHUYLFHIRUWHVWLQJRQRQHWUDLQRIDV\VWHPZKLOHWKH
RWKHUWUDLQKDVEHHQGHFODUHG1RQIXQFWLRQDOIRUDQ\UHDVRQ
x 1RPRUHWKDQRQHVQXEEHUPD\EHUHPRYHGIURPVHUYLFHDWDWLPHRQ
DQ\OLQHDQGDWWDFKHGSLSLQJZKLFKLVDQDO\]HGDVDVHLVPLF
VXEV\VWHP0XOWLSOHVQXEEHUVPD\EHUHPRYHGIRUWHVWLQJ
VLPXOWDQHRXVO\RQO\LIVHSDUDWHGE\DVHLVPLFDQFKRU
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
6QXEEHUV
%$6(6
%$&.*5281' FRQWLQXHG
)RUVQXEEHU V DVVRFLDWHGZLWK7HFKQLFDO6SHFLILFDWLRQ 76 UHTXLUHG
VWUXFWXUHVV\VWHPVRUFRPSRQHQWV 66& DQHYDOXDWLRQPXVWEH
SHUIRUPHGWRGHWHUPLQHLIWKHSURYLVLRQVRI76/&2FDQEHDSSOLHG
7KHIROORZLQJWDEOHGHVFULEHVWKHHYDOXDWLRQVWREHSHUIRUPHG
2QHRUPRUH1RQIXQFWLRQDO ,PPHGLDWHO\HYDOXDWHWKHIROORZLQJSODQWFRQGLWLRQVWR
VQXEEHU V GHWHUPLQHWKH$SSOLFDELOLW\RI76/&2
)RUVQXEEHUVDVVRFLDWHG 7KHULVNDVVRFLDWHGZLWKWKH1RQIXQFWLRQDOVQXEEHU V
ZLWKD7666& V DQGWKHDELOLW\WRSURSHUO\PDQDJHWKHULVNV
$X[LOLDU\IHHGZDWHU $): 23(5$%,/,7<DQGRU
DOWHUQDWLYHFRUHFRROLQJFDSDELOLW\
1RQVHLVPLFFDSDELOLW\DVVRFLDWHGZLWKWKH
1RQIXQFWLRQDOVQXEEHU V
(YDOXDWHULVN 5LVNDVVRFLDWHGZLWKHQWU\LQWR76/&2UHVXOWLQJIURP
VQXEEHUPDLQWHQDQFHDFWLYLWLHVRUDQHPHUJHQW23(5$%,/,7<
LVVXHPXVWEHDVVHVVHGDQGPDQDJHG
)RU02'(6WKURXJK 2QWKHDIIHFWHG66& V LPSOHPHQW
FRPSHQVDWRU\PHDVXUHVVXFKDVSRVWLQJVUHVFKHGXOLQJ
PDLQWHQDQFHDFWLYLWLHVDQGEULHILQJVRISODQWRSHUDWRUVDV
DSSURSULDWHWRHQKDQFHWKHDYDLODELOLW\RIWKHDIIHFWHG
HTXLSPHQW
,IWKHVQXEEHU V DIIHFWVRQO\RQHWUDLQRID7666&RU
VXEV\VWHP
(QVXUHWKDWDWOHDVWRQHWUDLQRIWKH$):V\VWHP
LQFOXGLQJDPLQLPXPVHWRIVXSSRUWLQJHTXLSPHQW
UHTXLUHGIRULWVVXFFHVVIXORSHUDWLRQ QRWDVVRFLDWHG
ZLWKWKH1RQIXQFWLRQDOVQXEEHU V LV23(5$%/(
(QVXUHQRPDLQWHQDQFHZRUNLVSODQQHGRQWKH
23(5$%/($):V\VWHPXQWLO76/&2LVH[LWHG
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
6QXEEHUV
%$6(6
%$&.*5281' FRQWLQXHG
(YDOXDWHULVN FRQWLQXHG ,IWKHVQXEEHU V DIIHFWVPRUHWKDQRQHWUDLQRID7666&
RUVXEV\VWHP
(QVXUHDWOHDVWRQHWUDLQRI$):V\VWHP LQFOXGLQJD
PLQLPXPVHWRIVXSSRUWLQJHTXLSPHQWUHTXLUHGIRULWV
VXFFHVVIXORSHUDWLRQ QRWDVVRFLDWHGZLWKWKH
1RQIXQFWLRQDOVQXEEHU V LV23(5$%/(
25
6RPHDOWHUQDWHPHDQVRIFRUHFRROLQJVXFKDVIHHG
DQGEOHHGXVLQJWKHVWHDPJHQHUDWRUVILUHZDWHU
V\VWHPRUDJJUHVVLYHVHFRQGDU\FRROGRZQXVLQJWKH
VWHDPJHQHUDWRUVPXVWEHDYDLODEOH
(QVXUHQRPDLQWHQDQFHZRUNLVSODQQHGRQWKH
23(5$%/($):V\VWHPXQWLO76/&2LVH[LWHG
,Q02'(6DQGIRUVQXEEHUVORFDWHGRQ66&RUSDUWLDO
V\VWHPVUHTXLUHG23(5$%/(LQWKRVH02'(6 5HYLHZWKH
RXWDJHVFKHGXOHDQGHQVXUHWKDWDGLYHUVHPHDQVRI
SHUIRUPLQJWKHUHTXLUHGVDIHW\IXQFWLRQLVDYDLODEOH)RU
H[DPSOHLIDVQXEEHULVUHQGHUHG1RQIXQFWLRQDORQWKHQRUPDO
FKDUJLQJOLQHWKHDELOLW\WRDGGERUDWHGZDWHUYLDWKHVDIHW\
LQMHFWLRQ 6, V\VWHPZRXOGEHDGLYHUVHPHDQVRISHUIRUPLQJ
WKHUHTXLUHGVDIHW\IXQFWLRQ
(YDOXDWHDQ\QRQVHLVPLF $QHYDOXDWLRQRIWKHQRQVHLVPLFIXQFWLRQ V LIDQ\ RIWKH
IXQFWLRQ V SHUIRUPHGE\ 1RQIXQFWLRQDOVQXEEHU V VKDOOEHSHUIRUPHGLPPHGLDWHO\
WKHVQXEEHU V
,IWKHDQDO\VLVFRQFOXGHVWKDWWKHVXSSRUWHG7666&LV
23(5$%/(IRULWVQRQVHLVPLFORDGIXQFWLRQWKHQ76
/&2PD\EHDSSOLHGWRWKLV1RQIXQFWLRQDO
VQXEEHU
,IWKHDQDO\VLVFRQFOXGHVWKDWWKHVXSSRUWHG7666&LV
LQRSHUDEOHIRULWVQRQVHLVPLFIXQFWLRQWKHQ
LPPHGLDWHO\GHFODUHWKHDIIHFWHG66&LQRSHUDEOH7KH
SURYLVLRQVRI76/&2ZRXOGQRWDSSO\
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
6QXEEHUV
%$6(6
%$&.*5281' FRQWLQXHG
(YDOXDWHDQ\QRQVHLVPLF 7KHIROORZLQJVKDOOEHGRFXPHQWHGIRUWKHSXUSRVHRI
IXQFWLRQ V SHUIRUPHGE\ PDNLQJWKHPDYDLODEOHRQDUHFRYHUDEOHEDVLVIRU15&
WKHVQXEEHU V FRQWLQXHG VWDIILQVSHFWLRQ
D 7KHGHVLJQIXQFWLRQRIWKH1RQIXQFWLRQDO
VQXEEHU V LHVHLVPLFYVQRQVHLVPLF
E 7KHLPSOHPHQWDWLRQRIDQ\DSSOLFDEOHUHVWULFWLRQV
VXFKDVRQH$):WUDLQ23(5$%/(HWF
F 7KHDVVRFLDWHGSODQWFRQILJXUDWLRQ VXFKDVSODQW
02'(SRZHUOHYHODQGDQ\DSSOLFDEOH76$FWLRQ
HWF
3HUIRUPDQHQJLQHHULQJ :LWKLQKRXUVSHUIRUPDQHQJLQHHULQJHYDOXDWLRQRQWKH
HYDOXDWLRQ DWWDFKHGFRPSRQHQW7KHSXUSRVHRIWKLVHQJLQHHULQJ
HYDOXDWLRQLVWRGHWHUPLQHLIWKHFRPSRQHQWWRZKLFKWKH
1RQIXQFWLRQDOVQXEEHU V LVDWWDFKHGKDVEHHQDGYHUVHO\
DIIHFWHGE\WKHPRGHRIIDLOXUHRIWKHVQXEEHU7KLVLVWR
HQVXUHWKDWWKHFRPSRQHQWUHPDLQVFDSDEOHRIPHHWLQJLWV
GHVLJQIXQFWLRQ
$VQXEEHUUHPRYHGIURPVHUYLFHIRU)81&7,21$/759
WHVWLQJGRHVQRWUHTXLUHDQHQJLQHHULQJHYDOXDWLRQ
,IWKHDERYHHYDOXDWLRQVGHWHUPLQHWKDW76/&2LVDSSOLFDEOHIRUWKH
