Dockerfile: self-contained image with corpus + Chroma + BM25 baked in. Drawbar's compose pulls + runs without volume mounts. Built from sources.json (labels schema), PRODUCT_NAME=crop_chem by default, HYBRID_SEARCH=true (always-on for production quality). RERANK_URL + OLLAMA_URL get set at compose time. .gitea/workflows/refresh.yml: monthly cron (1st @ 06:00 UTC) does full scrape → reindex → image push. Scrapes Bayer (~30 min) + EPA PPLS row-crop filtered (~7h). Skips reindex+push if no corpus diff. Tags pushed: :latest, :<sha12>, :corpus-<YYYY.MM.DD>. .gitea/workflows/image-only.yml: on-demand or auto on code-only pushes to main (paths: docs_mcp/, rag/, scrape/, requirements.txt, Dockerfile, sources.json). Reindexes from committed corpus, builds image, pushes. ~10 min vs ~9h full refresh. .gitignore: corpus/ now COMMITTED (4,159 labels, 265 MB of .md + sidecars). Lets image-only.yml rebuild indexes without re-scraping. chroma/ + bm25/ still gitignored (regenerable binary indexes). .dockerignore: drops venv, eval results, PLAN/README/CLAUDE.md, deploy/, .git/ — keeps the image lean. corpus + chroma + bm25 explicitly NOT in dockerignore (those go INTO the image). Co-Authored-By: Claude Opus 4.7 (1M context) <noreply@anthropic.com>
57 KiB
HM-1821-A Herbicide
- EPA Reg No: 5905-641
- Registrant: HELENA AGRI-ENTERPRISES, LLC, D/B/A HELENA CHEMICAL COMP
- Signal word: Caution
- Active ingredients: S-Metolachlor (41.45%); Tolpyralate (1.12%)
- Label accepted: 2025-05-14
- Source PDF: https://www3.epa.gov/pesticides/chem_search/ppls/005905-00641-20250514.pdf
Notification ABN or Label Acceptable v.20220527 May 14, 2025 Jay ne Walz Registration Manager Helena Agri-Enterprises, LLC d/b/a Helena Chemical Company 225 Schilling Blvd., Suite 300 Collierville, Tennessee 38017 Su bject: Notification per PRN 98-10 – Correcting a Typographical Error Product Name: HM-1821-A Herbicide EPA Registration Number: 5905-641 Application Date: October 19, 2023 Case Number: 489461 Dear Jayne Walz: T he Agency is in receipt of your Application for Pesticide Notification under Pesticide Registration Notice (PRN) 98-10 for the above referenced product. The Registration Division (RD) has conducted a review of this request for its applicability under PRN 98-10 and finds that the action requested falls within the scope of PRN 98-10. S hould you wish to add/retain a reference to the company’s website on your label, then please be aware that the website becomes labeling under the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) and is subject to review by the Agency. If the website is false or misleading, the product would be misbranded and unlawful to sell or distribute under FIFRA section 12(a)(1)(E). 