ON APRIL 25, 2001, U.S. EPA REGION 5 FILED AN ADMINISTRATIVE COMPLAINT AGAINST STEPAN COMPANY ALLEGING THAT THE COMPANY FAILED TO IDENTIFY THE MEASURE OF THE CONTENTS OF TWO PESTICIDAL PRODUCTS ON THEIR LABELS. U.S. EPA PROPOSED A CIVIL PENALTY OF $3,300 FOR EACH COUNT FOR A TOTAL PENALTY OF $6,600. STEPAN COMPANY CONTACTED U.S. EPA IN RESPONSE TO THE ADMINISTRATIVE COMPLAINT AND AGREED TO PAY THE FULL AMOUNT OF THE $6,600 PROPOSED CIVIL PENALTY TO RESOLVE THIS MATTER. STEPAN COMPANY SENT THE CHECK TO U.S. EPA IN LIEU OF FILING AN ANSWER IN ACCORDANCE WITH 40 C.F.R. PART 22. AFTER SENDING THE CHECK, STEPAN DECIDED THAT IT WOULD LIKE TO ENTER INTO A CAFO. ONE HAS BEEN DRAFTED AND WILL BE SENT FOR SIGNATURE UPON APPROVAL OF THIS DRAFT WEEKLY ACTIVITY REPORT.