statement of facts re: bank of america to pay $16.65 billion in historic justice department...

8/11/2019 Statement of Facts Re: Bank of America to Pay $16.65 Billion in Historic Justice Department Settlement for Financi…

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HIIFP 8

Nhia mo Hcfrdgh Gmrpmrhtdmi

Wthtfcfit mo Ohgts

NHIA MO HCF^DGH - ^CNW

Di ehtf ><<; hib fhrey ><<0, Nhia mo Hcfrdgh strugturfb, moofrfb hib smeb mvfr $06<cdeedmi di rfsdbfitdhe cmrtkhkf-nhgafb sfgurdty (―^CNW–) gfrtdodghtfs di h sfgurdtdzhtdmi trustaimwi hs t`f NMHCW ><<0-H sfgurdtdzhtdmi tm divfstmrs, digeubdik ofbfrheey disurfb odihigdhedistdtutdmis. Nhia mo Hcfrdgh chraftfb t`fsf ^CNW hs nhgafb ny Nhia-mrdkdihtfb, prdcfcmrtkhkfs. Nhia mo Hcfrdgh dssufb t`fsf ^CNW gfrtdodghtfs usdik h s`feo rfkdstrhtdmi sthtfcfithib mt`fr moofrdik bmgucfits odefb wdt` t`f V.W. Wfgurdtdfs hib Fxg`hikf Gmccdssdmi (―WFG–)

ny h Nhia mo Hcfrdgh hoodedhtf, Nhig mo Hcfrdgh Cmrtkhkf Wfgurdtdfs, Dig. (―NMHCW–).

Di t`f NMHCW ><<0-H moofrdik bmgucfits, Nhia mo Hcfrdgh rfprfsfitfb t`ht ―fhg`cmrtkhkf Qnhgadik t`f sfgurdtdzhtdmiS . . . ds uibfrwrdttfi di hggmrbhigf wdt` kudbfedifs

fsthneds`fb di Nhia mo Hcfrdgh—s \rmbugt hib \medgy Kudbfs.– Dt ourt`fr rfprfsfitfb t`ht ―QhSemhi ds gmisdbfrfb tm nf uibfrwrdttfi di hggmrbhigf wdt` h kdvfi sft mo kudbfedifs do, nhsfb mi himvfrhee quhedthtdvf fvheuhtdmi, t`f emhi ds di sunsthitdhe gmcpedhigf wdt` sug` uibfrwrdtdikkudbfedifs.– Nhia mo Hcfrdgh hesm rfprfsfitfb t`ht dt ―pfrcdts Qh emhi hppedghit—s bfnt-tm-digmcf rhtdmS tm fxgffb kudbfedifs w`fi t`f hppedghit `hs bmgucfitfb gmcpfishtdik ohgtmrs omrfxgffbdik rhtdm kudbfedifs . . . .–

Ht t`f tdcf Nhia mo Hcfrdgh chbf t`fsf rfprfsfithtdmis, dts ditfrihe rfpmrtdik s`mwfbt`ht ―w`mefshef– cmrtkhkfs‒t`ht ds, emhis mrdkdihtfb t`rmuk` t`drb-phrty cmrtkhkf nrmafrs‒`hbbfgrfhsfb di pfromrchigf hib wfrf fxpfrdfigdik hi digrfhsf di uibfrwrdtdik fxgfptdmis.Hbbdtdmiheey, h rfpmrt t`ht Nhia mo Hcfrdgh prfphrfb omr quhedodfb distdtutdmihe nuyfrs s`mwfb

t`ht w`mefshef emhis ormc hi dibustry efibfr, mi hvfrhkf, fxpfrdfigfb h `dk`fr Gmibdtdmihe\rfphycfit ^htf (―G\^–) t`hi rfthde cmrtkhkfs. R`fsf rfpmrts wfrf rfgfdvfb ny Nhia moHcfrdgh fcpemyffs divmevfb di t`f NMHCW ><<0-H sfgurdtdzhtdmi prdmr tm dts chraftdik hibshef. Nhia mo Hcfrdgh bdb imt bdsgemsf t`ds diomrchtdmi di t`f NMHCW ><<0-H moofrdikbmgucfits.

Nhia mo Hcfrdgh hesm bdb imt bdsgemsf di t`f NMHCW ><<0-H moofrdik bmgucfits t`f pfrgfithkf mo w`mefshef cmrtkhkf emhis gmeehtfrhedzdik t`f sfgurdtdzhtdmi. Mvfr ;< pfrgfit mo t`fcmrtkhkf emhis gmeehtfrhedzdik t`f NMHCW ><<0-H sfgurdtdzhtdmi gmisdstfb mo cmrtkhkfs Nhiamo Hcfrdgh mrdkdihtfb t`rmuk` dts w`mefshef g`hiife. Hpprmxdchtfey sdx wffas nfomrf t`ftrhishgtdmi gemsfb, Nhia mo Hcfrdgh bdsgemsfb prfedcdihry bhth rfehtdik tm t`f pfrgfithkf mow`mefshef cmrtkhkf emhis gmeehtfrhedzdik t`f NMHCW ><<0-H ^CNW tm gfrthdi divfstmrs nut dtbdb imt bdsgemsf t`f pfrgfithkf tm hee nuyfrs mo t`f NMHCW ><<0-H moofrdik.

R`f prfedcdihry emhi thpfs gmithdidik t`f diomrchtdmi hnmut t`f w`mefshef emhi pfrgfithkf t`ht Nhia mo Hcfrdgh prmvdbfb tm gfrthdi divfstmrs wfrf ―HNW diomrchtdmihe hibgmcputhtdmihe chtfrdhe– nfghusf t`fy wfrf ―ohgtuhe diomrchtdmi rfkhrbdik t`f pmme hssftsuibfreydik t`f hssft-nhgafb sfgurdtdfs, digeubdik mrdkdihtdmi . . . hib mt`fr ohgtuhe diomrchtdmigmigfridik t`f phrhcftfrs mo t`f hssft pmme hpprmprdhtf tm t`f ihturf mo t`f uibfreydik hssfts,sug` hs . . . t`f prmkrhcs uibfr w`dg` t`f emhis wfrf mrdkdihtfb.– Nhia mo Hcfrdgh bdb imt

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punedgey odef t`f prfedcdihry emhi thpfs gmithdidik t`ds diomrchtdmi wdt` t`f WFG hib mieybdsgemsfb dt tm t`f homrfcfitdmifb divfstmrs, w`m uetdchtfey divfstfb.

Nhia mo Hcfrdgh bdb imt `hvf t`drb-phrty, emhi-efvfe buf bdedkfigf gmibugtfb mi t`fspfgdodg cmrtkhkf emhis gmeehtfrhedzdik t`f NMHCW ><<0-H sfgurdtdzhtdmi. R`ds whs gmitrhry tmdts phst prhgtdgf. R`drb-phrty, emhi efvfe buf bdedkfigf `hb nffi gmibugtfb mi prfvdmus NMHCWsfgurdtdzhtdmis t`ht gemsfb di Chrg`, Hprde, hib Hukust ><<;1 t`fsf bdedkfigf rfvdfws rfvfhefbt`ht smcf mo t`f cmrtkhkfs rfvdfwfb bdb imt gmiomrc tm Nhia mo Hcfrdgh uibfrwrdtdiksthibhrbs. R`drb-phrty buf bdedkfigf hesm `hb rfvfhefb bhth frrmrs di t`f prfedcdihry emhi thpfst`ht Nhia mo Hcfrdgh `hb prmvdbfb tm divfstmrs. Nhia mo Hcfrdgh bdb imt bdsgemsf di t`fNMHCW ><<0-H moofrdik bmgucfits t`ht t`drb-phrty, emhi-efvfe buf bdedkfigf whs imt gmibugtfbmi t`f emhis gmeehtfrhedzdik NMHCW ><<0-H.

CF^^DEE ETIG@ - ^CNW

R`rmuk`mut ><<? hib ><<;, Cfrrdee Eyig` dssufb hpprmxdchtfey ;> ^CNW gmisdstdik mot`mushibs mo sunprdcf cmrtkhkf emhis. Cfrrdee Eyig` hgqudrfb smcf mo t`fsf emhis ormc t`drb-

phrty mrdkdihtmrs di w`mef emhi trhishgtdmis. Cfrrdee Eyig` hesm sfgurdtdzfb emhis ormc twmmrdkdihtmrs di w`dg` Cfrrdee Eyig` `hb hi mwifrs`dp ditfrfst: Mwidt Cmrtkhkf Wmeutdmis, Dig.(―Mwidt–) hib Odrst Orhiaedi Odihigdhe Gmrpmrhtdmi (―Odrst Orhiaedi–).

Cfrrdee Eyig` chbf gfrthdi rfprfsfithtdmis di t`f moofrdik bmgucfits dt odefb wdt` t`fWFG gmigfridik t`f emhis sfgurdtdzfb di t`fsf ^CNW. Cfrrdee Eyig` hesm suncdttfb diomrchtdmihnmut t`fsf ^CNW tm t`f rhtdiks hkfigdfs. \rdmr tm chadik t`fsf rfprfsfithtdmis, Cfrrdee Eyig`rfgfdvfb diomrchtdmi hs phrt mo dts buf bdedkfigf prmgfss s`mwdik t`ht, omr gfrthdi emhi pmmes,sdkidodghit iucnfrs mo t`f emhis dt whs gmisdbfrdik omr sfgurdtdzhtdmi bdb imt gmiomrc tm t`f

rfprfsfithtdmis chbf di t`f moofrdik bmgucfits dt odefb wdt` t`f WFG.

Di phrtdguehr, t`f moofrdik bmgucfits omr Cfrrdee Eyig` sunprdcf ^CNW rfkuehreydigeubfb rfprfsfithtdmis t`ht ―QhSee mo t`f Cmrtkhkf Emhis wfrf mrdkdihtfb kfifrheey dihggmrbhigf wdt` t`f Qmrdkdihtmr—sS Vibfrwrdtdik Kudbfedifs.– R`f moofrdik bmgucfits hesmrfkuehrey rfprfsfitfb t`ht fxgfptdmis wfrf chbf tm t`fsf kudbfedifs mi h ―ghsf-ny-ghsf nhsds–

nhsfb mi t`f prfsfigf mo ―gmcpfishtdik ohgtmrs.– (Hggmrbdik tm moofrdik bmgucfits odefb wdt`t`f WFG, t`f uibfrwrdtdik kudbfedifs wfrf ―prdchrdey ditfibfb tm hssfss t`f hndedty hibwdeedikifss mo t`f nmrrmwfr tm rfphy t`f bfnt hib tm fvheuhtf t`f hbfquhgy mo t`f cmrtkhkfb

prmpfrty hs gmeehtfrhe omr t`f cmrtkhkf emhi.–) R`f moofrdik bmgucfits hesm rfprfsfitfb t`ht t`femhis sfgurdtdzfb ny Cfrrdee Eyig` gmiomrcfb tm hppedghnef ofbfrhe, sthtf, hib emghe ehws.

\rdmr tm chadik t`fsf rfprfsfithtdmis, fcpemyffs ht Cfrrdee Eyig`—s [`mef Emhi RrhbdikBfsa gmibugtfb buf bdedkfigf mi t`f emhis tm nf purg`hsfb. R`ds buf bdedkfigf prmgfss typdgheeydigeubfb h rfvdfw mo t`f odefs omr h shcpef mo t`f emhis ormc fhg` pmme. R`ds rfvdfw whsgmibugtfb ny h t`drb-phrty vfibmr hib mvfrsffi ny Cfrrdee Eyig`. R`f shcpef wmueb gmithdirhibmcey sfefgtfb emhis, hs wfee hs emhis sfefgtfb usdik ―hbvfrsf shcpedik– tfg`idqufs bfsdkifbtm dbfitdoy emhis t`ht `hb phrtdguehr g`hrhgtfrdstdgs t`ht Cfrrdee Eyig` nfedfvfb whrrhitfb ourt`frrfvdfw. R`ds emhi odef rfvdfw digeubfb hi fvheuhtdmi mo t`f emhis— gmcpedhigf wdt` t`f

>



mrdkdihtmrs— uibfrwrdtdik kudbfedifs (t`f ―grfbdt rfvdfw–), hs wfee hs hi fvheuhtdmi mo w`ft`fr t`fmrdkdihtdmi mo t`f emhis gmcpedfb wdt` ofbfrhe, sthtf, hib emghe ehws, ruefs, hib rfkuehtdmis (t`f―gmcpedhigf rfvdfw–).

R`f t`drb-phrty vfibmrs t`ht pfromrcfb t`f grfbdt hib gmcpedhigf rfvdfws hssdkifbkrhbfs tm fhg` mo t`f emhis t`fy rfvdfwfb. R`f vfibmr krhbfb h emhi hi ―Fvfit Krhbf 8– emhi, mrF_8, do dt bftfrcdifb t`ht t`f emhi whs uibfrwrdttfi hggmrbdik tm t`f mrdkdihtmr—s uibfrwrdtdikkudbfedifs hib di gmcpedhigf wdt` rfefvhit ruefs hib rfkuehtdmis. Emhis t`ht t`f vfibmrbftfrcdifb bdb imt strdgtey gmcpey wdt` hppedghnef uibfrwrdtdik kudbfedifs, nut t`ht `hbsuoodgdfit gmcpfishtdik ohgtmrs, wfrf rhtfb hs hi F_>. _fibmrs krhbfb h emhi hi F_7 w`fi t`femhi whs imt mrdkdihtfb di gmcpedhigf wdt` hppedghnef ehws hib rfkuehtdmis, t`f emhi bdb imtgmcpey wdt` hppedghnef uibfrwrdtdik kudbfedifs hib ehgafb t`f suoodgdfit moosfttdikgmcpfishtdik ohgtmrs, mr t`f emhi odef whs cdssdik h afy pdfgf mo bmgucfithtdmi.

R`f uibfrwrdtdik hib gmcpedhigf httrdnutfs gmisdbfrfb ny t`f vfibmrs di krhbdik emhis hsF_7 digeubfb, hcmik mt`fr t`diks, emhis tm nmrrmwfrs w`m `hb rfgfitey bfgehrfb nhiaruptgy digfrthdi efibdik prmkrhcs w`frf nhiarupt nmrrmwfrs wfrf imt pfrcdttfb1 ―`dk` gmst– emhis t`hthppfhrfb tm vdmehtf sthtf efibdik ehws1 bfnt-tm-digmcf rhtdms t`ht bdb imt gmcpey wdt` hppedghnef

prmbugt kudbfedifs1 dihbfquhtf mr cdssdik bmgucfithtdmi mo digmcf, hssfts, hib rfithe mrcmrtkhkf `dstmry omr t`f rfefvhit emhi prmkrhc1 hib sthtfb digmcfs t`f vfibmrs gmigeubfb wfrfuirfhsmihnef.

Cfrrdee Eyig`—s sunprdcf buf bdedkfigf chihkfr rfgfdvfb t`f vfibmrs— rfpmrts hib t`frfsuets mo t`f buf bdedkfigf rfvdfws t`rmuk`mut t`f w`mef emhi hgqudsdtdmi prmgfss. R`f vfibmrs—rfpmrts wfrf hesm hvhdehnef tm mt`frs di Cfrrdee Eyig`—s ^CNW nusdifss, digeubdik t`msf mi t`ftrhbdik bfsa hib di t`f sfgurdtdzhtdmi krmup. R`fsf rfpmrts s`mwfb t`ht smcf buf bdedkfigfshcpefs `hb hi F_7 rhtf hs ̀ dk` hs 6<% mo t`f emhis shcpefb. Cfrrdee Eyig` typdgheey bdb imtrfvdfw t`f uishcpefb pmrtdmi mo t`f emhi pmmes tm bftfrcdif w`ft`fr t`fy hesm digeubfb emhiswdt` chtfrdhe grfbdt mr gmcpedhigf bfofgts.

