L-2023-159, Part 3 Exemption Request Regarding Enhanced Weapons, Firearms Background Checks and Security Event Notifications Final Rule

From kanterella
(Redirected from ML23320A265)
Jump to navigation Jump to search

Part 3 Exemption Request Regarding Enhanced Weapons, Firearms Background Checks and Security Event Notifications Final Rule
ML23320A265
Person / Time
Site: Point Beach  
(DPR-024, DPR-027)
Issue date: 11/16/2023
From: Strand D
Point Beach
To:
Office of Nuclear Reactor Regulation, Document Control Desk
References
L-2023-159
Download: ML23320A265 (1)


Text

1RYHPEHU

/

&)5





)ORULGD3RZHU /LJKW&RPSDQ\



(QGHDYRU'U-XSLWHU)/

861XFOHDU5HJXODWRU\&RPPLVVLRQ

$WWQ'RFXPHQW&RQWURO'HVN

DVKLQJWRQ'&





5H

3RLQW%HDFK1XFOHDU3ODQW8QLWVDQG

'RFNHW1RVDQG

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



3DUW([HPSWLRQ5HTXHVW5HJDUGLQJ(QKDQFHG:HDSRQV)LUHDUPV%DFNJURXQG&KHFNVDQG

6HFXULW\(YHQW1RWLILFDWLRQV)LQDO5XOH



3XUVXDQWWR&)51H[W(UD(QHUJ\3RLQW%HDFK//& 1H[W(UD KHUHE\UHTXHVWVDQH[HPSWLRQIURP

WKH(QKDQFHG:HDSRQV)LUHDUPV%DFNJURXQG&KHFNVDQG6HFXULW\(YHQW1RWLILFDWLRQVILQDOUXOHIRU3RLQW

%HDFK1XFOHDU3ODQW8QLWVDQG 3RLQW%HDFK ,QDFFRUGDQFHZLWK)HGHUDO5HJLVWHUQRWLFH)5

FRPSOLDQFHZLWKWKHILQDOUXOHUHTXLUHPHQWVPXVWEHDFKLHYHGE\-DQXDU\7KHSURSRVHGH[HPSWLRQ

ZRXOG UHOLHYH ILQDO UXOH FRPSOLDQFH DW 3RLQW %HDFK XQWLO 'HFHPEHU   RU  GD\V IROORZLQJ

SXEOLFDWLRQRIWKH5HJXODWRU\*XLGHV 5*V GHVFULEHGLQ)5ZKLFKHYHULVODWHU



2Q 0DUFK   WKH 1XFOHDU 5HJXODWRU\ &RPPLVVLRQ 15&  QRWLFHG LQ WKH )HGHUDO 5HJLVWHU WKH

(QKDQFHG :HDSRQV )LUHDUPV %DFNJURXQG &KHFNV DQG 6HFXULW\ (YHQW 1RWLILFDWLRQV ILQDO UXOH KHUHWR

NQRZQDVWKH³ILQDOUXOH' ZLWKDQ$SULOHIIHFWLYHGDWHDQGD-DQXDU\FRPSOLDQFHGDWH,Q

UHVSRQVH1H[W(UDSHUIRUPHGDSUHOLPLQDU\JDSDQDO\VLVRIWKHQHZYHUVXVFXUUHQWUHTXLUHPHQWVDSSOLFDEOH

UHJXODWRU\JXLGDQFHDQG3RLQW%HDFKVHFXULW\SROLFLHVDQGSURFHGXUHVLQFOXGLQJVHFXULW\DQGRSHUDWLRQV

SHUVRQQHOWUDLQLQJ%DVHGRQLWVUHYLHZ1H[W(UDGHWHUPLQHGWKDWDWHPSRUDU\H[HPSWLRQIURPWKHILQDOUXOH

ZLOO EH QHFHVVDU\ WR SURYLGH VXIILFLHQW WLPH WR DFKLHYH IXOO FRPSOLDQFH DW 3RLQW %HDFK  7KH SURSRVHG

FRPSOLDQFHGDWHRI'HFHPEHURUGD\VIROORZLQJSXEOLFDWLRQRIWKH5*VGHVFULEHGLQ)5

ZKLFKHYHULVODWHULVEDVHGRQWKH15&¶VSURMHFWHGWLPHOLQHIRULVVXLQJUHYLVHGUHJXODWRU\JXLGDQFH

DQGWKHWLPHWRFRPSOHWHWKHUHTXLVLWHFKDQJHPDQDJHPHQWSURFHVVHV'XULQJWKHSHULRGRIH[HPSWLRQ

1H[W(UDZLOOFRQWLQXHWRLPSOHPHQWWKH3RLQW%HDFKVHFXULW\SODQFRQVLVWHQWZLWK5*5HYLVLRQ

$'$06$FFHVVLRQ1R0/ DQG*HQHULF/HWWHU $'$06$FFHVVLRQ1R0/ 



7KHHQFORVXUHWRWKLVOHWWHUSURYLGHVDQHYDOXDWLRQRIWKHSURSRVHGH[HPSWLRQ7KHHYDOXDWLRQGHPRQVWUDWHV

WKDWWKHSURSRVHGH[HPSWLRQZLOOQRWSUHVHQWDQXQGXHULVNWRSXEOLFKHDOWKDQGVDIHW\LVQRWLQLPLFDOWRWKH

FRPPRQGHIHQVHDQGVHFXULW\DQGLVLQWKHSXEOLFLQWHUHVWDQGLVWKHUHE\SHUPLVVLEOHXQGHU&)5



1H[W(UD UHTXHVWV DSSURYDO RI WKH UHTXHVWHG H[HPSWLRQ E\ 1RYHPEHU   WR DVVXUH FRQWLQXHG

UHJXODWRU\FRPSOLDQFHDQGXQLIRUPLW\LQ3RLQW%HDFKVHFXULW\SURJUDPSURFHGXUHVDQGSUDFWLFHV



7KLVOHWWHUFRQWDLQVQRQHZRUUHYLVHGUHJXODWRU\FRPPLWPHQWV



6KRXOG \RX KDYH DQ\ TXHVWLRQV UHJDUGLQJ WKLV VXEPLVVLRQ SOHDVH FRQWDFW 0U.HQQHWK 0DFN )OHHW

/LFHQVLQJ0DQDJHUDW











/





3DJHRI





,GHFODUHXQGHUSHQDOW\RISHUMXU\WKDWWKHIRUHJRLQJLVWUXHDQGFRUUHFW



([HFXWHGRQWKHWKGD\RI1RYHPEHU



6LQFHUHO\







BBBBBBBBBBBBBBBBB

'LDQQH6WUDQG

  • HQHUDO0DQDJHU5HJXODWRU\$IIDLUV





(QFORVXUH

5HTXHVWIRU([HPSWLRQIURP)LQDO5XOH&RPSOLDQFH'DWH



FF

8615&5HJLRQDO$GPLQLVWUDWRU5HJLRQ,,,

3URMHFW0DQDJHU8615&3RLQW%HDFK1XFOHDU3ODQW

5HVLGHQW,QVSHFWRU8615&3RLQW%HDFK1XFOHDU3ODQW

3XEOLF6HUYLFH&RPPLVVLRQRI:LVFRQVLQ

, for James Michael Davis Digitally signed by James Michael Davis DN: cn=James Michael Davis, o=Licensing, ou=NextEra Duane Arnold, email=j.michael.davis@nee.com, c=US Date: 2023.11.16 12:27:12 -06'00'