40 CFR 156.10(a)(5) lists examples of statements EPA may consider false or misleading. In addition, regardless of whether a website is referenced on your product’s label, claims made on the website may not substantially differ from those claims approved through the registration process. Therefore, should the Agency find or if it is brought to our attention that a website contains false or misleading statements or claims substantially differing from the EPA approved registration, the website will be referred to the EPA’s Office of Enforcement and Compliance. I f you have any questions, please contact Maya Wheeler at 202-566-2957 or at wheeler.maya.b@epa.gov. S incerely, Kable Bo Davis Kable Bo Davis; Senior Advisor Office of Pesticide Programs Registration Division; Immediate Office
)LOHQDPH+0$+HUELFLGH67. 60HWRODFKORU 5283+(5%,&,'( 7ROS\UDODWH 5283+(5%,&,'( +0$+(5%,&,'( $ 3UHHPHUJHQFHDQG3RVWHPHUJHQFH+HUELFLGHIRU&RQWURO RI$QQXDOUDVVDQG%URDGOHDI :HHGVLQ)LHOG&RUQ6HHG &RUQ6ZHHW &RUQ D QG<H O O R Z 3RSFRUQ 6DOHXVHDQG GLVWULEXWLRQ RIWKLVSURGXFWLQ1DVVDXDQG 6XIIRON&RXQWLHVLQWKH6WDWHRI1HZ <RUNLVSURKLELWHG $&7,9(,15(',(176 60HWRODFKORU6&KORUR1HWK\OPHWK\OSKHQ\O1PHWKR[\PHWK\OHWK\ODFHWDPLGH «««««««««««««««««««««««««««««««««««««««««« 7ROS\UDODWH56(WK\OPHV\OPHWKR[\HWKR[\RWROXR\OS\UD]RO\OR[\HWK\O PHWK\OFDUERQDWH««««««««««««««««««««««««««««««««««« 27+(5,1*5(',(176«««««««««««««««««««««««««««««««««« 727$/««««««««««««««««««««««««««««««««« &RQWDLQVSHWUROHXPGLVWLOODWHV &RQWDLQV6PHWRODFKORUDWOEVJDODQG7ROS\UDODWHDWOEVJDO &RQWDLQVVDIHQHUIRUFRUQ .((32872)5($&+2)&+,/'5(1 &$87,21 6HHDGGLWLRQDO SUHFDXWLRQDU\ VWDWHPHQWV GLUHFWLRQV IRUXVHDQGVWRUDJHDQGGLVSRVDO LQVWUXFWLRQVLQVLGHERRNOHW (3$5HJ1R$ ' (3$(VW1R1 ( 7 & 2 1 7 ( 1 7 6 B B B * D O O R Q V 0DQXIDFWXUHGIRU +HOHQD$JUL(QWHUSULVHV//& 6FKLOOLQJ%RXOHYDUG6XLWH &ROOLHUYLOOH71 5905-641 05/14/2025
)LOHQDPH+0$+HUELFLGH67. ),567$,' ,IVZDOORZHGx ,PPHGLDWHO\FDOODSRLVRQFRQWUROFHQWHURUGRFWRU x 'RQRWLQGXFHYRPLWLQJXQOHVVWROGWRGRVRE\WKHSRLVRQFRQWUROFHQWHURU GRFWRU x 'RQRWJLYHDQ\OLTXLGWRWKHSHUVRQ x 'RQRWJLYHDQ\WKLQJE\PRXWKWRDQXQFRQVFLRXVSHUVRQ ,ILQH\HVx +ROGH\HRSHQDQGULQVHVORZO\DQGJHQWO\ZLWKZDWHUIRUPLQXWHV x 5HPRYHFRQWDFWOHQVHVLISUHVHQWDIWHUWKHILUVWPLQXWHVWKHQFRQWLQXH