1RQIXQFWLRQDOVQXEEHU V DVVRFLDWHGZLWKD7666&WKHSURYLVLRQVRI76
/&2PD\EHDSSOLHGLQOLHXRIGHFODULQJWKHDIIHFWHG66&
LQRSHUDEOH,I76/&2LVGHWHUPLQHGWRQRWEHDSSOLFDEOHWKH
DIIHFWHG76VXSSRUWHG66&/&2PXVWEHGHFODUHGQRWPHW
6DIHW\UHODWHGVQXEEHUVDUHYLVXDOO\LQVSHFWHGIRURYHUDOOLQWHJULW\DQG
)81&7,21$/,7<7KHLQVSHFWLRQZLOOLQFOXGHYHULILFDWLRQRISURSHU
RULHQWDWLRQDGHTXDWHIOXLGOHYHOLVDSSOLFDEOHDQGDWWDFKPHQWRIWKH
VQXEEHUWRLWVDQFKRUDJH7KHUHPRYDORILQVXODWLRQRUWKHYHULILFDWLRQRI
WRUTXHYDOXHVIRUWKUHDGHGIDVWHQHUVLVQRWUHTXLUHGIRUYLVXDOLQVSHFWLRQV
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
6QXEEHUV
%$6(6
%$&.*5281' FRQWLQXHG
7KHLQVSHFWLRQIUHTXHQF\LVEDVHGXSRQPDLQWDLQLQJDFRQVWDQWOHYHORI
VQXEEHUSURWHFWLRQ7KXVWKHUHTXLUHGLQVSHFWLRQLQWHUYDOYDULHVLQYHUVHO\
ZLWKWKHREVHUYHGVQXEEHUIDLOXUHV7KHQXPEHURI1RQIXQFWLRQDO
VQXEEHUVIRXQGGXULQJDUHTXLUHGLQVSHFWLRQGHWHUPLQHVWKHWLPHLQWHUYDO
IRUWKHQH[WUHTXLUHGLQVSHFWLRQ,QVSHFWLRQVSHUIRUPHGEHIRUHWKDW
LQWHUYDOKDVHODSVHGPD\EHXVHGDVDQHZUHIHUHQFHSRLQWWRGHWHUPLQH
WKHQH[WLQVSHFWLRQ+RZHYHUWKHUHVXOWVRIVXFKHDUO\LQVSHFWLRQV
SHUIRUPHGEHIRUHWKHRULJLQDOUHTXLUHGWLPHLQWHUYDOKDVHODSVHG QRPLQDO
WLPHOHVVSHUFHQW PD\QRWEHXVHGWROHQJWKHQWKHUHTXLUHGLQVSHFWLRQ
LQWHUYDO$Q\LQVSHFWLRQZKRVHUHVXOWVUHTXLUHDVKRUWHULQVSHFWLRQ
LQWHUYDOZLOORYHUULGHWKHSHUYLRXVVFKHGXOH
- KHQWKHFDXVHRIWKHUHMHFWLRQRIDVQXEEHULQDYLVXDOLQVSHFWLRQLV
FOHDUO\HVWDEOLVKHGDQGUHPHGLHGIRUWKDWVQXEEHUDQGIRUDQ\RWKHU
VQXEEHUVWKDWPD\EHJHQHULFDOO\VXVFHSWLEOHDQG)81&7,21$/,7<
YHULILHGE\LQVHUYLFHIXQFWLRQDOWHVWLQJLIDSSOLFDEOHWKDWVQXEEHUPD\EH
H[HPSWHGIURPEHLQJFRXQWHGDV1RQIXQFWLRQDO*HQHULFDOO\VXVFHSWLEOH
VQXEEHUVDUHWKRVHZKLFKDUHRIDVSHFLILFPDNHRUPRGHODQGKDYHWKH
VDPHGHVLJQIHDWXUHVGLUHFWO\UHODWHGWRUHMHFWLRQRIWKHVQXEEHURUDUH
VLPLODUO\ORFDWHGRUH[SRVHGWRWKHVDPHHQYLURQPHQWDOFRQGLWLRQVVXFK
DVWHPSHUDWXUHUDGLDWLRQDQGYLEUDWLRQ7HVWJURXSVPD\EHHVWDEOLVKHG
EDVHGRQGHVLJQIHDWXUHVDQGLQVWDOOHGFRQGLWLRQVZKLFKPD\EHH[SHFWHG
WREHJHQHULF(DFKRIWKHVHJURXSVDUHWHVWHGVHSDUDWHO\XQOHVVDQ
HQJLQHHULQJDQDO\VLVLQGLFDWHVWKHJURXSLVLPSURSHUO\FRQVWLWXWHG$OO
VXVSHFWVQXEEHUVDUHVXEMHFWLQLQVSHFWLRQDQGWHVWLQJUHJDUGOHVVRIWHVW
JURXSLQJV
7RIXUWKHULQFUHDVHWKHDVVXUDQFHRIVQXEEHUUHOLDELOLW\IXQFWLRQDOWHVWV
VKDOOEHSHUIRUPHGDWDQLQWHUYDOFRPPHQVXUDWHZLWKHDFKUHIXHOLQJ
RXWDJH7KHVHWHVWVZLOOLQFOXGHVWURNLQJRIWKHVQXEEHUVWRYHULI\SURSHU
PRYHPHQWDFWLYDWLRQDQGEOHHGRUUHOHDVH7KHSHUIRUPDQFHRI
K\GUDXOLFVQXEEHUVJHQHUDOO\GHSHQGVRQDFOHDQGHDHUDWHGIOXLG
FRQWDLQHGZLWKLQYDULDEOHSUHVVXUHFKDPEHUVIORZLQJDWFORVHO\FRQWUROOHG
UDWHV6LQFHWKHVHFKDUDFWHULVWLFVDUHVXEMHFWWRFKDQJHZLWKH[SRVXUHWR
WKHUHDFWRUHQYLURQPHQWWLPHDQGRWKHUIDFWRUVWKHLUSHUIRUPDQFHZLWKLQ
WKHVSHFLILHGUDQJHVKRXOGEHYHULILHG0HFKDQLFDOVQXEEHUVZKLFK
GHSHQGXSRQRYHUFRPLQJWKHLQHUWLDRIDPDVVDQGWKHEUDNLQJDFWLRQRID
FDSVWDQVSULQJFRQWDLQHGZLWKLQWKHVQXEEHUIRUOLPLWLQJWKHDFFHOHUDWLRQ
RIWKHDWWDFKHGFRPSRQHQW ZLWKLQWKHORDGUDWLQJRIWKHVQXEEHU DUHQRW
VXEMHFWWRFKDQJHVLQSHUIRUPDQFHLQWKHVDPHPDQQHUDVK\GUDXOLF
VQXEEHUV3HQGLQJWKHGHYHORSPHQWRILQIRUPDWLRQUHJDUGLQJWKHFKDQJH
GXULQJWKHVHUYLFHRIWKHVQXEEHURIWKHDFFHOHUDWLRQUHVLVWDQFH
UHODWLRQVKLSDQGWKHRSWLPXPPHWKRGIRUGHWHFWLQJWKLVFKDQJHWKHVH
PHFKDQLFDOVQXEEHUVPD\EHWHVWHGWRYHULI\WKDWZKHQVXEMHFWHGWRD
ODUJHFKDQJHLQYHORFLW\WKHUHVLVWDQFHWRPRYHPHQWLQFUHDVHVJUHDWO\
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
6QXEEHUV
%$6(6
%$&.*5281' FRQWLQXHG
7KHSHUIRUPDQFHFKDQJHLQIRUPDWLRQZDVGHYHORSHGLQRUGHUWRHVWDEOLVK
WHVWPHWKRGVWREHXVHGGXULQJDQGDIWHUWKHILUVWUHIXHOLQJRXWDJH
7HQSHUFHQWRIWKHWRWDOSRSXODWLRQRIVQXEEHUVLVDQDGHTXDWHVDPSOHIRU
IXQFWLRQDOWHVWV7KHLQLWLDOVDPSOHLVWREHSURSRUWLRQHGDPRQJWKH
JURXSVLQRUGHUWRREWDLQDUHSUHVHQWDWLYHVDPSOH$QREVHUYHGIDLOXUHRI
DVQXEEHULQWKHLQLWLDOORWZLOOUHTXLUHDQHQJLQHHULQJDQDO\VLVDQGWHVWLQJ
RIDGGLWLRQDOVQXEEHUVVHOHFWHGIURPVQXEEHUVOLNHO\WRKDYHWKHVDPH
GHIHFW$WKRURXJKLQVSHFWLRQRIWKHVQXEEHUWKUHDGHGDWWDFKPHQWVWRWKH
SLSHRUFRPSRQHQWVDQGWKHDQFKRUDJHZLOOEHPDGHLQFRQMXQFWLRQZLWK
DOOUHTXLUHGIXQFWLRQDOWHVWV
$OLVWRILQGLYLGXDOVQXEEHUVZLWKGHWDLOHGLQIRUPDWLRQRIVQXEEHUORFDWLRQ
DQGVL]HVKDOOEHDYDLODEOHDWWKHSODQWLQDFFRUGDQFHZLWK6HFWLRQ
F RI&)53DUW7KHDFFHVVLELOLW\RIHDFKVQXEEHUVKDOOEH
GHWHUPLQHGEDVHGXSRQWKHH[LVWLQJUDGLDWLRQOHYHOVDQGWKHH[SHFWHG