Di hbbdtdmi, buf bdedkfigf pfrsmiife hib, di gfrthdi disthigfs, trhbfrs mi Cfrrdee Eyig`—s[`mef Emhi Rrhbdik Bfsa, rffvheuhtfb gfrthdi emhis krhbfb F_7 ny t`f vfibmr hib, di gfrthdigdrgucsthigfs, mvfrruefb t`f vfibmr—s krhbf hib ―whdvfb– phrtdguehr emhis ditm t`f purg`hsfb

pmme. Cfrrdee Eyig`—s gmitfcpmrhifmus rfgmrbs bdb imt di hee ghsfs bmgucfit Cfrrdee Eyig`—srfhsmis omr bdrfgtdik t`f buf bdedkfigf vfibmrs tm rf-krhbf emhis.

Di hi ditfrihe fchde t`ht bdsgussfb buf bdedkfigf mi mif phrtdguehr pmme mo emhis, hgmisuethit di Cfrrdee Eyig`—s buf bdedkfigf bfphrtcfit wrmtf: ―Q`Smw cug` tdcf bm ymu whitcf tm spfib emmadik ht t`fsf QemhisS do Qt`f gm-`fhb mo Cfrrdee Eyig`—s ^CNW nusdifssS ds kmdik

tm affp t`fc rfkhrbefss mo dssufs= . . . Chafs ymu wmibfr w`y wf `hvf buf bdedkfigf pfromrcfbmt`fr t`hi chadik surf t`f emhi gemsfb.–

Di ><<? hib ><<;, Cfrrdee Eyig`—s buf bdedkfigf vfibmrs prmvdbfb Cfrrdee Eyig` wdt`rfpmrts rfoefgtdik t`ht t`f vfibmrs krhbfb gfrthdi mo t`f shcpefb emhis hs F_7. Omr smcf pmmes,t`f rfpmrts s`mwfb t`ht t`f vfibmrs `hb krhbfb cmrf t`hi >< pfrgfit mo t`f shcpefb emhis hsF_7. R`f omeemwdik fxhcpefs prmvdbf t`f hpprmxdchtf pfrgfithkfs mo F_7 emhis t`ht wfrf

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prfsfit di t`f shcpefs thafi ormc phrtdguehr pmmes hib t`f hpprmxdchtf pfrgfithkf mo t`msf F_7emhis t`ht wfrf whdvfb di ny Cfrrdee Eyig` omr hgqudsdtdmi:

• Whcpefb emhis ormc odvf pmmes mo emhis mrdkdihtfb ny ^fsCHF Cmrtkhkf Gmrpmrhtdmiofb ditm omur sfgurdtdzhtdmis dssufb ny Cfrrdee Eyig` Cmrtkhkf Divfstmrs Rrust di

><<?: CECD ><<?-^C8, CECD ><<?-^C>, CECD ><<?-^C7 hib CECD ><<?-^C6. Omr mif pmme, t`f vfibmr krhbfb >2% mo t`f buf bdedkfigf shcpef F_7, hibCfrrdee Eyig` whdvfb ditm t`f purg`hsf pmme 8?% mo t`fsf emhis. Omr h sfgmib pmme,t`f vfibmr krhbfb 7>% mo t`f buf bdedkfigf shcpef F_7, hib Cfrrdee Eyig` whdvfbditm t`f purg`hsf pmme 82% mo t`fsf emhis. Omr h t`drb pmme, t`f vfibmr krhbfb >>% mot`f buf bdedkfigf shcpef F_7, hib Cfrrdee Eyig` whdvfb ditm t`f purg`hsf pmme >;%mo t`fsf emhis. Omr h omurt` pmme, t`f vfibmr krhbfb 6;% mo t`f buf bdedkfigf shcpefF_7. Odiheey, omr h odot` pmme, t`f vfibmr krhbfb 2<% mo t`f buf bdedkfigf shcpefF_7, hib Cfrrdee Eyig` whdvfb ditm t`f purg`hsf pmme 6<% mo t`fsf emhis.

• Whcpefb emhis ormc twm pmmes mo emhis mrdkdihtfb ny Cmrtkhkf Efibfrs IftwmraVWH, Dig. ofb ditm CECD ><<?-CEI8, h sfgurdtdzhtdmi dssufb ny Cfrrdee Eyig`Cmrtkhkf Divfstmrs Rrust di ><<?. _fibmrs krhbfb >>% hib >7% mo t`f bufbdedkfigf shcpef F_7 omr t̀ fsf twm pmmes. Omr t`f ehttfr shcpef, Cfrrdee Eyig`whdvfb ditm t`f purg`hsf pmme >>% mo t`f emhis t`ht `hb rfgfdvfb hi F_7 rhtdik.

• Whcpefb emhis ormc twm pmmes mo emhis mrdkdihtfb ny [CG Cmrtkhkf Gmrpmrhtdmiofb ditm twm sfgurdtdzhtdmis dssufb ny Cfrrdee Eyig` Cmrtkhkf Divfstmrs Rrust di><<?: CECD ><<?-[CG8 hib CECD ><<?-[CG>. Omr t`fsf twm pmmes, t`fvfibmrs krhbfb >>% hib 26% mo t`f emhis di t`f buf bdedkfigf shcpef F_7. Omr t`fehttfr shcpef, Cfrrdee Eyig` whdvfb ditm t`f purg`hsf pmme >?% mo t`f emhis t`ht `hbrfgfdvfb hi F_7 rhtdik.

• Whcpefb emhis ormc h pmme mo emhis mrdkdihtfb ny Hggrfbdtfb @mcf Efibfrs, Dig. ofbditm CECD ><<?-H@E8, h sfgurdtdzhtdmi dssufb ny Cfrrdee Eyig` Cmrtkhkf DivfstmrsRrust di ><<?. Omr t`ds pmme, vfibmrs krhbfb 66% mo t`f buf bdedkfigf shcpef F_7.Cfrrdee Eyig` whdvfb ditm t`f purg`hsf pmme 78% mo t`f emhis t`ht `hb rfgfdvfb hiF_7 rhtdik.

Cfrrdee Eyig` sfgurdtdzfb cmst mo t`f F_7 emhis dt whdvfb di hib hgqudrfb di t`ds ohs`dmi,typdgheey wdt`di h chttfr mo cmit`s.

R`fsf buf bdedkfigf rfsuets hrf gmisdstfit wdt` h ―trfibdik rfpmrt– prfphrfb omr gedfitchraftdik purpmsfs ny mif mo Cfrrdee Eyig`—s buf bdedkfigf vfibmrs (ehtfr bfsgrdnfb ny t`f

vfibmr tm nf h ―nfth– mr tfst rfpmrt) t`ht trhgafb F_7 hib whdvfr rhtfs di t`f shcpefs ormc t`fCfrrdee Eyig` emhi pmmes t`ht t`f vfibmr rfvdfwfb ormc t`f odrst quhrtfr mo ><<? t`rmuk` t`fsfgmib quhrtfr mo ><<;. Burdik t`msf sdx quhrtfrs, t`f vfibmr rfpmrtfb t`ht dt rfvdfwfb 66,6>4emhis omr Cfrrdee Eyig`. R`f vfibmr rfpmrtfb t`ht 8>,000 mo t`f emhis rfvdfwfb, mr >7%, rfgfdvfbhi didtdhe krhbf mo F_7. R`f rfpmrt imtfs t`ht 2,<44 emhis, mr 78.0% mo t`f emhis t`ht rfgfdvfb hididtdhe F_7 krhbf, wfrf ―whdvfb– ditm t`f purg`hsf pmmes ny Cfrrdee Eyig`.

2



wdt` hi ER_ di fxgfss mo 8<<%, nhsfb mi vheuhtdmis mnthdifb ormc H_Cs. R`f moofrdikbmgucfits bdb imt bdsgemsf ohgts hnmut Cfrrdee Eyig`—s ―tmefrhigf– efvfes.

R`f gmibugt bfsgrdnfb hnmvf wdt` rfspfgt tm Cfrrdee Eyig` hee mggurrfb prdmr tm Nhia moHcfrdgh—s hgqudsdtdmi mo Cfrrdee Eyig` di Jhiuhry ><<4.

GMVIR^T[DBF - ^CNW

Nftwffi ><<6 hib ><<;, Gmuitrywdbf Odihigdhe Gmrpmrhtdmi (―GOG–) whs t`f phrfitgmrpmrhtdmi mo Gmuitrywdbf @mcf Emhis (―G@E–), Gmuitrywdbf Nhia, OWN (―GN–), hibGmuitrywdbf Wfgurdtdfs Gmrpmrhtdmi (―GWG–). G@E mrdkdihtfb hib hgqudrfb rfsdbfitdhe cmrtkhkfemhis. GN whs h ofbfrheey g`hrtfrfb shvdiks nhia, t`f bfpmsdts mo w`dg` wfrf ofbfrheey disurfb.GWG whs h rfkdstfrfb nrmafr-bfhefr t`ht whs fikhkfb di uibfrwrdtdik ^CNW, w`dg` wfrf motfi

nhgafb ny ―pmmes– mo emhis mrdkdihtfb ny G@E. GOG, G@E, GN, hib GWG hrf rfofrrfb tm `frfdi

gmeefgtdvfey hs ―Gmuitrywdbf.–

Hs bdsgussfb nfemw, ormc ><<6 tm ><<;, Gmuitrywdbf mrdkdihtfb hi digrfhsdik iucnfr moemhis hs fxgfptdmis tm dts Emhi \rmkrhc Kudbfs. Ht t`f shcf tdcf, fcpemyffs mo Gmuitrywdbfrfgfdvfb diomrchtdmi dibdghtdik t`ht t`frf whs hi digrfhsfb rdsa mo pmmr pfromrchigf omr gfrthdicmrtkhkf prmkrhcs hib prmbugts t`ht wfrf nfdik digeubfb di ^CNW. Bfspdtf `hvdik hggfss tmt`ds diomrchtdmi, Gmuitrywdbf—s ^CNW moofrdik bmgucfits kfifrheey bdb imt bdsgemsf t`f fxtfittm w`dg` uibfreydik emhis wfrf mrdkdihtfb hs fxgfptdmis tm dts Emhi \rmkrhc Kudbfs. Imr bdbGmuitrywdbf bdsgemsf di dts ^CNW moofrdik bmgucfits t`f rfsuets mo gfrthdi rfvdfws hib ditfriherfpmrts rfehtfb tm emhi pfromrchigf.

D.

Gmuitrywdbf Nusdifss CmbfeNftwffi ><<6 hib ><<;, Gmuitrywdbf whs h bdvfrsdodfb odihigdhe sfrvdgfs gmcphiy

fikhkfb di cmrtkhkf efibdik, nhiadik, cmrtkhkf emhi sfrvdgdik, cmrtkhkf whrf`musf efibdik,sfgurdtdfs, hib disurhigf. Ht t`ds tdcf, Gmuitrywdbf whs hcmik t`f ehrkfst mrdkdihtmrs morfsdbfitdhe cmrtkhkf emhis di t`f Vidtfb Wthtfs. Gmuitrywdbf—s WFG odediks s`mw t`ht dtmrdkdihtfb $>>4 ndeedmi di rfsdbfitdhe cmrtkhkf emhis di ><<6, $>27 ndeedmi di ><<?, hib $><6

ndeedmi di ><<;.

Gmuitrywdbf—s nusdifss cmbfe whs tm sfrvf hs hi ditfrcfbdhry nftwffi nmrrmwfrssffadik rfsdbfitdhe cmrtkhkfs hib divfstmrs sffadik tm purg`hsf emhis di t`f sfgmibhry chraft.Hs bdsgemsfb di Gmuitrywdbf—s Omrc 8<-A omr ><<6, cmst mo t`f cmrtkhkf emhis Gmuitrywdbf

prmbugfb wfrf smeb ditm t`f sfgmibhry cmrtkhkf chraft, prdchrdey di t`f omrc mo ^CNW. Ormc><<6 tm ><<;, Gmuitrywdbf spmismrfb hib smeb hpprmxdchtfey $77> ndeedmi mo prdcf, Het-H,sfgmib edfi, `mcf fqudty edif mo grfbdt, hib sunprdcf ^CNW nhgafb ny emhis mrdkdihtfb ny,hcmik mt`frs, G@E.

Gmuitrywdbf fcpemyfb, hcmik mt`frs, h gmrpmrhtf strhtfky smcftdcfs rfofrrfb tm hs t`f―Wupfrchraft Wtrhtfky.– R`f Wupfrchraft Wtrhtfky whs bfvfempfb tm grfhtf h mif-stmp s`mppdikfxpfrdfigf omr nmrrmwfrs. Di hbbdtdmi tm moofrdik dts mwi prmbugts, Gmuitrywdbf strmvf tm moofr tm

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nmrrmwfrs fvfry adib mo cmrtkhkf prmbugt t`ht whs hvhdehnef ormc efkdtdchtf gmcpftdik efibfrs.H gmcpmifit mo t`f Wupfrchraft Wtrhtfky, w`dg` `hs smcftdcfs nffi rfofrrfb tm hs t`f―chtg`dik strhtfky,– whs h prmgfss ny w`dg` Gmuitrywdbf wmueb efhri hnmut hib fvheuhtf emhi

prmbugt moofrdiks ormc dts gmcpftdtmrs hib fxphib dts prmbugt moofrdik tm chtg` mr fxgffb dtsgmcpftdtmrs— prmbugt moofrdiks.

DD. Gmuitrywdbf Emhi Mrdkdihtdmi \rmgfss

G@E mrdkdihtfb hib hgqudrfb rfsdbfitdhe cmrtkhkf emhis t`rmuk` h vhrdfty mo g`hiifes,digeubdik dts mwi rfthde nrhig`fs, cmrtkhkf nrmafrs, hib h iftwmra mo t`drb-phrty gmrrfspmibfitefibfrs. Gmuitrywdbf—s rfthde nrhig`fs wfrf rfofrrfb tm hs t`f Gmisucfr Chrafts Bdvdsdmi(―GCB–) hib t`f Ouee Wpfgtruc Efibdik Bdvdsdmi (―OWE–). Gmuitrywdbf prmvdbfb dts GCB hibOWE nrhig` uibfrwrdtfrs wdt` sfts mo efibdik kudbfedifs, digeubdik Emhi \rmkrhc Kudbfs, t`htedstfb nmrrmwfr hib emhi g`hrhgtfrdstdgs, digeubdik grfbdt sgmrfs hib bfnt-tm-digmcf (―BRD–) hibER_ rhtdms, t`ht nrhig` uibfrwrdtfrs wfrf tm gmisdbfr w`fi uibfrwrdtdik h pmtfitdhe emhi.Nrhig` uibfrwrdtfrs `hb hut`mrdty tm hpprmvf emhis t`ht odt wdt`di t`f phrhcftfrs mutedifb di t`fEmhi \rmkrhc Kudbfs.