ULQVLQJH\H x &DOODSRLVRQFRQWUROFHQWHURUGRFWRUIRUWUHDWPHQWDGYLFH ,IRQVNLQRU FORWKLQJ x 7DNHRIIFRQWDPLQDWHGFORWKLQJ x 5LQVHVNLQLPPHGLDWHO\ZLWKSOHQW\RIZDWHUIRUPLQXWHV x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x 3URWHFWLYHH\HZHDUVDIHW\JODVVHVJRJJOHV x /RQJVOHHYHGVKLUWDQGORQJSDQWV x &KHPLFDOUHVLVWDQWJORYHVPDGHRIEDUULHUODPLQDWHRU9LWRQPLOV x 6KRHVSOXVVRFNV )ROORZPDQXIDFWXUHU¶VLQVWUXFWLRQVIRUFOHDQLQJPDLQWDLQLQJ33(,IQRVXFKLQVWUXFWLRQVIRU ZDVKDEOHVXVHGHWHUJHQWDQGKRWZDWHU.HHSDQGZDVK33(VHSDUDWHO\IURPRWKHUODXQGU\ 8VHU6DIHW\5HFRPPHQGDWLRQV 8VHUVVKRXOG x 5HPRYHFORWKLQJ33(LPPHGLDWHO\LISHVWLFLGHJHWVLQVLGH7KHQZDVKWKRURXJKO\DQG SXWRQFOHDQFORWKLQJ x 5HPRYH33(LPPHGLDWHO\DIWHUKDQGOLQJWKLVSURGXFW:DVKWKHRXWVLGHRIJORYHV EHIRUHUHPRYLQJ$VVRRQDVSRVVLEOHZDVKWKRURXJKO\DQGFKDQJHLQWRFOHDQFORWKLQJ (QJLQHHULQJ &RQWUROV :KHQKDQGOHUVXVHFORVHGV\VWHPVRUHQFORVHGFDEVLQDPDQQHUWKDWPHHWVWKHUHTXLUHPHQWV OLVWHGLQWKH:RUNHU3URWHFWLRQ6WDQGDUG:36IRUDJULFXOWXUDOSHVWLFLGHV>&)5GH@ WKHKDQGOHU33(UHTXLUHPHQWVPD\EHUHGXFHGRUPRGLILHGDVVSHFLILHGLQWKH:36
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
)LOHQDPH+0$+HUELFLGH67. 3+<6,&$/$1' &+(0,&$/+$=$5'6 'RQRWXVHRUVWRUHQHDUKHDWRURSHQIODPH'RQRWPL[RUDOORZWRFRPHLQFRQWDFWZLWKR[LGL]LQJ DJHQWV+D]DUGRXVFKHPLFDOUHDFWLRQPD\RFFXU ',5(&7,216)2586( ,WLVDYLRODWLRQRI)HGHUDOODZWRXVHWKLVSURGXFWLQDPDQQHULQFRQVLVWHQWZLWKLWVODEHOLQJ 'RQRWDSSO\WKLVSURGXFWLQDZD\WKDWZLOOFRQWDFWZRUNHUVRURWKHUSHUVRQVHLWKHUGLUHFWO\RU WKURXJKGULIW2QO\SURWHFWHGKDQGOHUVPD\EHLQWKHDUHDGXULQJDSSOLFDWLRQ)RUDQ\UHTXLUHPHQWV VSHFLILFWR\RXU6WDWHRU7ULEHFRQVXOWWKHDJHQF\UHVSRQVLEOHIRUSHVWLFLGHUHJXODWLRQ (QGDQJHUHG6SHFLHV3URWHFWLRQ5HTXLUHPHQWV ,WLVD)HGHUDORIIHQVHWRXVHDQ\SHVWLFLGHLQDPDQQHUWKDWUHVXOWVLQDQXQDXWKRUL]HG³WDNH´HJ NLOORURWKHUZLVHKDUPRIDQHQGDQJHUHGVSHFLHVDQGFHUWDLQWKUHDWHQHGVSHFLHVXQGHUWKH (QGDQJHUHG6SHFLHV$FWVHFWLRQ:KHQXVLQJWKLVSURGXFW\RXPXVWIROORZWKHPHDVXUHV FRQWDLQHGLQWKH(QGDQJHUHG6SHFLHV3URWHFWLRQ%XOOHWLQIRUWKHDUHDLQZKLFK\RXDUHDSSO\LQJWKH SURGXFW<RXPXVWREWDLQD%XOOHWLQQRHDUOLHUWKDQVL[PRQWKVEHIRUHXVLQJWKLVSURGXFW7RREWDLQ %XOOHWLQVFRQVXOWKWWSZZZHSDJRYHVSSFDOORUHPDLO(633#HSDJRY<RX PXVWXVHWKH%XOOHWLQYDOLGIRUWKHPRQWKLQZKLFK\RXZLOODSSO\WKHSURGXFW $5,&8/785$/86(5(48,5(0(176 8VHWKLVSURGXFWRQO\LQDFFRUGDQFHZLWKLWVODEHOLQJDQGZLWKWKH:RUNHU3URWHFWLRQ6WDQGDUG &)5SDUW7KLV6WDQGDUGFRQWDLQVUHTXLUHPHQWVIRUWKHSURWHFWLRQRIDJULFXOWXUDOZRUNHUVRQ IDUPVIRUHVWVQXUVHULHVDQGJUHHQKRXVHVDQGKDQGOHUVRIDJULFXOWXUDOSHVWLFLGHV,WFRQWDLQV UHTXLUHPHQWVIRUWUDLQLQJGHFRQWDPLQDWLRQQRWLILFDWLRQDQGHPHUJHQF\DVVLVWDQFH,WDOVR