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>
144 KiB
TRIFLURALIN 4 E.C.
- EPA Reg No: 5905-519
- Registrant: HELENA AGRI-ENTERPRISES, LLC, D/B/A HELENA CHEMICAL COMP
- Signal word: Warning
- Active ingredients: Trifluralin (43%)
- Label accepted: 2022-04-07
- Source PDF: https://www3.epa.gov/pesticides/chem_search/ppls/005905-00519-20220407.pdf
UNITED STATES ENVIRONMENTAL PROTECTION AGENCY WASHINGTON, DC 20460
OFFICE OF CHEMICAL SAFETY AND POLLUTION PREVENTION
April 7, 2022
Bill Washburn Registration Manager Helena Agri-Enterprises, LLC 225 Schilling Blvd., Suite 300 Collierville, TN 38017
Subject: Registration Review Label Mitigation for Trifluralin Product Name: TRIFLURALIN 4 E.C. EPA Registration Number: 5905-519 Application Date: April 1, 2020 Decision Number: 561260
Dear Mr. Washburn:
The Agency, in accordance with the Federal Insecticide, Fungicide and Rodenticide Act (FIFRA), as amended, has completed reviewing all the information submitted with your application to support the Registration Review of the above referenced product in connection with the Trifluralin Interim Decision, and has concluded that your submission is acceptable. The label referred to above, submitted in connection with registration under FIFRA, as amended, is acceptable.
Should 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 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) list 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.
A stamped copy of your labeling is enclosed for your records. This labeling supersedes all previously accepted labeling. You must submit one copy of the final printed labeling before you release the product for shipment with the new labeling. In accordance with 40 CFR 152.130(c), you may distribute or sell this product under the previously approved labeling for 12 months from the date of this letter. After 12 months, you may only distribute or sell this product if it bears this new revised labeling or subsequently approved labeling. “To distribute or sell” is defined under FIFRA section 2(gg) and its implementing regulation at 40 CFR 152.3.
Page 2 of 2 EPA Reg. No. 5905-519 Decision No. 561260
If you have any questions about this letter, please contact DeMariah Koger by phone at (202)- 566-2288, or via email at koger.demariah@epa.gov .
S i n c e r e l y ,
Linda Arrington, Branch Chief Risk Management and Implementation Branch 4 Pesticide Re-Evaluation Division Office of Pesticide Programs
Enclosure
)LOHQDPH7ULIOXUDOLQ(&&/1GRF 7ULIOXUDOLQ URXS+HUELFLGH $VHOHFWLYHKHUELFLGHIRUWKHSUHHPHUJHQFHFRQWURORIOLVWHGDQQXDOJUDVVHVDQGEURDGOHDIZHHGV $&7,9(,15(',(17 7ULIOXUDOLQDDDWULIOXRURGLQLWUR11GLSURS\OSWROXLGLQH«««««««««««««««««« 27+(5,15(',(176«««« 727$/ 2QHJDOORQFRQWDLQVSRXQGVRIWULIOXUDOLQ &RQWDLQVSHWUROHXPGLVWLOODWHV .((32872)5($&+2)&+,/'5(1 :$51,1$9,62 6LXVWHGQRHQWLHQGHODHWLTXHWDEXVTXHDDOJXLHQSDUDTXHVHODH[SOLTXHDXVWHGHQGHWDOOH ,I\RXGRQRWXQGHUVWDQGWKHODEHOILQGVRPHRQHWRH[SODLQLWWR\RXLQGHWDLO ),567$,' ,),1(<(6x +ROGH\HRSHQDQGULQVHVORZO\DQGJHQWO\ZLWKZDWHUIRUPLQXWHV x 5HPRYHFRQWDFWOHQVHVLISUHVHQWDIWHUWKHILUVWPLQXWHVWKHQFRQWLQXHULQVLQJH\H x &DOODSRLVRQFRQWUROFHQWHURUGRFWRUIRUWUHDWPHQWDGYLFH ,)6:$//2:('x &DOODSRLVRQFRQWUROFHQWHURUGRFWRULPPHGLDWHO\IRUWUHDWPHQWDGYLFH x 'RQRWJLYHDQ\OLTXLGWRDSHUVRQ x 'RQRWLQGXFHYRPLWLQJXQOHVVWROGWRGRVRE\WKHSRLVRQFRQWUROFHQWHURUGRFWRU x 'RQRWJLYHDQ\WKLQJE\PRXWKWRDQXQFRQVFLRXVSHUVRQ ,)216.,12521 &/27+(6 x 7DNHRIIFRQWDPLQDWHGFORWKLQJ x 5LQVHVNLQLPPHGLDWHO\ZLWKSOHQW\RIZDWHUIRUPLQXWHV x &DOODSRLVRQFRQWUROFHQWHURUGRFWRUIRUWUHDWPHQWDGYLFH +27 /,1(180%(5 )RUDGGLWLRQDOLQIRUPDWLRQLQFDVHRIHPHUJHQF\FDOO+DYHWKHSURGXFWFRQWDLQHURUODEHOZLWK\RXZKHQFDOOLQJDSRLVRQFRQWURO FHQWHURUGRFWRURUJRLQJIRUWUHDWPHQW 127(723+<6,&,$13UREDEOHPXFRVDOGDPDJHPD\FRQWUDLQGLFDWHWKHXVHRIJDVWULFODYDJH&RQWDLQVSHWUROHXPGLVWLOODWH±YRPLWLQJPD\FDXVH DVSLUDWLRQSQHXPRQLD 6HH,QVLGH%RRNOHWIRU$GGLWLRQDO3UHFDXWLRQVDQG'LUHFWLRQV)RU8VH (3$5(12 1(7&217(176DOORQV/LWHUV (3$(6712)LUVWOHWWHUVRISURGXFWEDWFKFRGHLQGLFDWHSURGXFLQJHVWDEOLVKPHQW *$ &*Ɣ$5 :$Ɣ,$ ',Ɣ&$ .& $' 0$18)$&785(')25 +(/(1$$5,(17(535,6(6//& 6&+,//,1%28/(9$5'68,7( &2//,(59,//(71 Apr 07, 2022 5095-519