WLPHWRSHUIRUPDYLVXDOLQVSHFWLRQLQHDFKVQXEEHUORFDWLRQDVZHOODV
RWKHUIDFWRUVDVVRFLDWHGZLWKDFFHVVLELOLW\GXULQJSODQWRSHUDWLRQV HJ
WHPSHUDWXUHDWPRVSKHUHORFDWLRQHWF DQGWKHUHFRPPHQGDWLRQVRI
5HJXODWRU\*XLGHDQG7KHDGGLWLRQRUGHOHWLRQRIDQ\K\GUDXOLF
RUPHFKDQLFDOVQXEEHUVKDOOEHPDGHLQDFFRUGDQFHZLWK6HFWLRQ RI
&)53DUW
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
3/$176<67(06
6HDOHG6RXUFH&RQWDPLQDWLRQ
7(&+1,&$/5(48,5(0(17 75
75 (DFKVHDOHGVRXUFHFRQWDLQLQJUDGLRDFWLYHPDWHULDO!&LRIEHWDDQGRU
JDPPDHPLWWLQJPDWHULDORU!&LRIDOSKDHPLWWLQJPDWHULDOVKDOOEHIUHHRI
&LRIUHPRYDEOHFRQWDPLQDWLRQ
$33/,&$%,/,7< $WDOOWLPHV
&217,1*(1&<0($685(6
&21',7,21 &217,1*(1&<0($685(6 5(6725$7,217,0(
$ 2QHRUPRUHVHDOHG $ :LWKGUDZWKHVHDOHG ,PPHGLDWHO\
VRXUFHVZLWKUHPRYDEOH VRXUFHIURPXVH
FRQWDPLQDWLRQQRWZLWKLQ
OLPLWV $1'
$ ,QLWLDWHDFWLRQWR ,PPHGLDWHO\
GHFRQWDPLQDWHDQGUHSDLU
WKHVHDOHGVRXUFH
25
$ ,QLWLDWHDFWLRQWRGLVSRVHRI ,PPHGLDWHO\
WKHVHDOHGVRXUFHLQ
DFFRUGDQFHZLWK15&
5HJXODWLRQV
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
7(&+1,&$/5(48,5(0(1769(5,),&$7,21
127(6
7KH759VVKDOOEHSHUIRUPHGE\6HTXR\DKSHUVRQQHORURWKHUSHUVRQQHOVSHFLILFDOO\
DXWKRUL]HGE\WKH15&RU$JUHHPHQW6WDWH
7KHWHVWPHWKRGXVHGVKDOOKDYHDGHWHFWLRQVHQVLWLYLW\RI&LSHUWHVWVDPSOH
759 9(5,),&$7,21 )5(48(1&<
127(
6WDUWXSVRXUFHVDQGILVVLRQGHWHFWRUVSUHYLRXVO\
VXEMHFWHGWRFRUHIOX[DUHH[FOXGHG
3HUIRUPOHDNDJHDQGRUFRQWDPLQDWLRQWHVWLQJRQHDFK GD\V
VHDOHGVRXUFHLQXVHFRQWDLQLQJUDGLRDFWLYHPDWHULDOV
ZLWKDKDOIOLIH!GD\V H[FOXGLQJ+\GURJHQ DQGLQ
DQ\IRUPRWKHUWKDQJDV
3HUIRUPOHDNDJHDQGRUFRQWDPLQDWLRQWHVWLQJIRUHDFK 3ULRUWRSODFLQJLQXVH
VHDOHGVRXUFHDQGILVVLRQGHWHFWRUQRWLQXVH RUWUDQVIHUULQJWR
DQRWKHUOLFHQVHHLIQRW
SHUIRUPHGZLWKLQWKH
SUHYLRXVGD\V
3HUIRUPOHDNDJHDQGRUFRQWDPLQDWLRQWHVWLQJRQHDFK 3ULRUWRSODFLQJLQXVH
VHDOHGVRXUFHDQGILVVLRQGHWHFWRUQRWLQXVHWKDWZDV
UHFHLYHGZLWKRXWDFHUWLILFDWHLQGLFDWLQJWKHODVWWHVW
GDWH
3HUIRUPOHDNDJHDQGRUFRQWDPLQDWLRQWHVWLQJRQHDFK 2QFHZLWKLQGD\V
VHDOHGVWDUWXSVRXUFHDQGILVVLRQGHWHFWRU SULRUWREHLQJVXEMHFWHG
WRFRUHIOX[RULQVWDOOHG
LQWKHFRUH
$1'
)ROORZLQJUHSDLURU
PDLQWHQDQFHWRWKH
VHDOHGVRXUFH
6XEPLWUHSRUWWR15&IRUVHDOHGVRXUFHRUILVVLRQ $QQXDOO\
GHWHFWRUOHDNDJHWHVWVUHYHDOLQJWKHSUHVHQFHRI
P&LRIUHPRYDEOHFRQWDPLQDWLRQ
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
3/$176<67(06
6HDOHG6RXUFH&RQWDPLQDWLRQ
%$6(6
%$&.*5281' 7KHOLPLWDWLRQVRQUHPRYDEOHFRQWDPLQDWLRQIRUVRXUFHVUHTXLULQJOHDN
WHVWLQJLQFOXGLQJDOSKDHPLWWHUVDUHEDVHGRQ&)5 F OLPLWVIRU
SOXWRQLXP7KLVOLPLWDWLRQZLOOHQVXUHWKDWOHDNDJHIURPE\SURGXFW
VRXUFHDQGVSHFLDOQXFOHDUPDWHULDOVRXUFHVZLOOQRWH[FHHGDOORZDEOH
LQWDNHYDOXHV6HDOHGVRXUFHVDUHFODVVLILHGLQWRWKUHHJURXSVDFFRUGLQJ
WRWKHLUXVHZLWK7HFKQLFDO5HTXLUHPHQWV9HULILFDWLRQFRPPHQVXUDWHZLWK
WKHSUREDELOLW\RIGDPDJHWRDVRXUFHLQWKDWJURXS7KRVHVRXUFHVZKLFK
DUHIUHTXHQWO\KDQGOHGDUHUHTXLUHGWREHWHVWHGPRUHRIWHQWKDQWKRVH
ZKLFKDUHQRW6HDOHGVRXUFHVZKLFKDUHFRQWLQXRXVO\HQFORVHGZLWKLQD
VKLHOGHGPHFKDQLVP LHVHDOHGVRXUFHVZLWKLQUDGLDWLRQPRQLWRULQJRU
ERURQPHDVXULQJGHYLFHV DUHFRQVLGHUHGWREHVWRUHGDQGQHHGQRWEH
WHVWHGXQOHVVWKH\DUHUHPRYHGIURPWKHVKLHOGHGPHFKDQLVP
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
3/$176<67(06
+HDWLQJ9HQWLODWLQJDQG$LU&RQGLWLRQLQJ +9$& 0DLQWHQDQFH5XOH(TXLSPHQW
7(&+1,&$/5(48,5(0(17 75
75 7KH+9$&FRPSRQHQWVVKRZQLQ7DEOHVKDOOEH)81&7,21$/
$33/,&$%,/,7< $VVKRZQLQ7DEOH
&217,1*(1&<0($685(6
127(6
6HSDUDWHHQWU\LVDOORZHGIRUHDFK+9$&FRPSRQHQW
&21',7,21 &217,1*(1&<0($685(6 5(6725$7,217,0(
$ 2QHRUPRUH+9$& $ (QWHUWKHDVVRFLDWHG ,PPHGLDWHO\
FRPSRQHQW V LQ7DEOH 1RQIXQFWLRQDOFRPSRQHQWLQ
1RQIXQFWLRQDO WKH2SHUDWLRQQDUUDWLYHORJV
DQG/&2WUDFNLQJORJVIRU
0DLQWHQDQFH5XOH
8QDYDLODELOLW\WUDFNLQJ
7(&+1,&$/5(48,5(0(1769(5,),&$7,21
759 9(5,),&$7,21 )5(48(1&<
1RQH 1RQH 1RQH
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
6HSWHPEHU
7DEOH
+9$&0DLQWHQDQFH5XOH(TXLSPHQW
(48,30(17 &20321(176 $33/,&$%/(02'(6
$97UDQVIRUPHU $$$$$$DQG $//02'(6
5RRP9HQWLODWLRQ $$H[KDXVWIDQV
%97UDQVIRUPHU %%%%DQG%% $//02'(6
5RRP9HQWLODWLRQ H[KDXVWIDQV
$97UDQVIRUPHU $$$$DQG$$ $//02'(6
5RRP9HQWLODWLRQ H[KDXVWIDQV
%97UDQVIRUPHU %%%%%%DQG $//02'(6
5RRP9HQWLODWLRQ %%H[KDXVWIDQV