[`fi nrhig` uibfrwrdtfrs rfgfdvfb emhi hppedghtdmis t`ht bdb imt cfft t`f prmkrhc phrhcftfrs di t`f Emhi \rmkrhc Kudbfs ( f.k. , grfbdt sgmrf, ER_, emhi hcmuit), t`f nrhig`uibfrwrdtfrs wfrf hut`mrdzfb tm rfofr t`f hppedghtdmis tm cmrf fxpfrdfigfb uibfrwrdtfrs ht t`frfefvhit bdvdsdmihe ―Wtrugturfb Emhi Bfsa– (―WEB–) omr gmisdbfrhtdmi mo hi ―fxgfptdmi.–Vibfrwrdtfrs ht t`f WEB wfrf hut`mrdzfb tm hpprmvf rfqufsts tm chaf hi ―fxgfptdmi– tm t`fEmhi \rmkrhc Kudbfs do t`f prmpmsfb emhi hib nmrrmwfr gmcpedfb wdt` t`f g`hrhgtfrdstdgsbfsgrdnfb di himt`fr sft mo kudbfedifs, rfofrrfb tm hs sm-gheefb ―W`hbmw Kudbfedifs,– hib t`f emhigmithdifb gmcpfishtdik ohgtmrs suppmrtdik t`f fxgfptdmi rfqufst. R`f W`hbmw Kudbfedifskfifrheey pfrcdttfb emhis tm nf chbf tm nmrrmwfrs wdt` emwfr grfbdt sgmrfs hib heemwfb omr`dk`fr ER_ rhtdms t`hi t`f Emhi \rmkrhc Kudbfs. Do t`f WEB uibfrwrdtfr bdb imt nfedfvf t`ht hifxgfptdmi whs hpprmprdhtf hs prfsfitfb, t`f WEB uibfrwrdtfr fdt`fr gmueb bfiy t`f fxgfptdmirfqufst mr gmueb prmpmsf h gmuitfr-moofr tm t`f nrhig` uibfrwrdtfr. H gmuitfr-moofr whs hrfjfgtdmi mo t`f fxgfptdmi rfqufst hggmcphidfb ny h prmpmshe t`ht t`f emhi gmueb nf mrdkdihtfbuibfr h bdoofrfit sft mo tfrcs ormc t`msf mrdkdiheey prmpmsfb ny t`f nrhig` uibfrwrdtfr. Omrfxhcpef, h gmuitfr-moofr cdk`t prmpmsf h bdoofrfit emhi prmbugt mr prmkrhc mr rfqufst t`ht t`f

nmrrmwfr digrfhsf t`f sdzf mo h bmwi phycfit. Gmuitrywdbf—s pmedgdfs dibdghtfb t`ht hotfr hifxgfptdmi hpprmvhe mr gmuitfr-moofr whs bfedvfrfb tm t`f nrhig` uibfrwrdtfr, t`f nrhig`uibfrwrdtfr wmueb t`fi nf rfspmisdnef omr bfgdbdik w`ft`fr tm hpprmvf t`f emhi.

Do h emhi hppedghtdmi bdb imt cfft t`f grfbdt sthibhrbs mo t`f W`hbmw Kudbfedifs,Wtrugturfb Emhi Bfsa uibfrwrdtfrs wfrf hut`mrdzfb tm suncdt h rfqufst tm Gmuitrywdbf—s

Wfgmibhry Chraftdik Wtrugturfb Emhi Bfsa (―WCWEB–), w`dg` wmueb t`fi bftfrcdif w`ft`frt`f rfqufstfb emhi, do mrdkdihtfb, gmueb nf prdgfb hib smeb di t`f sfgmibhry chraft. Do h emhigmueb nf prdgfb hib smeb, WCWEB wmueb prmvdbf h prdgf omr t`f emhi hib uetdchtfey dt wmueb nfrfturifb tm t`f nrhig` uibfrwrdtfr.

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DDD. ^CNW Wfgurdtdzhtdmi \rmgfss

Gmuitrywdbf smeb t`f chjmrdty mo t`f emhis t`ht dt mrdkdihtfb. Chiy sug` emhis wfrf smebdi t`f omrc mo ^CNW uibfrwrdttfi ny GWG. R`f G@E emhis t`ht GWG uibfrwrmtf di t`fsfsfgurdtdzhtdmis wfrf smurgfb di h vhrdfty mo whys, digeubdik t`rmuk` t`drb-phrty gmrrfspmibfitefibfrs. Gmuitrywdbf strugturfb hib sfgurdtdzfb t`fsf G@E mr t`drb-phrty cmrtkhkf emhis uibfrdts mwi s`feo rfkdstrhtdmis, sug` hs Gmuitrywdbf Hetfrihtdvf Emhi Rrust.

Buf Bdedkfigf

[`fi Gmuitrywdbf sfgurdtdzfb emhis ditm ^CNW, dt wmueb typdgheey fikhkf h t`drb-phrtybuf bdedkfigf prmvdbfr tm pfromrc buf bdedkfigf mi h shcpef mo t`f emhis. Burdik t`ds prmgfss,t`drb-phrty buf bdedkfigf prmvdbfrs kfifrheey rfvdfwfb h shcpef mo t`f emhis tm nf sfgurdtdzfbhkhdist uibfrwrdtdik kudbfedifs prmvdbfb ny Gmuitrywdbf. Di gfrthdi disthigfs, Gmuitrywdbf

prmvdbfb t`f buf bdedkfigf prmvdbfrs wdt` w`ht wfrf aimwi hs ―Wfeefr Emhi \rmkrhc Kudbfs,–w`dg` wfrf kudbfedifs nhsfb mi t`f g`hrhgtfrdstdgs mo emhis t`ht Gmuitrywdbf `hb nffi hnef tmchaf hib sfee di t`f phst. Wfeefr Emhi \rmkrhc Kudbfs rfoefgtfb t`f grfbdt httrdnutfs mo t`f emhist`ht Gmuitrywdbf `hb prfvdmusey chbf hib smeb, hib hs h rfsuet t`fy orfqufitey edstfb emwfrgrfbdt sgmrfs mr `dk`fr BRD hib ER_ rhtdms t`hi t`f hppedghnef Emhi \rmkrhc Kudbfs mr t`fhppedghnef W`hbmw Kudbfedifs. Omr fxhcpef, gfrthdi mo t`f Wfeefr Emhi \rmkrhc Kudbfs sthtfbt`ht t`fy heemwfb BRDs mo up tm 66% omr gfrthdi emhis. R`f buf bdedkfigf prmvdbfrs wmueb t`firfpmrt t`f rfsuets mo t`fdr rfvdfw mo t`f emhis t`ht wfrf gmithdifb di t`f sfefgtfb shcpefs,digeubdik w`ft`fr t`fy gmcpedfb wdt` t`f uibfrwrdtdik kudbfedifs prmvdbfb ny Gmuitrywdbfhib/mr w`ft`fr fxgfptdmis tm t`msf kudbfedifs wfrf suppmrtfb ny gmcpfishtdik ohgtmrs.

Moofrdik Bmgucfit ^fprfsfithtdmis hib Bdsgemsurfs

Gmuitrywdbf prfphrfb hib odefb wdt` t`f WFG gfrthdi bmgucfits di gmiifgtdmi wdt`

moofrdik ^CNW. R`msf bmgucfits digeubfb \rmspfgtusfs hib \rmspfgtus Wuppefcfits (tmkft`fr,―Moofrdik Bmgucfits–), hs wfee hs \mmedik hib Wfrvdgdik Hkrffcfits t`ht cfcmrdhedzfbhkrffcfits hcmik Gmuitrywdbf fitdtdfs t`ht moofrfb mr sfrvdgfb t`f ^CNW hib t`f trustff omrt`f ^CNW migf t`fy wfrf dssufb. \mrtdmis mo t`f \mmedik hib Wfrvdgdik Hkrffcfits wfrfbfsgrdnfb hib/mr digmrpmrhtfb ny rfofrfigf di t`f Moofrdik Bmgucfits.

Di gfrthdi mo t`f Moofrdik Bmgucfits t`ht wfrf prmvdbfb tm divfstmrs di ^CNW,Gmuitrywdbf rfprfsfitfb t`ht dt chdithdifb hi uibfrwrdtdik systfc t`ht whs ditfibfb tm fvheuhtfrfsdbfitdhe nmrrmwfrs— grfbdt sthibdik hib rfphycfit hndedty. Het`muk` t`f Moofrdik Bmgucfitswfrf imt uidomrc, Gmuitrywdbf typdgheey rfprfsfitfb di t`fc t`ht dt mrdkdihtfb emhissunsthitdheey di hggmrbhigf wdt` dts grfbdt, hpprhdshe hib uibfrwrdtdik sthibhrbs. Omr fxhcpef,

Gmuitrywdbf typdgheey rfprfsfitfb t`ht dt hppedfb dts uibfrwrdtdik sthibhrbs ―tm fvheuhtf t`f nmrrmwfr—s grfbdt sthibdik hib rfphycfit hndedty– hib t`ht ―h bftfrcdihtdmi kfifrheey ds chbf hstm w`ft`fr t`f prmspfgtdvf nmrrmwfr `hs suoodgdfit cmitèy digmcf hvhdehnef tm cfft cmitèy`musdik fxpfisfs hib mt`fr odihigdhe mnedkhtdmis hib tm cfft t`f nmrrmwfr—s cmitèy mnedkhtdmismi t`f prmpmsfb cmrtkhkf emhi.– Omr gfrthdi ^CNW, Gmuitrywdbf hesm kfifrheey sthtfb t`ht―fxgfptdmis– tm G@E—s ―uibfrwrdtdik kudbfedifs chy nf chbf do gmcpfishtdik ohgtmrs hrfbfcmistrhtfb ny h prmspfgtdvf nmrrmwfr.–

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Di gfrthdi mo t`f Moofrdik Bmgucfits, Gmuitrywdbf sthtfb t`ht dt mrdkdihtfb emhis uibfr―Wthibhrb Vibfrwrdtdik Kudbfedifs– hib ―Fxphibfb Vibfrwrdtdik Kudbfedifs.– Gmuitrywdbfsthtfb t`ht gfrthdi Wthibhrb Vibfrwrdtdik Kudbfedifs kfifrheey pfrcdttfb BRD rhtdms nhsfb micmit`ey `musdik fxpfisfs up tm 77% hib, w`fi nhsfb mi tmthe bfnt, up tm 70%.

Gfrthdi Moofrdik Bmgucfits bdsgemsfb t`ht uibfr Gmuitrywdbf—s Wthibhrb VibfrwrdtdikKudbfedifs, emhis gmueb nf mrdkdihtfb pursuhit tm t`f ―Ouee,– ―Het,– ―^fbugfb,– ―GEVFW \eus,–hib ―Wtrfhcedifb– bmgucfithtdmi prmkrhcs, hib t`ht uibfr gfrthdi mo t`fsf prmkrhcs, ―smcfuibfrwrdtdik bmgucfithtdmi gmigfridik digmcf, fcpemycfit hib hssft vfrdodghtdmi ds whdvfb,–t`ht ―diomrchtdmi rfehtdik tm h prmspfgtdvf nmrrmwfr—s digmcf hib fcpemycfit ds imt vfrdodfb,–hib t`ht t`frfomrf BRD omr t`msf emhis whs gheguehtfb ―nhsfb mi t`f diomrchtdmi prmvdbfb ny t`f

nmrrmwfr di t`f cmrtkhkf emhi hppedghtdmi.–

Gfrthdi Moofrdik Bmgucfits hesm bdsgemsfb t`ht uibfr Gmuitrywdbf—s FxphibfbVibfrwrdtdik Kudbfedifs, emhis gmueb nf mrdkdihtfb uibfr hbbdtdmihe bmgucfithtdmi prmkrhcs,ihcfey ―Wthtfb Digmcf/Wthtfb Hssfts,– ―Im Digmcf/Im Hssfts,– hib ―Im ^htdm.– Vibfr t`f―Wthtfb Digmcf/Wthtfb Hssft– prmkrhc, nmrrmwfrs sthtfb t`fdr digmcfs mi h emhi hppedghtdmiwdt`mut prmvdbdik suppmrtdik bmgucfithtdmi t`ht gmueb t`fi nf vfrdodfb. R`f MoofrdikBmgucfits bdsgemsfb t`ht di gmiifgtdmi wdt` t`f Wthtfb Digmcf/Wthtfb Hssfts prmkrhc, t`f emhihppedghtdmi whs rfvdfwfb tm bftfrcdif w`ft`fr t`f digmcf hs sthtfb ny t`f nmrrmwfr whsrfhsmihnef omr t`f nmrrmwfr—s sthtfb fcpemycfit. R`f bfsgrdptdmi mo t`f Fxphibfb VibfrwrdtdikKudbfedifs hesm sthtfb t`ht t`fy kfifrheey pfrcdttfb BRD rhtdms up tm 7?% mi t`f nhsds mo `musdikbfnt hib up tm 2<% mi t`f nhsds mo tmthe bfnt.

Gmuitrywdbf fitdtdfs chbf rfprfsfithtdmis tm sfgurdtdzhtdmi trustffs di \mmedik hibWfrvdgdik Hkrffcfits. Omr fxhcpef, G@E typdgheey rfprfsfitfb t`ht fhg` G@E cmrtkhkf emhisuppmrtdik t`f sunjfgt ^CNW whs uibfrwrdttfi di hee chtfrdhe rfspfgts di hggmrbhigf wdt`G@E—s uibfrwrdtdik kudbfedifs. Di gfrthdi \mmedik hib Wfrvdgdik Hkrffcfits, G@E hesmrfprfsfitfb t`ht t`f cmrtkhkf emhi pmmes nhgadik t`f sunjfgt ^CNW wfrf ―sfefgtfb ormc hcmikt`f . . . pmrtomedms mo t`f Wfeefrs ht t`f Gemsdik Bhtf hs tm w`dg` t`f rfprfsfithtdmis hibwhrrhitdfs Qsft omrt` di t`f \mmedik & Wfrvdgdik HkrffcfitS ghi nf chbf– hib wfrf imt―sfefgtfb di h chiifr ditfibfb tm hbvfrsfey hoofgt t`f ditfrfsts mo t`f Gfrtdodghtf`mebfrs.– G@Ehesm rfprfsfitfb di gfrthdi \mmedik hib Wfrvdgdik Hkrffcfits t`ht, tm t`f nfst mo dts aimwefbkf,―t`frf ds im chtfrdhe fvfit w`dg`, wdt` t`f phsshkf mo tdcf mr wdt` imtdgf hib t`f fxpdrhtdmi mohiy krhgf mr gurf pfrdmb, wmueb gmistdtutf h bfohuet, nrfhg`, vdmehtdmi mr fvfit mo hggfefrhtdmi– hstm hiy cmrtkhkf emhi sfrvdik hs gmeehtfrhe omr t`f ^CNW.