)LOHQDPH7ULIOXUDOLQ(&&/1GRF 35(&$87,21$5<67$7(0(176 +$=$5'672+80$16$1''20(67,&$1,0$/6 :$51,1 &DXVHVVXEVWDQWLDOEXWWHPSRUDU\H\HLQMXU\+DUPIXOLIVZDOORZHGRUDEVRUEHGWKURXJKWKHVNLQ'RQRWJHWLQH\HVRURQFORWKLQJ$YRLGFRQWDFW ZLWKVNLQ:DVKKDQGVWKRURXJKO\ZLWKVRDSDQGZDWHUDIWHUKDQGOLQJDQGEHIRUHHDWLQJGULQNLQJFKHZLQJJXPXVLQJWREDFFRRUXVLQJWKHWRLOHW 3URORQJHGRUIUHTXHQWO\UHSHDWHGVNLQFRQWDFWPD\FDXVHDOOHUJLFUHDFWLRQVLQVRPHLQGLYLGXDOV 3(5621$/3527(&7,9((48,30(17 0L[HUVORDGHUVDQGDSSOLFDWRUVDQGDOORWKHUKDQGOHUVPXVWZHDU x /RQJVOHHYHGVKLUWDQGORQJSDQWV x 6RFNVDQGVKRHV x 3URWHFWLYHH\HZHDUVXFKDVJRJJOHVRUIDFHVKLHOGDQG x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
)LOHQDPH7ULIOXUDOLQ(&&/1GRF
33(UHTXLUHGIRUHDUO\HQWU\WRWUHDWHGDUHDVWKDWLVSHUPLWWHGXQGHUWKH:RUNHU3URWHFWLRQ6WDQGDUGDQGWKDWLQYROYHVFRQWDFWZLWKDQ\WKLQJWKDWKDV
EHHQWUHDWHGVXFKDVSODQWVVRLORUZDWHULV
FRYHUDOOV
FKHPLFDOUHVLVWDQWJORYHVPDGHRIDQ\ZDWHUSURRIPDWHULDO
SURWHFWLYHH\HZHDUVXFKDVJRJJOHVRUIDFHVKLHOG
VKRHVSOXVVRFNV
121$5,&8/785$/86(5(48,5(0(176
7KHUHTXLUHPHQWVLQWKLVER[DSSO\WRXVHVRIWKLVSURGXFWWKDWDUH127ZLWKLQWKHVFRSHRIWKH:RUNHU3URWHFWLRQ6WDQGDUGIRUDJULFXOWXUDOSHVWLFLGHV
&)53DUW7KH:36DSSOLHVZKHQWKLVSURGXFWLVXVHGWRSURGXFHDJULFXOWXUDOSODQWVRQIDUPVIRUHVWVQXUVHULHVRUJUHHQKRXVHV'RQRW
HQWHURUDOORZRWKHUVWRHQWHUWKHWUHDWHGDUHDXQWLOVSUD\VKDYHGULHG
6725$($1'',6326$/
'RQRWFRQWDPLQDWHZDWHUIRRGRUIHHGE\VWRUDJHRUGLVSRVDO
3(67,&,'(6725$(6WRUHLQRULJLQDOFRQWDLQHURQO\$YRLGIUHH]LQJ6WRUHDERYH),IIUR]HQSRRUZHHGFRQWUROPD\UHVXOW'RQRWVWRUHQHDU
KHDWRUIODPH,QFDVHRIOHDNRUVSLOOXVHDEVRUEHQWPDWHULDOVWRFRQWDLQOLTXLGVDQGGLVSRVHDVZDVWH
3(67,&,'(',6326$/:DVWHVUHVXOWLQJIURPWKHXVHRIWKLVSURGXFWPXVWEHGLVSRVHGRIRQVLWHRUDWDQDSSURYHGZDVWHGLVSRVDOIDFLOLW\
&217$,1(5+$1'/,1
1215(),//%/(&217,1(5(48$/7225/(667+$1*$//216'RQRWUHXVHRUUHILOOWKLVFRQWDLQHU7ULSOHULQVHFRQWDLQHURU
HTXLYDOHQWSURPSWO\DIWHUHPSW\LQJ7ULSOHULQVHDVIROORZV(PSW\WKHUHPDLQLQJFRQWHQWVLQWRDSSOLFDWLRQHTXLSPHQWRUDPL[WDQNDQGGUDLQIRU
VHFRQGVDIWHUWKHIORZEHJLQVWRGULS)LOOWKHFRQWDLQHUóIXOOZLWKZDWHUDQGUHFDS6KDNHIRUVHFRQGV3RXUULQVDWHLQWRDSSOLFDWLRQHTXLSPHQWRU
DPL[WDQNRUVWRUHULQVDWHIRUODWHUXVHRUGLVSRVDO'UDLQIRUVHFRQGVDIWHUWKHIORZEHJLQVWRGULS5HSHDWWKLVSURFHGXUHWZRPRUHWLPHV2IIHU
IRUUHF\FOLQJLIDYDLODEOHRUSXQFWXUHDQGGLVSRVHRILQDVDQLWDU\ODQGILOORULQFLQHUDWLRQRULIDOORZHGE\VWDWHDQGORFDODXWKRULWLHVE\EXUQLQJ,I
EXUQHGVWD\RXWRIVPRNH
1215(),//%/(&217,1(55($7(57+$1$//216'RQRWUHXVHRUUHILOOWKLVFRQWDLQHU7ULSOHULQVHFRQWDLQHURUHTXLYDOHQW
SURPSWO\DIWHUHPSW\LQJ7ULSOHULQVHDVIROORZV(PSW\WKHUHPDLQLQJFRQWHQWVLQWRDSSOLFDWLRQHTXLSPHQWRUDPL[WDQN)LOOWKHFRQWDLQHUóIXOOZLWK
ZDWHU5HSODFHDQGWLJKWHQFORVXUHV7LSFRQWDLQHURQLWVVLGHDQGUROOLWEDFNDQGIRUWKHQVXULQJDWOHDVWRQHFRPSOHWHUHYROXWLRQIRUVHFRQGV
6WDQGWKHFRQWDLQHURQLWVHQGDQGWLSLWEDFNDQGIRUWKVHYHUDOWLPHV7XUQWKHFRQWDLQHURYHURQWRLWVRWKHUHQGDQGWLSLWEDFNDQGIRUWKVHYHUDO
WLPHV(PSW\WKHULQVDWHLQWRDSSOLFDWLRQHTXLSPHQWRUDPL[WDQNRUVWRUHULQVDWHIRUODWHUXVHRUGLVSRVDO5HSHDWWKLVSURFHGXUHWZRPRUHWLPHV
2IIHUIRUUHF\FOLQJLIDYDLODEOHRUSXQFWXUHDQGGLVSRVHRILQDVDQLWDU\ODQGILOORULQFLQHUDWLRQRULIDOORZHGE\VWDWHDQGORFDODXWKRULWLHVE\EXUQLQJ
,IEXUQHGVWD\RXWRIVPRNH
5(),//%/(&217,1(55HILOOWKLVFRQWDLQHUZLWKSHVWLFLGHRQO\'RQRWUHXVHWKLVFRQWDLQHUIRUDQ\RWKHUSXUSRVH&OHDQLQJWKHFRQWDLQHU
EHIRUHILQDOGLVSRVDOLVWKHUHVSRQVLELOLW\RIWKHSHUVRQGLVSRVLQJRIWKHFRQWDLQHU&OHDQLQJEHIRUHUHILOOLQJLVWKHUHVSRQVLELOLW\RIWKHUHILOOHU7RFOHDQ
WKHFRQWDLQHUEHIRUHILQDOGLVSRVDOHPSW\WKHUHPDLQLQJFRQWHQWVIURPWKLVFRQWDLQHULQWRDSSOLFDWLRQHTXLSPHQWRUPL[WDQN)LOOWKHFRQWDLQHUDERXW
SHUFHQWIXOOZLWKZDWHU$JLWDWHYLJRURXVO\RUUHFLUFXODWHZDWHUZLWKWKHSXPSIRUPLQXWHV3RXURUSXPSULQVDWHLQWRDSSOLFDWLRQHTXLSPHQWRU
ULQVDWHFROOHFWLRQV\VWHP5HSHDWWKLVULQVLQJSURFHGXUHWZRPRUHWLPHV,IFRQWDLQHULVQRWEHLQJUHILOOHGUHWXUQWRSRLQWRISXUFKDVH
$33/,&$7,21%<&+(0,$7,21
75,)/85$/,1(&PD\EHDSSOLHGWKURXJKSURSHUO\HTXLSSHGFKHPLJDWLRQV\VWHPVIRUZHHGFRQWUROLQFHUWDLQFURSVDVVSHFLILHGLQ$SSURYHG
&URSVVHFWLRQRIWKLVODEHO5HDGDQGIROORZDOOODEHOLQVWUXFWLRQVRXWOLQHGEHORZFRQFHUQLQJFKHPLJDWLRQEHIRUHDSSO\LQJE\WKLVPHWKRG
&+(0,$7,21',5(&7,216
$SSO\WKLVSURGXFWRQO\WKURXJKFRQWLQXRXVO\PRYLQJFHQWHUSLYRWODWHUDOPRYHRUHQGWRZVSULQNOHULUULJDWLRQV\VWHPVHTXLSSHGIRUFKHPLJDWLRQ'R
QRWDSSO\WKLVSURGXFWWKURXJKDQ\RWKHUW\SHRILUULJDWLRQV\VWHP
&URSLQMXU\ODFNRIHIIHFWLYHQHVVRULOOHJDOSHVWLFLGHUHVLGXHVLQWKHFURSFDQUHVXOWIURPQRQXQLIRUPGLVWULEXWLRQRIWUHDWHGZDWHU
,I\RXKDYHTXHVWLRQVDERXWFDOLEUDWLRQ\RXVKRXOGFRQWDFWVWDWHH[WHQVLRQVSHFLDOLVWVHTXLSPHQWPDQXIDFWXUHUVRURWKHUH[SHUWV
'RQRWFRQQHFWDQLUULJDWLRQV\VWHPLQFOXGLQJJUHHQKRXVHV\VWHPVXVHGIRUSHVWLFLGHDSSOLFDWLRQWRDSXEOLFZDWHUV\VWHP