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
6HSWHPEHU
3/$176<67(06
+HDWLQJ9HQWLODWLQJDQG$LU&RQGLWLRQLQJ +9$& 0DLQWHQDQFH5XOH(TXLSPHQW
%$6(6
%$&.*5281' 7KH+9$&HTXLSPHQWOLVWHGLQ7DEOHLVUHTXLUHGWREHWUDFNHGIRU
XQDYDLODELOLW\E\6HTXR\DK¶VLPSOHPHQWDWLRQRI&)5
³5HTXLUHPHQWVIRU0RQLWRULQJWKH(IIHFWLYHQHVVRI0DLQWHQDQFHDW
1XFOHDU3RZHU3ODQWV'7KH0DLQWHQDQFH5XOHSURJUDPUHTXLUHVWKDWWKH
WLPHWKLVHTXLSPHQWLV1RQIXQFWLRQDOEHPRQLWRUHGZKHWKHUGXHWRDQ
XQSODQQHGIDLOXUHRUSODQQHGPDLQWHQDQFH7KHUHTXLUHG
)81&7,21$/,7<RIWKH+9$&HTXLSPHQWLVFRPPHQVXUDWHZLWKWKH
UHTXLUHG23(5$%,/,7<RIWKHHTXLSPHQWEHLQJFRROHG(QJLQHHULQJZLOO
WUHQGWKHXQDYDLODELOLW\RIWKHHTXLSPHQWDVUHTXLUHGEDVHGRQ³5LVN
6LJQLILFDQFH'RIWKHHTXLSPHQW7KHILQDO0DLQWHQDQFH5XOHXQDYDLODELOLW\
WLPHZLOOEHGHWHUPLQHGE\(QJLQHHULQJ7KHHTXLSPHQWOLVWHGLQ7DEOH
KDVQR7HFKQLFDO6SHFLILFDWLRQ/&2RURWKHUDVVRFLDWHG750
FRQWLQJHQF\PHDVXUHVIRU)81&7,21$/,7<7KHUHIRUHWKLV750ZDV
FUHDWHGWRSURYLGHLQGLFDWLRQIRUWKHXQDYDLODELOLW\RIWKLV+9$&
HTXLSPHQWDQGWRDVVLVWLQWKHWUDFNLQJDQGWUHQGLQJRIWKHWRWDO
XQDYDLODELOLW\WLPH
$33/,&$%/( 7KHGHVLJQEDVLVRIWKLV+9$&HTXLSPHQWLVWRPDLQWDLQWKHWHPSHUDWXUH
6$)(7< RIWKHDUHDWRZKLFKWKHDVVRFLDWHGHTXLSPHQWSURYLGHVFRROLQJEHORZ
$1$/<6(6 WKHGHVLJQEDVLVOLPLWVDVGHVFULEHGLQWKH(QYLURQPHQWDO'HVLJQ&ULWHULD
641'&9
7KLV750LVEHLQJLPSOHPHQWHGIRUWUDFNLQJSXUSRVHVRQO\DQGWKHUHLVQR
DVVRFLDWHG6DIHW\$QDO\VLVDIIHFWHGRULPSOHPHQWHGE\WKLVFKDQJH
7(&+1,&$/ 7KLV75LVEHLQJLPSOHPHQWHGWRWUDFNWKHXQDYDLODELOLW\WLPHRIWKH
5(48,5(0(17 DVVRFLDWHG+9$&HTXLSPHQW7KLVHTXLSPHQWLVFRQVLGHUHGWREH
)81&7,21$/ZKHQWKHLQGLYLGXDOFRPSRQHQWVQHFHVVDU\WRPDLQWDLQWKH
DVVRFLDWHGDUHDWHPSHUDWXUHEHORZWKHGHVLJQUHTXLUHGOLPLWVDUH
)81&7,21$/7KHVHFRPSRQHQWVLQFOXGHWKHIDQGDPSHUVDQG
DVVRFLDWHGDX[LOLDU\HTXLSPHQWDVDSSOLFDEOHWRWKHYDULRXVV\VWHPV
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
6HSWHPEHU
%$6(6
$33/,&$%,/,7< 9HQWLODWLRQWRWKH97UDQVIRUPHU5RRPVLVUHTXLUHGIRUDOO02'(6
GXHWRWKHFRPPRQDOLW\RIWKHHTXLSPHQWVHUYHGDQGUHTXLUHPHQWVIRU
DFFLGHQWPLWLJDWLRQ
&217,1*1(&< :LWKDQ\RIWKHHTXLSPHQWOLVWHGLQ7DEOH1RQIXQFWLRQDOWKH
0($685(6 FRUUHVSRQGLQJ75IRUWKDW8QLWDQG7UDLQRIHTXLSPHQWVKDOOEHHQWHUHG
LQWRWKH2SHUDWLRQQDUUDWLYHORJVDQG/&2WUDFNLQJORJVIRUWUDFNLQJWKH
XQDYDLODELOLW\WLPH
7(&+1,&$/ 7KLV75LVIRUWUDFNLQJSXUSRVHVRQO\7KHUHDUHQR7HFKQLFDO
5(48,5(0(176 5HTXLUHPHQWV9HULILFDWLRQDVVRFLDWHGZLWKWKLV75
9(5,),&$7,21
5()(5(1&(6 13*633³0DLQWHQDQFH5XOH3HUIRUPDQFH,QGLFDWRU
0RQLWRULQJ7UHQGLQJDQG5HSRUWLQJ&)5'
7,0DLQWHQDQFH5XOH3HUIRUPDQFH,QGLFDWRU0RQLWRULQJ7UHQGLQJ
DQG5HSRUWLQJ&)5'$WWDFKPHQW³+HDWLQJ9HQWLODWLRQ
DQG$LU&RQGLWLRQLQJ6\VWHP'
641'&9³6HTXR\DK1XFOHDU3ODQW(QYLURQPHQWDO'HVLJQ
&ULWHULD'
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
3/$176<67(06
([SORVLYH*DV0L[WXUHV
7(&+1,&$/5(48,5(0(17 75
75 7KHFRQFHQWUDWLRQRIR[\JHQLQWKHZDVWHJDVKROGXSV\VWHPVKDOOEHOLPLWHGWR
E\YROXPHZKHQHYHUWKHK\GURJHQFRQFHQWUDWLRQH[FHHGVE\YROXPH
$33/,&$%,/,7< $WDOOWLPHV
&217,1*(1&<0($685(6
&21',7,21 &217,1*(1&<0($685(6 5(6725$7,217,0(
$ 2[\JHQFRQFHQWUDWLRQLQ $ 5HGXFHR[\JHQ KRXUV
DZDVWHJDVKROGXSWDQN FRQFHQWUDWLRQWRZLWKLQ
LV!E\YROXPHDQG OLPLW
E\YROXPH
% 2[\JHQFRQFHQWUDWLRQLQ % 6XVSHQGDGGLWLRQVRI ,PPHGLDWHO\
DZDVWHJDVKROGXSWDQN ZDVWHJDVHVWRWKH
LV!E\YROXPHDQG DIIHFWHGZDVWHJDVKROGXS
K\GURJHQFRQFHQWUDWLRQ WDQN
!E\YROXPH
$1'
% 5HGXFHWKHR[\JHQ ,PPHGLDWHO\
FRQFHQWUDWLRQWRE\
YROXPH
& 5HTXLUHG&RQWLQJHQF\ & (YDOXDWHLQDFFRUGDQFH ,PPHGLDWHO\
0HDVXUHVDQG ZLWK75
DVVRFLDWHG5HVWRUDWLRQ
7LPHRI&RQGLWLRQ$RU%
QRWPHW
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
7(&+1,&$/5(48,5(0(1769(5,),&$7,21
759 9(5,),&$7,21 )5(48(1&<
9HULI\K\GURJHQDQGR[\JHQFRQFHQWUDWLRQVDUHZLWKLQ &RQWLQXRXVO\
OLPLWVZLWKWKHPRQLWRUVUHTXLUHG)81&7,21$/E\
75
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
3/$176<67(06
([SORVLYH*DV0L[WXUH
%$6(6
%$&.*5281' 7KLVUHTXLUHPHQWLVSURYLGHGWRHQVXUHWKDWWKHFRQFHQWUDWLRQRI
SRWHQWLDOO\H[SORVLYHJDVPL[WXUHVFRQWDLQHGLQWKHZDVWHJDVKROGXS
V\VWHPLVPDLQWDLQHGEHORZWKHIODPPDELOLW\OLPLWVRIK\GURJHQDQG
R[\JHQ0DLQWDLQLQJWKHFRQFHQWUDWLRQRIK\GURJHQDQGR[\JHQEHORZ
WKHLUIODPPDELOLW\OLPLWVSURYLGHVDVVXUDQFHWKDWWKHUHOHDVHVRI
UDGLRDFWLYHPDWHULDOVZLOOEHFRQWUROOHGLQFRQIRUPDQFHZLWKWKH