3RLQW%HDFK1XFOHDU3ODQW



/

'RFNHW1RVDQG



(QFORVXUH

3DJHRI

3DUW([HPSWLRQ5HTXHVW5HJDUGLQJ(QKDQFHG:HDSRQV

)LUHDUPV%DFNJURXQG&KHFNVDQG6HFXULW\(YHQW1RWLILFDWLRQV)LQDO5XOH



 %$&.*5281'



2Q0DUFKWKH1XFOHDU5HJXODWRU\&RPPLVVLRQ 15& LVVXHGD)LQDO5XOHHQWLWOHG³(QKDQFHG

HDSRQV)LUHDUPV%DFNJURXQG&KHFNVDQG6HFXULW\(YHQW1RWLILFDWLRQV' KHUHWRNQRZQDVWKH³ILQDO

UXOH' $VVSHFLILHGLQWKH)HGHUDO5HJLVWHU>)5@WKHILQDOUXOHKDVDQHIIHFWLYHGDWHRI$SULO

DQGDFRPSOLDQFHGDWHRI-DQXDU\7KHILQDOUXOHFRQWDLQVQHZHOHPHQWVVXFKDV



x

1HZWHUPLQRORJ\DQGDVVRFLDWHGUHTXLUHPHQWVFRYHULQJ³FRQGLWLRQVDGYHUVHWRVHFXULW\'

x

1HZGHILQLWLRQVRIWKHWHUP³FRQWUDEDQG'DQG³WLPHRIGLVFRYHU\'LQ&)5

x

1HZSRLQWRIFRQWDFWUHTXLUHPHQWVZLWKWKH)HGHUDO$YLDWLRQ$GPLQLVWUDWLRQ )$$ 

x

&KDQJHVUHSRUWLQJUHTXLUHPHQWVDSSOLFDEOHWRVHFXULW\HYHQWVIURP

R

KRXUQRWLILFDWLRQVDQGKRXUUHFRUGLQJRIVHFXULW\HYHQWV

7REHFRPH

R

KRXUKRXUKRXUQRWLILFDWLRQVDQGKRXUUHFRUGLQJRIVHFXULW\HYHQWV

R

&RGLILHVWKHDFFHOHUDWHGFDOOWRWKH15&IURP15&%XOOHWLQ



&RQFXUUHQWZLWKWKHSXEOLFDWLRQRIWKHILQDOUXOHWKH15&LVVXHGWKHIROORZLQJ5HJXODWRU\*XLGHV 5* 

WRVXSSRUWWKHLPSOHPHQWDWLRQUHTXLUHPHQWVVHWIRUWKLQWKHILQDOUXOH



x

5*  ³3K\VLFDO 6HFXULW\ (YHQW 1RWLILFDWLRQV 5HSRUWV DQG 5HFRUGV' 5HYLVLRQ  $'$06

$FFHVVLRQ1RV0/$0/$ 

x

5*  ³(QKDQFHG :HDSRQV $XWKRULW\ 3UHHPSWLRQ $XWKRULW\ DQG )LUHDUPV %DFNJURXQG

&KHFNV'5HYLVLRQ $'$06$FFHVVLRQ1R0/$ 

x

5*³6XVSLFLRXV$FWLYLW\5HSRUWV'5HYLVLRQ $'$06$FFHVVLRQ1R0/$ 



'XULQJDQ$XJXVWSXEOLFPHHWLQJ $'$06$FFHVVLRQ1R0/$ WKH15&VWDII

DFNQRZOHGJHGDPELJXLWLHVDQGLQFRQVLVWHQFLHVLQWKHILQDOUXOHDQGDVVRFLDWHGJXLGDQFHDQGSURSRVHG

DUHYLVLRQGDWHIRUFODULI\LQJWKHJXLGDQFHWKURXJKSXEOLFDWLRQE\$SULOZKLFKLVWKUHHPRQWKVDIWHU

WKH-DQXDU\FRPSOLDQFHGDWHVSHFLILHGLQ)HGHUDO5HJLVWHU)5$GGLWLRQDOO\WKH

15&DFNQRZOHGJHGWKHQHHGIRUUXOHPDNLQJWRDGGUHVVLGHQWLILHGLVVXHVZLWKWKHILQDOUXOHODQJXDJH





 %$6,6)25(;(037,215(48(67



&)56SHFLILF([HPSWLRQVDOORZVWKH&RPPLVVLRQWRJUDQWH[HPSWLRQVIURPWKHUHTXLUHPHQWV

RI3DUW³DVLWGHWHUPLQHVDUHDXWKRUL]HGE\ODZDQGZLOOQRWHQGDQJHUOLIHRUSURSHUW\RUWKHFRPPRQ

GHIHQVHDQGVHFXULW\DQGDUHRWKHUZLVHLQWKHSXEOLFLQWHUHVW'$VH[SODLQHGEHORZWKLVH[HPSWLRQ

UHTXHVWPHHWVWKHFULWHULDVHWIRUWKLQ&)5



7KHLQGXVWU\KDVLGHQWLILHGVHYHUDOLVVXHVLQWKHILQDOUXOHDQGWKHVXSSRUWLQJ5HJXODWRU\*XLGHVWKDW

UHTXLUHFODULILFDWLRQIURPWKH15&IRU1H[W(UDWRVXFFHVVIXOO\LPSOHPHQWWKHUHTXLUHPHQWVDW3RLQW

%HDFK$VPHQWLRQHGDERYHWKH15&LVFXUUHQWO\GHYHORSLQJDUHVROXWLRQIRUWKHFRGHODQJXDJHLVVXHV

DQGDGGUHVVLQJJXLGDQFHUHYLVLRQV$VGLVFXVVHGLQWKH$XJXVWSXEOLFPHHWLQJWKH15&

SODQVWRLVVXHDGGLWLRQDOJXLGDQFHLQ$SULOZKLFKLVWKUHHPRQWKVDIWHUWKHFRPSOLDQFHGDWHRI

-DQXDU\:LWKRXWDGGLWLRQDOJXLGDQFHHQIRUFHPHQWUHOLHIRUDWHPSRUDU\H[HPSWLRQLWLVOLNHO\

WKDW1H[W(UDZLOOQHHGWRPDNHFKDQJHVWRLWVSK\VLFDOVHFXULW\SODQVDQGSURFHVVHVWZLFHRQFHWR

DFKLHYHFRPSOLDQFHZLWKLWVRZQLQWHUSUHWDWLRQRIWKHILQDOUXOH ZLWKRXWWKHEHQHILWRIWKHDGGLWLRQDO

JXLGDQFHEHLQJGHYHORSHGE\15& DQGDJDLQIROORZLQJLVVXDQFHRIWKHUHYLVHGUHJXODWRU\JXLGDQFH

7KHDPELJXLW\DQGFRQIOLFWFUHDWHGE\WKHILQDOUXOHODQJXDJHDQGH[LVWLQJJXLGDQFHVRPHRIZKLFKDUH



³(QKDQFHG:HDSRQV)LUHDUPV%DFNJURXQG&KHFNVDQG6HFXULW\(YHQW1RWLILFDWLRQV)LQDOUXOHDQGJXLGDQFH'