$SHUVRQNQRZOHGJHDEOHRIWKHFKHPLJDWLRQV\VWHPDQGUHVSRQVLEOHIRULWVRSHUDWLRQRUXQGHUWKHVXSHUYLVLRQRIWKHUHVSRQVLEOHSHUVRQVKDOOVKXW
WKHV\VWHPGRZQDQGPDNHQHFHVVDU\DGMXVWPHQWVVKRXOGWKHQHHGDULVH
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·KU JDOKU JDOKU IOR]KU 3URSHUFDOLEUDWLRQUHTXLUHVWKHLQMHFWLRQSXPSWREHDGMXVWHGWRGHOLYHUIOR]PLQDQGLVFDOFXODWHGDVIROORZV IOR]KU·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
)LOHQDPH7ULIOXUDOLQ(&&/1GRF x 5RWDWHWKHXVHRI75,)/85$/,1(&RURWKHU*URXSKHUELFLGHVZLWKLQDJURZLQJVHDVRQVHTXHQFHRUDPRQJ JURZLQJVHDVRQVZLWKGLIIHUHQWKHUELFLGHJURXSVWKDWFRQWUROWKHVDPHZHHGVLQDILHOG x 8VHWDQNPL[WXUHVZLWKKHUELFLGHVIURPDGLIIHUHQWJURXSLIVXFKXVHLVSHUPLWWHGZKHUHLQIRUPDWLRQRQUHVLVWDQFH LQWDUJHWZHHGVSHFLHVLVDYDLODEOHXVHWKHOHVVUHVLVWDQFHSURQHSDUWQHUDWDUDWHWKDWZLOOFRQWUROWKHWDUJHW ZHHGVHTXDOO\DVZHOODVWKHPRUHUHVLVWDQFHSURQHSDUWQHU&RQVXOW\RXUORFDOH[WHQVLRQVHUYLFHRUFHUWLILHG FURSDGYLVRULI\RXDUHXQVXUHDVWRZKLFKDFWLYHLQJUHGLHQWLVFXUUHQWO\OHVVSURQHWRUHVLVWDQFH x $GRSWDQLQWHJUDWHGZHHGPDQDJHPHQWSURJUDPIRUKHUELFLGHXVHWKDWLQFOXGHVVFRXWLQJDQGXVHVKLVWRULFDO LQIRUPDWLRQUHODWHGWRKHUELFLGHXVHDQGFURSURWDWLRQDQGWKDWFRQVLGHUVWLOODJHRURWKHUPHFKDQLFDOFRQWURO PHWKRGVFXOWXUDOHJKLJKHUFURSVHHGLQJUDWHVSUHFLVLRQIHUWLOL]HUDSSOLFDWLRQPHWKRGDQGWLPLQJWRIDYRUWKH FURSDQGQRWWKHZHHGVELRORJLFDOZHHGFRPSHWLWLYHFURSVRUYDULHWLHVDQGRWKHUPDQDJHPHQWSUDFWLFHV x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x ,IDZHHGSHVWSRSXODWLRQFRQWLQXHVWRSURJUHVVDIWHUWUHDWPHQWZLWKWKLVSURGXFWGLVFRQWLQXHXVHRIWKLVSURGXFW DQGVZLWFKWRDQRWKHUPDQDJHPHQWVWUDWHJ\RUKHUELFLGHZLWKDGLIIHUHQWPRGHRIDFWLRQLIDYDLODEOH x &RQWDFW\RXUORFDOH[WHQVLRQVSHFLDOLVWRUFHUWLILHGFURSDGYLVRUVIRUDGGLWLRQDOSHVWLFLGHUHVLVWDQFHPDQDJHPHQW DQGRULQWHJUDWHGZHHGPDQDJHPHQWUHFRPPHQGDWLRQVIRUVSHFLILFFURSVDQGZHHGELRW\SHV x )RUIXUWKHULQIRUPDWLRQRUWRUHSRUWVXVSHFWHGUHVLVWDQFHFRQWDFW+HOHQD$JUL(QWHUSULVHV//&UHSUHVHQWDWLYHVDW RUDWZZZKHOHQDDJULFRP )LHOGVVKRXOGEHVFRXWHGSULRUWRDSSOLFDWLRQWRLGHQWLI\WKHZHHGVSHFLHVSUHVHQWDQGWKHLUJURZWKVWDJHWRGHWHUPLQHLI WKHLQWHQGHGDSSOLFDWLRQZLOOEHHIIHFWLYH )LHOGVVKRXOGEHVFRXWHGDIWHUDSSOLFDWLRQWRYHULI\WKDWWKHWUHDWPHQWZDVHIIHFWLYH 6XVSHFWHGKHUELFLGHUHVLVWDQWZHHGVPD\EHLGHQWLILHGE\WKHVHLQGLFDWRUV x )DLOXUHWRFRQWURODZHHGVSHFLHVQRUPDOO\FRQWUROOHGE\WKHKHUELFLGHDWWKHGRVHDSSOLHGHVSHFLDOO\LIFRQWUROLV DFKLHYHGRQDGMDFHQWZHHGV x $VSUHDGLQJSDWFKRIQRQFRQWUROOHGSODQWVRIDSDUWLFXODUZHHGVSHFLHVDQG x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x 'RQRWUHOHDVHVSUD\DWDKHLJKWJUHDWHUWKDQIWDERYHWKHJURXQGRUYHJHWDWLYHFDQRS\XQOHVVDJUHDWHUDSSOLFDWLRQKHLJKWLVQHFHVVDU\ IRUSLORWVDIHW\ x $SSOLFDWRUVDUHUHTXLUHGWRXVHDFRDUVHRUFRDUVHUGURSOHWVL]H$6$%(6 x ,IWKHZLQGVSHHGLVPLOHVSHUKRXURIOHVVDSSOLFDWRUVPXVWXVHòVZDWKGLVSODFHPHQWXSZLQGDWWKHGRZQZLQGHGJHRIWKHILHOG:KHQ WKHZLQGVSHHGLVEHWZHHQPLOHVSHUKRXUDSSOLFDWRUVPXVWXVHôVZDWKGLVSODFHPHQWXSZLQGDWWKHGRZQZLQGHGJHRIWKHILHOG x 'RQRWDSSO\ZKHQZLQGVSHHGVH[FHHGPLOHVSHUKRXUDWWKHDSSOLFDWLRQVLWH,IWKLVZLQGVSHHGLVJUHDWHUWKDQPSKWKHERRPOHQJWK PXVWEHRUOHVVRIWKHZLQJVSDQIRUIL[HGZLQJDLUFUDIWDQGRUOHVVRIWKHURWRUGLDPHWHUIRUKHOLFRSWHUV2WKHUZLVHWKHERRP OHQJWKPXVWEHRUOHVVRIWKHZLQJVSDQIRUIL[HGZLQJDLUFUDIWDQGRUOHVVRIWKHURWRUGLDPHWHUIRUKHOLFRSWHUV x 'RQRWDSSO\GXULQJWHPSHUDWXUHLQYHUVLRQV URXQG%RRP$SSOLFDWLRQV x 8VHUPXVWRQO\DSSO\ZLWKWKHUHOHDVHKHLJKWUHFRPPHQGHGE\WKHPDQXIDFWXUHUEXWQRPRUHWKDQIHHWDERYHWKHJURXQGRUFURS FDQRS\ x $SSOLFDWRUVDUHUHTXLUHGWRXVHDFRDUVHRUFRDUVHUGURSOHWVL]H$6$%(6 x 'RQRWDSSO\ZKHQZLQGVSHHGVH[FHHGPLOHVSHUKRXUDWWKHDSSOLFDWLRQVLWH x 'RQRWDSSO\GXULQJWHPSHUDWXUHLQYHUVLRQV 635$<'5,)7$'9,625,(6 $QHIIHFWLYHZD\WRUHGXFHVSUD\GULIWLVWRDSSO\ODUJHGURSOHWV8VHWKHODUJHVWGURSOHWVWKDWSURYLGHWDUJHWSHVWFRQWURO:KLOHDSSO\LQJODUJHU GURSOHWVZLOOUHGXFHVSUD\GULIWWKHSRWHQWLDOIRUGULIWZLOOEHJUHDWHULIDSSOLFDWLRQVDUHPDGHLPSURSHUO\RUXQGHUXQIDYRUDEOHHQYLURQPHQWDO FRQGLWLRQV &RQWUROOLQJ'URSOHW6L]H²URXQG%RRP x 9ROXPH,QFUHDVLQJWKHVSUD\YROXPHVRWKDWODUJHUGURSOHWVDUHSURGXFHGZLOOUHGXFHVSUD\GULIW8VHWKHKLJKHVWSUDFWLFDOVSUD\YROXPH IRUWKHDSSOLFDWLRQ,IDJUHDWHUVSUD\YROXPHLVQHHGHGFRQVLGHUXVLQJDQR]]OHZLWKDKLJKHUIORZUDWH x 3UHVVXUH8VHWKHORZHVWVSUD\SUHVVXUHUHFRPPHQGHGIRUWKHQR]]OHWRSURGXFHWKHWDUJHWVSUD\YROXPHDQGGURSOHWVL]H x 6SUD\1R]]OH8VHDVSUD\QR]]OHWKDWLVGHVLJQHGIRUWKHLQWHQGHGDSSOLFDWLRQ&RQVLGHUXVLQJQR]]OHVGHVLJQHGWRUHGXFHGULIW &RQWUROOLQJ'URSOHW6L]H²$LUFUDIW x $GMXVW1R]]OHV)ROORZQR]]OHPDQXIDFWXUHUV¶UHFRPPHQGDWLRQVIRUVHWWLQJXSQR]]OHVHQHUDOO\WRUHGXFHILQHGURSOHWVQR]]OHVVKRXOG EHRULHQWHGSDUDOOHOZLWKWKHDLUIORZLQIOLJKW %220+(,+7²URXQG%RRP )RUJURXQGHTXLSPHQWWKHERRPVKRXOGUHPDLQOHYHOZLWKWKHFURSDQGKDYHPLQLPDOERXQFH 5(/($6(+(,+7$LUFUDIW +LJKHUUHOHDVHKHLJKWVLQFUHDVHWKHSRWHQWLDOIRUVSUD\GULIW 6+,(/'('635$<(56