UHTXLUHPHQWVRI*HQHUDO'HVLJQ&ULWHULRQRI$SSHQGL[$WR&)5
3DUW
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
3/$176<67(06
/LTXLG+ROGXS7DQNV
7(&+1,&$/5(48,5(0(17 75
75 7KHTXDQWLW\RIUDGLRDFWLYHPDWHULDOFRQWDLQHGLQWKHIROORZLQJWDQNVVKDOOEH
OLPLWHGE\WKHIROORZLQJH[SUHVVLRQ
FRQFHQWUDWLRQRILVRWRSHL L
HIIOXHQWFRQFHQWUDWLRQ
OLPLWRILVRWRSHL
H[FOXGLQJWULWLXPDQGGLVVROYHGRUHQWUDLQHGQREOHJDVHV
D &RQGHQVDWH6WRUDJH7DQN
E 6WHDP*HQHUDWRU/D\XS7DQN
F 2XWVLGHWHPSRUDU\WDQNVIRUUDGLRDFWLYHOLTXLG
$33/,&$%,/,7< $WDOOWLPHV
&217,1*(1&<0($685(6
&21',7,21 &217,1*(1&<0($685(6 5(6725$7,217,0(
$ 7KHTXDQWLW\RI $ 6XVSHQGDGGLWLRQVRI ,PPHGLDWHO\
UDGLRDFWLYHPDWHULDO UDGLRDFWLYHPDWHULDOWRWKH
H[FHHGLQJWKHDERYH WDQN
OLPLW
$1'
$ 5HGXFHWDQNFRQWHQWVWR KRXUV
ZLWKLQOLPLWV
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
7(&+1,&$/5(48,5(0(1769(5,),&$7,21
759 9(5,),&$7,21 )5(48(1&<
9HULI\WKHTXDQWLW\RIUDGLRDFWLYHPDWHULDOFRQWDLQHGLQ (YHU\GD\VZKHQ
HDFKWDQNLVZLWKLQWKHOLPLWE\DQDO\]LQJD UDGLRDFWLYHPDWHULDOV
UHSUHVHQWDWLYHVDPSOHRIWKHWDQN¶VFRQWHQWV DUHEHLQJDGGHGWRWKH
WDQN
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
3/$176<67(06
/LTXLG+ROGXS7DQNV
%$6(6
%$&.*5281' 5HVWULFWLQJWKHTXDQWLW\RIUDGLRDFWLYHPDWHULDOFRQWDLQHGLQWKHVSHFLILHG
WDQNVSURYLGHVDVVXUDQFHWKDWLQWKHHYHQWRIDQXQFRQWUROOHGUHOHDVHRI
WKHWDQNV FRQWHQWVWKHUHVXOWLQJFRQFHQWUDWLRQVZRXOGEHOHVVWKDQWKH
OLPLWVRI&)53DUW$SSHQGL[%7DEOH&ROXPQ
DWWKHQHDUHVWSRWDEOHZDWHUVXSSO\DQGWKHQHDUHVWVXUIDFHZDWHUVXSSO\
LQDQXQUHVWULFWHGDUHD
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
3/$176<67(06
*DV'HFD\7DQNV
7(&+1,&$/5(48,5(0(17 75
75 7KHTXDQWLW\RIUDGLRDFWLYLW\FRQWDLQHGLQHDFKJDVGHFD\WDQNVKDOOEH
FXULHVQREOHJDVHV FRQVLGHUHGDV;H
$33/,&$%,/,7< $WDOOWLPHV
&217,1*(1&<0($685(6
&21',7,21 &217,1*(1&<0($685(6 5(6725$7,217,0(
$ 4XDQWLW\RIUDGLRDFWLYH $ 6XVSHQGDGGLWLRQVRI ,PPHGLDWHO\
PDWHULDOFRQWDLQHGLQ UDGLRDFWLYHPDWHULDOWRWKH
WDQNQRWZLWKLQOLPLWV WDQN
$1'
$ 5HGXFHWDQNFRQWHQWV KRXUV
ZLWKLQOLPLWV
% 5HTXLUHG&RQWLQJHQF\ % (YDOXDWHLQDFFRUGDQFH ,PPHGLDWHO\
0HDVXUHVDQG ZLWK75
DVVRFLDWHG5HVWRUDWLRQ
7LPHRI&RQGLWLRQ$QRW
PHW
7(&+1,&$/5(48,5(0(1769(5,),&$7,21
759 9(5,),&$7,21 )5(48(1&<
9HULI\WKHTXDQWLW\RIUDGLRDFWLYHPDWHULDOFRQWDLQHGLQ (YHU\KRXUVZKHQ
HDFKJDVGHFD\WDQNLVZLWKLQWKHOLPLW UDGLRDFWLYHPDWHULDOV
DUHEHLQJDGGHGWRWKH
WDQN
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
3/$176<67(06
*DV'HFD\7DQNV
%$6(6
%$&.*5281' 5HVWULFWLQJWKHTXDQWLW\RIUDGLRDFWLYLW\FRQWDLQHGLQHDFKJDVGHFD\WDQN
SURYLGHVDVVXUDQFHWKDWLQWKHHYHQWRIDQXQFRQWUROOHGUHOHDVHRIWKH
WDQN VFRQWHQWVWKHUHVXOWLQJWRWDOERG\H[SRVXUHWRDQLQGLYLGXDODWWKH
QHDUHVWH[FOXVLRQDUHDERXQGDU\ZLOOQRWH[FHHGUHP7KLVLV
FRQVLVWHQWZLWK6WDQGDUG5HYLHZ3ODQ:DVWH*DV6\VWHP
)DLOXUH
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
3/$176<67(06
9HQWLODWLRQ)LOWHU7HVWLQJ
7(&+1,&$/5(48,5(0(17 75
75 (QJLQHHUHG6DIHW\)HDWXUH (6) FKDUFRDODGVRUEHU V VKDOOEHZLWKLQOLPLWVSHU
7HFKQLFDO6SHFLILFDWLRQ
$33/,&$%,/,7< :KHQHYHUWKHFKDUFRDODGVRUEHU V LVUHTXLUHGWREH23(5$%/(
&217,1*(1&<0($685(6
&21',7,21 &217,1*(1&<0($685(6 5(6725$7,217,0(
$ 759 LVQRWPHW $ (YDOXDWHSHU7HFKQLFDO ,PPHGLDWHO\
6SHFLILFDWLRQ
7(&+1,&$/5(48,5(0(1769(5,),&$7,21
759 9(5,),&$7,21 )5(48(1&<
9HULI\E\ODERUDWRU\DQDO\VLVFDUERQVDPSOHLVZLWKLQ 2QFHZLWKLQGD\V
OLPLW DIWHUUHPRYDORIFDUERQ
VDPSOH
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
3/$176<67(06
9HQWLODWLRQ)LOWHU7HVWLQJ
%$6(6
%$&.*5281' 1RQH
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
(/(&75,&$/32:(56<67(06
&RQWDLQPHQW3HQHWUDWLRQ&RQGXFWRU2YHUFXUUHQW3URWHFWLYH'HYLFHV
7(&+1,&$/5(48,5(0(17 75
75 3ULPDU\DQGEDFNXSFRQWDLQPHQWSHQHWUDWLRQFRQGXFWRURYHUFXUUHQWSURWHFWLYH
GHYLFHVDVVRFLDWHGZLWKHDFKFRQWDLQPHQWHOHFWULFDOSHQHWUDWLRQFLUFXLWIRU
WKRVHFLUFXLWVWKDWH[FHHGWKHLUFUHGLEOHIDXOWFXUUHQWVGHVLJQUDWLQJVKDOOEH
)81&7,21$/
$33/,&$%,/,7< 02'(6DQG
&217,1*(1&<0($685(6
127(
6HSDUDWH&RQGLWLRQHQWU\LVDOORZHGIRUHDFKFRQWDLQPHQWSHQHWUDWLRQFRQGXFWRURYHUFXUUHQW
SURWHFWLYHGHYLFH
&21',7,21 &217,1*(1&<0($685(6 5(6725$7,217,0(
$ 2QHRUPRUHUHTXLUHG $ (YDOXDWHLQDFFRUGDQFH ,PPHGLDWHO\
FRQWDLQPHQWSHQHWUDWLRQ ZLWK75