D_. Gmuitrywdbf Fxphibfb Dts Emhi Moofrdiks Nhsfb mi Whehndedty

Di t`f fhrey tm cdb-><<<s, cmrtkhkf mrdkdihtmrs hgrmss t`f cmrtkhkf efibdik dibustry nfkhi tm moofr cmrf typfs mo cmrtkhkf prmbugts. Di ourt`frhigf mo dts kmhe tm mnthdi h 7<%chraft s`hrf hib dts ―Wupfrchraft Wtrhtfky,– Gmuitrywdbf nfkhi tm moofr prmbugts t`ht ofhturfbcmrf pfrcdssdvf efibdik grdtfrdh. Fxhcpefs mo t`fsf cmrf pfrcdssdvf efibdik grdtfrdh digeubfbemhis wdt` `dk`fr gmcndifb-emhi-tm-vheuf rhtdms mr wdt` emwfr grfbdt sgmrfs. Gmuitrywdbf hesm

nfkhi tm moofr prmbugts t`ht rfqudrfb efss bmgucfithtdmi ormc nmrrmwfrs mr moofrfb oefxdnef phycfit mptdmis. Fxhcpefs mo t`fsf cmrtkhkf prmbugts digeubfb ―Wthtfb Digmcf– emhis hib \hy-Mptdmi Hbjusthnef ^htf Cmrtkhkfs (―H^Cs–). Wthtfb Digmcf emhis bdb imt rfqudrf nmrrmwfrs tm

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sunsthitdhtf t`fdr gehdcfb digmcfs wdt` thx omrcs mr mt`fr bmgucfithry prmmo. \hy-MptdmiH^Cs ofhturfb vhrdhnef ditfrfst rhtfs hib oefxdnef rfphycfit mptdmis, digeubdik t`f hndedty tm phymiey t`f ditfrfst buf omr h gfrthdi pfrdmb mo tdcf.

Di h cfcm sfit di Mgtmnfr ><<2, GOG—s t`fi G`dfo Grfbdt Moodgfr wrmtf: ―cy dcprfssdmisdigf hrrdvdik `frf ds t`ht t`f Gmcphiy—s sthibhrb omr prmbugts hib Kudbfedifs `hs nffi: ‐Do wfghi prdgf dt, t`fi wf wdee moofr dt.—– Di h Chy 87, ><<; ditfrihe cfcmrhibuc, t`f shcf fxfgutdvfwrmtf:

H gmrf prdigdphe QsdgS uibfreydik prmbugt kudbfedifs ds shehndedty. R`f miey fxgfptdmi tmt`ds prdigdpef ds spfgdodg ‐Nhia miey— prmkrhcs w`frf emhis hrf mrdkdihtfb mr purg`hsfbomr t`f Nhia pmrtomedm.

Wdcdehrey, di hi fchde bhtfb Juif ;, ><<;, GOG—s G`dfo Divfstcfit Moodgfr wrmtf tm GOG—s\rfsdbfit, ―Q[S`fi grfbdt whs fhsdey shehnef, WEB whs h why tm thaf hbvhithkf mo t`f ‐shehndedty—hib bm emhis mutsdbf kudbfedifs hib imt eft mur vdfws mo rdsa kft di t`f why.–

Digrfhsf di Fxgfptdmi Emhis

Gmuitrywdbf mrdkdihtfb hi digrfhsdik iucnfr mo emhis hs fxgfptdmis tm dts Emhi \rmkrhcKudbfs. H Juif >0, ><<6, h Gmuitrywdbf Odihigdhe Gmrpmrhtf Grfbd t ^dsa Gmccdttff

prfsfithtdmi imtfb t`ht hpprmxdchtfey 86% mo imigmiomrcdik emhis 8 t`ht Gmuitrywdbf whsmrdkdihtdik t`rmuk` GCB wfrf fxgfptdmi emhis.

Mi Juey >0, ><<6, h Gmuitrywdbf fxfgutdvf sfit hi fchde diomrcdik t`f WEB t`ht dt gmueb nfkdi tm fxphib t`f prmkrhcs omr w`dg` dt gmueb hpprmvf ―fxgfptdmi– emhis tm prmkrhcs mt`frt`hi t`f 7< yfhr odxfb hib 6/8 H^C emhi prmbugts. @f wrmtf:

QRSm t`f wdbfst fxtfit pmssdnef, wf hrf kmdik tm sthrt heemwdikfxgfptdmis mi hee rfqufsts, rfkhrbefss mo prmkrhc, omr hee emhis efsst`hi $7 cdeedmi, foofgtdvf dccfbdhtfey.

* * * *R`f prdgdik cft`mbmemky wf wdee usf wdee nf sdcdehr tm t`ht w`dg`wf usf omr 7<-yfhr odxfb rhtfs hib 6-8 @ynrdbs. [f wdee hssucfsfgurdtdzhtdmi di hee ghsfs.

Ny Juif ;, ><<?, efss t`hi h yfhr ehtfr, hi ditfrihe Gmuitrywdbf fchde dibdghtfb t`htburdik Chy ><<?, omr prdcf emhis, fxgfptdmis gmistdtutfb ny bmeehr hcmuit hpprmxdchtfey 7<%mo ouibdiks omr gfrthdi odxfb emhis, 2<% omr \hy-Mptdmi H^Cs, hib 6<% omr fxphibfb grdtfrdh`ynrdb emhis.

8 Emhis t`ht bdb imt cfft rfqudrfcfits omr shef tm Ohiidf Chf mr Orfbbdf Chg.

8<



Fxtrfcf Het-H \rmkrhc

Di ehtf ><<?, Gmuitrywdbf, hotfr hiheyzdik t`f cmrtkhkf prmbugts moofrfb ny gfrthdi mo dtsgmcpftdtmrs, dcpefcfitfb hi fxphisdmi mo dts uibfrwrdtdik kudbfedifs usfb ny WEBuibfrwrdtfrs, ditfriheey rfofrrfb tm hs ―Fxtrfcf Het-H.– R`f Fxtrfcf Het-H didtdhtdvf rfsuetfb diuibfrwrdtdik kudbfedifs t`ht, hcmik mt`fr t`diks, pfrcdttfb `dk`fr ER_ rhtdms hib heemwfb omremwfr ODGM sgmrfs ormc prmspfgtdvf nmrrmwfrs. Fxtrfcf Het-H emhis wfrf mrdkdihtfb wdt` t`fditfit t`ht t`fy wmueb nf smeb hib t`ht im grfbdt rdsa wmueb nf rfthdifb ny Gmuitrywdbf. Wmcfemhis wdt` Fxtrfcf Het-H g`hrhgtfrdstdgs wfrf smeb di ^CNW sfgurdtdzhtdmis.

Di gmiifgtdmi wdt` hpprmvdik t`f Fxtrfcf Het-H kudbfedif fxphisdmi, Gmuitrywdbfgmibugtfb vhrdmus strfss tfsts tm cmbfe t`f emhis— fxpfgtfb pfromrchigf. Vibfr gfrthdi hbvfrsffgmimcdg hssucptdmis, Gmuitrywdbf—s cmbfes prfbdgtfb t`ht gfrthdi nhibs mo Fxtrfcf Het-Hemhis gmueb pfromrc cmrf edaf sunprdcf emhis t`hi edaf Het-H emhis.

Di mr hrmuib ehtf Chrg` ><<?, t`f Fxtrfcf Het-H prmkrhc whs prfsfitfb tmGmuitrywdbf—s ^fspmisdnef Gmibugt Gmccdttff (―^GG–) omr gmisdbfrhtdmi. R`f prfsfithtdmidigeubfb Cmbfe Omrfgemsurf Orfqufigy Fstdchtfs w`dg` prmjfgtfb t`ht, uibfr strfssfb fgmimcdggmibdtdmis, gfrthdi nhibs mo t`f emhis mrdkdihtfb uibfr Fxtrfcf Het-H kudbfedifs gmueb fxgffb h>8.?>% omrfgemsurf orfqufigy. R`f cmbfe bfsgrdnfb di t`f prfsfithtdmi prfbdgtfb t`ht h iucnfrmo ghtfkmrdfs mo emhis wdt`di t`f Fxtrfcf Het-H prmkrhc gmueb fxpfrdfigf bfohuet pfrgfithkfsditm t`f `dk` 7<—s mr emw 2<—s, hib fvfi h ofw di t`f 6<—s. R`f prfsfithtdmi dibdghtfb t`ht ―pmmr

pfromrchigf s`mueb nf fxpfgtfb.–

Mi Hprde 6, ><<?, h Gmuitrywdbf fxfgutdvf sfit hi fchde rfkhrbdik t`f Fxtrfcf Het-H prmkrhc t`ht rfhb, ―QnSfghusf t`ds ds h ‐`hzhrbmus prmbugt— (bdrfgt qumtf ormc Qhimt`frGmuitrywdbf fxfgutdvfS), ... Qt`ht Gmuitrywdbf fxfgutdvfS whits tm sff h bfthdefb dcpefcfithtdmi

pehi w`dg` hbbrfssfs t`f prmgfss omr mrdkdihtdik hib sfeedik t`fsf emhis sug` t`ht wf hrf imt efot

wdt` grfbdt rdsa.– Gmuitrywdbf nfkhi moofrdik t`f Fxtrfcf Het-H prmkrhc di ><<? hib nfkhimrdkdihtdik hib sfeedik emhis uibfr dts fxphibfb uibfrwrdtdik kudbfedifs. Hs wdt` cmst fxgfptdmiemhis, t`f Fxtrfcf Het-H kudbfedifs gheefb omr Fxtrfcf Het-H emhis tm nf prmgfssfb ht t`f WEBefvfe, nut t`f Fxtrfcf Het-H kudbfedifs bdb imt rfqudrf WEB uibfrwrdtfrs tm dbfitdoygmcpfishtdik ohgtmrs di gmiifgtdmi wdt` uibfrwrdtdik t`f emhis.

_. Gmuitrywdbf ^fgfdvfb Diomrchtdmi Gmigfridik ^dsas hib Xuhedty mo Dts CmrtkhkfEmhis

Burdik t`f pfrdmb ormc Hukust ><<6 tm ><<;, Gmuitrywdbf rfgfdvfb diomrchtdmirfkhrbdik t`f pfromrchigf hib g`hrhgtfrdstdgs mo emhis t`ht dt mrdkdihtfb uibfr vhrdmus prmbugts

hib prmkrhcs hib sfgurdtdzfb ditm ^CNW. R`ht diomrchtdmi sukkfstfb t`ht gfrthdi prmbugts `hbt`f pmtfitdhe tm pfromrc pmmrey, phrtdguehrey di h g`heefikdik fgmimcdg fivdrmicfit.

Fxgfptdmi Emhi \fromrchigf

Vsdik dts WEB hib WCWEB prmgfssfs, Gmuitrywdbf mrdkdihtfb h sunsthitdhe iucnfr moemhis hs fxgfptdmis tm dts Emhi \rmkrhc Kudbfs. Ditfrihe rfpmrtdik dibdghtfb t`ht gfrthdightfkmrdfs mo fxgfptdmi emhis pfromrcfb pmmrey gmcphrfb tm emhis mrdkdihtfb wdt`di t`f

phrhcftfrs sft mut di Emhi \rmkrhc Kudbfs. Omr fxhcpef, h Juif >0, ><<6 GOG Grfbdt ^dsa

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Gmccdttff rfpmrt dibdghtfb t`ht gfrthdi fxgfptdmi emhis krfhtfr t`hi $?6<,<<< wfrf ―pfromrcdik>.0x wmrsf mvfrhee– t`hi imi-fxgfptdmi emhis.

\hy-Mptdmi H^C Emhis

Gmuitrywdbf nfkhi dssudik \hy-Mptdmi H^C emhis hrmuib ><<<, hib ny ><<2 t`fy wfrfh ehrkf phrt mo Gmuitrywdbf—s emhi mrdkdihtdmis. Di smcf disthigfs, \hy-Mptdmi H^C nmrrmwfrswfrf hnef tm chaf phycfits t`ht wfrf efss t`hi t`f ditfrfst t`ht hggrufb mi t`f prdigdphe nhehigffhg` cmit`. R`f bdoofrfigf nftwffi t`f hcmuit mo ditfrfst t`ht hggrufb mi t`f emhi hib t`htemwfr phycfit ds gheefb ―ifkhtdvf hcmrtdzhtdmi– hib whs hbbfb tm t`f prdigdphe nhehigf mo t`femhi. Do t`f emhi—s prdigdphe nhehigf rfhg`fb h gfrthdi hcmuit, orfqufitey 88<% mr 886% mo t`fmrdkdihe emhi hcmuit, t`f emhi phycfit ―rfsft– tm t`f hcmuit ifgfsshry tm hcmrtdzf t`f prdigdphe

nhehigf. R`ds ―rfsft– gmueb rfsuet di sunsthitdheey `dk`fr phycfits omr nmrrmwfrs, rfsuetdik di homrc mo w`ht nfghcf aimwi di t`f dibustry hs ―phycfit s`mga.–

Wthrtdik di cdb-><<6, Gmuitrywdbf rfgfdvfb diomrchtdmi dibdghtdik, hcmik mt`fr t`diks,t`ht h chjmrdty mo \hy-Mptdmi H^C nmrrmwfrs wfrf mptdik tm chaf t`f cdidcuc phycfit mit`fdr emhis. Di rfspmisf tm gfrthdi diomrchtdmi, GOG hib GN bfgdbfb tm edcdt t`f typfs mo \hy-Mptdmi H^C emhis t`ht GN `feb omr divfstcfit. Mi Hukust 8, ><<6, GOG—s G`hdrchi sfit hifchde tm G@E—s \rfsdbfit hib `fhb mo emhi prmbugtdmi hib GN—s \rfsdbfit sthtdik:

D hc nfgmcdik digrfhsdikey gmigfrifb hnmut t`f fivdrmicfitsurrmuibdik t`f nmrrmwfrs w`m hrf utdedzdik t`f phy mptdmi emhihib t`f prdgf efvfe mo rfhe fsthtf di kfifrhe nut phrtdguehrey rfehtdvftm gmibms hib spfgdodgheey gmibms nfdik purg`hsfb ny spfguehtmrs(imi mwifr mgguphits). D `hvf nffi di gmithgt wdt` bfvfempfrsw`m `hvf tmeb cf t`ht t`fy hrf hitdgdphtdik h gmeehpsf di t`f gmibmchraft vfry s`mrtey sdcpey rfehtfb tm t`f ohgt t`ht di Bhbf Gmuity

hemif ;<% mo t`f gmibms nfdik smeb hrf nfdik purg`hsfb nyspfguehtmrs. R`f sdtuhtdmi nfdik rfpmrtfb di Nrmwhrb Gmuity, Ehs_fkhs hs wfee hs mt`fr sm gheefb ―`mt– hrfhs mo t`f Gmuitry.

[f cust t`frfomrf rf-t`dia w`ht hssfts QwfS s`mueb nf puttdik dit`f nhia. Omr fxhcpef ymu s`mueb ifvfr put h imi-mwifr mggupdfb

phy mptdmi Hrc mi t`f nhehigf s`fft. D aimw ymu `hvf herfhbybmif t`ds nut dt ds uihggfpthnef. Wfgmibey miey ??< odgm—s hibhnmvf, mwifr mggupdfb s`mueb nf hggfptfb hib miey mi h edcdtfb

nhsds. R`f omgus s`mueb nf mi ;<< hib hnmvf (mwifr mggupdfb) omrt`ds prmbugt. R`f sdcpef rfhsmi ds t`ht w`fi t`f emhi rfsfts di odvf

yfhrs t`frf wdee nf fimrcmus phycfit s`mga hib t`f nmrrmwfr dsimt suoodgdfitey smp`dstdghtfb tm truey uibfrsthib t`f gmisfqufigfst`fi t`f nhia wdee nf bfhedik wdt` omrfgemsurf di pmtfitdheey hbfoehtfb rfhe fsthtf chraft. R`ds wmueb nf nmt` h odihigdhe hibrfputhtdmihe ghthstrmp`f.