)LOHQDPH7ULIOXUDOLQ(&&/1GRF 6KLHOGLQJWKHERRPRULQGLYLGXDOQR]]OHVFDQUHGXFHVSUD\GULIW&RQVLGHUXVLQJVKLHOGHGVSUD\HUV9HULI\WKDWWKHVKLHOGVDUHQRWLQWHUIHULQJZLWKWKH XQLIRUPGHSRVLWLRQRIWKHVSUD\RQWKHWDUJHWDUHD 7(03(5$785($1'+80,',7< :KHQPDNLQJDSSOLFDWLRQVLQKRWDQGGU\FRQGLWLRQVXVHODUJHUGURSOHWVWRUHGXFHHIIHFWVRIHYDSRUDWLRQ 7(03(5$785(,19(56,216 'ULIWSRWHQWLDOLVKLJKGXULQJDWHPSHUDWXUHLQYHUVLRQ7HPSHUDWXUHLQYHUVLRQVDUHFKDUDFWHUL]HGE\LQFUHDVLQJWHPSHUDWXUHZLWKDOWLWXGHDQGDUH FRPPRQRQQLJKWVZLWKOLPLWHGFORXGFRYHUDQGOLJKWWRQRZLQG7KHSUHVHQFHRIDQLQYHUVLRQFDQEHLQGLFDWHGE\JURXQGIRJRUE\WKHPRYHPHQWRI VPRNHIURPDJURXQGVRXUFHRUDQDLUFUDIWVPRNHJHQHUDWRU6PRNHWKDWOD\HUVDQGPRYHVODWHUDOO\LQDFRQFHQWUDWHGFORXGXQGHUORZZLQG FRQGLWLRQVLQGLFDWHVDQLQYHUVLRQZKLOHVPRNHWKDWPRYHVXSZDUGDQGUDSLGO\GLVVLSDWHVLQGLFDWHVJRRGYHUWLFDODLUPL[LQJ$YRLGDSSOLFDWLRQVGXULQJ WHPSHUDWXUHLQYHUVLRQV :,1' 'ULIWSRWHQWLDOJHQHUDOO\LQFUHDVHVZLWKZLQGVSHHG$92,'$33/,&$7,216'85,1867<:,1'&21',7,216 $SSOLFDWRUVQHHGWREHIDPLOLDUZLWKORFDOZLQGSDWWHUQVDQGWHUUDLQWKDWFRXOGDIIHFWVSUD\GULIW 352'8&7,1)250$7,21 75,)/85$/,1(&KHUELFLGHLVDVHOHFWLYHKHUELFLGHIRUWKHSUHHPHUJHQFHFRQWURORIOLVWHGDQQXDOJUDVVHVDQGEURDGOHDIZHHGVZKLFKPD\EH DSSOLHGLQOLTXLGVSUD\VRIZDWHURUOLTXLGIHUWLOL]HURULPSUHJQDWHGRQGU\EXONIHUWLOL]HU7RSUHYHQWORVVRIKHUELFLGDODFWLYLW\LWPXVWEHVRLO LQFRUSRUDWHGZLWKLQKRXUVDIWHUDSSOLFDWLRQ7KLVSURGXFWPD\EHWDQNPL[HGRUIROORZHGE\RYHUOD\RUSRVWHPHUJHQFHWUHDWPHQWVZLWKRWKHU KHUELFLGHVWRLPSURYHWKHVSHFWUXPRIZHHGVFRQWUROOHG,WFRQWUROVZHHGVE\GLVUXSWLQJJURZWKSURFHVVHVGXULQJJHUPLQDWLRQ75,)/85$/,1(& GRHVQRWFRQWUROHVWDEOLVKHGZHHGV $SSOLHGDFFRUGLQJWRGLUHFWLRQVDQGXQGHUQRUPDOJURZLQJFRQGLWLRQV75,)/85$/,1(&ZLOOQRWKDUPWKHWUHDWHGFURS2YHUDSSOLFDWLRQPD\ UHVXOWLQFURSLQMXU\RUURWDWLRQDOFURSGDPDJHIURPVRLOUHVLGXH8QHYHQDSSOLFDWLRQRULPSURSHULQFRUSRUDWLRQFDQUHVXOWLQHUUDWLFZHHGFRQWURORU FURSLQMXU\6HHGOLQJGLVHDVHFROGZHDWKHUGHHSSODQWLQJH[FHVVLYHPRLVWXUHKLJKVDOWFRQFHQWUDWLRQRUGURXJKWPD\ZHDNHQFURSVHHGOLQJVDQG LQFUHDVHWKHSRVVLELOLW\RIGDPDJH8QGHUWKHVHFRQGLWLRQVGHOD\HGFURSGHYHORSPHQWRUUHGXFHG\LHOGVPD\UHVXOW 'RQRWDSSO\WRVRLOVWKDWDUHZHWRUDUHVXEMHFWWRSURORQJHGSHULRGVRIIORRGLQJDVSRRUZHHGFRQWUROPD\UHVXOW 'RQRWXVHRQDQ\FURSJURZQLQ3HFRV&RXQW\RU5HHYHV&RXQW\7H[DV &KHPLJDWLRQ75,)/85$/,1(&PD\EHDSSOLHGE\FKHPLJDWLRQRQFHUWDLQFURSV6HHLQVWUXFWLRQVIRUFKHPLJDWLRQLQWKH$SSOLFDWLRQ0HWKRGV VHFWLRQRIWKLVODEHO$OVRVHHVSHFLILFLQVWUXFWLRQVIRUFHUWDLQFURSVLQWKH$SSURYHG&URSVVHFWLRQRIWKLVODEHO 527$7,21&5235(675,&7,216 6XJDUEHHWV5HGEHHWVDQG6SLQDFK ,Q$UL]RQD&RORUDGR&DOLIRUQLD,GDKR1HYDGD1HZ0H[LFR2UHJRQ8WDK:DVKLQJWRQDQG:\RPLQJ'RQRWSODQW6XJDUEHHWVUHGEHHWV RUVSLQDFKIRUPRQWKVDIWHUDVSULQJDSSOLFDWLRQRUPRQWKVDIWHUDIDOODSSOLFDWLRQRI75,)/85$/,1(&3ORZLQJWRDGHSWKRILQFKHVSULRU WRSODQWLQJWKHVHFURSVZLOOUHGXFHWKHSRVVLELOLW\RIFURSLQMXU\,IODQGKDVQRWEHHQLUULJDWHGWKHVHFURSVVKRXOGQRWEHSODQWHGIRUPRQWKVDIWHUD VSULQJDSSOLFDWLRQRUPRQWKVDIWHUDIDOODSSOLFDWLRQ ,QDOORWKHUDUHDV'RQRWSODQW6XJDUEHHWVUHGEHHWVDQGVSLQDFKIRUPRQWKVDIWHUDVSULQJDSSOLFDWLRQRUPRQWKVDIWHUDIDOODSSOLFDWLRQ %HIRUHSODQWLQJVXJDUEHHWVPROGERDUGSORZWRDGHSWKRILQFKHVWRUHGXFHWKHSRVVLELOLW\RIFURSLQMXU\ 3URVR0LOOHW&RUQ6RUJKXP0LOR2DWVDQG$QQXDORU3HUHQQLDO&URSVRU*UDVV0L[WXUHV ,Q$UL]RQD&RORUDGR&DOLIRUQLD,GDKR1HYDGD1HZ0H[LFR2UHJRQ8WDK:DVKLQJWRQDQG:\RPLQJ'RQRWSODQW3URVRPLOOHWFRUQ VRUJKXPPLORRDWVDQGDQQXDORUSHUHQQLDOJUDVVFURSVRUJUDVVPL[WXUHVIRUPRQWKVDIWHUDVSULQJDSSOLFDWLRQRUPRQWKVDIWHUDIDOO DSSOLFDWLRQRI75,)/85$/,1(&WRDYRLGWKHSRVVLELOLW\RIFURSLQMXU\,IODQGKDVQRWEHHQLUULJDWHGWKHVHFURSVPXVWQRWEHSODQWHGIRU PRQWKVDIWHUDVSULQJDSSOLFDWLRQRUPRQWKVDIWHUDIDOODSSOLFDWLRQ0ROGERDUGSORZLQJWRDGHSWKRILQFKHVEHIRUHSODQWLQJWKHVHFURSVZLOO UHGXFHWKHSRVVLELOLW\RIFURSLQMXU\ ,Q0LQQHVRWD1RUWK'DNRWDDQG6RXWK'DNRWD'RQRWSODQW3URVRPLOOHWVRUJKXPPLORRDWVDQGDQQXDORUSHUHQQLDOJUDVVFURSVRUJUDVV PL[WXUHVIRUPRQWKVDIWHUDVSULQJDSSOLFDWLRQRUPRQWKVDIWHUDIDOODSSOLFDWLRQ
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
)LOHQDPH7ULIOXUDOLQ(&&/1GRF
$33/,&$7,21:,7+'5<%8/.)(57,/,=(5
'U\EXONIHUWLOL]HUVLPSUHJQDWHGRUFRDWHGZLWK75,)/85$/,1(&PD\EHDSSOLHGDVDSUHSODQWLQFRUSRUDWHGWUHDWPHQWRQDSSURYHGFURSV$OO