FRQWDLQVVSHFLILFLQVWUXFWLRQVDQGH[FHSWLRQVSHUWDLQLQJWRWKHVWDWHPHQWVRQWKLVODEHODERXW SHUVRQDOSURWHFWLYHHTXLSPHQW33(DQGUHVWULFWHGHQWU\LQWHUYDO7KHUHTXLUHPHQWVLQWKLVER[ RQO\DSSO\WRXVHVRIWKLVSURGXFWWKDWDUHFRYHUHGE\WKH:RUNHU3URWHFWLRQ6WDQGDUG 'RQRWHQWHURUDOORZZRUNHUHQWU\LQWRWUHDWHGDUHDVGXULQJWKHUHVWULFWHGHQWU\LQWHUYDO5(,RI KRXUV )RUHDUO\HQWU\WRWUHDWHGDUHDVWKDWLVSHUPLWWHGXQGHUWKH:RUNHU3URWHFWLRQ6WDQGDUGDQGWKDW LQYROYHVFRQWDFWZLWKDQ\WKLQJWKDWKDVEHHQWUHDWHGVXFKDVSODQWVVRLODQGZDWHUZHDU x 3URWHFWLYHH\HZHDUVDIHW\JODVVHVJRJJOHV x &RYHUDOOV x &KHPLFDOUHVLVWDQWJORYHVPDGHRIEDUULHUODPLQDWHRU9LWRQPLOV x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ò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x 5RWDWHWKHXVHRI+0$+HUELFLGHRURWKHUURXSDQGKHUELFLGHVZLWKLQD JURZLQJVHDVRQVHTXHQFHRUDPRQJJURZLQJVHDVRQVZLWKGLIIHUHQWKHUELFLGHJURXSVWKDW FRQWUROWKHVDPHZHHGVLQDILHOG x 8VHWDQNPL[WXUHVZLWKKHUELFLGHVIURPDGLIIHUHQWJURXSLIVXFKXVHLVSHUPLWWHGZKHUH LQIRUPDWLRQRQUHVLVWDQFHLQWDUJHWZHHGVSHFLHVLVDYDLODEOHXVHWKHOHVVUHVLVWDQFHSURQH SDUWQHUDWDUDWHWKDWZLOOFRQWUROWKHWDUJHWZHHGVHTXDOO\DVZHOODVWKHPRUHUHVLVWDQFH SURQHSDUWQHU&RQVXOW\RXUORFDOH[WHQVLRQVHUYLFHRUFHUWLILHGFURSDGYLVRULI\RXDUH XQVXUHDVWRZKLFKDFWLYHLQJUHGLHQWLVFXUUHQWO\OHVVSURQHWRUHVLVWDQFH x ,GHQWLI\ZHHGVSUHVHQWLQWKHILHOGWKURXJKVFRXWLQJDQGILHOGKLVWRU\DQGXQGHUVWDQGWKHLU ELRORJ\7KHZHHGFRQWUROSURJUDPVKRXOGFRQVLGHUDOORIWKHZHHGVSUHVHQW x 'LIILFXOWWRFRQWUROZHHGVPD\UHTXLUHVHTXHQWLDODSSOLFDWLRQVRIKHUELFLGHVZLWKGLIIHULQJ PHFKDQLVPVRIDFWLRQ x $GRSWDQLQWHJUDWHGZHHGPDQDJHPHQWSURJUDPIRUKHUELFLGHXVHWKDWLQFOXGHVVFRXWLQJ DQGXVHVKLVWRULFDOLQIRUPDWLRQUHODWHGWRKHUELFLGHXVHDQGFURSURWDWLRQDQGWKDW FRQVLGHUVWLOODJHRURWKHUPHFKDQLFDOFRQWUROPHWKRGVFXOWXUDOHJKLJKHUFURSVHHGLQJ UDWHVSUHFLVLRQIHUWLOL]HUDSSOLFDWLRQPHWKRGDQGWLPLQJWRIDYRUWKHFURSDQGQRWWKH ZHHGVELRORJLFDOZHHGFRPSHWLWLYHFURSVRUYDULHWLHVDQGRWKHUPDQDJHPHQWSUDFWLFHV x 3ODQWLQWRZHHGIUHHILHOGVDQGNHHSILHOGVDVZHHGIUHHDVSRVVLEOH x 3UHYHQWDQLQIOX[RIZHHGVLQWRWKHILHOGE\PDQDJLQJILHOGERUGHUV
)LOHQDPH+0$+HUELFLGH67. x )LHOGVVKRXOGEHVFRXWHGSULRUWRDSSOLFDWLRQWRLGHQWLI\WKHZHHGVSHFLHVSUHVHQWDQGWKHLU JURZWKVWDJHWRGHWHUPLQHLIWKHLQWHQGHGDSSOLFDWLRQZLOOEHHIIHFWLYH x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x 7RWKHH[WHQWSRVVLEOHGRQRWDOORZZHHGHVFDSHVWRSURGXFHVHHGVURRWVRUWXEHUV 0DQDJHZHHGVHHGVDWKDUYHVWDQGSRVWKDUYHVWWRSUHYHQWDEXLOGXSRIWKHZHHG VHHGEDQN x ,IDZHHGSHVWSRSXODWLRQFRQWLQXHVWRSURJUHVVDIWHUWUHDWPHQWZLWKWKLVSURGXFW GLVFRQWLQXHXVHRIWKLVSURGXFWDQGVZLWFKWRDQRWKHUPDQDJHPHQWVWUDWHJ\RUKHUELFLGH