Mi Hukust >, ><<6, G@E—s prfsdbfit rfspmibfb tm t`ds fchde, wrdtdik t`ht t`ds hpprmhg``hb ―sfgurdtdzhtdmi dcpedghtdmis–:

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[f iffb tm hiheyzf w`ht rfchdis do t`f nhia ds miey g`frry pdgadikhib w`ht rfchdis tm nf sfgurdtdzfb/smeb ds mvfrey gmigfitrhtfb wdt``dk`fr rdsa emhis. R`f gmigfri hib dssuf kfts chkidodfb hs wf put h

ndkkfr pfrgfithkf mo mur phy mptdmi prmbugtdmi ditm t`f Nhia nfghusf t`f rfchdidik prmbugtdmi t`fi digrfhsdikey emmas edaf hi

hbvfrsfey sfefgtfb pmme.Mi Hukust >, ><<6, GOG—s G`hdrchi rfspmibfb tm t`ds fchde:

D hnsmeutfey uibfrsthib ymur pmsdtdmi `mwfvfr t`frf ds h prdgf imchttfr w`ht wf bm. R`f bdoofrfigf nfdik t`ht ny pehgdik efsshttrhgtdvf emhis di t`f sfgmibhry chraft wf wdee aimw fxhgtey t`ffgmimcdg prdgf wf wdee phy w`fi t`f shefs sfttef.

Di hggmrbhigf wdt` t`f bdrfgtdmi mo GOG—s G`hdrchi, GN ehtfr edcdtfb t`f \hy-Mptdmi H^Cemhis t`ht dt `feb omr dts mwi divfstcfit tm emhis wdt` rfehtdvfey `dk`fr grfbdt g`hrhgtfrdstdgs.

Nfkdiidik di Mgtmnfr ><<6, Gmuitrywdbf trhgafb dts \hy-Mptdmi H^C pmrtomedm t`rmuk`cmitèy ―Oehs` ^fpmrts.– Gmuitrywdbf—s hiheysds s`mwfb t`ht t`f pfrgfithkf mo nmrrmwfrs w`mg`msf tm chaf t`f cdidcuc cmrtkhkf phycfit fhg` cmit` whs trfibdik `dk`fr t`hi prfbdgtfbhib, tùs, gfrthdi emhis wfrf ht rdsa mo ―rfsfttdik– fhredfr t`hi hitdgdphtfb. R`ds ―rfsfttdik,– w`dg`whs hi di`frfit rdsa mo t`f \hy-Mptdmi H^C prmbugt, gmueb rfsuet di `dk`fr phycfits hib, tùs,gmueb ghusf ―phycfit s`mga– omr nmrrmwfrs.

Mi Ofnruhry 7, ><<?, hi hrtdgef di Disdbf Cmrtkhkf Odihigf \unedghtdmis rfpmrtfb mi hstuby t`ht Gmuitrywdbf prfsfitfb ht t`f Hcfrdghi Wfgurdtdzhtdmi Omruc Gmiofrfigf. R`f hrtdgefrfpmrtfb t`ht h Gmuitrywdbf fxfgutdvf `hb sthtfb t`ht ―\hy Mptdmi Hrcs wfrf omuib tm nf t`frdsadfst prmbugt mi t`f chraft.–

Mi Hprde 7, ><<?, GOG—s G`hdrchi sfit tm G@E—s \rfsdbfit hib `fhb mo emhi mrdkdihtdmihi fchde mnsfrvdik t`ht t`frf whs:

dcpmrthit bhth t`ht gmueb pmrtfib sfrdmus prmnefcs wdt` Q\hy-Mptdmi H^CsS. Wdigf mvfr ;<% `hvf mptfb tm chaf t`f emwfr

phycfits dt hppfhrs t`ht dt ds just h chttfr mo tdcf t̀ ht wf wdee nfohgfb wdt` h sunsthitdhe hcmuit mo rfsfts hib t`frfomrf cug``dk`fr bfediqufigdfs. [f cust edcdt QGN—s rfthdifb divfstcfit diSt`ds prmbugt tm `dk` odgms mt`frwdsf wf gmueb ohgf nmt` odihigdhehib rfkuehtmry gmisfqufigfs.

Mi Chy 80, ><<?, GOG—s G`hdrchi sfit tm GOG—s GOM, G@E—s \rfsdbfit, hib mt`frs hifchde di w`dg` `f whrifb: ―Hs omr phy mptdmis t`f Nhia ohgfs pmtfitdhe uifxpfgtfb emssfs

nfghusf `dk`fr rhtfs wdee ghusf t`fsf emhis tm rfsft cug` fhredfr t`hi hitdgdphtfb hib hs QhS rfsuetghusQfS cmrtkhkmrs tm bfohuet buf tm t`f sunsthitdhe digrfhsf di t`fdr phycfits.–

Mi Juif ;, ><<?, h Gmuitrywdbf fxfgutdvf sfit hi fchde, mnsfrvdik t`ht ―fxgfptdmis–gmistdtutfb 2<% mo prdcf \hy-Mptdmi H^C emhis ny bmeehr hcmuit.

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Mi Wfptfcnfr 87, ><<?, GOG—s G`hdrchi spmaf ht h Gmuitrywdbf Odxfb Digmcf DivfstmrOmruc hib bdsgemsfb t`ht, wdt` rfspfgt tm \hy-Mptdmi H^Cs, ―di t`f odrst yfhr ;0% mo t`f

nmrrmwfrs fcpemy t`f emwfr phycfit.–

Mi Wfptfcnfr >?, ><<?, GOG—s G`hdrchi sfit hi ditfrihe fchde di w`dg` `f bfsgrdnfb\hy-Mptdmi H^C emhis hs ―t`f edk`tfidik Q sdgS rmb mo ‐fxmtdg emhis—– hib t`fi bfsgrdnfb `dsgmigfri wdt` `mw t`f prmbugt wmueb pfromrc di strfssfb chraft gmibdtdmis:

R`f nmttmc edif ds t`ht wf hrf oeydik nedib mi `mw t`fsf emhis wdee pfromrc di h strfssfb fivdrmicfit mo `dk`fr uifcpemycfit,rfbugfb vheuf hib semwdik `mcf shefs . . . Dt QsdgS t`frfomrf D QsdgS

nfedfvf t`f tdcdik ds rdk`t omr us tm sfee hee ifwey mrdkdihtfb phymptdmis hib nfkdi rmeedik moo t`f nhia nhehigf s`fft, di hi mrbfreychiifr, phy mptdmis gurrfitey mi t`fdr pmrtQomedmS.

R`rmuk`mut ><<? hib ><<;, Gmuitrywdbf gmitdiufb tm mrdkdihtf \hy-Mptdmi H^Cs,digeubdik hs fxgfptdmis tm dts Emhi \rmkrhc Kudbfs, hib tm sfgurdtdzf t`fsf \hy-Mptdmi H^Csditm ^CNW. Hs bdsgemsfb di Moofrdik Bmgucfits, di gfrthdi ^CNW nhgafb ny \hy-MptdmiH^Cs, hs chiy hs 4<% mo t`f emhis t`ht nhgafb t`f gfrtdodghtfs wfrf mrdkdihtfb uibfr rfbugfbbmgucfithtdmi prmkrhcs.

Wthtfb Digmcf Emhis

Gmuitrywdbf hesm rfgfdvfb diomrchtdmi dibdghtdik t`ht smcf nmrrmwfrs w`m hppedfb omremhis di w`dg` t`fy sthtfb t`fdr digmcfs wdt`mut prmvdbdik vfrdodghtdmi chy `hvf nffimvfrsthtdik t`fdr digmcfs mi t`fdr emhi hppedghtdmis. Di h Chy >?, ><<?, GN Grfbdt ^dsaGmccdttff ^fpmrt, GN prfsfitfb t`f rfsuets mo h rfvdfw mo t`f thx rfturis mo h shcpef mo

nmrrmwfrs w`m `hb odeefb mut D^W Omrc 26<?-Rs di gmiifgtdmi wdt` t`fdr cmrtkhkf hppedghtdmis.

H omrc 26<?-R heemws h cmrtkhkf efibfr tm rfqufst h nmrrmwfr—s prfvdmus yfhr—s digmcf thxrfturi ormc t`f D^W. R`f hubdt bfsgrdnfb di t`f GN Grfbdt ^dsa Gmccdttff ^fpmrt gmcphrfb t`fdigmcf h nmrrmwfr prmvdbfb di gmiifgtdmi wdt` h cmrtkhkf hppedghtdmi tm t`f digmcf rfpmrtfb mit`f nmrrmwfr—s digmcf thx rfturi di t`f prdmr thx yfhr. R`f prfsfithtdmi, hssucdik t`ht nmrrmwfrsgmrrfgtey rfpmrtfb (hib bdb imt uibfrsthtf) t`fdr digmcf mi t`fdr thx rfturis, sukkfstfb:

t`ht hpprmxdchtfey 2<% mo t`f Nhia—s rfbugfb bmgucfithtdmiemhis di t`f pmrtomedm gmueb pmtfitdheey `hvf digmcf mvfrsthtfb nycmrf t`hi 8<% hib h sdkidodghit pfrgfit mo t`msf emhis wmueb `hvfdigmcf mvfrsthtfb ny 6<% mr cmrf.

R`f stuby ourt`fr sukkfstfb t`ht, hcmik t`f krmup mo nmrrmwfrs w`m chy `hvf mvfrsthtfbt`fdr digmcf ny cmrf t`hi 8<%, ?0% `hb h vhrdhigf mo krfhtfr t`hi 6<%, >6% `hb h vhrdhigf

nftwffi >6% hib 6<%, hib ;% `hb h vhrdhigf nftwffi 8<% hib >6%. Omr \hy-Mptdmi H^Cemhis, t`f mvfrw`fecdik chjmrdty mo w`dg` wfrf sthtfb digmcf emhis, t`f stuby dibdghtfb t`ht;>% mo t`f \hy-Mptdmi H^C emhis t`ht s`mwfb krfhtfr t`hi 8<% vhrdhigf s`mwfb krfhtfr t`hi6<% vhrdhigf.

Di h Juif >, ><<?, fchde brhotfb di rfspmisf tm t`ds prfsfithtdmi, GOG—s G`dfo ^dsaMoodgfr wrmtf:

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R`fsf rfsuets hrf nhsdgheey dbfitdghe tm w`ht D—vf sffi mt`fr tdcfs(nmt` `frf hib mt`fr pehgfs) t`ds typf mo hiheysds `hs nffi bmif.Tmu wdee mnsfrvf sdcdehr rfsuets omr mt`fr typfs mo gmisucfr emhis(f.k., grfbdt ghrbs, distheecfit emhis) w`frf digmcf ds imtbmgucfitfb. [`def D—c im ohi mo rfbugfb bmg, wf s`mueb hesm

affp di cdib:8) Hiy digmcf krmwt` sdigf t`f ehst thx rfturi wmi—t nf rfoefgtfbdi t`ds typf mo hiheysds ....

>) Nmrrmwfrs hrf imt uibfrwrdtfrs. Wmcf mo w`ht wf wmueb imtgmuit hs digmcf (f.k., suppmrt ormc rfehtdvfs) wmueb nf gmisdbfrfb

ny cmst nmrrmwfrs. Cmst nmrrmwfrs hrf imt kmdik tm aimwdikeythaf mi hi mnedkhtdmi t`fy bmi—t nfedfvf t`fy ghi hoomrb.

7) Chiy (cmst=) nmrrmwfrs sffa tm rfpmrt hs edttef digmcf hs pmssdnef mi t`fdr thx rfturi.

2) Viedaf chiy emhi prmkrhcs, t`f rfbugfb bmg ds imtbdoofrfitdheey prdgfb omr cmst \hyMptdmi emhis. Wm wf chy imt`hvf hs cug` hbvfrsf sfefgtdmi `frf hs mt`fr prmkrhcs.

[f iffb tm nf ghrfoue phditdik hee mo t`ds hs h ―cdsrfp.– Het`muk`t`ht ds mnvdmusey t`f ghsf di smcf (pfr`hps chiy) disthigfs, dtwmi—t nf t`f ghsf di hee ghsfs.

Do h nmrrmwfr mvfrsthtfb `ds mr `fr digmcf, dt wmueb hoofgt t`f hggurhgy mo BRDgheguehtdmis, hib hesm gmueb hoofgt hi uibfrwrdtfr—s hndedty tm fvheuhtf h nmrrmwfr—s rfphycfit

hndedty._D. Bdsgemsurfs di Moofrdik Bmgucfits Bdb Imt ^foefgt Gfrthdi Diomrchtdmi R`ht

Gmuitrywdbf ^fgfdvfb

Het`muk` Gmuitrywdbf mrdkdihtfb hi digrfhsdik iucnfr mo cmrtkhkf emhis hs fxgfptdmistm dts Emhi \rmkrhc Kudbfs ormc ><<6 tm ><<;, Gmuitrywdbf kfifrheey bdb imt bdsgemsf di dts^CNW Moofrdik Bmgucfits t`f sgmpf mo t`f fxgfptdmis tm dts Emhi prmkrhc Kudbfs. R`rmuk`mutt`ds tdcf pfrdmb, Gmuitrywdbf rfgfdvfb diomrchtdmi mi rdsas hssmgdhtfb wdt` gfrthdi cmrtkhkf

prmbugts hib prmkrhcs. Gmuitrywdbf bdb imt bdsgemsf di dts ^CNW Moofrdik Bmgucfits t`frfsuets mo gfrthdi rfvdfws hib ditfrihe rfpmrts t`ht hiheyzfb t`ds diomrchtdmi.

Gmuitrywdbf—s Moofrdik Bmgucfits bdb imt digeubf h bfsgrdptdmi mo dts WupfrchraftWtrhtfky, w`frfny Gmuitrywdbf smuk`t tm hg`dfvf cmrf chraft s`hrf hib krmwt` ny grfhtdik hmif-stmp s`mppdik fxpfrdfigf omr nmrrmwfrs ny moofrdik h gmcpeftf sudtf mo cmrtkhkf prmbugtst`ht wfrf hvhdehnef di t`f dibustry ormc efkdtdchtf gmcpftdik efibfrs.

Gmuitrywdbf bdb imt bdsgemsf di dts Moofrdik Bmgucfits t`ht hggmrbdik tm t`f Juif >0,><<6 GOG Grfbdt ^dsa Gmccdttff rfpmrt, imi-gmiomrcdik emhis krfhtfr t`hi $?6<,<<< t`ht wfrfmrdkdihtfb sdigf ><<2 vdh t`f rfthde nrhig` iftwmra mr cmrtkhkf nrmafrs t`rmuk` t`f fxgfptdmi

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prmgfss wfrf ―pfromrcdik >.0x wmrsf– t`hi emhis mrdkdihtfb wdt`mut fxgfptdmis. Imr bdbGmuitrywdbf—s Moofrdik Bmgucfits dbfitdoy t`f pfrgfithkf mo emhis nhgadik hi moofrdik t`htwfrf mrdkdihtfb hs fxgfptdmis tm Gmuitrywdbf—s Emhi \rmkrhc Kudbfs.