ODEHOLQVWUXFWLRQVUHJDUGLQJDSSOLFDWLRQUDWHVLQFRUSRUDWLRQGLUHFWLRQVVSHFLDOLQVWUXFWLRQVDQGSUHFDXWLRQVPXVWEHIROORZHG5HDGDQGIROORZDOO
ODEHOLQVWUXFWLRQVEHORZFRQFHUQLQJXVHZLWKGU\EXONIHUWLOL]HU3URSHUO\DSSOLHGGU\EXONIHUWLOL]HUVLPSUHJQDWHGZLWKWKLVSURGXFWSURYLGHVZHHGDQG
JUDVVFRQWUROHTXDOWRZDWHUVSUD\V
8VHWKHIROORZLQJIRUPXODWRFDOFXODWHWKHDPRXQWRI75,)/85$/,1(&UHTXLUHGWRLPSUHJQDWHDWRQRIGU\EXONIHUWLOL]HU
3LQWV75,)/85$/,1(& ;3RXQGV)HUWLOL]HU 4XDUWV75,)/85$/,1(&
3 H U F U H 3 H U F U H 3 H U 7 R Q R I ) H U WLOL]HU
/LPLWDWLRQV$SSO\DPLQLPXPRIOEDFUHRIGU\IHUWLOL]HULPSUHJQDWHGZLWKWKLVSURGXFWDWWKHVSHFLILHGEURDGFDVWUDWHSHUDFUH$Q\FRPPRQO\
XVHGGU\IHUWLOL]HUFDQEHXVHGIRULPSUHJQDWLRQRI75,)/85$/,1(&H[FHSWFRDWHGDPPRQLXPQLWUDWHDQGSXUHOLPHVWRQH7KHVHPDWHULDOVZLOO
QRWDEVRUEWKHKHUELFLGH%OHQGVFRQWDLQLQJPL[WXUHVRIWKHVHPDWHULDOVFDQEHLPSUHJQDWHG
,PSUHJQDWLRQ8VHDQ\FORVHGGUXPEHOWULEERQRUDQ\RWKHUFRPPRQO\XVHGGU\EXONIHUWLOL]HUEOHQGHU1R]]OHVXVHGWRDSSO\SURGXFWWRGU\EXON
IHUWLOL]HUVKRXOGEHSODFHGWRSURYLGHXQLIRUPVSUD\FRYHUDJH
$SSOLFDWLRQDQG,QFRUSRUDWLRQ6SUHDGWKHIHUWLOL]HUFKHPLFDOPL[WXUHZLWKSURSHUO\FDOLEUDWHGDSSOLFDWLRQHTXLSPHQW%HFHUWDLQWKHPDWHULDOLV
DSSOLHGXQLIRUPO\WRWKHVRLOVXUIDFH75,)/85$/,1(&PXVWEHLQFRUSRUDWHGWLPHVZKHQLPSUHJQDWHGRQGU\EXONIHUWLOL]HU7KHILUVW
LQFRUSRUDWLRQPXVWRFFXUZLWKLQKRXUVDIWHUDSSOLFDWLRQ7KHVHFRQGLQFRUSRUDWLRQPXVWEHGHOD\HGWRGD\VDIWHUWKHILUVWDQGEHFRPSOHWHG
SULRUWRSODQWLQJ
&RPSOLDQFHZLWK6WDWH5HJXODWLRQV&RPSOLDQFHZLWKVWDWHUHJXODWLRQVUHODWLQJWRGU\EXONIHUWLOL]HUEOHQGLQJUHJLVWUDWLRQODEHOLQJDQGDSSOLFDWLRQ
DUHWKHUHVSRQVLELOLW\RIWKHLQGLYLGXDODQGRUFRPSDQ\RIIHULQJWKHIHUWLOL]HURUFKHPLFDOPL[WXUHIRUVDOH
$33/,&$7,217,0,1
635,1$33/,&$7,21
$SSO\DQGLQFRUSRUDWHDQ\WLPHDIWHU-DQXDU\ZKHQVRLOFDQEHZRUNHGDQGLVLQDFRQGLWLRQZKLFKDOORZVWKRURXJKPL[LQJWRLQVXUHXQLIRUP
LQFRUSRUDWLRQ6HH$SSURYHG&URSVVHFWLRQIRUDSSOLFDWLRQWLPLQJLQVWUXFWLRQVIRUVSHFLILFFURSV
)$//$33/,&$7,21
)DOODSSOLFDWLRQFDQEHXVHGIRUDOOFURSVIRUZKLFK75,)/85$/,1(&LVVSHFLILHGDVDSUHSODQWLQFRUSRUDWHGWUHDWPHQW5HIHUWR$SSURYHG
&URSVVHFWLRQIRUDQ\FURSVSHFLILFIDOODSSOLFDWLRQLQVWUXFWLRQV
,QWKHVWDWHVRI&DOLIRUQLD1RUWK'DNRWD6RXWK'DNRWDDQG0LQQHVRWDDSSO\DQGLQFRUSRUDWHDQ\WLPHEHWZHHQ6HSWHPEHUDQG'HFHPEHU,Q
DOORWKHUVWDWHVIDOODSSO\EHWZHHQ2FWREHUDQG'HFHPEHU
URXQGPD\EHEHGGHGXSRYHUZLQWHU2QEHGGHGJURXQGUHGXFHEHGVWRGHVLUHGKHLJKWEHIRUHSODQWLQJE\PRYLQJVRPHWUHDWHGVRLOIURPEHGV
LQWRIXUURZV:KHUHVRLOLVOHIWIODWRYHUZLQWHUFDUHVKRXOGEHWDNHQQRWWRWXUQXSXQWUHDWHGVRLOGXULQJVSULQJEHGGLQJRSHUDWLRQV'HVWUR\
HVWDEOLVKHGZHHGVGXULQJVHHGEHGSUHSDUDWLRQ:HHGVHVWDEOLVKHGLQIXUURZVDVDUHVXOWRIH[SRVLQJXQWUHDWHGVRLOVKRXOGEHGHVWUR\HGEHIRUH
SODQWLQJ'RQRWXVHD)DOODSSOLFDWLRQRQILHOGVZKLFKUHPDLQZHWRUDUHVXEMHFWWRSHULRGVRIIORRGLQJ
35((0(5(1&($33/,&$7,21,00(',$7(/<$)7(53/$17,1
$SSO\DQGLQFRUSRUDWHLPPHGLDWHO\DIWHUSODQWLQJDQGSULRUWRFURSJHUPLQDWLRQ$GMXVWLQFRUSRUDWLRQHTXLSPHQWVRDVQRWWRGLVWXUESODQWHGVHHG
5HIHUWRWKH$SSURYHG&URSVVHFWLRQRIWKLVODEHOIRUFURSVSHFLILFLQVWUXFWLRQV
3267(0(5(1&($1'/$<%<$33/,&$7,21
$SSO\DQGLQFRUSRUDWHDWWKHVSHFLILHGUDWHWRWKHHVWDEOLVKHGFURSDWRUEHIRUHWKHODVWFXOWLYDWLRQ5HTXLUHGSUHKDUYHVWLQWHUYDOVIRUWUHDWPHQWVIRU
FHUWDLQFURSVDUHVSHFLILHGLQWKH$SSURYHG&URSVVHFWLRQRIWKLVODEHO&URSFRYHUPD\SUHYHQWXQLIRUPVRLOFRYHUDJHIURPRYHUWKHWRSVSUD\V7R
DYRLGWKLVSUREOHPXVHGURSQR]]OHVRUGLUHFWHGVSUD\VWRDFKLHYHXQLIRUPVRLOFRYHUDJH
,1&25325$7,21',5(&7,216
62,/35(3$5$7,21$1',1&25325$7,21
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±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
:KHQDSSOLHGDVDSUHSODQWLQFRUSRUDWHGWUHDWPHQW75,)/85$/,1(&FRQWUROVZLOGRDWVWKDWJHUPLQDWHLQWKHWUHDWHG]RQH:LOGRDWFRQWURO LVQRWFODLPHGIRULQFRUSRUDWHGXVHVLQVPDOOJUDLQV
)LOHQDPH7ULIOXUDOLQ(&&/1GRF %52$'/($):(('6 &200211$0( 6&,(17,),&1$0( &DUSHWZHHG 0ROOXJRYHUWLFLOODWD &KLFNZHHG 6WHOODULDPHGLD )LHOGELQGZHHG VHHVSHFLDOLQVWUXFWLRQVIRUFRQWUROLQVWRQHIUXLWDQGQXWFURSVDQGYLQH\DUGVLQWKH$33529(' &5236VHFWLRQ &RQYROYXOXVDUYHQVLV *RRVHIRRW &KHQRSRGLXPK\EULGXP +HQELW /DPLXPDPSOH[LFDXOH .QRWZHHG 3RO\JRQXPDYLFXODUH .RFKLD)LUHZHHG 0H[LFDQILUHZHHG .RFKLDVFRSDULD /DPEVTXDUWHUV &KHQRSRGLXPDOEXP 3LJZHHG&DUHOHVVZHHG 3DOPHUDPDUDQWK
3URVWUDWHSLJZHHG 5HGURRW 5RXJKSLJZHHG 6SLQ\SLJZHHG VHHVSHFLDOLQVWUXFWLRQVIRUFRQWUROLQVR\EHDQVLQ$33529('&5236VHFWLRQ $PDUDQWKXVVSS 3XQFWXUHYLQH:HVWHUQ86RQO\ &DOWURS *RDWZHHG 7ULEXOXVWHUUHVWULV 3XUVODQHFRPPRQ 3RUWXODFDROHUDFHD 3XVOH\)ORULGD )ORULGDSXUVODQH 0H[LFDQFORYHU 3XVOH\ 5LFKDUGLDVFDEUD 5XVVLDQWKLVWOH 7XPEOHZHHG 6DOVRODLEHULFD 6WLQJLQJQHWWOH 1HWWOH 8UWLFDGLRLFD