ZLWKDGLIIHUHQWPRGHRIDFWLRQLIDYDLODEOHDQGRUXVHQRQFKHPLFDOPHDQVWRUHPRYH HVFDSHVDVSUDFWLFDOZLWKWKHJRDORISUHYHQWLQJIXUWKHUVHHGSURGXFWLRQ x &RQWDFW\RXUORFDOH[WHQVLRQVSHFLDOLVWRUFHUWLILHGFURSDGYLVRUVIRUDGGLWLRQDOSHVWLFLGH UHVLVWDQFHPDQDJHPHQWDQGRULQWHJUDWHGZHHGPDQDJHPHQWUHFRPPHQGDWLRQVIRU VSHFLILFFURSVDQGZHHGELRW\SHV x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x 8VHUPXVWRQO\DSSO\ZLWKWKHUHOHDVHKHLJKWUHFRPPHQGHGE\WKHPDQXIDFWXUHUEXWQR PRUHWKDQIHHWDERYHWKHJURXQGRUFURSFDQRS\ x $SSOLFDWRUVDUHUHTXLUHGWRVHOHFWWKHQR]]OHDQGSUHVVXUHWKDWGHOLYHUPHGLXPRUFRDUVH GURSOHWV$6$%(6 x 'RQRWDSSO\ZKHQZLQGVSHHGVH[FHHGPLOHVSHUKRXUDWWKHDSSOLFDWLRQVLWH x 'RQRWDSSO\GXULQJWHPSHUDWXUHLQYHUVLRQV %RRPOHVVURXQG$SSOLFDWLRQV x $SSOLFDWRUVDUHUHTXLUHGWRVHOHFWWKHQR]]OHDQGSUHVVXUHWKDWGHOLYHUDPHGLXPRU FRDUVHUGURSOHWVL]H$6$%(6IRUDOODSSOLFDWLRQV x 'RQRWDSSO\ZKHQZLQGVSHHGVH[FHHGPLOHVSHUKRXUDWWKHDSSOLFDWLRQVLWH x 'RQRWDSSO\GXULQJWHPSHUDWXUHLQYHUVLRQV 6SUD\'ULIW$GYLVRULHV 7+($33/,&$725,65(63216,%/()25$92,',12))6,7(635$<'5,)7%($:$5(2) 1($5%<1217$5*(76,7(6$1'(19,5210(17$/&21',7,216 ,03257$1&(2)'523/(76,=( $QHIIHFWLYHZD\WRUHGXFHVSUD\GULIWLVWRDSSO\ODUJHGURSOHWV8VHWKHODUJHVWGURSOHWVWKDW SURYLGHWDUJHWSHVWFRQWURO:KLOHDSSO\LQJODUJHUGURSOHWVZLOOUHGXFHVSUD\GULIWWKHSRWHQWLDOIRU GULIWZLOOEHJUHDWHULIDSSOLFDWLRQVDUHPDGHLPSURSHUO\RUXQGHUXQIDYRUDEOHHQYLURQPHQWDO FRQGLWLRQV &RQWUROOLQJ'URSOHW6L]H±*URXQG%RRP 9ROXPH,QFUHDVLQJWKHVSUD\YROXPHVRWKDWODUJHUGURSOHWVDUHSURGXFHGZLOOUHGXFHVSUD\GULIW 8VHWKHKLJKHVWSUDFWLFDOVSUD\YROXPHIRUWKHDSSOLFDWLRQ,IDJUHDWHUVSUD\YROXPHLVQHHGHG FRQVLGHUXVLQJDQR]]OHZLWKDKLJKHUIORZUDWH 3UHVVXUH8VHWKHORZHVWVSUD\SUHVVXUHUHFRPPHQGHGIRUWKHQR]]OHWRSURGXFHWKHWDUJHWVSUD\ YROXPHDQGGURSOHWVL]H
)LOHQDPH+0$+HUELFLGH67. 6SUD\1R]]OH8VHDVSUD\QR]]OHWKDWLVGHVLJQHGIRUWKHLQWHQGHGDSSOLFDWLRQ&RQVLGHUXVLQJ QR]]OHVGHVLJQHGWRUHGXFHGULIW %220+(,+7±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´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
)LOHQDPH+0$+HUELFLGH67. WRPDLQWDLQDXQLIRUPPL[WXUHGXULQJDSSOLFDWLRQ8VHRQO\FOHDQZDWHUDVWKHFDUULHUZKHQDSSO\LQJ +0$+HUELFLGHDIWHUFURSHPHUJHQFH 7KHVSUD\WDQNPXVWEHFOHDQWKRURXJKO\ULQVHGDQGGHFRQWDPLQDWHGEHIRUHDGGLQJHLWKHU+0 $+HUELFLGHDORQHRUZLWKWDQNPL[SDUWQHUV,IZDWHULVXVHGDVWKHFDUULHUXVHFOHDQZDWHU +0$+HUELFLGHPD\EHWDQNPL[HGZLWKRWKHUKHUELFLGHVUHJLVWHUHGIRUZHHGFRQWUROLQ ILHOGFRUQVZHHWFRUQDQGSRSFRUQ5HDGDQGIROORZDOOODEHOGLUHFWLRQVIRUHDFKSURGXFW,WLVWKH SHVWLFLGHXVHU¶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