R`f Moofrdik Bmgucfits hesm bdb imt bdsgemsf gfrthdi diomrchtdmi gmigfridik spfgdodgcmrtkhkf prmbugts t`ht sfrvfb hs gmeehtfrhe omr gfrthdi mo Gmuitrywdbf—s ^CNW moofrdiks. Omrfxhcpef, t`f Moofrdik Bmgucfits bdb imt bdsgemsf `dstmrdghe diomrchtdmi mi t`f pfrgfithkf mo\hy-Mptdmi H^C nmrrmwfrs w`m g`msf tm chaf t`f cdidcuc phycfits. Het`muk` Gmuitrywdbfbdsgemsfb di gfrthdi mo dts WFG odediks (d) t`f httrdnutfs mo \hy-Mptdmi H^Cs t`ht wfrf `feb nyGN hib (dd) t`f digrfhsdik vmeucf hib bmeehr hcmuit mo emhis t`ht wfrf fxpfrdfigdik ifkhtdvfhcmrtdzhtdmi, t`f Moofrdik Bmgucfits bdb imt bdsgemsf t`ht gfrthdi \hy-Mptdmi H^C emhisdigeubfb hs gmeehtfrhe wfrf emhis t`ht GN `hb fefgtfb imt tm `meb omr dts mwi divfstcfit pmrtomedm

nfghusf t`fy `hb rdsa g`hrhgtfrdstdgs t`ht GOG chihkfcfit `hb dbfitdodfb hs dihpprmprdhtf omrGN.

[dt` rfspfgt tm sthtfb digmcf emhis, Gmuitrywdbf bdb imt bfsgrdnf di dts MoofrdikBmgucfits t`f rfsuets mo t`f thx rfturi stuby bfsgrdnfb di t`f Chy >?, ><<? GN Grfbdt ^dsaGmccdttff ^fpmrt. Imr bdb t`f Moofrdik Bmgucfits bfsgrdnf t`f dcphgt t`ht hi mvfrsthtfcfit modigmcf gmueb `hvf `hb mi BRD gheguehtdmis.

Het`muk` t`f Moofrdik Bmgucfits digeubfb bfthdefb emhi-efvfe sthtdstdgs hnmut t`f pmme moemhis sfrvdik hs gmeehtfrhe omr t`f ^CNW, t`f Moofrdik Bmgucfits wfrf imt rfvdsfb tm bfsgrdnft`f Fxtrfcf Het-H prmkrhc. Di phrtdguehr, t`f Moofrdik Bmgucfits bdb imt bdsgemsf t`ht uibfr t`f\`hsf 8 (rmee-mut) mo t`f Fxtrfcf Het-H prmkrhc Gmuitrywdbf mrdkdihtfb GCB hib [`mefshefEfibdik Bdvdsdmi emhis w`msf g`hrhgtfrdstdgs ofee mutsdbf mo t`f Emhi \rmkrhc Kudbfs, hib t`htbmgucfits brhotfb di gmiifgtdmi wdt` dcpefcfitdik t`f prmkrhc dibdghtfb t`ht di \`hsf 8―emhisQwmuebS nf trfhtfb hs fxgfptdmis hib rmutfb tm WEB omr kudbfedif hib prdgf bftfrcdihtdmi–wdt`mut rfqudrdik gmcpfishtdik ohgtmrs hs h nhsds omr hpprmvhe. R`f Moofrdik Bmgucfits hesm bdbimt bdsgemsf w`ft`fr Fxtrfcf Het-H emhis wfrf digeubfb di t`f gmeehtfrhe omr h kdvfi ^CNW. Imrbdb t`f Moofrdik Bmgucfits bfsgrdnf t`f bfohuet rhtfs prfbdgtfb ny t`f cmbfe usfb tm kfifrhtft`f Chrg` ><<? ^GG prfsfithtdmi mi Fxtrfcf Het-H pfromrchigf.

_DD. Nhia mo Hcfrdgh—s Hgqudsdtdmi mo Gmuitrywdbf

Mi Juey 8, ><<0, hotfr t`f fvfits bfsgrdnfb `frfdi, Gmuitrywdbf whs hgqudrfb ny Nhia moHcfrdgh Gmrpmrhtdmi.

O@H VIBF^[^DRDIK

Nhia mo Hcfrdgh ds h cmrtkhkf efibfr t`ht phrtdgdphtfs di h ofbfrhe prmkrhc spmismrfb nyt`f Bfphrtcfit mo @musdik hib Vrnhi Bfvfempcfit (―@VB–) gheefb t`f ―Bdrfgt Fibmrsfcfit\rmkrhc.– Wunjfgt tm t`f rfqudrfcfits mo t`f prmkrhc, Nhia mo Hcfrdgh ds hut`mrdzfb tm―mrdkdihtf– - d.f., chaf - hib tm uibfrwrdtf cmrtkhkf emhis tm odrst-tdcf hib emw-digmcf `mcf

nuyfrs hib tm emw-digmcf `mcf mwifrs rfodihigdik cmrtkhkfs, t`ht hrf disurfb ny t`f Ofbfrhe@musdik Hbcdidstrhtdmi (―O@H–), hi hkfigy wdt`di @VB. Di fxg`hikf omr `hvdik t`f hut`mrdtytm mrdkdihtf hib uibfrwrdtf O@H-disurfb emhis, Nhia mo Hcfrdgh ds mnedkhtfb tm bftfrcdif

8?



w`ft`fr prmspfgtdvf nmrrmwfrs cfft cdidche grfbdt-wmrt`difss grdtfrdh hib tm gfrtdoy tm @VBt`ht nmrrmwfrs w`m rfgfdvfb emhis cft t`f grdtfrdh. Di t`f fvfit t`ht hi O@H-disurfb emhimrdkdihtfb ny Nhia mo Hcfrdgh kmfs ditm bfohuet, t`f O@H kuhrhitffs phycfit mo t`fmutsthibdik pmrtdmi mo t`f cmrtkhkf prdigdphe, hggrufb ditfrfst, hib gmsts mwfb ny t`f nmrrmwfr.

Burdik t`f pfrdmb Chy 8, ><<4 t`rmuk` Chrg` 78, ><8>, Nhia mo Hcfrdgh uibfrwrmtfhib disurfb omr O@H disurhigf emhis tm nmrrmwfrs w`m bdb imt quhedoy omr emhis uibfr t`fgrdtfrdh sft ny @VB. Di gfrthdi ghsfs, Nhia mo Hcfrdgh, ditfr hedh, bdb imt prmpfrey vfrdoy

nmrrmwfrs— digmcf, bdb imt hbfquhtfey vfrdoy t`f smurgf mo kdot ouibs nmrrmwfrs usfb tm chaf t`fsthtutmry cdidcuc bmwi phycfit, hib hpprmvfb nmrrmwfrs t`ht chy `hvf ehgafb t`f hndedty tmchaf cmit`ey cmrtkhkf phycfits.

Chiy mo Nhia mo Hcfrdgh—s nmrrmwfrs `hvf bfohuetfb mi t`fdr cmrtkhkf emhis hib `hvffdt`fr emst mr hrf di t`f prmgfss mo emsdik t`fdr `mcfs tm omrfgemsurf. Hs h rfsuet mo Nhia moHcfrdgh—s gmibugt, @VB-O@H disurfb emhis t`ht wfrf imt fedkdnef omr O@H cmrtkhkf disurhigfhib t`ht @VB-O@H wmueb imt mt`frwdsf `hvf disurfb. @VB gmisfqufitey digurrfb `uibrfbs mocdeedmis mo bmeehrs mo emssfs w`fi dt phdb disurhigf gehdcs mi t`msf Nhia mo Hcfrdgh-fibmrsfbemhis.

D. O@H CM^RKHKF DIWV^HIGF HIBR@F BD^FGR FIBM^WFCFIR \^MK^HC

R`f Ihtdmihe @musdik Hgt mo 8472 hut`mrdzfs t`f O@H tm disurf `mcf cmrtkhkfs omrodrst-tdcf hib emw-digmcf `mcf nuyfrs. 8> V.W.G. § 8;<4. R`f O@H miey disurfs cmrtkhkfemhis dssufb ny hpprmvfb cmrtkhkf efibfrs mr ―cmrtkhkffs– tm quhedodfb nmrrmwfrs.

Vibfr t`f Bdrfgt Fibmrsfcfit \rmkrhc, hpprmvfb cmrtkhkf efibfrs (―Bdrfgt Fibmrsfrs–)bftfrcdif w`ft`fr emhi hppedghits hrf fedkdnef omr O@H cmrtkhkf disurhigf. Wff >2 G.O.^.

§><7.6(h). H Bdrfgt Fibmrsfr cust suncdt h cmrtkhkf disurhigf hppedghtdmi omr fhg` nmrrmwfr tm@VB, wdt` bmgucfithtdmi mo t`f nmrrmwfr—s digmcf, hssfts hib grfbdt-wmrt`difss, hib mo t`fBdrfgt Fibmrsfr—s rfvdfw hib hiheysds mo t`f emhi.

@VB hut`mrdzfs smcf Bdrfgt Fibmrsfrs tm fibmrsf cmrtkhkf emhis omr O@H cmrtkhkfdisurhigf mi hi fxpfbdtfb nhsds, hotfr t`f gmcphiy—s mwi prf-fibmrsfcfit rfvdfw mo t`f odef.R`ds fibmrsfcfit mggurs wdt`mut h rfqudrfb prf-fibmrsfcfit rfvdfw mo t`f cmrtkhkf disurhigfhppedghtdmi odef ny @VB. R`ds ds aimwi hs t`f Efibfr Disurhigf \rmkrhc. Vibfr t`ds prmkrhc,Bdrfgt Fibmrsfrs hrf stdee rfqudrfb tm gmcpey wdt` hee @VB rfkuehtdmis gmigfridik t`fmrdkdihtdmi mo O@H-disurfb cmrtkhkfs. Hbbdtdmiheey, t`frf ds im rfbugtdmi di t`f bmgucfitsrfqudrfb, hib t`f cmrtkhkf efibfr ds rfqudrfb tm rfthdi hee emhi mrdkdihtdmi bmgucfits. Ourt`fr,

Bdrfgt Fibmrsfrs hrf rfqudrfb tm suncdt t`f ouee cmrtkhkf emhi odef tm @VB upmi @VB—s rfqufst.Burdik t`f rfefvhit tdcf pfrdmb, Nhia mo Hcfrdgh phrtdgdphtfb di t`f Efibfr Disurhigf prmkrhc.

Nhia mo Hcfrdgh mrdkdihtfb cmrtkhkfs ihtdmiheey t`rmuk` dts bdrfgt efibdik nrhig`.Bdrfgt efibdik nrhig`fs mo O@H-hpprmvfb cmrtkhkf efibfrs gmithgt gmisucfrs hib mrdkdihtfcmrtkhkfs t`rmuk` t`f ditfrift, mr t`rmuk` h ghee gfitfr.

8;



H. Vibfrwrdtdik hib Fedkdndedty ^fqudrfcfits omr O@H Cmrtkhkf Disurhigf

Di bftfrcdidik w`ft`fr h emhi hppedghit quhedodfs omr hi O@H-disurfb cmrtkhkf emhi, hBdrfgt Fibmrsfr cust gmcpey wdt` @VB uibfrwrdtdik rfqudrfcfits w`dg` fsthneds` t`fcdidcuc sthibhrb mo buf bdedkfigf di uibfrwrdtdik cmrtkhkf emhis. >2 G.O.^. § ><7.6(g).Hcmik mt`fr t`diks, h Bdrfgt Fibmrsfr ds rfqudrfb ny ehw tm ―fxfrgdsf t`f shcf efvfe mo ghrfw`dg` dt wmueb fxfrgdsf di mnthdidik hib vfrdoydik diomrchtdmi omr h emhi di w`dg` t`f QBdrfgtFibmrsfrS wmueb nf fitdrfey bfpfibfit mi t`f prmpfrty hs sfgurdty tm prmtfgt dts divfstcfit.– Db.\ut himt`fr why, h Bdrfgt Fibmrsfr chy imt uibfrwrdtf hi O@H-disurfb cmrtkhkf emhi efssghrfoueey t`hi dt wmueb do t`f cmrtkhkf emhi whs imt disurfb ny t`f O@H.

8. Digmcf, Grfbdt @dstmry hib Hndedty tm Chaf Cmrtkhkf \hycfits

Wpfgdodgheey, @VB rfqudrfs h Bdrfgt Fibmrsfr tm nf rfspmisdnef omr fvheuhtdik h nmrrmwfr—s grfbdt g`hrhgtfrdstdgs, digeubdik phst grfbdt `dstmry hib bfcmistrhtfb wdeedikifss tm phy bfnts. Hbbdtdmiheey, h Bdrfgt Fibmrsfr cust hssfss t`f hbfquhgy mo h nmrrmwfr—s digmcf,digeubdik t`f hbfquhgy hib sthndedty mo digmcf tm cfft pfrdmbdg cmrtkhkf phycfits hib hiymt`fr rfgurrdik bfnt phycfits hib t`f hbfquhgy mo h nmrrmwfr—s hvhdehnef hssfts tm gmvfr t`fsthtutmry cdidcuc bmwi phycfit. >2 G.O.^. § ><7.6(b).

Omr fhg` O@H-disurfb emhi, h Bdrfgt Fibmrsfr cust fsthneds` t`ht t`f nmrrmwfr `hs t`fhndedty hib wdeedikifss tm rfphy t`f emhi. H Bdrfgt Fibmrsfr—s bftfrcdihtdmi cust nf prfbdghtfbmi smuib uibfrwrdtdik prdigdpefs gmisdstfit wdt` @VB—s rfqudrfcfits hib cust nf suppmrtfb nyrfqudsdtf bmgucfithtdmi. Wff @VB @hibnmma 2866.8, Cmrtkhkf Grfbdt Hiheysds omr CmrtkhkfDisurhigf, Mif tm Omur Ohcdey \rmpfrtdfs, Chy 8<, ><<4 (―Grfbdt Hiheysds @hibnmma–),. HBdrfgt Fibmrsfr cust t`frfomrf phy spfgdodg httfitdmi tm h nmrrmwfr—s rfit mr cmrtkhkf phycfit`dstmry, hib hiy gmeefgtdmi hgtdmis, jubkcfits, omrfgemsurfs mr nhiaruptgdfs. Db.

@VB rfqudrfs h Bdrfgt Fibmrsfr tm suncdt bmgucfithtdmi t`ht t`f nmrrmwfr `hs t`fhndedty tm rfspmisdney chihkf `ds mr `fr odihigdhe hoohdrs. Wff Grfbdt Hiheysds @hibnmma,. Omrfxhcpef, do h nmrrmwfr `hs kmif t`rmuk` h nhiaruptgy, t`f Bdrfgt Fibmrsfr cust bmgucfit t`htt`f nmrrmwfr—s gurrfit sdtuhtdmi dibdghtfs t`ht t`f fvfits t`ht efb tm t`f nhiaruptgy hrf imt edafeytm rfgur.

@VB rfkuehtdmis ourt`fr rfqudrf t`ht h Bdrfgt Fibmrsfr gheguehtf h nmrrmwfr—s vfrdodhnefdigmcf hib bftfrcdif t`f edafed`mmb t`ht t`f digmcf wdee gmitdiuf t`rmuk` ht efhst t`f odrst t`rffyfhrs mo t`f cmrtkhkf. Wff Grfbdt Hiheysds @hibnmma. Di phrtdguehr, h Bdrfgt Fibmrsfr custrfvdfw:

h. shehrdfs, whkfs, hib mt`fr rfkuehr phycfits sug` hs smgdhe sfgurdty mrrftdrfcfit nfifodts1

n. hedcmiy, g`deb suppmrt mr chditfihigf digmcf1 hib

g. ift rfithe digmcf ormc prmpfrty mwifb ny t`f nmrrmwfr.

