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If the connection is properly connected as soon as the breaker energized the circuit

(RY1) normally close will be energized causing (L2) standby light to light up. Then as
you press the start button the (HC-RY1) will be energized resulting to a latching thus
making (RY1) normally open to become normally close, afterwards (L1) will light up.
If we press stop button the circuit will be reset and (L2) standby light will once again
light up.

Laboratory 2
When you energize the circuit (L3) standby light will light up because (RY1) and
(RY2) is normally close. Then if you press start button (1) the (HC-RY1) will be
energized and (RY1) normally open will become normally close resulting to a
latching, afterwards (L1) will light up. If we press start button (2) the (HC-RY2) will
be energized causing (RY2) normally open to become normally close resulting again
to a latching. Because (RY1) is already energized, (RY1) normally open will be in a
state of normally close thus making (L2) to light up. It is then noticed that (L1) and
(L2) are both active because (RY1) normally open which is connected across start
button (2) thus it cannot be energized without energizing (HC-RY1) first. Lastly if we
press stop button the circuit will be reset and (L3) standby light will light up again.