FRQGXFWRURYHUFXUUHQW
SURWHFWLYHGHYLFHV $1'
1RQIXQFWLRQDO
$ ,VRODWHFLUFXLW V E\
GHHQHUJL]LQJWKHSULPDU\ KRXUV
RUEDFNXSLVRODWLRQGHYLFH
$1'
$ 9HULI\FLUFXLWLVGH 2QFHSHUGD\V
HQHUJL]HGE\EUHDNHU
RSHQHGRUIXVHVUHPRYHG
ZKHUHDSSOLFDEOH
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
7(&+1,&$/5(48,5(0(1769(5,),&$7,21
759 9(5,),&$7,21 )5(48(1&<
127(
)RUDWOHDVWRQH N9UHDFWRUFRRODQWSXPSFLUFXLW
VXFKWKDWDOOUHDFWRUFRRODQWSXPSFLUFXLWVDUH
GHPRQVWUDWHG)81&7,21$/DWOHDVWRQFHSHU
PRQWKV
3HUIRUP&+$11(/&$/,%5$7,21RQDWOHDVWRQH PRQWKV
UHDFWRUFRRODQWSXPSDVVRFLDWHGSURWHFWLYHUHOD\V
VSHFLILHGLQDSSURSULDWHSODQWLQVWUXFWLRQV
127(
)RUDWOHDVWRQH N9UHDFWRUFRRODQWSXPSFLUFXLW
VXFKWKDWDOOUHDFWRUFRRODQWSXPSFLUFXLWVDUH
GHPRQVWUDWHG)81&7,21$/DWOHDVWRQFHSHU
PRQWKV
)RUHDFKFLUFXLWEUHDNHUIRXQG1RQIXQFWLRQDOGXULQJWKH
WHVWDQDGGLWLRQDOUHSUHVHQWDWLYHVDPSOHRIDWOHDVWRI
WKHFLUFXLWEUHDNHUVRIWKH1RQIXQFWLRQDOW\SHVKDOODOVR
EHIXQFWLRQDOO\WHVWHGXQWLOQRPRUHIDLOXUHVDUHIRXQGRU
DOOFLUFXLWEUHDNHUVRIWKDWW\SHKDYHEHHQIXQFWLRQDOO\
WHVWHG
3HUIRUPLQWHJUDWHGV\VWHPIXQFWLRQDOWHVWRQDWOHDVW PRQWKV
RQHUHDFWRUFRRODQWSXPSZKLFKLQFOXGHVVLPXODWHG
DXWRPDWLFDFWXDWLRQRIWKHV\VWHPDQGYHULI\LQJWKDW
HDFKUHOD\DQGDVVRFLDWHGFLUFXLWEUHDNHUVDQGFRQWURO
FLUFXLWVIXQFWLRQDVGHVLJQHG
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
$SULO
759 9(5,),&$7,21 )5(48(1&<
127(
7HVWLQJVKDOOFRQVLVWRILQMHFWLQJDFXUUHQWLQSXWDWWKH
VSHFLILHGVHWSRLQWWRHDFKVHOHFWHGFLUFXLWEUHDNHUDQG
YHULI\LQJWKDWHDFKFLUFXLWEUHDNHUIXQFWLRQVDV
GHVLJQHG
&LUFXLWEUHDNHUVIRXQG1RQIXQFWLRQDOGXULQJIXQFWLRQDO
WHVWLQJVKDOOEHUHVWRUHGWR)81&7,21$/VWDWXVSULRU
WRUHVXPLQJRSHUDWLRQ
3HUIRUPIXQFWLRQDOWHVWRIHDFKORZYROWDJHFLUFXLW ,QDFFRUGDQFHZLWK
EUHDNHULQDFFRUGDQFHZLWKSURFHGXUHVSUHSDUHGLQ 7,6%5
FRQMXQFWLRQZLWKPDQXIDFWXUHU¶VUHFRPPHQGDWLRQV
'HOHWHG
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
$SULO
759 9(5,),&$7,21 )5(48(1&<
3HUIRUPDQLQVSHFWLRQDQGSUHYHQWLYHPDLQWHQDQFHRQ ,QDFFRUGDQFHZLWK
HDFKQRQPROGHGFDVHFLUFXLWEUHDNHULQDFFRUGDQFH 7,6%5
ZLWKSURFHGXUHVSUHSDUHGLQFRQMXQFWLRQZLWK
PDQXIDFWXUHU VUHFRPPHQGDWLRQV
3HUIRUPDQLQVSHFWLRQDQGSUHYHQWLYHPDLQWHQDQFHRQ ,QDFFRUGDQFHZLWK
HDFKPROGHGFDVHFLUFXLWEUHDNHULQDFFRUGDQFHZLWK 7,6%5
SURFHGXUHVSUHSDUHGLQFRQMXQFWLRQZLWKPDQXIDFWXUHU V
UHFRPPHQGDWLRQV
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
$SULO
(/(&75,&$/32:(56<67(06
&RQWDLQPHQW3HQHWUDWLRQ&RQGXFWRU2YHUFXUUHQW3URWHFWLYH'HYLFHV
%$6(6
%$&.*5281' &RQWDLQPHQWHOHFWULFDOSHQHWUDWLRQVDQGSHQHWUDWLRQFRQGXFWRUVDUH
SURWHFWHGE\HLWKHUGHHQHUJL]LQJFLUFXLWVQRWUHTXLUHGGXULQJUHDFWRU
RSHUDWLRQRUE\GHPRQVWUDWLQJWKH)81&7,21$/,7<RISULPDU\DQG
EDFNXSRYHUFXUUHQWSURWHFWLRQFLUFXLWEUHDNHUVGXULQJSHULRGLF
SHUIRUPDQFHRI7HFKQLFDO5HTXLUHPHQWV9HULILFDWLRQ 759
7KH759VDSSOLFDEOHWRORZHUYROWDJHFLUFXLWEUHDNHUVDQGIXVHVSURYLGH
DVVXUDQFHRIEUHDNHUDQGIXVHUHOLDELOLW\E\WHVWLQJFLUFXLWEUHDNHUVDQG
LQVSHFWLQJIXVHV(DFKPROGHGFDVHDQGQRQPROGHGFDVHFLUFXLWEUHDNHU
ZLOOEHWHVWHGDWDIUHTXHQF\HVWDEOLVKHGE\FRQVLGHULQJDSSOLFDEOH
PDLQWHQDQFHKLVWRU\DVZHOODVPDQXIDFWXUHUDQGLQGXVWU\JXLGHOLQHV
,QVSHFWLRQRIIXVHVDQGWKHLUKROGHUVZLOOEHSHUIRUPHGLQDFFRUGDQFHZLWK
79$¶VIXVHFRQWUROSURFHGXUHHDFKWLPHIXVHVDUHPDQLSXODWHGWRHQVXUH
WKDWWKHSURSHUVL]HIXVHLVLQVWDOOHG WKDWWKHIXVHVKRZVQRVLJQRI
GHWHULRUDWLRQV WKDWWKHIXVHFRQQHFWLRQVDUHWLJKWDQGFOHDQ 6HH,(((
6WG 5HFRPPHQGHG3UDFWLFHIRU3URWHFWLRQDQGFRRUGLQDWLRQRI
,QGXVWULDODQG&RPPHUFLDO3RZHU6\VWHPV 6KRXOGDSUREOHPEH
LGHQWLILHGGXULQJLQVSHFWLRQRUVKRXOGDSUREOHPDULVHZLWKDVSHFLILF
EUDQGRUPRGHORIIXVHQHFHVVDU\FRUUHFWLYHDFWLRQVVKRXOGEHLQLWLDWHG
WKURXJKWKHSODQW¶V&RUUHFWLYH$FWLRQ3URJUDP
7(&+1,&$/ 7KH3ULPDU\DQGEDFNXSFRQWDLQPHQWSHQHWUDWLRQFRQGXFWRURYHUFXUUHQW
5(48,5(0(17 SURWHFWLYHGHYLFHVH[FOXGHVWKRVHFLUFXLWVIRUZKLFKFUHGLEOHIDXOWFXUUHQW
ZRXOGQRWH[FHHGWKHHOHFWULFDOSHQHWUDWLRQGHVLJQUDWLQJ
SEQUOYAH UNITS 1 AND 2 TRM 8.8.2 TECHNICAL REQUIREMENTS MANUAL Revision 64 March 22, 2021 8.8 ELECTRICAL POWER SYSTEMS 8.8.2 Motor Operated Valves Thermal Overload Protection TECHNICAL REQUIREMENT (TR)
TR 8.8.2 The thermal overload protection devices, integral with the motor starter, of each valve used in safety systems shall be FUNCTIONAL.