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²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
)LOHQDPH7ULIOXUDOLQ(&&/1GRF SLQWV &RDUVH 0HGLXP ± )LQH ±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± )LQH ± &RDUVHDQG0HGLXP6RLOVZLWK2UJDQLF0DWWHU )LQH6RLOVZLWK2UJDQLF0DWWHU 6RLOVZLWK2UJDQLF0DWWHU 8VHORZHUODEHOHGUDWHLQUDWHUDQJHLQDUHDVUHFHLYLQJOHVVWKDQLQFKHVWRWDODQQXDOUDLQIDOODQGLUULJDWLRQ &$6725%($1
)LOHQDPH7ULIOXUDOLQ(&&/1GRF $SSO\DVVRLOLQFRUSRUDWHGWUHDWPHQWEHIRUHRULPPHGLDWHO\DIWHUSODQWLQJ,IDSSOLHGDQGLQFRUSRUDWHGDIWHUSODQWLQJVHWHTXLSPHQWVRDVQRWWR GLVWXUEWKHVHHG %52$'&$67$33/,&$7,215$7(6$&5( 62,/7(;785( 75,)/85$/,1(& SLQWV &RDUVH 0HGLXP ± )LQH ± &RDUVHDQG0HGLXP6RLOVZLWK2UJDQLF0DWWHU )LQH6RLOVZLWK2UJDQLF0DWWHU 6RLOVZLWK2UJDQLF0DWWHU 8VHORZHUODEHOHGUDWHLQUDWHUDQJHLQDUHDVUHFHLYLQJOHVVWKDQLQFKHVWRWDODQQXDOUDLQIDOODQGLUULJDWLRQ &(/(5< $SSO\DVDVRLOLQFRUSRUDWHGWUHDWPHQW3URGXFWPD\EHDSSOLHGWRGLUHFWVHHGHGRUWUDQVSODQWFHOHU\EHIRUHSODQWLQJDWSODQWLQJRULPPHGLDWHO\DIWHU SODQWLQJ %52$'&$67$33/,&$7,215$7(6$&5( 62,/7(;785( 75,)/85$/,1(& SLQWV &RDUVH 0HGLXP ± )LQH ±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
)LOHQDPH7ULIOXUDOLQ(&&/1GRF 3UHFDXWLRQ'LUHFWVHHGHGFROHFURSVH[KLELWPDUJLQDOWROHUDQFHWRKLJKHUWKDQVSHFLILHGUDWHV6WXQWLQJRUUHGXFHGVWDQGVPD\RFFXU 75$163/$17('&2/(&5236 $SSO\DQGLQFRUSRUDWHSULRUWRWUDQVSODQWLQJ %52$'&$67$33/,&$7,215$7(6$&5( 62,/7(;785( 75,)/85$/,1(& SLQWV &RDUVH 0HGLXP ± )LQH ± &RDUVHDQG0HGLXP6RLOVZLWK2UJDQLF0DWWHU )LQH6RLOVZLWK2UJDQLF0DWWHU 6RLOVZLWK2UJDQLF0DWWHU 8VHORZHUODEHOHGUDWHLQUDWHUDQJHLQDUHDVUHFHLYLQJOHVVWKDQLQFKHVWRWDODQQXDOUDLQIDOODQGLUULJDWLRQ &251),(/'&25121/< 3267(0(5*(1&(,1&25325$7('75($70(17 $SSO\DVDSRVWHPHUJHQFHWUHDWPHQWIROORZLQJFXOWLYDWLRQRUXVHRIDSUHHPHUJHQFHKHUELFLGH3URGXFWGRHVQRWFRQWUROHVWDEOLVKHGZHHGV$SSO\ ZKHQFURSLVZHOOHVWDEOLVKHGWUXHOHDIVWDJHRUWDOOHU$SSO\DVDQRYHUWKHWRSVSUD\RUDVDGLUHFWHGVSUD\XVLQJGURSQR]]OHVLIIROLDJHSUHYHQWV XQLIRUPFRYHUDJHRIWKHVRLOVXUIDFH ,1&25325$7,21',5(&7,216 $SSOLFDWLRQVPXVWEHPHFKDQLFDOO\LQFRUSRUDWHGZLWKLQKRXUV0HFKDQLFDOLQFRUSRUDWLRQPD\EHDFFRPSOLVKHGZLWKRQHSDVVRIDVZHHSW\SH FXOWLYDWRURUSURSHUO\DGMXVWHGUROOLQJFXOWLYDWRU7KHVZHHSW\SHFXOWLYDWRUVKRXOGKDYHWRVZHHSVSHUURZPLGGOHDQGEHRSHUDWHGDWDVSHHGWKDW ZLOOSURYLGHYLJRURXVVRLOPL[LQJ6HWPLGGOHVZHHSVVRDVWRDYRLGH[SRVLQJXQWUHDWHGVRLO$GMXVWLQFRUSRUDWLRQHTXLSPHQWVRDVWRDYRLG PHFKDQLFDOLQMXU\WRWKHFURS %52$'&$67$33/,&$7,215$7(6$&5( 62,/7(;785( 75,)/85$/,1(& SLQWV &RDUVH 0HGLXP )LQH
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
)LOHQDPH7ULIOXUDOLQ(&&/1GRF 62,/7(;785( 75,)/85$/,1(& SLQWV &RDUVH ± 0HGLXP ±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
SLQWV :HVWHUQ86
SLQWV &RDUVH 0HGLXP ± )LQH ± &RDUVHDQG0HGLXP6RLOVZLWK2UJDQLF0DWWHU )LQH6RLOVZLWK2UJDQLF0DWWHU 6RLOVZLWK2UJDQLF0DWWHU
6SULQJ$SSOLFDWLRQ 8VHORZHUODEHOHGUDWHLQUDWHUDQJHIRUDUHDVUHFHLYLQJOHVVWKDQLQFKHVRIWRWDODQQXDOUDLQIDOODQGLUULJDWLRQ
)DOODSSOLFDWLRQUDWHVIRUHDVWHUQFRWWRQSURGXFLQJDUHDVLQFOXGLQJ$ODEDPD$UNDQVDVQRUWKHUQ)ORULGD *HRUJLD/RXLVLDQD0LVVLVVLSSLVRXWKHDVWHUQ0LVVRXUL%RRWKHHO1RUWK&DUROLQD1HZ0H[LFR2NODKRPD6RXWK&DUROLQD7HQQHVVHHDQG 7H[DV
)DOODSSOLFDWLRQUDWHVIRUZHVWHUQFRWWRQSURGXFLQJDUHDVLQFOXGLQJ$UL]RQD&DOLIRUQLDDQG1HYDGD )RUFRWWRQJURZQLQVWDWHVRWKHUWKDQWKRVHOLVWHGDERYHIDOODSSO\DWODEHOHGEURDGFDVWUDWHVVSHFLILHGIRUDUHDVUHFHLYLQJJUHDWHUWKDQLQFKHV DYHUDJHDQQXDOUDLQIDOO
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x ,QWKHVHDVRQIROORZLQJDPD[LPXPODEHOHGGRXEOHUDWHWUHDWPHQWSODQWRQO\ULFHRUWKRVHFURSVIRUZKLFK75,)/85$/,1(&FDQEH DSSOLHGDVDSUHSODQWWUHDWPHQWRUFURSLQMXU\PD\RFFXU x 7RDYRLGFURSLQMXU\FRWWRQVKRXOGEHSODQWHGDIWHUHDUO\VHDVRQDGYHUVHZHDWKHUFRQGLWLRQVKDYHSDVVHGHVSHFLDOO\ZKHQXVLQJKLJK UDWHV&RROZHWZHDWKHUHDUO\LQWKHJURZWKF\FOHFDXVHVVWUHVVWRWKHFRWWRQSODQW7KHDGGHGVWUHVVPD\UHVXOWLQUHGXFHGVWDQGGHOD\HG PDWXULW\DQGUHGXFHG\LHOGV 0D[LPXP&URS<HDU8VH5DWHV x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± )LQH ±
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
)LOHQDPH7ULIOXUDOLQ(&&/1GRF 2.5$ $SSO\DVDVRLOLQFRUSRUDWHGWUHDWPHQWEHIRUHRULPPHGLDWHO\DIWHUSODQWLQJ,IDSSOLHGDQGLQFRUSRUDWHGDIWHUSODQWLQJVHWHTXLSPHQWVRDVQRWWR GLVWXUEWKHVHHG %52$'&$67$33/,&$7,215$7(6$&5( 6RLO7H[WXUH 7ULIOXUDOLQ(& SLQWV &RDUVH 0HGLXP ± )LQH ±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± )LQH 8VHORZHUODEHOHGUDWHLQUDWHUDQJHLQDUHDVUHFHLYLQJOHVVWKDQLQFKHVWRWDODQQXDOUDLQIDOODQGLUULJDWLRQ