)HG5HJ 0DUFK 



3RLQW%HDFK1XFOHDU3ODQW



/

'RFNHW1RVDQG



(QFORVXUH

3DJHRI

3DUW([HPSWLRQ5HTXHVW5HJDUGLQJ(QKDQFHG:HDSRQV

)LUHDUPV%DFNJURXQG&KHFNVDQG6HFXULW\(YHQW1RWLILFDWLRQV)LQDO5XOH



GHVFULEHGEHORZFRXOGUHVXOWLQXQQHFHVVDU\FRQIXVLRQWKDWZLOOGHWUDFWIURPWKHFXUUHQWKLJKOHYHORI

DVVXUDQFHSURYLGHGE\WKHH[LVWLQJ3RLQW%HDFKSK\VLFDOVHFXULW\SURJUDP$FFRUGLQJO\1H[W(UDGRHV

QRWEHOLHYHLPSOHPHQWDWLRQRIWKHILQDOUXOHSULRUWRLVVXDQFH RIDGGLWLRQDOFODULI\LQJJXLGDQFHDWD

PLQLPXPLVLQWKHEHVWLQWHUHVWRIWKHSXEOLF/LVWHGEHORZDUHH[DPSOHVRILVVXHVZLWKWKHILQDOUXOH

ZKLFKQHFHVVLWDWHDWHPSRUDU\H[HPSWLRQIRU3RLQW%HDFK7KHH[DPSOHVDUHQRWDOOHQFRPSDVVLQJ

DQGDQH[HPSWLRQIURPWKHHQWLUHW\RIWKHILQDOUXOHLVUHTXHVWHGWRFRPSOHWH1H[W(UD¶VDQDO\VLVRIWKH

QHZUHTXLUHPHQWVUHYLVLRQVWRDSSOLFDEOHUHJXODWRU\JXLGDQFHDQGWKHLPSDFWWR3RLQW%HDFKSK\VLFDO

VHFXULW\SODQSROLFLHVDQGSURFHGXUHVLQFOXGLQJVHFXULW\DQGRSHUDWLRQVSHUVRQQHOWUDLQLQJ'XULQJWKH

SURSRVHG SHULRG RI H[HPSWLRQ 1H[W(UD ZLOO FRQWLQXH WR LPSOHPHQW WKH 3RLQW %HDFK VHFXULW\ SODQ

FRQVLVWHQWZLWK5*5HYLVLRQ $'$06$FFHVVLRQ1R0/ DQG*HQHULF/HWWHU */ 

 $'$06$FFHVVLRQ1R0/ 





&RQGLWLRQV$GYHUVHWR6HFXULW\



7KHLQWURGXFWLRQRIWKHWHUP³FRQGLWLRQVDGYHUVHWRVHFXULW\'ZLWKLQ&)5LVXQGHILQHG

DQGDPELJXRXV1H[W(UDKDVHVWDEOLVKHGDVUHTXLUHGDIRUPDO&RUUHFWLYH$FWLRQ3URJUDPLQ

DFFRUGDQFHZLWK&)53DUW$SSHQGL[%&ULWHULRQ;9,$VDUHVXOW1H[W(UDKDVGHYHORSHG

SURFHGXUHVDQGSURFHVVHVWRGHWHUPLQHFRQGLWLRQVDGYHUVHWRTXDOLW\DVLWUHODWHVWRWKHVHFXULW\

RUJDQL]DWLRQ HJ&RQGLWLRQ$GYHUVHWR5HJXODWRU\&RPSOLDQFH 



x

1H[W(UD 1XFOHDU )OHHW SURFHGXUH 3,$$ &RQGLWLRQ 5HSRUWLQJ GHILQHV VSHFLILF

HYHQWVRUVLWXDWLRQVWKDWUHVXOWLQDFRQGLWLRQDGYHUVHWRTXDOLW\ &$4 LQFOXGLQJVHFXULW\

UHODWHG&$4VDQGVLJQLILFDQWFRQGLWLRQVDGYHUVHWRTXDOLW\ 6&$4V 



  • LYHQWKHUREXVWQDWXUHRI1H[W(UD¶V&RUUHFWLYH$FWLRQ3URJUDPWKHDGGLWLRQDOGXSOLFDWLRQRI

SURFHGXUHVDQGRUUHYLVLRQRISURFHGXUHVWRDFFRPPRGDWHWKHQHZWHUP³FRQGLWLRQVDGYHUVHWR

VHFXULW\' DGGV DQ XQQHFHVVDU\ DGPLQLVWUDWLYH EXUGHQ ZLWK QR LPSURYHPHQW WR WKH &RUUHFWLYH

$FWLRQ3URJUDPWKH3RLQW%HDFKVHFXULW\SODQRUWRRYHUDOOSXEOLFKHDOWKDQGVDIHW\





'HILQLWLRQVLQ&)5



7KHQHZGHILQLWLRQVH[SDQGGHILQLWLRQVVSHFLILHGLQ15&HQGRUVHG1(,³7HPSODWH

IRU WKH 6HFXULW\ 3ODQ 7UDLQLQJ DQG 4XDOLILFDWLRQ 3ODQ 6DIHJXDUGV &RQWLQJHQF\ 3ODQ >DQG

,QGHSHQGHQW 6SHQW )XHO 6WRUDJH,QVWDOODWLRQ 6HFXULW\ 3URJUDP@' 5HYLVLRQ  DQG 5* 

³3K\VLFDO3URWHFWLRQ3URJUDPVDW1XFOHDU3RZHU5HDFWRUV'7KHH[LVWLQJGHILQLWLRQVZHUHDSSOLHG

WRGHVLJQVHFXULW\SODQVDQGSURFHGXUHV([DPSOHVRILVVXHVWKHQHZGHILQLWLRQVSUHVHQWLQFOXGH



x

&RQWUDEDQG6SHFLILFDOO\WKHSDUHQWKHWLFDOGHVFULELQJ³RWKHUGDQJHURXVPDWHULDOV'WRLQFOXGH

GLVHDVHFDXVLQJDJHQWVUHTXLUHV1H[W(UDWRSURWHFWDJDLQVWSHUFHLYHGWKUHDWVEH\RQGWKH

'HVLJQ%DVLV7KUHDW '%7 GHVFULEHGLQ&)5:LWKRXWWKHSURSRVHGH[HPSWLRQ

DSSOLFDWLRQRIWKLVH[SDQGHGGHILQLWLRQZLOOFKDOOHQJH3RLQW%HDFKVHFXULW\SODQPHWKRGVRI

FRPSO\LQJZLWK J  LL % DQG K ZKLFKVWDWH HPSKDVLVDGGHG 





 J $FFHVVFRQWUROV



  &RQVLVWHQWZLWKWKHIXQFWLRQRIHDFKEDUULHURUEDUULHUV\VWHPWKHOLFHQVHHVKDOOFRQWURO

SHUVRQQHOYHKLFOHDQGPDWHULDODFFHVVDVDSSOLFDEOHDWHDFKDFFHVVFRQWUROSRLQWLQ

DFFRUGDQFHZLWKWKHSK\VLFDOSURWHFWLRQSURJUDPGHVLJQUHTXLUHPHQWVRI E 



LL :KHUHYHKLFOHEDUULHUVDUHHVWDEOLVKHGWKHOLFHQVHHVKDOO

% 6HDUFKYHKLFOHVDQGPDWHULDOVIRUFRQWUDEDQGRURWKHULWHPVZKLFKFRXOGEHXVHG

WRFRPPLWUDGLRORJLFDOVDERWDJHLQDFFRUGDQFHZLWKSDUDJUDSK K RIWKLVVHFWLRQ



3RLQW%HDFK1XFOHDU3ODQW



/

'RFNHW1RVDQG