80



H Bdrfgt Fibmrsfr chy digeubf rfithe digmcf ormc prmpfrtdfs mwifb ny nmrrmwfrs di dtshiheysds, do t`f efibfr ghi bmgucfit t`ht t`f rfithe digmcf ds sthnef t`rmuk` h efhsf, hi hkrffcfittm efhsf, mr h rfithe mvfr t`f phst twfity-omur cmit`s orff mo uifxpehdifb khps.

H Bdrfgt Fibmrsfr cust ourt`fr vfrdoy hib bmgucfit h nmrrmwfr—s cdidcuc rfqudrfbghs` divfstcfit di t`f prmpfrty ny mnthdidik h _frdodghtdmi mo Bfpmsdt omrc ormc t`f nmrrmwfr—s

nhia tm vfrdoy dts gurrfit nhia bfpmsdts, hemik wdt` t`f cmst rfgfit nhia sthtfcfit. Wff GrfbdtHiheysds @hibnmma,. H Bdrfgt Fibmrsfr cust hesm edst h nmrrmwfr—s rfgurrdik mnedkhtdmis,digeubdik distheecfit emhis, g`hrkf hggmuits, hib rfhe fsthtf emhis, hib gmisdbfr t`fdr dcphgt mit`f nmrrmwfr—s hndedty tm phy t`f cmrtkhkf. Db.

>. Bfnt, Xuhedoydik ^htdms hib Mvfrhee Cfrdt mo Emhi Hppedghtdmi

Hbbdtdmiheey, h Bdrfgt Fibmrsfr cust gmcputf twm ―Xuhedoydik ^htdms– tm bftfrcdifw`ft`fr t`f nmrrmwfr ghi rfhsmihney nf fxpfgtfb tm cfft t`f fxpfisfs divmevfb di `mcfmwifrs`dp, hib mt`frwdsf prmvdbf omr t`f nmrrmwfr—s ohcdey:

h. Cmrtkhkf \hycfit tm Foofgtdvf Digmcf: t`f cmrtkhkf phycfit, digeubdik phycfits ditm hi fsgrmw hggmuit omr thxfs, disurhigf hib hiy mt`frhssfsscfits, s`mueb imt fxgffb 78% mo h nmrrmwfr—s foofgtdvf digmcf. WffGrfbdt Hiheysds @hibnmma1 Cmrtkhkff-Efttfr ><<6-8?, Hprde 87, ><<6.

n. Rmthe Odxfb \hycfit tm Foofgtdvf Digmcf: t`f nmrrmwfr—s cmrtkhkf phycfits hib hee mt`fr rfgurrdik phycfit mnedkhtdmis s`mueb imt fxgffb27% mo foofgtdvf digmcf. Wff Grfbdt Hiheysds @hibnmma1Cmrtkhkff-Efttfr ><<6-8?, Hprde 87, ><<6.

[`frf h nmrrmwfr fxgffbs fdt`fr Xuhedoydik ^htdm, h Bdrfgt Fibmrsfr cust bftfrcdif

w`ft`fr t`frf hrf ―Gmcpfishtdik Ohgtmrs– t`ht justdoy t`f chadik mo t`f emhi. Wff GrfbdtHiheysds @hibnmma. Gmcpfishtdik Ohgtmrs digeubf w`ft`fr:

h. @musdik Fxpfisf \hycfits: R`f nmrrmwfr `hs suggfssoueey bfcmistrhtfbt`f hndedty tm phy `musdik fxpfisfs krfhtfr t`hi mr fquhe tm t`f prmpmsfbcmit`ey `musdik fxpfisfs omr t`f ifw cmrtkhkf mvfr t`f phst 8>->2cmit`s1

n. Bmwi \hycfit: R`f nmrrmwfr chafs h ehrkf bmwi phycfit mo 8< pfrgfitmr `dk`fr tmwhrb t`f purg`hsf mo t`f prmpfrty1

g. Hggucuehtfb Whvdiks: R`f nmrrmwfr `hs bfcmistrhtfb:• hi hndedty tm hggucuehtf shvdiks, hib• h gmisfrvhtdvf httdtubf tmwhrb usdik grfbdt1

b. \rfvdmus Grfbdt @dstmry: H nmrrmwfr—s prfvdmus grfbdt `dstmry s`mws t`ht`f/s`f `hs t`f hndedty tm bfvmtf h krfhtfr pmrtdmi mo digmcf tm `musdikfxpfisfs1

84



f. Gmcpfishtdmi mr Digmcf Imt ^foefgtfb di Foofgtdvf Digmcf: R`f nmrrmwfr rfgfdvfs bmgucfitfb gmcpfishtdmi mr digmcf t`ht ds imtrfoefgtfb di foofgtdvf digmcf, nut bdrfgtey hoofgts `ds/`fr hndedty tm phy t`fcmrtkhkf. R`ds typf mo digmcf digeubfs ommb sthcps, hib sdcdehr punedg

nfifodts1

o. Cdidche @musdik Fxpfisf Digrfhsf: R`frf ds miey h cdidche digrfhsf dit`f nmrrmwfr—s `musdik fxpfisf1

k. Wunsthitdhe Ghs` ^fsfrvfs: R`f nmrrmwfr `hs sunsthitdhe bmgucfitfb ghs`rfsfrvfs (ht efhst t`rff cmit`—s wmrt`) hotfr gemsdik. R`f efibfr cust

jubkf do t`f sunsthitdhe ghs` rfsfrvf hssft ds edqudb mr rfhbdey gmivfrtdnef tmghs`, hib ghi nf bmif sm hnsfit rftdrfcfit mr jmn tfrcdihtdmi, w`fibftfrcdidik do t`f hssft ghi nf digeubfb hs ghs` rfsfrvfs, mr ghs` tm gemsf.Ouibs hib/mr ―hssfts– t`ht hrf imt tm nf gmisdbfrfb hs ghs` rfsfrvfsdigeubf fqudty di mt`fr prmpfrtdfs, hib prmgffbs ormc h ghs̀ -mutrfodihigf.

Efibfrs chy usf h pmrtdmi mo h nmrrmwfr's rftdrfcfit hggmuit, sunjfgt tmt`f gmibdtdmis sthtfb nfemw. Rm hggmuit omr wdt`brhwhe pfihetdfs hibthxfs, miey ?<% mo t`f vfstfb hcmuit mo t`f hggmuit chy nf usfb. R`fefibfr cust bmgucfit t`f fxdstfigf mo t`f hggmuit wdt` t`f cmst rfgfitbfpmsdtmry mr nrmafrhkf hggmuit sthtfcfit. Di hbbdtdmi, fvdbfigf cust nf

prmvdbfb t`ht t`f rftdrfcfit hggmuit heemws omr wdt`brhwhes omr gmibdtdmismt`fr t`hi di gmiifgtdmi wdt` t`f nmrrmwfr's fcpemycfit tfrcdihtdmi,rftdrfcfit, mr bfht`. Do wdt`brhwhes ghi miey nf chbf uibfr t`fsfgdrgucsthigfs, t`f rftdrfcfit hggmuit chy imt nf digeubfb hs ghs`rfsfrvfs. Do hiy mo t`fsf ouibs hrf hesm tm nf usfb omr emhi sfttefcfit, t`hthcmuit cust nf suntrhgtfb ormc t`f hcmuit digeubfb hs ghs` rfsfrvfs.Wdcdehrey, hiy kdot ouibs t`ht rfchdi di t`f nmrrmwfr's hggmuit omeemwdikemhi gemsdik, sunjfgt tm prmpfr bmgucfithtdmi, chy nf gmisdbfrfb hs ghs`1

`. Wunsthitdhe Imi-Rhxhnef Digmcf: R`f nmrrmwfr `hs sunsthitdhe imi-thxhnef digmcf1

d. \mtfitdhe omr Digrfhsfb Fhridiks: R`f nmrrmwfr `hs h pmtfitdhe omrdigrfhsfb fhridiks, hs dibdghtfb ny jmn trhdidik mr fbughtdmi di `ds/`fr

prmofssdmi1 hib

j. \rdchry [hkf-Fhrifr ^femghtdmi: R`f `mcf ds nfdik purg`hsfb nfghusft`f prdchry whkf-fhrifr ds rfemghtdik, hib t`f sfgmibhry whkf-fhrifr

• `hs hi fsthneds`fb fcpemycfit `dstmry

• ds fxpfgtfb tm rfturi tm wmra, hib

• `hs rfhsmihnef prmspfgts omr sfgurdik fcpemycfit di h sdcdehrmgguphtdmi di t`f ifw hrfh

><



@VB ourt`fr rfqudrfs t`ht h Bdrfgt Fibmrsfr jubkf t`f mvfrhee cfrdt mo h nmrrmwfr—s emhihppedghtdmi. Wdcpey fsthneds`dik t`ht h emhi trhishgtdmi cffts cdidche sthibhrbs bmfs imtifgfsshrdey gmistdtutf prubfit uibfrwrdtdik. Wff Grfbdt Hiheysds @hibnmma. H Bdrfgt Fibmrsfrcust t`frfomrf hiheyzf t`f prmnhndedty t`ht h nmrrmwfr wdee rfphy t`f cmrtkhkf mnedkhtdmi. Db. .

H Bdrfgt Fibmrsfr cust bmgucfit fhg` emhi suncdttfb omr cmrtkhkf disurhigf. WffGrfbdt Hiheysds @hibnmma. H Bdrfgt Fibmrsfr cust hsa qufstdmis t`ht wdee fedgdt h gmcpeftf

pdgturf mo t`f nmrrmwfr—s odihigdhe sdtuhtdmi.

[`fi h nmrrmwfr—s grfbdt `dstmry rfvfhes bfediqufit hggmuits, t`f Bdrfgt Fibmrsfrcust bmgucfit dts hiheysds mo w`ft`fr t`f ehtf phycfits wfrf nhsfb mi h bdsrfkhrb omr, mrdihndedty tm phy mr chihkf bfnts. Wff Grfbdt Hiheysds @hibnmma

7. Wuppmrtdik Bmgucfits Cust Gmcf Ormc Bdsditfrfstfb \hrtdfs

H Bdrfgt Fibmrsfr chy rfgfdvf _frdodghtdmi mo Fcpemycfit omrcs ormc h nmrrmwfr—sfcpemyfr ny ohx, do t`f nmrrmwfr—s fcpemyfr ds gefhrey dbfitdodfb hs t`f smurgf mo t`f ohx. R`fefibfr ds hggmuithnef omr hsgfrthdidik t`f hut`fitdgdty mo fcpemycfit vfrdodghtdmi bmgucfits, nyfxhcdidik diomrchtdmi di dts `fhbfr hib ommtfr. Wff Grfbdt Hiheysds @hibnmma.

Cmrtkhkf efibfrs chy imt hggfpt mr usf bmgucfits rfehtdik tm t`f fcpemycfit, digmcfmr grfbdt mo nmrrmwfrs t`ht hrf `hibefb mr trhiscdttfb ormc mr t`rmuk` ditfrfstfb t`drb phrtdfs,digeubdik rfhe fsthtf hkfits, mr ny usdik t`fdr fqudpcfit. Wff Grfbdt Hiheysds @hibnmma

N. Wpfgdodg Buf Bdedkfigf ^fqudrfb mo Bdrfgt Fibmrsfcfit Efibfrs

@VB rfedfs mi Bdrfgt Fibmrsfcfit Efibfrs tm gmibugt buf bdedkfigf mi BdrfgtFibmrsfcfit emhis. R`f purpmsfs mo buf bdedkfigf digeubf (h) bftfrcdidik h nmrrmwfr—s hndedty

hib wdeedikifss tm rfphy h cmrtkhkf bfnt, t`us edcdtdik t`f prmnhndedty mo bfohuet hib gmeefgtdmibdoodguetdfs, sff >2 G.O.^. § ><7.6(b), hib (n) fxhcdidik h prmpfrty moofrfb hs sfgurdty omr t`femhi tm bftfrcdif do dt prmvdbfs suoodgdfit gmeehtfrhe, sff >2 G.O.^. § ><7.6(f)(7). Buf bdedkfigft`us rfqudrfs hi fvheuhtdmi mo, hcmik mt`fr t`diks, h nmrrmwfr—s grfbdt `dstmry, ghphgdty tm phy,ghs` tm gemsf, hib gmeehtfrhe.

@VB `hs sft spfgdodg ruefs omr buf bdedkfigf prfbdghtfb mi smuib uibfrwrdtdik prdigdpefs.Di phrtdguehr, @VB rfqudrfs Bdrfgt Fibmrsfcfit Efibfrs tm nf ohcdedhr wdt`, hib tm gmcpey wdt`,kmvfridik @VB @hibnmmas hib Cmrtkhkff Efttfrs, w`dg` prmvdbf bfthdefb prmgfssdikdistrugtdmis tm Bdrfgt Fibmrsfcfit Efibfrs. R`fsf chtfrdhes spfgdoy t`f cdidcuc buf bdedkfigfwdt` w`dg` Bdrfgt Fibmrsfcfit Efibfrs cust gmcpey.

[dt` rfspfgt tm fisurdik t`ht nmrrmwfrs `hvf suoodgdfit grfbdt, h Bdrfgt FibmrsfcfitEfibfr cust gmcpey wdt` kmvfridik @VB @hibnmmas, sug` hs @VB 2866.8, Cmrtkhkf GrfbdtHiheysds omr Cmrtkhkf Disurhigf mi Mif-tm-Omur Ohcdey \rmpfrtdfs, tm fvheuhtf h nmrrmwfr—sgrfbdt. R`f ruefs sft omrt` di @VB 2866.8 fxdst tm fisurf t`ht h Bdrfgt Fibmrsfcfit Efttfrsuoodgdfitey fvheuhtfs w`ft`fr h nmrrmwfr `hs t`f hndedty hib wdeedikifss tm rfphy t`f cmrtkhkfbfnt. @VB `hs diomrcfb Bdrfgt Fibmrsfcfit Efibfrs t`ht phst grfbdt pfromrchigf sfrvfs hs hifssfitdhe kudbf di bftfrcdidik h nmrrmwfr—s httdtubf tmwhrb grfbdt mnedkhtdmis hib di prfbdgtdik h

nmrrmwfr—s outurf hgtdmis.

>8



Rm prmpfrey fvheuhtf h nmrrmwfr—s grfbdt `dstmry, h Bdrfgt Fibmrsfcfit Efibfr cust, ht hcdidcuc, mnthdi hib rfvdfw grfbdt `dstmrdfs1 hiheyzf bfnt mnedkhtdmis1 rfjfgt bmgucfithtdmitrhiscdttfb ny uiaimwi mr ditfrfstfb phrtdfs1 dispfgt bmgucfits omr prmmo mo hut`fitdgdty1 mnthdihbfquhtf fxpehihtdmis omr gmeefgtdmis, jubkcfits, rfgfit bfnts hib rfgfit grfbdt diqudrdfs1fsthneds` digmcf sthndedty hib chaf digmcf prmjfgtdmis1 mnthdi fxpehihtdmis omr hiy khps di

fcpemycfit1 bmgucfit hiy kdot ouibs1 gheguehtf bfnt hib digmcf rhtdms hib gmcphrf t`msf rhtdmstm t`f odxfb rhtdms sft ny @VB ruefs1 hib gmisdbfr hib bmgucfit hiy gmcpfishtdik ohgtmrs pfrcdttdik bfvdhtdmis ormc t`msf odxfb rhtdms.