)LOHQDPH7ULIOXUDOLQ(&&/1GRF
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±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± )LQH ± &RDUVHDQGPHGLXPVRLOVZLWKRUJDQLFPDWWHUSLQWV )LQHVRLOVZLWKRUJDQLFPDWWHUSLQWV 6RLOVZLWKRUJDQLFPDWWHUSLQWV 8VHORZHUODEHOHGUDWHLQUDWHUDQJHLQDUHDVUHFHLYLQJOHVVWKDQLQFKHVWRWDODQQXDOUDLQIDOODQGLUULJDWLRQ
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± )LQH ±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
)LOHQDPH7ULIOXUDOLQ(&&/1GRF 5$',6+ $SSO\DVDSUHSODQWVRLOLQFRUSRUDWHGWUHDWPHQW %52$'&$67$33/,&$7,215$7(6$&5( 6RLO7H[WXUH 7ULIOXUDOLQ(& SLQWV &RDUVH 0HGLXP )LQH 6$))/2:(5 $SSO\DQGLQFRUSRUDWHLQWKHVSULQJEHIRUHSODQWLQJRULQWKHIDOO6HHLQVWUXFWLRQVIRUIDOODSSOLFDWLRQXQGHU$SSOLFDWLRQ7LPLQJLQWKH3URGXFW ,QIRUPDWLRQVHFWLRQRIWKLVODEHO %52$'&$67$33/,&$7,215$7(6$&5( 6RLO7H[WXUH 7ULIOXUDOLQ(& SLQWV 6SULQJ$SSOLFDWLRQ )DOO$SSOLFDWLRQ &RDUVH 0HGLXP ± )LQH ±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
)LOHQDPH7ULIOXUDOLQ(&&/1GRF &+(0,$7,21 75,)/85$/,1(&PD\EHDSSOLHGWKURXJKSURSHUO\HTXLSSHGFKHPLJDWLRQV\VWHPVIRUZHHGFRQWUROLQVR\EHDQV5HIHUWR$SSOLFDWLRQE\ &KHPLJDWLRQLQWKH3URGXFW,QIRUPDWLRQVHFWLRQRIWKLVODEHOIRUXVHGLUHFWLRQVIRUFKHPLJDWLRQ'RQRWDSSO\WKURXJKDQ\LUULJDWLRQV\VWHPXQOHVV WKHVHGLUHFWLRQVDUHFDUHIXOO\IROORZHG $SSO\LQVSULQNOHULUULJDWLRQHTXDOWRWRLQFKRIZDWHU3ODQWLQJDQGDSSOLFDWLRQVKRXOGRFFXUDVVRRQDVSRVVLEOHDIWHUWKHODVWWLOODJHRSHUDWLRQ 75,)/85$/,1(&PXVWEHDSSOLHGZLWKLQGD\VDIWHUSODQWLQJDQGSULRUWRFURSHPHUJHQFH7KLVSURGXFWGRHVQRWFRQWUROHVWDEOLVKHGZHHGV 6RLOLQFRUSRUDWLRQLVQRWUHTXLUHGZKHQDSSOLHGWKURXJKFKHPLJDWLRQV\VWHPV %52$'&$67$33/,&$7,215$7(6$&5( 6RLO7H[WXUH 7ULIOXUDOLQ(& SLQWV &RDUVH 0HGLXP ± )LQH ±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± 0HGLXP ± )LQH ±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± 0HGLXP )LQH 5('5,&(&21752/,1$5.$16$6/28,6,$1$0,66,66,33,$1'7(;$621/< 6XSSUHVVLRQRUSDUWLDOFRQWURORIUHGULFHFDQEHREWDLQHGIURPD\HDUWUHDWPHQWSURJUDPZKLFKFRQVLVWVRIDGRXEOHUDWHDSSOLFDWLRQWKHILUVW\HDU IROORZHGE\DSSOLFDWLRQLQWKHVHFRQG\HDUDWQRUPDOUDWHVLQGLFDWHGIRUVRLOWH[WXUHRUJDQLFPDWWHURUFKDUFRDOFRQWHQW$SSO\DQGLQFRUSRUDWHLQWKH VSULQJEHIRUHSODQWLQJ)ROORZOLVWHGVRLOSUHSDUDWLRQDQGLQFRUSRUDWLRQSURFHGXUHVIRU75,)/85$/,1(& %52$'&$67$33/,&$7,215$7(6$&5( 6RLO7H[WXUH 7ULIOXUDOLQ(& SLQWV $SSOLFDWLRQ²<HDU $SSOLFDWLRQ²<HDU &RDUVH 0HGLXP )LQH &RDUVH6RLOVZLWKRUJDQLFPDWWHU 6RLOVZLWKRUJDQLFPDWWHU ± ,Q$UNDQVDV/RXLVLDQDDQG0LVVLVVLSSLLIDFRPELQDWLRQRIKLJKVRLORUJDQLFPDWWHUDQGFKDUFRDODUHSUHVHQWDSSO\75,)/85$/,1(& DWWKHIROORZLQJEURDGFDVWUDWHV 6RLO7H[WXUH 7ULIOXUDOLQ(& SLQWV &RDUVH ± 0HGLXP )LQH )RUPRUHLQIRUPDWLRQRQFKDUFRDOVRLOVVHHGLVFXVVLRQLQSUHFHGLQJVHFWLRQ 3UHFDXWLRQ&URS5RWDWLRQ)RUUHGULFHFRQWUROLQVR\EHDQVXVHD\HDUSURJUDP,QWKHILUVW\HDUIROORZLQJDGRXEOHUDWHDSSOLFDWLRQSODQWRQO\ VR\EHDQV'XULQJWKHVHFRQG\HDUDIWHUDSSO\LQJDWWKHQRUPDOUDWHLQGLFDWHGIRUVRLOWH[WXUHDQGFKDUFRDOOHYHOSODQWRQO\WKRVHFURSVIRUZKLFK 75,)/85$/,1(&LVUHJLVWHUHGDVDSUHSODQWWUHDWPHQWRUFURSLQMXU\PD\UHVXOW5LFHPD\EHSODQWHGGXULQJWKHWKLUG\HDUIROORZLQJDSSOLFDWLRQ RIQRUPDOXVHUDWHVLQ\HDUWZR
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
)LOHQDPH7ULIOXUDOLQ(&&/1GRF %URDGFDVW$SSOLFDWLRQ5DWHV$FUH 6RLO7H[WXUH 7ULIOXUDOLQ(& SLQWV &RDUVH 0HGLXP )LQH
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
8VHRILPD]HWKDS\ULVOLPLWHGWRFHUWDLQVWDWHV8VHLPD]HWKDS\UDVDQRYHUOD\WUHDWPHQWIROORZLQJ75,)/85$/,1(&RQO\LQVWDWHVVSHFLILHGRQ WKHODEHOIRULPD]HWKDS\U
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
8VHRILPD]HWKDS\ULVOLPLWHGWRFHUWDLQVWDWHV8VHLPD]HWKDS\UDVDSRVWHPHUJHQFHWUHDWPHQWIROORZLQJ75,)/85$/,1(&RQO\LQVWDWHV VSHFLILHGLQWKHODEHOIRULPD]HWKDS\U
8VHRILPD]DTXLQLVOLPLWHGWRFHUWDLQVWDWHV'RQRWXVHLPD]DTXLQDVDSRVWHPHUJHQFHDSSOLFDWLRQIROORZLQJDSUHSODQWLQFRUSRUDWLRQWUHDWPHQW ZLWK75,)/85$/,1(&LQWKH1RUWKHUQ8VH$UHDDVGHILQHGE\WKHODEHOIRULPD]DTXLQ 68*$5%((76 75,)/85$/,1(&$/21( $SSO\DVDQRYHUWKHWRSVSUD\DQGLQFRUSRUDWH$SSO\IURPWKHWLPHWKHILUVWWUXHOHDYHVKDYHIRUPHGXQWLOSODQWVDUHLQFKHVWDOO %52$'&$67$33/,&$7,215$7(6$&5( 6RLO7H[WXUH 7ULIOXUDOLQ(& SLQWV &RDUVH 0HGLXP ± )LQH ± ,QFRUSRUDWLRQ6HWLQFRUSRUDWLRQHTXLSPHQWWRPRYHWUHDWHGVRLODURXQGWKHSODQWVLQWKHURZ$YRLGGDPDJHWRWKHVXJDUEHHWWDSURRWIURP LQFRUSRUDWLRQHTXLSPHQW 3UHFDXWLRQ([SRVHGEHHWURRWVVKRXOGEHFRYHUHGZLWKVRLOEHIRUHDSSOLFDWLRQWRUHGXFHWKHSRVVLELOLW\RIJLUGOLQJ