APPLICABILITY: Whenever the motor operated valve is required to be OPERABLE.
CONTINGENCY MEASURES
NOTE--------------------------------------------------------------------
Separate Condition entry is allowed for each thermal overload protection device.
CONDITION CONTINGENCY MEASURES RESTORATION TIME A. One or more required A.1 Document the condition(s) Immediately thermal overload in the Corrective Action protection device(s) Program.
Nonfunctional.
AND A.2 Evaluate affected motor Immediately operated valve(s) for OPERABILITY.
TECHNICAL REQUIREMENTS VERIFICATION TRV VERIFICATION FREQUENCY 8.8.2.1 Perform CHANNEL CALIBRATION of a representative 18 months sample of at least 25% of all thermal overload devices which are not bypassed, such that each non-bypassed device is calibrated at least once per 6 years.
8.8.2.2 Perform CHANNEL FUNCTIONAL TEST of the bypass 18 months circuitry for those thermal overload devices which are normally in force during plant operation and bypassed under accident conditions.
8.8.2-1
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
(/(&75,&$/32:(56<67(06
0RWRU2SHUDWHG9DOYHV7KHUPDO2YHUORDG3URWHFWLRQ
%$6(6
%$&.*5281' 7KH)81&7,21$/,7<RIWKHPRWRURSHUDWHGYDOYHVWKHUPDORYHUORDG
SURWHFWLRQGHYLFHVHQVXUHVWKDWWKHWKHUPDORYHUORDGSURWHFWLRQGHYLFHV
ZLOOQRWSUHYHQWVDIHW\UHODWHGYDOYHVIURPSHUIRUPLQJWKHLUIXQFWLRQ7KH
7HFKQLFDO5HTXLUHPHQWV9HULILFDWLRQIRUGHPRQVWUDWLQJWKH
)81&7,21$/,7<RIWKHVHGHYLFHVDUHLQDFFRUGDQFHZLWK5HJXODWRU\
- XLGH7KHUPDO2YHUORDG3URWHFWLRQIRU(OHFWULFDO0RWRUVRQ0RWRU
2SHUDWHG9DOYHV5HYLVLRQ0DUFK
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
(/(&75,&$/32:(56<67(06
,VRODWLRQ'HYLFHV
7(&+1,&$/5(48,5(0(17 75
75 $OOFLUFXLWEUHDNHUVDFWXDWHGE\IDXOWFXUUHQWVWKDWDUHXVHGDVLVRODWLRQGHYLFHV
SURWHFWLQJ,(EXVVHVIURPQRQTXDOLILHGORDGVVKDOOEH)81&7,21$/
$33/,&$%,/,7< 02'(DQG
&217,1*(1&<0($685(6
127(
6HSDUDWH&RQGLWLRQHQWU\LVDOORZHGIRUHDFKFLUFXLWEUHDNHU
&21',7,21 &217,1*(1&<0($685(6 5(6725$7,217,0(
$ 2QHRUPRUHUHTXLUHG $ 127(
FLUFXLWEUHDNHU V 0ROGHGFDVHGEUHDNHUVGR
1RQIXQFWLRQDO QRWKDYHDUDFNRXWIXQFWLRQ
7ULSDQGUDFNRXW KRXUV
1RQIXQFWLRQDOFLUFXLW
EUHDNHU V
$1'
$ 9HULI\1RQIXQFWLRQDOFLUFXLW 2QFHSHUGD\V
EUHDNHU V LVWULSSHG
% 5HTXLUHG&RQWLQJHQF\ % (YDOXDWHLQDFFRUGDQFHZLWK ,PPHGLDWHO\
0HDVXUHVDQG 75
DVVRFLDWHG5HVWRUDWLRQ
7LPHRI&RQGLWLRQ$QRW
PHW
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
$SULO
7(&+1,&$/5(48,5(0(1769(5,),&$7,21
759 9(5,),&$7,21 )5(48(1&<
127(6
)XQFWLRQDOWHVWLQJVKDOOFRQVLVWVRILQMHFWLQJD
FXUUHQWLQSXWDWWKHVSHFLILHGVHWSRLQWWRHDFK
VHOHFWHGFLUFXLWEUHDNHURUUHOD\DQGYHULI\LQJLW
IXQFWLRQVDVGHVLJQHG
3HUIRUPIXQFWLRQDOWHVWRIHDFKORZYROWDJHFLUFXLW
EUHDNHULQDFFRUGDQFHZLWKSURFHGXUHVSUHSDUHGLQ ,QDFFRUGDQFHZLWK
FRQMXQFWLRQZLWKPDQXIDFWXUHU¶VUHFRPPHQGDWLRQV 7,6%5
3HUIRUPLQVSHFWLRQDQGSUHYHQWLYHPDLQWHQDQFHRQ ,QDFFRUGDQFHZLWK
HDFKQRQPROGHGFDVHFLUFXLWEUHDNHULQDFFRUGDQFH 7,6%5
ZLWKSURFHGXUHVSUHSDUHGLQFRQMXQFWLRQZLWK
PDQXIDFWXUHU VUHFRPPHQGDWLRQV
3HUIRUPLQVSHFWLRQDQGSUHYHQWLYHPDLQWHQDQFHRQ ,QDFFRUGDQFHZLWK
HDFKPROGHGFDVHFLUFXLWEUHDNHULQDFFRUGDQFHZLWK 7,6%5
SURFHGXUHVSUHSDUHGLQFRQMXQFWLRQZLWKPDQXIDFWXUHU V
UHFRPPHQGDWLRQV
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
$SULO
(/(&75,&$/32:(56<67(06
,VRODWLRQ'HYLFHV
%$6(6
%$&.*5281' &LUFXLWEUHDNHUVDFWXDWHGE\IDXOWHGFXUUHQWVDUHXVHGDVLVRODWLRQ
GHYLFHVLQWKLVSODQW7KH)81&7,21$/,7<RIWKHVHFLUFXLWEUHDNHUV
HQVXUHVWKDWWKH,(EXVVHVZLOOEHSURWHFWHGLQWKHHYHQWRIIDXOWVLQ
QRQTXDOLILHGORDGVSRZHUHGE\WKHEXVVHV
7KHWHVWLQJUHTXLUHPHQWVDSSOLFDEOHWRORZHUYROWDJHFLUFXLWEUHDNHUV
SURYLGHVDVVXUDQFHRIEUHDNHUUHOLDELOLW\E\WHVWLQJFLUFXLWEUHDNHUV(DFK
PROGHGFDVHDQGQRQPROGHGFDVHFLUFXLWEUHDNHUZLOOEHWHVWHGDWD
IUHTXHQF\HVWDEOLVKHGE\FRQVLGHULQJDSSOLFDEOHPDLQWHQDQFHKLVWRU\DV
ZHOODVPDQXIDFWXUHUDQGLQGXVWU\JXLGHOLQHV
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
(/(&75,&$/32:(56<67(06
(PHUJHQF\'LHVHO*HQHUDWRU ('* )XHO2LO6WRUDJH7DQNV
7(&+1,&$/5(48,5(0(17 75
75 7KH(PHUJHQF\'LHVHO*HQHUDWRU)XHO2LO6WRUDJH7DQNVVKDOOEH
)81&7,21$/
$33/,&$%,/,7< :KHQDVVRFLDWHG('*LVUHTXLUHGWREH23(5$%/(
&217,1*(1&<0($685(6
&21',7,21 &217,1*(1&<0($685(6 5(6725$7,217,0(
$ 759QRWPHW $ (YDOXDWHLQDFFRUGDQFH ,PPHGLDWHO\
ZLWK75
$1'
$ (YDOXDWH('* V IRU ,PPHGLDWHO\
23(5$%,/,7<
UHTXLUHPHQWVRI7HFKQLFDO
6SHFLILFDWLRQ
7(&+1,&$/5(48,5(0(1769(5,),&$7,21
759 9(5,),&$7,21 )5(48(1&<
)RUHDFKHPHUJHQF\GLHVHOJHQHUDWRUIXHORLOVWRUDJH \HDUV
WDQNSHUIRUPWKHIROORZLQJ
D 'UDLQIXHORLO
E 5HPRYHDFFXPXODWHGVHGLPHQWDQG
F &OHDQWKHWDQN
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
-DQXDU\
(/(&75,&$/32:(56<67(06
(PHUJHQF\'LHVHO*HQHUDWRU)XHO2LO6WRUDJH7DQNV
%$6(6
%$&.*5281' $GHVFULSWLRQRIWKHGLHVHOJHQHUDWRUIXHORLOGD\VWRUDJHWDQNLV