(QFORVXUH

3DJHRI

3DUW([HPSWLRQ5HTXHVW5HJDUGLQJ(QKDQFHG:HDSRQV

)LUHDUPV%DFNJURXQG&KHFNVDQG6HFXULW\(YHQW1RWLILFDWLRQV)LQDO5XOH



 K 6HDUFKSURJUDPV



  7KHREMHFWLYHRIWKHVHDUFKSURJUDPLVWRGHWHFWGHWHUDQGSUHYHQWWKHLQWURGXFWLRQRI

ILUHDUPVH[SORVLYHVLQFHQGLDU\GHYLFHVRURWKHULWHPVZKLFKFRXOGEHXVHGWRFRPPLW

UDGLRORJLFDOVDERWDJH7RDFFRPSOLVKWKLVWKHOLFHQVHHVKDOOVHDUFKLQGLYLGXDOVYHKLFOHV

DQGPDWHULDOVFRQVLVWHQWZLWKWKHSK\VLFDOSURWHFWLRQSURJUDPGHVLJQUHTXLUHPHQWVLQ

SDUDJUDSK E RIWKLVVHFWLRQDQGWKHIXQFWLRQWREHSHUIRUPHGDWHDFKDFFHVVFRQWURO

SRLQWRUSRUWDOEHIRUHJUDQWLQJDFFHVV



  2ZQHUFRQWUROOHGDUHDVHDUFKHV



LY 9HKLFOHVHDUFKHVPXVWEHDFFRPSOLVKHGWKURXJKWKHXVHRIHTXLSPHQWFDSDEOHRI

GHWHFWLQJILUHDUPVH[SORVLYHVLQFHQGLDU\GHYLFHVRURWKHULWHPVZKLFKFRXOGEHXVHGWR

FRPPLWUDGLRORJLFDOVDERWDJHRUWKURXJKYLVXDODQGSK\VLFDOVHDUFKHVRUERWKWRHQVXUH

WKDWDOOLWHPVDUHLGHQWLILHGEHIRUHJUDQWLQJDFFHVV



  3URWHFWHGDUHDVHDUFKHV/LFHQVHHVVKDOOVHDUFKDOOSHUVRQQHOYHKLFOHVDQGPDWHULDOV

UHTXHVWLQJDFFHVVWRSURWHFWHGDUHDV



L 7KHVHDUFKIRUILUHDUPVH[SORVLYHVLQFHQGLDU\GHYLFHVRURWKHULWHPVZKLFKFRXOGEH

XVHG WR FRPPLW UDGLRORJLFDO VDERWDJH VKDOO EH DFFRPSOLVKHG WKURXJK WKH XVH RI

HTXLSPHQWFDSDEOHRIGHWHFWLQJWKHVHLWHPVRUWKURXJKYLVXDODQGSK\VLFDOVHDUFKHVRU

ERWKWRHQVXUHWKDWDOOLWHPVDUHFOHDUO\LGHQWLILHGEHIRUHJUDQWLQJDFFHVVWRSURWHFWHG

DUHDV7KHOLFHQVHHVKDOOVXEMHFWDOOSHUVRQVH[FHSWRIILFLDO)HGHUDOVWDWHDQGORFDOODZ

HQIRUFHPHQWSHUVRQQHORQRIILFLDOGXW\WRWKHVHVHDUFKHVXSRQHQWU\WRWKHSURWHFWHG

DUHD$UPHGVHFXULW\RIILFHUVZKRDUHRQGXW\DQGKDYHH[LWHGWKHSURWHFWHGDUHDPD\

UHHQWHUWKHSURWHFWHGDUHDZLWKRXWEHLQJVHDUFKHGIRUILUHDUPV



2IQRWH J XVHVWKHWHUPFRQWUDEDQGZKLOH K XVHVWHUPLQRORJ\FRQVLVWHQW

ZLWK WKH GHILQLWLRQ RI FRQWUDEDQG LQ 1(,  DQG 5*   7KH VSHFLILF LQFOXVLRQ RI

³GLVHDVHFDXVLQJDJHQWV'LQWKHQHZUHJXODWRU\GHILQLWLRQRIFRQWUDEDQGZLOOUHTXLUH1H[W(UD

WRPRGLI\LWVVHFXULW\SODQSURFHGXUHVIRUFRPSOLDQFHZLWKSDUDJUDSK J LQZD\VWKDW

DUHXQFOHDUDWWKLVWLPH1H[W(UDXQGHUVWDQGVWKDWWKH15&LVORRNLQJDWSRWHQWLDOUHVROXWLRQV

IRUWKLVLVVXHEXWZLWKRXWIXUWKHUJXLGDQFHRUUXOHPDNLQJFRPSOLDQFHZLWKWKLVUHTXLUHPHQW

FDQQRWEHUHOLDEO\DFKLHYHGZLWKLQWKHH[SHFWHGFRPSOLDQFHSHULRG



x

7LPHRI'LVFRYHU\6SHFLILFDOO\WKHQHZGHILQLWLRQVSHFLILHVWKDWDFRJQL]DQWLQGLYLGXDO³LV

FRQVLGHUHGDQ\RQHZKRE\SRVLWLRQH[SHULHQFHDQGRUWUDLQLQJLVH[SHFWHGWRXQGHUVWDQG

WKDWDSDUWLFXODUFRQGLWLRQRUHYHQWDGYHUVHO\LPSDFWVVHFXULW\'$W3RLQW%HDFK1H[W(UD

DSSOLHVWKHGHILQLWLRQLQ1(,DQG5*ZKHUHE\³DVXSHUYLVRURUPDQDJHUPDNHVD

GHWHUPLQDWLRQWKDWDYHULILHGGHJUDGDWLRQRIDVHFXULW\VDIHJXDUGVPHDVXUHRUDFRQWLQJHQF\

VLWXDWLRQH[LVWV'WRHVWDEOLVK7 IRUVHFXULW\UHODWHGHYHQWV



7KHQHZGHILQLWLRQH[SDQGVWKHSRRORISHUVRQQHOSUHYLRXVO\XVHGE\OLFHQVHHVWRGHWHUPLQH

7  IRU DQ HYHQW GXH WR WKH XQGHILQHG QDWXUH RI ³SRVLWLRQ H[SHULHQFH DQGRU WUDLQLQJ'

$GGLWLRQDOO\ WKH ORZHU WKUHVKROG IRU UHFRJQLWLRQ RI ³DGYHUVHO\ LPSDFWV VHFXULW\' YHUVXV

³UHFRJQLWLRQ RI YHULILHG GHJUDGDWLRQ RI D VHFXULW\ VDIHJXDUGV PHDVXUH RU D FRQWLQJHQF\

VLWXDWLRQ'FRQWULEXWHVWRWKHH[SDQVLRQRIWKHSHUVRQQHOSRRO1H[W(UDEHOLHYHVWKHGHILQLWLRQ

LQ1(,DQG5*LVWKHDSSURSULDWHWKUHVKROGIRU7 IRUVHFXULW\UHODWHGHYHQWV



LWKRXW WKH SURSRVHG H[HPSWLRQ DQG FODULILFDWLRQ IURP QHZ RU UHYLVHG JXLGDQFH WKH

DSSOLFDWLRQRIWKLVQHZGHILQLWLRQZLOOUHTXLUH1H[W(UDWRLPSOHPHQWLPPHGLDWHFKDQJHVWRWKH

3RLQW%HDFKVHFXULW\SURJUDPZKLFKUHYLVHWUDLQLQJPRGXOHVIRUJHQHUDOSODQWHPSOR\HHV

3RLQW%HDFK1XFOHDU3ODQW



/

'RFNHW1RVDQG