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±
$SSOLFDWLRQUDWHZLWKLQUDWHUDQJHPD\EHDGMXVWHGDFFRUGLQJWRZHHGSUHVVXUH
32673/$17$33/,&$7,21)25&21752/2)0267$118$/5$66(6,1&/8',1*8,1($*5$66)2586(,1+:,,
6XUIDFHDSSO\DIWHUSODQWLQJIRUSODQWFDQHRUDIWHUKDUYHVWLQJIRUUDWRRQFDQH)RUEHVWUHVXOWVLQSODQWFDQHWKHVRLOVXUIDFHVKRXOGEHVPRRWK
DQGILQHO\WLOOHG$SSO\DVVRRQDVSRVVLEOHDIWHUWLOODJHDQGSODQWLQJEHIRUHJHUPLQDWLRQDQGHPHUJHQFHRIJUDVVZHHGV)RURSWLPXPHIILFDF\LQ
UDWRRQFDQHPLQLPL]HVXUIDFHUHVLGXHIURPSUHYLRXVFURSEHIRUHDSSO\LQJ$SSO\MXVWEHIRUHDQWLFLSDWHGUDLQIDOOLQQRQLUULJDWHGDQGIXUURZLUULJDWHG
VXJDUFDQH,UULJDWHDVVRRQDVSRVVLEOHDIWHUDSSO\LQJLQGULSLUULJDWHGRUVSULQNOHLUULJDWHGVXJDUFDQHWRDFWLYDWH75,)/85$/,1(&
%52$'&$67$33/,&$7,215$7(6$&5(
6RLO7H[WXUH 7ULIOXUDOLQ(&
SLQWV
$OO7H[WXUHV ±
$33/,&$7,2168372/$<%<)253/$17&$1(255$7221&$1()2586(,1/28,6,$1$$1'7(;$6
$SSO\DQGLQFRUSRUDWHLQVSULQJIURPVKRUWO\EHIRUHRUDIWHUFDQHHPHUJHQFHXQWLOOD\E\$SSO\DIWHUEHGVKDYHEHHQVKDYHGRUIDOVHVKDYHG/RRVHQ
UDLQSDFNHGEHGVWRLQFKHVGHHSEHIRUHDSSOLFDWLRQ$YRLGLQFRUSRUDWLRQHTXLSPHQWGDPDJHWRVHHGSLHFHVRUHPHUJLQJVKRRWV,QFRUSRUDWHZLWK
DUROOLQJFXOWLYDWRURUEHGFKRSSHUIRUDOOVRLOWH[WXUHV6HWUROOLQJFXOWLYDWRUWRFXWWRLQFKHVGHHSDQGRSHUDWHDWWRPSK6HWEHGFKRSSHUWR
FXWWRLQFKHVGHHSDQGRSHUDWHWRPSK7ZRLQFRUSRUDWLRQSDVVHVDUHQHFHVVDU\
%52$'&$67$33/,&$7,215$7(6$&5(
6RLO7H[WXUH 7ULIOXUDOLQ(&
SLQWV
$OO7H[WXUHV ±
$SSOLFDWLRQUDWHZLWKLQUDWHUDQJHPD\EHDGMXVWHGDFFRUGLQJWRZHHGSUHVVXUH ,7&+*5$665$28/*5$66&21752/)2586(,1/28,6,$1$ $SSO\DQGLQFRUSRUDWHRQSODQWRUUDWRRQFDQH)ROORZXVHGLUHFWLRQVLQSUHFHGLQJVHFWLRQIRUOD\E\DSSOLFDWLRQ %52$'&$67$33/,&$7,215$7(6$&5( 6RLO7H[WXUH 7ULIOXUDOLQ(& SLQWV $OO7H[WXUHV ±
)LOHQDPH7ULIOXUDOLQ(&&/1GRF 681)/2:(5 75,)/85$/,1(&$/21( $SSO\DQGLQFRUSRUDWHLQWKHVSULQJEHIRUHSODQWLQJRULQWKHIDOO6HHLQVWUXFWLRQVIRUIDOODSSOLFDWLRQXQGHU$SSOLFDWLRQ7LPLQJLQWKH3URGXFW ,QIRUPDWLRQVHFWLRQRIWKLVODEHO %52$'&$67$33/,&$7,215$7(6$&5( 6RLO7H[WXUH 7ULIOXUDOLQ(& SLQWV &RDUVH 0HGLXP ± )LQH ± &RDUVHDQG0HGLXP6RLOVZLWK2UJDQLF0DWWHU ± )LQH6RLOVZLWK2UJDQLF0DWWHU 6RLOVZLWK2UJDQLF0DWWHU 8VHORZHUUDWHLQUDWHUDQJHLQDUHDVUHFHLYLQJOHVVWKDQLQFKHVWRWDODQQXDOUDLQIDOODQGLUULJDWLRQ 75,)/85$/,1(&3/86(37&7$1.0,; 3URGXFWPD\EHWDQNPL[HGZLWKWKHDFWLYHLQJUHGLHQW(37&DQGDSSOLHGDVDSUHSODQWLQFRUSRUDWHGWUHDWPHQWWRFRQWURODGGLWLRQDOZHHGVLQ VXQIORZHUVLQ0LQQHVRWD1RUWK'DNRWDDQG6RXWK'DNRWD5HIHUWRWKHODEHOIRU(37&IRUDSSOLFDWLRQUDWHVDGGLWLRQDOXVHGLUHFWLRQVSUHFDXWLRQV DQGOLPLWDWLRQVEHIRUHXVH 720$72 $SSO\WRGLUHFWVHHGHGWRPDWRDVDGLUHFWHGVSUD\EHWZHHQURZVDQGEHQHDWKSODQWVDQGLQFRUSRUDWHDWWKHWLPHRIEORFNLQJRUWKLQQLQJ)RU WUDQVSODQWWRPDWRDSSO\DQGLQFRUSRUDWHEHIRUHWUDQVSODQWLQJ'RQRWDSSO\DIWHUWUDQVSODQWLQJ %URDGFDVW$SSOLFDWLRQ5DWHV$FUH 6RLO7H[WXUH 7ULIOXUDOLQ(& SLQWV &RDUVH 0HGLXP ± )LQH ± &RDUVHDQG0HGLXP6RLOVZLWK2UJDQLF0DWWHU ± )LQH6RLOVZLWK2UJDQLF0DWWHU 6RLOVZLWK2UJDQLF0DWWHU 8VHORZHUUDWHLQUDWHUDQJHLQDUHDVUHFHLYLQJOHVVWKDQLQFKHVWRWDODQQXDOUDLQIDOODQGLUULJDWLRQ 75(($1'9,1(&5236&,7586)58,7$1'187&5236$1'9,1(<$5'6 $33/,&$7,21721(:3/$17,1*62)&,7586)58,7$1'187&5236 )RUQHZSODQWLQJVRIDOPRQGDSULFRWJUDSHIUXLWOHPRQQHFWDULQHRUDQJHSHDFKSHFDQSOXPSUXQHWDQJHORWDQJHULQHDQGZDOQXWWUHHVDSSO\ DQGLQFRUSRUDWHEHIRUHSODQWLQJ %52$'&$67$33/,&$7,215$7(6$&5( 6RLO7H[WXUH 7ULIOXUDOLQ(& SLQWV &RDUVH 0HGLXP ± )LQH ± $OO6RLOVZLWK±2UJDQLF0DWWHU ± $OO6RLOVZLWK±2UJDQLF0DWWHU 8VHORZHUUDWHLQUDWHUDQJHLQDUHDVUHFHLYLQJOHVVWKDQLQFKHVWRWDODQQXDOUDLQIDOODQGLUULJDWLRQ
)LOHQDPH7ULIOXUDOLQ(&&/1GRF $33/,&$7,21721(:3/$17,162)9,1(<$5'6 )RUQHZSODQWLQJVRIYLQH\DUGVDSSO\DQGLQFRUSRUDWHEHIRUHSODQWLQJ %52$'&$67$33/,&$7,215$7(6$&5( 6RLO7H[WXUH 7ULIOXUDOLQ(& SLQWV &RDUVH ± 0HGLXP ± )LQH ± 6RLOVZLWK±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±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¶VHOHFWLRQRQHRIWKHIROORZLQJ 5HIXQGRIWKHSXUFKDVHSULFHSDLGE\EX\HURUXVHUIRUSURGXFWERXJKWRU 5HSODFHPHQWRIWKHSURGXFWXVHG
)LOHQDPH7ULIOXUDOLQ(&&/1GRF 7RWKHH[WHQWFRQVLVWHQWZLWKDSSOLFDEOHODZWKH&RPSDQ\VKDOOQRWEHOLDEOHDQGDQ\DQGDOOFODLPVDJDLQVWWKH&RPSDQ\DUHZDLYHGIRUVSHFLDO LQGLUHFWLQFLGHQWDORUFRQVHTXHQWLDOGDPDJHVRUH[SHQVHRIDQ\QDWXUHLQFOXGLQJEXWQRWOLPLWHGWRORVVRISURILWVRULQFRPH7KH&RPSDQ\DQGWKH VHOOHURIIHUWKLVSURGXFWDQGWKHEX\HUDQGXVHUDFFHSWLWVXEMHFWWRWKHIRUHJRLQJFRQGLWLRQVRIVDOHDQGOLPLWDWLRQRIZDUUDQW\OLDELOLW\DQGUHPHGLHV &RS\ULJKW+HOHQD+ROGLQJ&RPSDQ\ %/(1'(;9+&DQG,1'8&(3+DUHUHJLVWHUHGWUDGHPDUNVRI+HOHQD+ROGLQJ&RPSDQ\