)LOHQDPH+0$+HUELFLGH67. &RPSDWLELOLW\ 7HVW3URFHGXUH $GGSWRIFDUULHUIHUWLOL]HURUZDWHUWRHDFKRIWZRTWMDUVZLWKWLJKWOLGV8VHWKH VDPHVRXUFHRIZDWHUWKDWZLOOEHXVHGIRUWKHWDQNPL[DQGFRQGXFWWKHWHVWDWWKH WHPSHUDWXUHWKHWDQNPL[ZLOOEHDSSOLHG 7RRQHRIWKHMDUVDGGóWVSRUPLOOLOLWHUVRIDFRPSDWLELOLW\DJHQWDSSURYHGIRUWKLVXVH ó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
)LOHQDPH+0$+HUELFLGH67. 7DEOH :HHGV &RQWUROOHGRU 3DUWLDOO\&RQWUROOHGE\3UHHPHUJHQFH $SSOLFDWLRQVRI+0$+HUELFLGHFRQWLQXHG &RPPRQ1DPH 6FLHQWLILF1DPH & &RQWURO 3& 3DUWLDO&RQWURO 3LJZHHGUHGURRW $PDUDQWKXVUHWURIOH[XV & 3LJZHHGVPRRWK $PDUDQWKXVK\EULGXV & 3XUVODQHFRPPRQ 3RUWXODFDROHUDFHD & 3XVOH\)ORULGD 5LFKDUGLDVFDEUD & 5DJZHHGFRPPRQ $PEURVLDDUWHPLVLLIROLD 3& 5DJZHHGJLDQW $PEURVLDWULILGD 3& 5LFHUHG 2U]DVDWLYD & 6DQGEXUILHOG &HQFKUXVLQFHUWXV 3& 6KDWWHUFDQH 6RUJKXPELFRORU 3& 6LGDSULFNO\ 6LGDVSLQRVD 3& 6LJQDOJUDVVEURDGOHDI %UDFKLDULDSODW\SK\OOD 3& 6PDUWZHHG ODG\VWKXPE 3RO\JRQXPSHUVLFDULD & 6PDUWZHHG 3HQQV\OYDQLD 3RO\JRQXP SHQV\OYDQLFXP & 6SUDQJOHWRSUHG /HSWRFKORD ILOLIRUPLV & 9HOYHWOHDI $EXWLORQWKHRSKUDVWL & :DWHUKHPSFRPPRQ $PDUDQWKXVUXGLV & :DWHUKHPSWDOO $PDUDQWKXV WXEHUFXODWXV & :LWFKJUDVV 3DQLFXPFDSLOODUH &
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¶VFURSURWDWLRQLQWHUYDO 7DEOH &URS5RWDWLRQDO ,QWHUYDOV &URS 5RWDWLRQDO,QWHUYDO $OOFRUQW\SHV $Q\WLPH %DUOH\RDWVU\HZKHDW PRQWKV UDLQVRUJKXPFRWWRQSHDQXWVSRWDWRHVDQG VR\EHDQV PRQWKV $OORWKHUURWDWLRQDOFURSV PRQWKV 7LPHEHWZHHQ+0$+HUELFLGHDSSOLFDWLRQDQGUHSODQWLQJRIWKHURWDWLRQDOFURS UDLQVRUJKXPPXVWEHVHHGWUHDWHGZLWKDVDIHQHUWRWROHUDWH6PHWRODFKORU
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
)LOHQDPH+0$+HUELFLGH67. 7DEOH +0$+HUELFLGH 8VH5DWHV LQ&RUQ +0$+HUELFLGH8VH5DWH TW$ OEV6PHWRODFKORU$ OEWROS\UDODWH$ 7DQN0L[&RPELQDWLRQV 3UHHPHUJHQFH$SSOLHG%HIRUH WKH &URSKDV(PHUJHG 7DQNPL[SDUWQHUVOLVWHGLQ7DEOHPD\EHXVHGLQFRQYHQWLRQDOUHGXFHGRUQRWLOOV\VWHPVDQGEH DSSOLHGE\WKHVDPHPHWKRGVDQGDWWKHVDPHWLPLQJVDV+0$+HUELFLGHXQOHVVRWKHUZLVH VSHFLILHGLQWKHWDQNPL[SURGXFWODEHO,WLVWKHSHVWLFLGHXVHU¶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³+0$+HUELFLGH3URJUDPVLQ *OXIRVLQDWH5HVLVWDQW&RUQ´VHFWLRQRIWKLVODEHO 1RUWK6WDUGLFDPEDVRGLXP VDOWDQGSULPLVXOIXURQPHWK\O (3$5HJ1R ,PSURYHGEURDGOHDIDQGJUDVVZHHGFRQWURO 3HDNSURVXOIXURQ(3$5HJ 1R ,PSURYHGEURDGOHDIDQGJUDVVZHHGFRQWURO 5HVROYH4WKLIHQVXOIXURQDQG ULPVXOIXURQ(3$5HJ1R (PHUJHGJUDVVFRQWURO