(QFORVXUH

3DJHRI

3DUW([HPSWLRQ5HTXHVW5HJDUGLQJ(QKDQFHG:HDSRQV

)LUHDUPV%DFNJURXQG&KHFNVDQG6HFXULW\(YHQW1RWLILFDWLRQV)LQDO5XOH



SRWHQWLDOO\LQFOXGLQJDSSOLFDEOH1$17H/WUDLQLQJ WRH[SDQGUHVSRQVLELOLW\IRUHVWDEOLVKLQJ

WLPHRIGLVFRYHU\DFURVVDEURDGVSHFWUXPRIVWDWLRQSHUVRQQHODVFRJQL]DQWLQGLYLGXDOV





)HGHUDO$YLDWLRQ$GPLQLVWUDWLRQ )$$ /RFDO&RQWURO7RZHU3RLQWRI&RQWDFW



&)5HVWDEOLVKHVUHTXLUHPHQWVIRUUHSRUWLQJVXVSLFLRXVDFWLYLWLHVLQYROYLQJDLUFUDIWWR

DOLFHQVHH¶VORFDO)$$FRQWUROWRZHU6SHFLILFDOO\1H[W(UDZRXOGEHUHTXLUHGWR



x

(VWDEOLVKDSRLQWRIFRQWDFWZLWKWKHORFDO)$$FRQWUROWRZHUDQG

x

'RFXPHQWWKHSRLQWRIFRQWDFWLQZULWWHQFRPPXQLFDWLRQSURFHGXUHV



  • LYHQWKH-DQXDU\FRPSOLDQFHGDWH1H[W(UDPD\QRWEHDEOHWRWLPHO\HVWDEOLVKD

PHPRUDQGXPRIXQGHUVWDQGLQJRUVLPLODUDJUHHPHQWZLWKWKHORFDO)$$FRQWUROWRZHUDXWKRULW\

ZLWKRXWZKLFKFUHGHQFHPD\QRWEHJLYHQWRDVXVSLFLRXVDFWLYLW\FDOOIURP3RLQW%HDFKRSHUDWRUV

1H[W(UDVHFXULW\SURFHGXUHVVSHFLI\DQQXPEHUFRQWDFWZLWKWKH)$$KRZHYHUWKLVVDPH

QXPEHULVVKDUHGZLWK1H[W(UD¶VRWKHUQXFOHDUVLWHVWKURXJKRXWWKH8QLWHG6WDWHVDQGLWLVXQFOHDU

ZKHWKHU WKLV JHQHUDO FRQWDFW LQIRUPDWLRQ VDWLVILHV WKH ORFDO )$$ FRQWURO WRZHU UHTXLUHPHQWV

VSHFLILHGLQWKHILQDOUXOH:LWKRXWWKHSURSRVHGH[HPSWLRQWRSURYLGHWLPHIRUUHYLVHGUHJXODWRU\

JXLGDQFHRUUXOHPDNLQJ1H[W(UDFDQQRWFRQILGHQWO\DVVHVVLWVFRPSOLDQFHZLWKWKLVILQDOUXOH

UHTXLUHPHQW





5HJXODWRU\*XLGHV



,Q0DUFKWRVXSSRUWWKHLPSOHPHQWDWLRQRIWKHILQDOUXOHWKH15&LVVXHG5*³3K\VLFDO

6HFXULW\(YHQW1RWLILFDWLRQV5HSRUWVDQG5HFRUGV'5HYLVLRQ$VVWDWHGDERYHGXULQJWKH

$XJXVWSXEOLFPHHWLQJWKH15&DFNQRZOHGJHGDPELJXLWLHVDQGLQFRQVLVWHQFLHVLQWKH

ILQDOUXOHODQJXDJHDQGDVVRFLDWHGJXLGDQFH%HORZDUHH[DPSOHVRILGHQWLILHGLVVXHVZLWKWKH

UHJXODWRU\JXLGDQFHZKLFKQHFHVVLWDWHWKHSURSRVHGH[HPSWLRQIRU3RLQW%HDFK





  KRXUYVPLQXWHQRWLILFDWLRQUHTXLUHPHQW



x

 H  LLL DQG LY UHTXLUHVDKRXUQRWLILFDWLRQIRUFRQWUDEDQGDWWHPSWHGRU

DFWXDOLQWURGXFWLRQRIFRQWUDEDQGLQWRD3$9$RU0$$



R

7KHGHILQLWLRQRIFRQWUDEDQGFRQWDLQVWKHWHUP³LQFHQGLDULHV'



x

 D UHTXLUHGDPLQXWHQRWLILFDWLRQIRUKRVWLOHDFWLRQV



R

5*5HY6HFWLRQSDJHSURYLGHVH[DPSOHVRIKRVWLOHDFWLRQV





 7KHGLVFRYHU\RIXQDXWKRUL]HGH[SORVLYHPDWHULDOVLQFHQGLDU\PDWHULDOVRU

DQLPSURYLVHGH[SORVLYHGHYLFHZLWKLQWKHOLFHQVHH¶VVLWHERXQGDU\



x

7KHILQDOUXOHODQJXDJHUHTXLUHVDKRXUQRWLILFDWLRQIRUDQLQFHQGLDU\GHYLFHDWRULQVLGH

WKH3$9$RU0$$7KH5*GULYHVOLFHQVHHVWRDPLQXWHQRWLILFDWLRQIRUDQLQFHQGLDU\

GHYLFHDWWKHVLWHERXQGDU\ZKLFKLVIXUWKHUDZD\IURPVDIHW\UHODWHGHTXLSPHQW



7KHGLVSDULW\5*5HYLVLRQLQWURGXFHVUHJDUGLQJPLQXWHYHUVXVKRXUQRWLILFDWLRQ

IRUWKHGLVFRYHU\RILQFHQGLDU\PDWHULDOVZDUUDQWVUHJXODWRU\FODULILFDWLRQ6WDWLRQSHUVRQQHO

DUHWUDLQHGDQGIOXHQWLQVWDWLRQSURFHGXUHVDQGDSSOLFDEOHUHJXODWRU\JXLGDQFHWRVXSSRUW

WLPHO\ DQG DFFXUDWH VHFXULW\ HYHQW UHSRUWLQJ  +RZHYHU WKH QRWLILFDWLRQ LQFRQVLVWHQF\

GHVFULEHG DERYH FDQ OHDG WR UHSRUWLQJ HUURUV DQG SRWHQWLDOO\ HQIRUFHPHQW DFWLRQ 7KH

SURSRVHGH[HPSWLRQZRXOGSURYLGHWLPHIRUUHYLVHGUHJXODWRU\JXLGDQFHRQWKLVLVVXH

3RLQW%HDFK1XFOHDU3ODQW



/

'RFNHW1RVDQG



(QFORVXUH

3DJHRI

3DUW([HPSWLRQ5HTXHVW5HJDUGLQJ(QKDQFHG:HDSRQV

)LUHDUPV%DFNJURXQG&KHFNVDQG6HFXULW\(YHQW1RWLILFDWLRQV)LQDO5XOH





  KRXUQRWLILFDWLRQYVKRXUUHFRUGLQJRI³ORVWRUXQFRQWUROOHGZHDSRQ'



x

 H  Y UHTXLUHVDKRXUQRWLILFDWLRQIRUDORVWRUXQFRQWUROOHGZHDSRQ



x

 I UHTXLUHVUHFRUGLQJZLWKLQKRXUV³SK\VLFDOVHFXULW\HYHQWVRUFRQGLWLRQV

WKDWGHFUHDVHVWKHHIIHFWLYHQHVVRIWKHSK\VLFDOVHFXULW\SURJUDP'