SURYLGHGLQWKH%DVHVIRU7HFKQLFDO6SHFLILFDWLRQ 76 /&2³'LHVHO
)XHO2LO/XEH2LODQG6WDUWLQJ$LU'
$33/,&$%/( 7KH$SSOLFDEOH6DIHW\$QDO\VHVVHFWLRQIRUWKH%DVHVRI76/&2
6$)(7< DOVRDSSOLHVWRWKLV75
$1$/<6(6
7(&+1,&$/ 75VSHFLILHVSUHYHQWLYHPDLQWHQDQFHWRHQVXUHSURSHUTXDOLW\RI
5(48,5(0(17 WKHIXHORLO
$33/,&$%,/,7< 75LVFRQVLVWHQWZLWK76/&2
&217,1*(1&< $
0($685(6
7KLV&RQWLQJHQF\0HDVXUHLVHQWHUHGWRHYDOXDWHDIDLOXUHWRSHUIRUPWDQN
FOHDQLQJ
$
)DLOXUHWRSHUIRUPWDQNFOHDQLQJFRXOGFKDOOHQJHWKHDVVXUDQFHRI
DGHTXDWHIXHORLOTXDOLW\IRUSURSHURSHUDWLRQRIWKHGLHVHOJHQHUDWRUV
7(&+1,&$/ 759
5(48,5(0(176
9(5,),&$7,21 'UDLQLQJRIWKHIXHORLOVWRUHGLQWKHVXSSO\WDQNV LH'D\7DQNV
UHPRYDORIDFFXPXODWHGVHGLPHQWDQGWDQNFOHDQLQJDUHUHTXLUHGDW
\HDULQWHUYDOVE\5HJXODWRU\*XLGH 5HIHUHQFH SDUDJUDSK
I7KLV759LVIRUSUHYHQWLYHPDLQWHQDQFH7KHSUHVHQFHRIVHGLPHQW
GRHVQRWQHFHVVDULO\UHSUHVHQWDIDLOXUHRIWKLV759SURYLGHGWKDW
DFFXPXODWHGVHGLPHQWLVUHPRYHGGXULQJWKHSHUIRUPDQFHRIWKH
YHULILFDWLRQ
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
-DQXDU\
%$6(6
5()(5(1&(6 8)6$56HFWLRQ
5HJXODWRU\*XLGH)XHO2LO6\VWHPVIRU6WDQGE\'LHVHO
- HQHUDWRUV5HYLVLRQ2FWREHU
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
5()8(/,1*23(5$7,216
&RPPXQLFDWLRQV
7(&+1,&$/5(48,5(0(17 75
75 'LUHFWFRPPXQLFDWLRQVVKDOOEHPDLQWDLQHGEHWZHHQWKHFRQWUROURRPDQG
SHUVRQQHODWWKHUHIXHOLQJVWDWLRQ
$33/,&$%,/,7< 'XULQJ&25($/7(5$7,216
&217,1*(1&<0($685(6
&21',7,21 &217,1*(1&<0($685(6 5(6725$7,217,0(
$ 'LUHFWFRPPXQLFDWLRQV $ 6XVSHQG&25( ,PPHGLDWHO\
EHWZHHQWKHFRQWURO $/7(5$7,216
URRPDQGSHUVRQQHODW
WKHUHIXHOLQJVWDWLRQ
QRWPDLQWDLQHG
7(&+1,&$/5(48,5(0(1769(5,),&$7,21
759 9(5,),&$7,21 )5(48(1&<
9HULI\GLUHFWFRPPXQLFDWLRQVEHWZHHQWKHFRQWUROURRP :LWKLQKRXUSULRUWR
DQGSHUVRQQHODWWKHUHIXHOLQJVWDWLRQ WKHVWDUWRI&25(
$/7(5$7,216
$1'
2QFHSHUKRXUV
WKHUHDIWHU
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
5()8(/,1*23(5$7,216
&RPPXQLFDWLRQV
%$6(6
%$&.*5281' 7KHUHTXLUHPHQWVIRUFRPPXQLFDWLRQVFDSDELOLW\HQVXUHVWKDWUHIXHOLQJ
VWDWLRQSHUVRQQHOFDQEHSURPSWO\LQIRUPHGRIVLJQLILFDQWFKDQJHVLQWKH
IDFLOLW\VWDWXVRUFRUHUHDFWLYLW\FRQGLWLRQVGXULQJ&25($/7(5$7,216
SEQUOYAH UNITS 1 AND 2 TRM 8.9.2 TECHNICAL REQUIREMENTS MANUAL Revision 63 January 19, 2021 8.9 REFUELING OPERATIONS 8.9.2 Manipulator Crane TECHNICAL REQUIREMENT (TR)
TR 8.9.2 The manipulator crane and auxiliary hoist shall be used for movement of drive rods or fuel assemblies and shall be FUNCTIONAL with:
- a. The manipulator crane used for movement of fuel assemblies having:
- 1. A capacity of 2750 pounds; and
- 2. An overload cut off limit of 2700 pounds.
- b. The auxiliary hoist used for latching and unlatching drive rods having:
- 1. A capacity of 760 pounds; and
- 2. A load indicator which shall be used to prevent lifting loads
> 750 pounds.
APPLICABILITY: During movement of drive rods or fuel assemblies within the reactor pressure vessel.
NOTE--------------------------------------------------------------------
Separate Condition entry is allowed for each unit.
CONTINGENCY MEASURES CONDITION CONTINGENCY MEASURES RESTORATION TIME A. One manipulator crane A.1 Suspend use of Immediately and/or auxiliary hoist NONFUNCTIONAL crane Nonfunctional. and/or hoist from operations involving the movement of drive rods and fuel assemblies within the reactor pressure vessel.
8.9.2-1
SEQUOYAH UNITS 1 AND 2 TRM 8.9.2 TECHNICAL REQUIREMENTS MANUAL Revision 63 January 19, 2021 TECHNICAL REQUIREMENTS VERIFICATION TRV VERIFICATION FREQUENCY 8.9.2.1 For each manipulator crane used for movement of fuel Once within 100 hours0.00116 days <br />0.0278 hours <br />1.653439e-4 weeks <br />3.805e-5 months <br /> assemblies within the reactor pressure vessel, perform prior to start of a load test of 2750 pounds and verify an automatic movement of fuel overload cutoff when the crane load exceeds 2700 assemblies within the pounds. reactor pressure vessel 8.9.2.2 For each auxiliary hoist and associated load indicator Once within 100 hours0.00116 days <br />0.0278 hours <br />1.653439e-4 weeks <br />3.805e-5 months <br /> used for movement of drive rods within the reactor prior to start of pressure vessel, perform a hoist load test of 760 movement of drive rods pounds. within the reactor pressure vessel 8.9.2-2
6(482<$+81,76$1' 750
7(&+1,&$/5(48,5(0(1760$18$/ 5HYLVLRQ
2FWREHU
5()8(/,1*23(5$7,216
0DQLSXODWRU&UDQH
%$6(6
%$&.*5281' 7KH)81&7,21$/,7<UHTXLUHPHQWVIRUWKHPDQLSXODWRUFUDQHVHQVXUH
WKDW PDQLSXODWRUFUDQHVZLOOEHXVHGIRUPRYHPHQWRIGULYHURGVDQG
IXHODVVHPEOLHV HDFKFUDQHKDVVXIILFLHQWORDGFDSDFLW\WROLIWDGULYH
URGRUIXHODVVHPEO\DQG WKHFRUHLQWHUQDOVDQGSUHVVXUHYHVVHODUH
SURWHFWHGIURPH[FHVVLYHOLIWLQJIRUFHLQWKHHYHQWWKH\DUHLQDGYHUWHQWO\
HQJDJHGGXULQJOLIWLQJRSHUDWLRQV