)LOHQDPH+0$+HUELFLGH67. O\SKRVDWH%UDQGV 6HHLQVWUXFWLRQVXQGHU³+0$+HUELFLGH3URJUDPVLQ O\SKRVDWH5HVLVWDQW&RUQ´VHFWLRQRIWKLVODEHO 6SLULWSULPVXOIXURQPHWK\O DQGSURVXOIXURQ(3$5HJ1R ,PSURYHGEURDGOHDIDQGJUDVVZHHGFRQWURO 6WDWXVGLIOXIHQ]RS\UVRGLXP DQGGLFDPEDVRGLXPVDOW(3$ 5HJ1R (PHUJHGEURDGOHDIZHHGFRQWURO(PHUJHGJUDVVFRQWURO 6WHDGIDVW4QLFRVXOIXURQDQG ULPVXOIXURQ(3$5HJ1R (PHUJHGJUDVVFRQWURO 6XOWUXVEHWDF\IOXWKULQ(3$ 5HJ1RRU:DUULRU ,,ZLWK=HRQ7HFKQRORJ\ 7RFRQWUROLQVHFWVVXFKDVFXWZRUP 5HIHUWRWDQNPL[SURGXFWODEHOIRUXVHUDWHV &RQVXOWWKH³$GGLWLYHV´VHFWLRQRIWKLVODEHOIRUUHFRPPHQGDWLRQVZKHQDSSO\LQJ+0$+HUELFLGHLQWDQN PL[WXUHWRHPHUJHGILHOGFRUQ +0$+HUELFLGH 3URJUDPV LQO\SKRVDWH 5HVLVWDQW &RUQ +0$+HUELFLGHPD\EHDSSOLHGHDUO\SRVWHPHUJHQFHDWTW$OEV6PHWRODFKORU$ OEWROS\UDODWH$LQWDQNPL[WXUHZLWKDVRORJO\SKRVDWHSURGXFWHJ7RXFKGRZQRU 5RXQGXSEUDQGVWKDWLVUHJLVWHUHGIRUXVHRYHUWKHWRSLQJO\SKRVDWHUHVLVWDQWILHOGFRUQHJ 5RXQGXS5HDG\RU$JULVXUH7&RUQ7RPLQLPL]HZHHGFRPSHWLWLRQZLWKWKHFURSWDUJHWWKH DSSOLFDWLRQRIWKLVPL[WXUHWRZHHGVLQWKHWRLQFKUDQJH,IWKHJO\SKRVDWHSURGXFWKDVDEXLOWLQ DGMXYDQWV\VWHPLHWKHSURGXFWODEHOGRHVQRWDVNIRUDGGLWLRQDODGMXYDQWRQO\VSUD\JUDGH DPPRQLXPVXOIDWH$06DWOEVJDOVKRXOGEHDGGHGWRWKLVPL[WXUH,IWKHJO\SKRVDWH SURGXFWODEHOFDOOVIRUDQDGMXYDQWLQDGGLWLRQWR$06DGGDQRQLRQLFVXUIDFWDQW1,6DWYY DQG$06WRWKLVVSUD\PL[WXUH'RQRWDGGXUHDDPPRQLXPQLWUDWH8$1FURSRLOFRQFHQWUDWH &2&RUPHWK\ODWHGVHHGRLO062W\SHDGMXYDQWVWRWKHVHPL[WXUHVRUFURSLQMXU\PD\RFFXU )ROORZDOOGLUHFWLRQVIRUXVHDQGUHVWULFWLRQVRQWKHJO\SKRVDWHSURGXFWODEHO $OWHUQDWLYHO\+0$+HUELFLGHPD\EHDSSOLHGSUHHPHUJHQFHDWTW$OEV6 PHWRODFKORU$OEWROS\UDODWH$DVSDUWRIDWZRSDVVZHHGFRQWUROV\VWHPZKHQIROORZHGE\ DSRVWHPHUJHQFHDSSOLFDWLRQRIDJO\SKRVDWHEDVHGSURGXFWLQJO\SKRVDWHUHVLVWDQWFRUQHJ 5RXQGXS5HDG\RU$JULVXUH7&RUQ:KHQXVHGLQWKLVZD\+0$+HUELFLGHZLOOSURYLGH UHGXFHGFRPSHWLWLRQRIWKHZHHGVOLVWHGLQ7DEOHIRUDSHULRGRIRUPRUHGD\VWKXVLPSURYLQJ WKHWLPLQJIOH[LELOLW\DQGHIIHFWLYHQHVVRIWKHJO\SKRVDWHEDVHGSURGXFWDSSOLFDWLRQ)ROORZDOO GLUHFWLRQVIRUXVHDQGUHVWULFWLRQVRQWKHJO\SKRVDWHSURGXFWODEHO +0$+HUELFLGHPD\EHDSSOLHGSUHHPHUJHQFHDWTW$OEV6 PHWRODFKORU$OEWROS\UDODWH$DVSDUWRIDWZRSDVVZHHGFRQWUROV\VWHPZKHQ IROORZHGE\+DOH[76PHWRODFKORUPHVRWULRQHDQGJO\SKRVDWH(3$5HJ1RLQ JO\SKRVDWHUHVLVWDQWFRUQHJ5RXQGXS5HDG\RU$JULVXUH*7&RUQ$SSO\+0$ +HUELFLGHDWTW$OEV6PHWRODFKORU$OEWROS\UDODWH$RQVRLOVZLWK20DQG TW$OEV6PHWRODFKORU$OEWROS\UDODWH$RQVRLOVZLWK!20)ROORZDOO GLUHFWLRQVIRUXVHDQGUHVWULFWLRQVRQHDFKSURGXFWODEHO +0$+HUELFLGH 3URJUDPV LQ *OXIRVLQDWH5HVLVWDQW&RUQ +0$+HUELFLGHPD\EHDSSOLHGHDUO\SRVWHPHUJHQFHDWTW$OEV6PHWRODFKORU$ OEWROS\UDODWH$LQWDQNPL[WXUHZLWKJOXIRVLQDWHDQGDSSOLHGRYHUWKHWRSLQILHOGFRUQ GHVLJQDWHGDVJOXIRVLQDWHUHVLVWDQW7RPLQLPL]HZHHGFRPSHWLWLRQZLWKWKHFURSWDUJHWWKH