R

5*  5HY  6HFWLRQ  SDJH  SURYLGHV H[DPSOHV RI WKH ³5HFRUGDEOH

(YHQWV DQG &RQGLWLRQV 5HJDUGLQJ 'HFUHDVHV LQ (IIHFWLYHQHVV' WKDW  I 

UHTXLUHV7KH5*LQFOXGHVDQHYHQWLQYROYLQJWKHORVVRIFRQWURORIDQDXWKRUL]HG

VHFXULW\ZHDSRQZLWKLQD3$9$0$$RU&$$



7KHFRQIOLFWEHWZHHQWKHQRWLILFDWLRQDQGUHFRUGLQJRIDORVWRUXQFRQWUROOHGZHDSRQRQO\

H[LVWVEHFDXVHRIWKHUHJXODWRU\JXLGDQFHLQ5*5HYLVLRQ$VDEHVWSUDFWLFHDQGWR

VXSSRUWDFFXUDWHGHWHUPLQDWLRQRIQRWLILFDWLRQHYHQWVVWDWLRQSHUVRQQHODUHWUDLQHGDQGIOXHQW

LQ UHIHUHQFLQJ SXEOLVKHG 5*V VWDWLRQ SURFHGXUHV DQG JXLGDQFH DQG RWKHU LQGXVWU\

GRFXPHQWV$GGLWLRQDOFODULW\LVQHHGHGWRVXSSRUWWKHLPSOHPHQWDWLRQRIQRWLILFDWLRQVDQG

UHFRUGNHHSLQJ LQ D FRQVLVWHQW DQG VXFFHVVIXO PDQQHU 7KH SURSRVHG H[HPSWLRQ ZRXOG

SURYLGHWLPHIRUWKHUHYLVHGUHJXODWRU\JXLGDQFHDQGRUUXOHPDNLQJRQWKLVLVVXH



  0DOHYROHQWLQWHQWGLVFXVVLRQ



x

&)5RQO\UHIHUVWRWKHWHUP³PDOHYROHQWLQWHQW'LQ T  DVH[HPSOL

JUDWLDRU³HJ'SDUHQWKHWLFDOGHVFULELQJDFLUFXPVWDQFHZKHUHDOLFHQVHHPD\GHVLUHWR

GHWUDFWDSUHYLRXVSK\VLFDOVHFXULW\HYHQWQRWLILFDWLRQ



R

5*5HY6HFWLRQSDJHWLWOHG³0DOHYROHQW,QWHQWDQG&UHGLEOH%RPE

7KUHDW &RQVLGHUDWLRQV' VWDWHV WKH 15&¶V SRVLWLRQ WKDW RQO\ JRYHUQPHQW RIILFLDOV

KDYHWKHQHFHVVDU\UHVRXUFHVDQGTXDOLILFDWLRQVWRGHWHUPLQHZKHWKHUPDOHYROHQW

LQWHQWZDVSUHVHQWLQDVHFXULW\HYHQW



R

'XULQJWKH0D\DQG$XJXVWSXEOLFPHHWLQJVWKH15&ZDVXQDEOHWR

FRQVLVWHQWO\GHVFULEHZKHQOLFHQVHHVZHUHFDSDEOHRIWKLVGHWHUPLQDWLRQDQGZKHQ

OLFHQVHHVZHUHUHTXLUHGWRKDYHJRYHUQPHQWRIILFLDOVPDNHWKLVGHWHUPLQDWLRQ



R

,Q³15&5HVSRQVHWR3XEOLF&RPPHQWV'FRPPHQW.FRQWDLQVWKHGLVFXVVLRQ

UHJDUGLQJ³FUHGLEOH'DQGSXWVLQWRFRQWH[WWKHFLUFXPVWDQFHVRIWKH15&¶VSRVLWLRQ

DVLWUHODWHVWRWKHGHWHUPLQDWLRQRIPDOHYROHQWLQWHQW





,WLVFOHDUWKDWDVRIWKHSXEOLFDWLRQGDWHRI0DUFKWKHGLVFXVVLRQUHYROYHV

DURXQG WKH PLQXWH QRWLILFDWLRQ UHTXLUHPHQWV DQG QRW EODQNHWO\ DFURVV DOO

VHFXULW\UHODWHGHYHQWV



1H[W(UDEHOLHYHVWKDWLQFHUWDLQFLUFXPVWDQFHVH[WHUQDOJRYHUQPHQWDJHQFLHVDUHEHVW

VXLWHG WR GHWHUPLQH PDOHYROHQW LQWHQW HJ FUHGLEOH ERPE WKUHDW FUHGLEOH WKUHDW 

+RZHYHU 1H[W(UD¶V SRVLWLRQ RQ WKH FDSDELOLW\ WR GHWHUPLQH LQWHQW DV LW UHODWHV WR

LGHQWLI\LQJ+XPDQ3HUIRUPDQFHHUURUVDVZHOODVGHWHUPLQLQJ7UXVWZRUWK\DQG5HOLDELOLW\

IRU$FFHVVSXUSRVHVUHPDLQVZLWK1H[W(UD





15&5HVSRQVHWR3XEOLF&RPPHQWV³(QKDQFHG:HDSRQV)LUHDUPV%DFNJURXQG&KHFNVDQG6HFXULW\(YHQWQRWLILFDWLRQV5XOH'

15&5,1$, $'$06$FFHVVLRQ1R0/$ 

3RLQW%HDFK1XFOHDU3ODQW



/

'RFNHW1RVDQG



(QFORVXUH

3DJHRI

3DUW([HPSWLRQ5HTXHVW5HJDUGLQJ(QKDQFHG:HDSRQV

)LUHDUPV%DFNJURXQG&KHFNVDQG6HFXULW\(YHQW1RWLILFDWLRQV)LQDO5XOH



7KHODFNRIFODULW\RIZKHQLWLVDSSURSULDWHIRUH[WHUQDOJRYHUQPHQWRIILFLDOVWRGHWHUPLQH

PDOHYROHQW LQWHQW FUHDWHV FRQIXVLRQ  &ODULILFDWLRQ LV QHHGHG WR SUHYHQW XQQHFHVVDU\

FKDQJHV WR 3RLQW %HDFK VHFXULW\ SODQ SURFHGXUHV VXFK DV DFFHVV DXWKRUL]DWLRQ

SURFHGXUHVWRDZDLWLQYHVWLJDWLRQUHVXOWVIURP15&¶V2IILFHRI,QYHVWLJDWLRQV 2, WKH

LQWHOOLJHQFH FRPPXQLW\ RU D IHGHUDO 6WDWH RU ORFDO ODZ HQIRUFHPHQW DJHQF\  7KH

SURSRVHGH[HPSWLRQZRXOGSURYLGHWLPHIRUUHYLVHGUHJXODWRU\JXLGDQFHRQWKLVLVVXH



$VVWDWHGHDUOLHUWKHDERYHH[DPSOHVRIDPELJXLWLHVDQGLQFRQVLVWHQFLHVLQWKHILQDOUXOHDUHQRWDOO

HQFRPSDVVLQJDQG1H[W(UD¶VJDSDQDO\VLVRIWKHILQDOUXOHDJDLQVWFXUUHQWUHTXLUHPHQWVLVQRW\HW

FRPSOHWH$FFRUGLQJO\DQH[HPSWLRQIURPWKHHQWLUHW\RIWKHILQDOUXOHLVUHTXHVWHGXQWLO'HFHPEHU

RUGD\VDIWHUSXEOLFDWLRQRIWKHDSSOLFDEOH5*VZKLFKHYHULVODWHU'XULQJWKHSURSRVHG

SHULRGRIH[HPSWLRQ1H[W(UDZLOOFRQWLQXHWRLPSOHPHQWWKH3RLQW%HDFKVHFXULW\SODQFRQVLVWHQWZLWK

5*5HYLVLRQDQG*/





 &216,'(5$7,216)25(;(037,21



$VKLJKOLJKWHGLQWKHVHOHFWHGH[DPSOHVDERYHWKHODFNRIFODULW\RQNH\SDUWVRIWKHILQDOUXOHPD\

UHVXOWLQLQDGHTXDWHLPSOHPHQWDWLRQDQGSRWHQWLDOQRQFRPSOLDQFHDQGFRXOGUHVXOWLQPRGLILFDWLRQWR

H[LVWLQJ3RLQW%HDFKVHFXULW\SODQVDQGSURFHGXUHVDWOHDVWWZLFHEDVHGRQLQWHUSUHWDWLRQRIWKHILQDO

UXOHDQGUHJXODWRU\JXLGDQFH$FFRUGLQJO\1H[W(UDUHTXHVWVWKHIROORZLQJEHWDNHQLQWRFRQVLGHUDWLRQ

GXULQJUHYLHZRIWKLVUHTXHVW



x

$W3RLQW%HDFK1H[W(UDLPSOHPHQWVDIRUPDO&RUUHFWLYH$FWLRQ3ODQ &$3 DQGHQWHUVLQWRWKH

&$3FRQGLWLRQVDGYHUVHWRTXDOLW\DVWKH\UHODWHWRVHFXULW\SURJUDPVDQGLWHPVWKDWDUHFRQGLWLRQV

DGYHUVHWRUHJXODWRU\FRPSOLDQFH



x

$W3RLQW%HDFK1H[W(UDFRPSOLHVZLWKWKHGHILQLWLRQRI&RQWUDEDQGDQG7LPHRI'LVFRYHU\DVWKH\

DUHGHILQHGLQ5*³3K\VLFDO3URWHFWLRQ3URJUDPVDW1XFOHDU3RZHU5HDFWRUV'5HYLVLRQ

DQGLQ1(,³7HPSODWHIRUWKH6HFXULW\3ODQ7UDLQLQJDQG4XDOLILFDWLRQ3ODQ6DIHJXDUGV

&RQWLQJHQF\3ODQ>DQG,QGHSHQGHQW6SHQW)XHO6WRUDJH,QVWDOODWLRQ6HFXULW\3URJUDP@'