DSSOLFDWLRQRIWKLVPL[WXUHWRZHHGVLQWKHWRLQFKUDQJH$PPRQLXPVXOIDWH$06PD\EH DGGHGDVDVSUD\DGMXYDQWDVGLUHFWHGRQWKHJOXIRVLQDWHODEHO+RZHYHU$06VKRXOGEHWKHRQO\ DGMXYDQWDGGHGWRWKLVWDQNPL[WXUH'RQRWDGGXUHDDPPRQLXPQLWUDWH8$1FURSRLOFRQFHQWUDWH &2&QRQLRQLFVXUIDFWDQWV1,6RUPHWK\ODWHGVHHGRLO062W\SHDGMXYDQWVWRWKHVHPL[WXUHV RUFURSLQMXU\PD\RFFXU)ROORZDOOGLUHFWLRQVIRUXVHDQGUHVWULFWLRQVRQWKHJOXIRVLQDWHSURGXFW ODEHO
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óIXOOZLWKZDWHUDQGUHFDS6KDNHIRUVHFRQGV3RXUULQVDWH LQWRDSSOLFDWLRQHTXLSPHQWRUDPL[WDQNRUVWRUHULQVDWHIRUODWHUXVHDQGGLVSRVDO'UDLQIRU VHFRQGVDIWHUWKHIORZEHJLQVWRGULS5HSHDWWKLVSURFHGXUHWZRPRUHWLPHV7KHQRIIHUIRU UHF\FOLQJLIDYDLODEOHRUSXQFWXUHDQGGLVSRVHRILQDVDQLWDU\ODQGILOORUE\LQFLQHUDWLRQ &RQWDLQHU+DQGOLQJ>JUHDWHUWKDQJDOORQ@ 5HILOODEOHFRQWDLQHU5HILOOWKLVFRQWDLQHUZLWKSHVWLFLGHRQO\'RQRWUHXVHWKLVFRQWDLQHUIRUDQ\ RWKHUSXUSRVH&OHDQLQJWKHFRQWDLQHUEHIRUHILQDOGLVSRVDOLVWKHUHVSRQVLELOLW\RIWKHSHUVRQ GLVSRVLQJRIWKHFRQWDLQHU&OHDQLQJEHIRUHUHILOOLQJLVWKHUHVSRQVLELOLW\RIWKHSHUVRQUHILOOLQJ7R FOHDQFRQWDLQHUEHIRUHILQDOGLVSRVDOHPSW\WKHUHPDLQLQJFRQWHQWVIURPWKLVFRQWDLQHULQWR DSSOLFDWLRQHTXLSPHQWRUPL[WDQN)LOOWKHFRQWDLQHUDERXWSHUFHQWIXOOZLWKZDWHU$JLWDWH YLJRURXVO\RUUHFLUFXODWHZDWHUZLWKWKHSXPSIRUPLQXWHV3RXURUSXPSULQVDWHLQWRDSSOLFDWLRQ HTXLSPHQWRUULQVDWHFROOHFWLRQV\VWHP5HSHDWWKLVULQVLQJSURFHGXUHWZRPRUHWLPHV7KHQRIIHU IRUUHF\FOLQJLIDYDLODEOHRUSXQFWXUHDQGGLVSRVHRILQDVDQLWDU\ODQGILOORUE\LQFLQHUDWLRQRUE\ RWKHUSURFHGXUHVDSSURYHGE\VWDWHDQGORFDODXWKRULWLHV '212786(&217$,1(56)257+(6725$(2))22')(('25'5,1.,1*:$7(5
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¶VHOHFWLRQRQHRIWKHIROORZLQJ 5HIXQGRIWKHSXUFKDVHSULFHSDLGE\EX\HURUXVHUIRUSURGXFWERXJKWRU 5HSODFHPHQWRIWKHSURGXFWXVHG 7RWKHH[WHQWFRQVLVWHQWZLWKDSSOLFDEOHODZWKH&RPSDQ\VKDOOQRWEHOLDEOHDQGDQ\DQGDOOFODLPV DJDLQVWWKH&RPSDQ\DUHZDLYHGIRUVSHFLDOLQGLUHFWLQFLGHQWDORUFRQVHTXHQWLDOGDPDJHVRU H[SHQVHRIDQ\QDWXUHLQFOXGLQJEXWQRWOLPLWHGWRORVVRISURILWVRULQFRPH7KH&RPSDQ\DQGWKH VHOOHURIIHUWKLVSURGXFWDQGWKHEX\HUDQGXVHUDFFHSWLWVXEMHFWWRWKHIRUHJRLQJFRQGLWLRQVRIVDOH DQGOLPLWDWLRQRIZDUUDQW\OLDELOLW\DQGUHPHGLHV $JULVXUH7+DOH[71RUWK6WDU 3HDN6SLULW7RXFKGRZQ:DUULRU,,ZLWK=HRQ7HFKQRORJ\WKH $//,$1&()5$0(WKH6<1*(17$/RJRDQGWKH385326( ,&21DUH7UDGHPDUNVR I D6\QJHQWD *URXS &RPSDQ\ $FFHQW4 %DVLV5HVROYH46WHDGIDVW4DQG9LWRQWUDGHPDUNVRI (,GX3RQWGH1HPRXUV DQG &RPSDQ\ 6WDWXVWUDGHPDUNRI%$6)&RUSRUDWLRQ5RXQGXSWUDGHPDUNRI0RQVDQWR &RPSDQ\ 6XOWUXVDQG+0$+HUELFLGHWUDGHPDUNVRI+HOHQD+ROGLQJ&RPSDQ\