x

1H[W(UDZLOOFRQWDFWWKHORFDO)$$FRQWUROWRZHUDXWKRULW\WRHVWDEOLVKDQRWLILFDWLRQDJUHHPHQWIRU

VXVSLFLRXVDLUFUDIWDFWLYLW\DQGXSRQILQDOL]DWLRQZLOOGRFXPHQWWKHORFDO)$$FRQWUROWRZHUDXWKRULW\

FRQWDFW LQIRUPDWLRQ LQ 3RLQW %HDFK VHFXULW\ FRPPXQLFDWLRQ SURFHGXUHV  'XULQJ WKH SHULRG RI

H[HPSWLRQ1H[W(UDZLOOFRQWLQXHWRXVHWKH)$$FRQWDFWSURFHGXUHVDQGSKRQHQXPEHUFXUUHQWO\

LQSODFH



x

$W3RLQW%HDFK1H[W(UDFRPSOLHVZLWKWKHVHFXULW\HYHQWUHSRUWLQJUHTXLUHPHQWVFRQVLVWHQWZLWK

5*5HYLVLRQDQG*/DQGZLOOFRQWLQXHLPSOHPHQWDWLRQLQWKLVPDQQHUGXULQJWKH

SURSRVHGSHULRGRIH[HPSWLRQ



R

7KLVLQFOXGHVWKHDFFHOHUDWHGFDOOWRWKH15&DVLWSHUWDLQVWR15&%XOOHWLQ



x

$W3RLQW%HDFK1H[W(UDUHPDLQVFDSDEOHRIPDNLQJYROXQWDU\UHSRUWVRIVXVSLFLRXVDFWLYLWLHVDQG

ZLOOFRQWLQXHLPSOHPHQWDWLRQLQWKLVPDQQHUGXULQJWKHSURSRVHGSHULRGRIH[HPSWLRQ



x

1H[W(UDLVLQIXOOFRPSOLDQFHZLWKWKHQHZ)LWQHVVIRU'XW\5XOHSURPXOJDWHGLQ



x

1H[W(UDEHOLHYHVWKHEXUGHQDVVRFLDWHGZLWKUHZRUNLVXQQHFHVVDU\ZKLOHDZDLWLQJFODULW\LQWKH

ILQDOUXOHZLWKUHYLVLRQRIWKHDVVRFLDWHG5*V6HYHUDOH[DPSOHVRIZKHUHUHZRUNZLOOEHUHTXLUHG

DUH



3RLQW%HDFK1XFOHDU3ODQW



/

'RFNHW1RVDQG



(QFORVXUH

3DJHRI

3DUW([HPSWLRQ5HTXHVW5HJDUGLQJ(QKDQFHG:HDSRQV

)LUHDUPV%DFNJURXQG&KHFNVDQG6HFXULW\(YHQW1RWLILFDWLRQV)LQDO5XOH



R

5HYLVLRQVRIDVVRFLDWHGSURFHGXUHVSURFHVVHVMREDLGVWUDLQLQJPDWHULDOVDQGOHVVRQSODQV

WKDWDUHXVHGWRGHVFULEHDQGHODERUDWHRQUHSRUWLQJUHTXLUHPHQWV



R

&RRUGLQDWLRQRIZRUNPDQDJHPHQWDQGUHVRXUFHVWRDOLJQZLWKVWDWLRQRXWDJHVFKHGXOH V 



R

7KHUHWUDLQLQJRILPSDFWHGVWDWLRQSHUVRQQHOZLWKXSGDWHGLQIRUPDWLRQFRQWDLQHGZLWKLQWKH

UHYLVHGJXLGDQFHGRFXPHQWVLQFOXGLQJ





6HFXULW\



5HJXODWRU\&RPSOLDQFH



(PHUJHQF\3UHSDUHGQHVV



5DGLDWLRQ3URWHFWLRQ



2SHUDWLRQVLQFOXGLQJWKH$FFUHGLWHG7UDLQLQJ3URJUDPUHTXLUHPHQWVIRUWKH6\VWHPDWLF

$SSURDFK WR 7UDLQLQJ 6$7  SURFHVV ([DPSOHV RI HOHPHQWV WKDW GULYH WKH QXPEHU RI

DYDLODEOHZHHNVWRWUDLQRSHUDWRUVZLWKLQD\HDUDUH



f

1H[W(UDH[HFXWHVF\FOHVSHU\HDU

f

1H[W(UDUHTXLUHVZHHNVIRUHDFKF\FOHRIWUDLQLQJEDVHGRQWKHQXPEHURIRSHUDWLQJ

FUHZVDQGOLFHQVHGRSHUDWRUVDW3RLQW%HDFK

f

1H[W(UDLVUHTXLUHGWRDGPLQLVWHUDQH[DPF\FOHIRUOLFHQVHGRSHUDWRUVHDFK\HDU

f

1H[W(UDLVUHTXLUHGWRLQFRUSRUDWHFHUWDLQHOHPHQWVZLWKLQWKH\HDUWUDLQLQJF\FOH

WKDWLQFOXGHRXWDJHDSSOLFDEOHREMHFWLYHV LQFOXGLQJEXWQRWOLPLWHGWRFRUHFKDQJHV

SODQWPRGLILFDWLRQVORZHUSODQW0RGHRSHUDWLRQV 





 -867,),&$7,21)25(;(037,21



%DVHGRQ15&¶VSURMHFWHGWLPHOLQHIRUFRPSOHWLRQRIUHYLVLRQWRWKHDSSOLFDEOH5*VDVVRFLDWHGZLWKWKH

ILQDOUXOHDQGWKHWLPHQHFHVVDU\IRU1H[W(UDWRXQGHUJRFKDQJHPDQDJHPHQWSURFHVVHVDGHTXDWHO\

WRLQFOXGHWKHQXPEHURIWUDLQLQJZHHNVWKDWZLOOEHUHTXLUHG1H[W(UDLVUHTXHVWLQJDFRPSOLDQFHGDWH

IRUWKHILQDOUXOHRI'HFHPEHURUGD\VDIWHUSXEOLFDWLRQRIILQDO5*ZKLFKHYHULVODWHU



$VVWDWHGDERYHGXULQJWKHSURSRVHGSHULRGRIH[HPSWLRQ1H[W(UDZLOOFRQWLQXHWRLPSOHPHQWWKH3RLQW

%HDFK6HFXULW\3ODQDVFXUUHQWO\GRFXPHQWHG6LQFH3RLQW%HDFKKDVEHHQOLFHQVHGE\WKH15&WKH

15&KDVGHHPHGWKDWWKH3RLQW%HDFK6HFXULW\3ODQSURYLGHVUHDVRQDEOHDVVXUDQFHRIVDIHW\DQG

VHFXULW\7KHGHOD\LQLPSOHPHQWDWLRQRIWKHILQDOUXOHZLOOQRWLPSDFWSURSHULPSOHPHQWDWLRQRIWKH

FXUUHQW3RLQW%HDFK6HFXULW\3ODQDQGZLOOHQVXUHWKDWWKHILQDOUXOHLVHIIHFWLYHO\LPSOHPHQWHG7KXV

JUDQWLQJRIWKLVH[HPSWLRQZLOOQRWHQGDQJHUWKHOLIHRUSURSHUW\RUFRPPRQGHIHQVHDQGVHFXULW\



,PSOHPHQWDWLRQRIWKHILQDOUXOHZLWKRXWIXUWKHULQWHUIDFHFODULW\DQGUHILQHGJXLGDQFHPD\UHVXOWLQ

XQLQWHQGHGFRQVHTXHQFHVZKLFKFRXOGUHGXFHWKHHIIHFWLYHQHVVRIWKHFXUUHQW3RLQW%HDFK6HFXULW\

3ODQ 7KHUHIRUH LW LV LQ WKH SXEOLF¶V LQWHUHVW WKDW WKH 3RLQW %HDFK 6HFXULW\ 3ODQ DQG DVVRFLDWHG

SURFHGXUHVDQGSURFHVVHVFRPSUHKHQVLYHO\LPSOHPHQWWKHILQDOUXOHUHJXODWLRQVFRQVLVWHQWZLWKWKH

DSSOLFDEOHUHJXODWRU\JXLGDQFHRQFHUHVROXWLRQRILGHQWLILHGLVVXHVKDVEHHQDFKLHYHG



7KHJUDQWLQJRIWKLVH[HPSWLRQZRXOGQRWYLRODWHWKH$WRPLF(QHUJ\$FW $($ DVWKHFRPSOLDQFHGDWH

IRU WKH ILQDO UXOH LV QRW UHTXLUHG QRU VSHFLILHG LQ WKH $($ DV DPHQGHG DQ\ SURYLVLRQV RI WKH

&RPPLVVLRQ¶VUHJXODWLRQVRUDQ\RWKHUOHJDOO\ELQGLQJUHTXLUHPHQWVLPSRVHGE\WKH&RPPLVVLRQ



7KXVLVVXDQFHRIWKLVH[HPSWLRQUHTXHVWZRXOGEHFRQVLVWHQWZLWK&)5VLQFHLWLV³DXWKRUL]HG

E\ODZDQGZLOOQRWHQGDQJHUOLIHRUSURSHUW\RUWKHFRPPRQGHIHQVHDQGVHFXULW\DQG>LV@RWKHUZLVHLQ

WKHSXEOLFLQWHUHVW'



3RLQW%HDFK1XFOHDU3ODQW



/

'RFNHW1RVDQG



(QFORVXUH

3DJHRI

3DUW([HPSWLRQ5HTXHVW5HJDUGLQJ(QKDQFHG:HDSRQV

)LUHDUPV%DFNJURXQG&KHFNVDQG6HFXULW\(YHQW1RWLILFDWLRQV)LQDO5XOH



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



1H[W(UDKDVHYDOXDWHGWKHSURSRVHGH[HPSWLRQIRUHQYLURQPHQWDOFRQVLGHUDWLRQVDQGGHWHUPLQHGWKDW

WKHSURSRVHGH[HPSWLRQZRXOGFKDQJHDUHTXLUHPHQWZLWKUHVSHFWWRLQVWDOODWLRQRUXVHRIDIDFLOLW\

FRPSRQHQWORFDWHGZLWKLQWKHUHVWULFWHGDUHDDVGHILQHGLQ&)5RUZRXOGFKDQJHDQLQVSHFWLRQ

RU VXUYHLOODQFH UHTXLUHPHQW +RZHYHU WKH SURSRVHG H[HPSWLRQ GRHV QRW LQYROYH L  D VLJQLILFDQW

KD]DUGVFRQVLGHUDWLRQ LL DVLJQLILFDQWFKDQJHLQWKHW\SHVRUVLJQLILFDQWLQFUHDVHLQWKHDPRXQWVRI

DQ\ HIIOXHQWV WKDW PD\ EH UHOHDVHG RIIVLWH RU LLL  D VLJQLILFDQW LQFUHDVH LQ LQGLYLGXDO RU FXPXODWLYH

RFFXSDWLRQDOUDGLDWLRQH[SRVXUH$FFRUGLQJO\WKHHOLJLELOLW\FULWHULRQIRUFDWHJRULFDOH[FOXVLRQVHWIRUWK

LQ&)5 F  LVPHWDQGSXUVXDQWWR&)5 E DQHQYLURQPHQWDOLPSDFWVWDWHPHQWRU

HQYLURQPHQWDODVVHVVPHQWLVQRWUHTXLUHGLQFRQQHFWLRQZLWKWKHSURSRVHGH[HPSWLRQ