[dt` rfspfgt tm hpprhdsdik t`f cmrtkhkfb prmpfrty (d.f., gmeehtfrhe omr t`f emhi), h BdrfgtFibmrsfcfit Efibfr cust fisurf t`ht hi hpprhdshe hib dts rfehtfb bmgucfithtdmi shtdsoy t`frfqudrfcfits di kmvfridik @VB @hibnmmas, sug` hs @VB 286<.>, _heuhtdmi Hiheysds omr @mcfCmrtkhkf Disurhigf. R`f ruefs sft omrt` di @VB 286<.> fxdst tm fisurf t`ht h BdrfgtFibmrsfcfit Efibfr mnthdis hi hggurhtf hpprhdshe t`ht prmpfrey bftfrcdifs t`f vheuf mo t`f

prmpfrty omr @VB—s cmrtkhkf disurhigf purpmsfs.

G. Bdrfgt Fibmrsfr Gfrtdodghtdmis Rm @VB

8. Hiiuhe Gfrtdodghtdmis

Hs h gmibdtdmi omr chdithdidik dts phrtdgdphtdmi di t`f Bdrfgt Fibmrsfcfit \rmkrhc, hBdrfgt Fibmrsfr, ny dts \rfsdbfit mr _dgf-\rfsdbfit, cust gfrtdoy tm @VB hiiuheey t`ht t`f BdrfgtFibmrsfr gmiomrcs tm hee @VB-O@H rfkuehtdmis ifgfsshry tm chdithdi dts @VB-O@H hpprmvhe.Wff Rdtef DD Tfhrey _frdodghtdmi ^fpmrt, @mcf Moodgf. R`f moodgfr cust ourt`fr gfrtdoy t`ht t`fBdrfgt Fibmrsfr ds rfspmisdnef omr hee dts fcpemyffs— hgtdmis. Db.

R`f Bdrfgt Fibmrsfcfit Efibfr cust chaf t`f omeemwdik hiiuhe gfrtdodghtdmi, di suchib sunsthigf:

D aimw mr hc di t`f pmsdtdmi tm aimw, w`ft`fr t`f mpfrhtdmis mo t`fhnmvf ihcfb cmrtkhkf gmiomrc tm @VB-O@H rfkuehtdmis,`hibnmmas, hib pmedgdfs. D gfrtdoy t`ht tm t`f nfst mo cy aimwefbkf,t`f hnmvf ihcfb cmrtkhkff gmiomrcs tm hee @VB-O@H hpprmvhe,hib t`ht t`f hnmvf ihcfb cmrtkhkff ds oueey rfspmisdnef omr heehgtdmis mo dts fcpemyffs digeubdik t`msf mo dts @VB-O@Hhpprmvfb nrhig` moodgfs.

R`f hiiuhe gfrtdodghtdmi rfqudrfs gmcpedhigf wdt` t`f nhsdg fedkdndedty rfqudrfcfits omrBdrfgt Fibmrsfcfit Efibfrs, w`dg` digeubfs gmcpedhigf wdt` @VB ruefs gmigfridik efibfr—squhedty gmitrme.

>>



>. Emhi Hppedghtdmi Gfrtdodghtdmis

Omr fhg` cmrtkhkf emhi disurfb ny O@H uibfr t`f Bdrfgt Fibmrsfcfit \rmkrhc, h BdrfgtFibmrsfr hib dts Vibfrwrdtfr cust chaf h iucnfr mo gfrtdodghtdmis rfqudrfb ny @VB. Wff BdrfgtFibmrsfcfit Hpprmvhe omr h @VB/O@H Disurfb Cmrtkhkf omrc1 @VB @hibnmma 2<<<.2 ^fv-8,Wdikef Ohcdey Bdrfgt Fibmrsfcfit \rmkrhc, 4/>/00 (―Bdrfgt Fibmrsfcfit @hibnmma–).

Wpfgdodgheey, h Bdrfgt Fibmrsfr hib/mr t`f Bdrfgt Fibmrsfcfit Vibfrwrdtfr cust chaf hsfrdfs mo gfrtdodghtdmis di t`f @VB 8<<7 Hbbfibuc, hesm aimwi hs t`f @VB/_H Hbbfibuc tmVidomrc ^fsdbfitdhe Emhi Hppedghtdmi hib t`f Bdrfgt Fibmrsfcfit Hpprmvhe omr h @VB/O@HDisurfb Cmrtkhkf, digeubdik:

h. R`f emhi tfrcs ourids`fb di t`f Vidomrc ^fsdbfitdhe Emhi Hppedghtdmi hibt`f Hbbfibuc hrf truf, hggurhtf hib gmcpeftf.

n. R`f diomrchtdmi gmithdifb di t`f Vidomrc ^fsdbfitdhe Emhi Hppedghtdmihib t`f Hbbfibuc whs mnthdifb bdrfgtey ormc t`f nmrrmwfr ny hifcpemyff mo t`f uibfrsdkifb efibfr mr dts buey hut`mrdzfb hkfit hib ds truftm t`f nfst mo t`f efibfr—s aimwefbkf hib nfedfo.

g. R`f vfrdodghtdmi mo fcpemycfit whs rfqufstfb hib rfgfdvfb ny t`f efibfrmr dts buey hut`mrdzfb hkfit wdt`mut phssdik t`rmuk` t`f `hibs mo hiy t`drb

pfrsmis hib hrf truf tm t`f nfst mo t`f efibfr—s aimwefbkf hib nfedfo.

b. R`f vfrdodghtdmi mo bfpmsdt whs rfqufstfb hib rfgfdvfb ny t`f efibfr mr dtsbuey hut`mrdzfb hkfit wdt`mut phssdik t`rmuk` t`f `hibs mo hiy t`drb

pfrsmis hib hrf truf tm t`f nfst mo t`f efibfr—s aimwefbkf hib nfedfo.

f. R`f prmpmsfb emhi tm t`f nmrrmwfr cffts t`f digmcf hib grfbdtrfqudrfcfits mo t`f kmvfridik ehw di t`f efibfr—s jubkcfit.

o. R`ht t`f sthtfcfits chbf di dts hppedghtdmi omr disurhigf hib t`f Efibfr—sGfrtdodghtf hs phrt mo t`f Bdrfgt Fibmrsfcfit Hpprmvhe omr h @VB/O@HDisurfb Cmrtkhkf hrf truf hib gmrrfgt.

k. R`ht gmcpeftf bdsnursfcfit mo t`f emhi `hs nffi chbf tm t`f nmrrmwfr, mrtm `ds/`fr grfbdtmrs omr `ds/`fr hggmuit hib wdt` `ds/`fr gmisfit.

`. Im g`hrkf `hs nffi chbf tm mr phdb ny t`f nmrrmwfr fxgfpt hs pfrcdttfbuibfr @VB rfkuehtdmis.

d. R`f Efibfr `hs imt phdb hiy adganhgas, off mr gmisdbfrhtdmi mo hiy typf,bdrfgtey mr dibdrfgtey, tm hiy phrty di gmiifgtdmi wdt` t`f trhishgtdmifxgfpt hs pfrcdttfb uibfr @VB rfkuehtdmis hib hbcdidstrhtdvfdistrugtdmis.

>7



j. R`f Efibfr—s moodgfr `hs pfrsmiheey rfvdfwfb t`f cmrtkhkf emhibmgucfits, gemsdik sthtfcfits, hppedghtdmi omr disurhigf fibmrsfcfit, hibhee hggmcphiydik bmgucfits.

a. Hee gfrtdodghtdmis rfqudrfb omr t`f cmrtkhkf ny t`f Bdrfgt Fibmrsfcfit@hibnmma.

B. Wuncdssdmi Rm @VB

H Bdrfgt Fibmrsfr cust suncdt h cmrtkhkf disurhigf hppedghtdmi omr fhg` nmrrmwfr tm@VB, tmkft`fr wdt` bmgucfithtdmi mo t`f nmrrmwfr—s hssfts hib grfbdt-wmrt`difss, hibbmgucfithtdmi mo t`f Bdrfgt Fibmrsfr—s rfvdfw hib hiheysds mo t`f emhi, digeubdik:

h. R`f Vidomrc ^fsdbfitdhe Emhi Hppedghtdmi hib Hbbfibuc sdkifb hib bhtfb nyhee nmrrmwfrs hib t`f Bdrfgt Fibmrsfr. Wff Grfbdt Hiheysds @hibnmma1

n. Cmrtkhkf Grfbdt Hiheysds [mras`fft w`frf t`f Bdrfgt Fibmrsfr cust trut`oueey

hib hggurhtfey nrfha mut hib rfvdfw t`f nmrrmwfr—s hvhdehnef hssfts hib digmcf,vfrsus t`f fxpfgtfb gmsts mo nmt` t`f cmrtkhkf hib mt`fr odxfb phycfits mwfb nyt`f nmrrmwfr. R`f Bdrfgt Fibmrsfr ourt`fr cust trut`oueey hppey @VB-chibhtfbrhtdms hib rhtdiks mo t`f nmrrmwfr—s grfbdt hs wfee hs t`fdr gurrfit hib outurfhndedty tm phy t`fdr bfnts1

g. Grfbdt ^fpmrt omr hee nmrrmwfrs1

b. _frdodghtdmi mo fcpemycfit1

f. _frdodghtdmi mo hvhdehnef ouibs ormc nmrrmwfr—s nhia, hib t`f nmrrmwfr—s cmstrfgfit nhia sthtfcfits1

o. _frdodghtdmi mo ^fit mr \hycfit @dstmry mo \rfsfit/\rfvdmus Cmrtkhkfs1 hib

k. Wfttefcfit Wthtfcfit (hesm aimwi hs t`f ―@VB-8–).

Bdrfgt Fibmrsfrs hesm fefgtrmidgheey suncdt diomrchtdmi omr cmrtkhkf disurhigfhppedghtdmis tm @VB, digeubdik t`f nmrrmwfr—s ihcf hib smgdhe sfgurdty iucnfr, t`f prmpfrtyhbbrfss, t`f hpprhdsfr—s ihcf, hib t`f nmrrmwfr—s Xuhedoydik ^htdms.

Hotfr @VB rfgfdvfs h Bdrfgt Fibmrsfr—s cmrtkhkf disurhigf hppedghtdmi, @VB wdee dssufh cmrtkhkf disurhigf gfrtdodghtf omr t`f cmrtkhkf do sfvfrhe grdtfrdh hrf cft, digeubdik t`ht t`f

hppedghtdmi gmithdis hee t`f rfqudrfb bmgucfithtdmi hib t`ht t`f Bdrfgt Fibmrsfr hib dtsVibfrwrdtfr `hvf chbf t`fdr gfrtdodghtdmis. >2 G.O.^. § ><7.>66(g)(8)-(;). Hs imtfb hnmvf, ht heetdcfs rfefvhit tm t`ds hgtdmi Nhia mo Hcfrdgh phrtdgdphtfb di t`f Efibfr Disurhigf prmkrhc,w`dg` pfrcdttfb dt tm fibmrsf cmrtkhkf emhis omr O@H cmrtkhkf disurhigf.

@VB cmidtmrs Bdrfgt Fibmrsfrs— gmcpedhigf wdt` @VB rfkuehtdmis. @VB trhgas t`fbfediqufigy hib bfohuet rhtfs (bfediqufigdfs mo krfhtfr t`hi idifty bhys) mo nmrrmwfrs ormc fhg`hpprmvfb nrhig` moodgf mo h Bdrfgt Fibmrsfcfit cmrtkhkf efibfr omr t`f odrst twm yfhrs mo fhg`

>2



emhi, tm bftfgt w`ft`fr t`f cmrtkhkf efibfrs chy nf vdmehtdik @VB sthibhrbs di mrdkdihtdikdisurfb cmrtkhkf emhis.

@VB—s prdchry cfhis tm cmidtmr gmcpedhigf wdt` dts uibfrwrdtdik rfkuehtdmis dst`rmuk` t`f Ifdk`nmr`mmb [htg` systfc. @VB cmidtmrs gmcpedhigf wdt` dts uibfrwrdtdikrfkuehtdmis ny cmrtkhkffs, edaf Nhia mo Hcfrdgh, t`rmuk` dts Ifdk`nmr`mmb [htg` systfc(―Ifdk`nmr`mmb [htg`–). Ifdk`nmr`mmb [htg` ds h tmme w`dg` dbfitdodfs efibfrs, emhi typfs,hib emghtdmis ny zdp gmbf t`ht `hvf h `dk` digdbfigf mo sdikef ohcdey disurfb cmrtkhkfs kmdikditm bfohuet (4< bhys bfediqufit) wdt`di t`f odrst twm yfhrs hotfr emhi mrdkdihtdmi (―Fhrey BfohuetEmhis–).

R`f systfc ds bfsdkifb tm `dk`edk`t fxgfptdmis, sm t`ht pmtfitdhe prmnefcs hrf rfhbdeydbfitdodhnef. Ifdk`nmr`mmb [htg` ds bfsdkifb hs hi Fhrey [hridik Wystfc hib ds ditfibfb, ditfrhedh, tm hdb @VB/O@H sthoo di cmidtmrdik efibfrs hib mur prmkrhcs.

F. Hutmchtfb Vibfrwrdtdik Wystfcs

H Bdrfgt Fibmrsfcfit Efibfr chy usf hi O@H-hpprmvfb hutmchtfb uibfrwrdtdik systfctm rfvdfw emhi hppedghtdmis. R`f hutmchtfb uibfrwrdtdik systfc prmgfssfs diomrchtdmi fitfrfb

ny t`f Bdrfgt Fibmrsfcfit Efibfr hib rhtfs emhis hs fdt`fr hi ―hggfpt–/–hpprmvf– mr h―rfofr–/–ghutdmi.–

Di ghsfs w`frf h Bdrfgt Fibmrsfcfit Efibfr usfs hi O@H-hpprmvfb hutmchtfbuibfrwrdtdik systfc, hib t`f systfc rhtfs h emhi hs hi ―hggfpt– mr ―hpprmvf–, t`f BdrfgtFibmrsfcfit Efibfr cust chaf t`f omeemwdik gfrtdodghtdmi:

R`ds cmrtkhkf whs rhtfb hi ―hggfpt– mr ―hpprmvf– ny h O@H-hpprmvfb hutmchtfb uibfrwrdtdik systfc. Hs sug`, t`f

uibfrsdkifb rfprfsfithtdvf mo t`f cmrtkhkff gfrtdodfs tm t`fditfkrdty mo t`f bhth suppedfb ny t`f efibfr usfb tm bftfrcdif t`fquhedty mo t`f emhi, t`ht h Bdrfgt Fibmrsfcfit Vibfrwrdtfrrfvdfwfb t`f hpprhdshe (do hppedghnef) hib ourt`fr gfrtdodfs t`ht t`dscmrtkhkf ds fedkdnef omr @VB cmrtkhkf disurhigf uibfr t`f BdrfgtFibmrsfcfit prmkrhc. D `frfny chaf hee gfrtdodghtdmis rfqudrfb nyt`ds cmrtkhkf hs sft omrt` di @VB @hibnmma 2<<<.2.

Di ghsfs w`frf h Bdrfgt Fibmrsfcfit Efibfr usfs hi O@H-hpprmvfb hutmchtfbuibfrwrdtdik systfc, hib t`f systfc rhtfs h emhi hs ―rfofr– mr ―ghutdmi,– mr di ghsfs w`frf hBdrfgt Fibmrsfcfit efibfr bmfs imt usf hi O@H-hpprmvfb hutmchtfb uibfrwrdtdik systfc, t`fuibfrwrdtfr cust chaf t`f omeemwdik gfrtdodghtdmi:

R`ds cmrtkhkf whs rhtfb hs h ―rfofr– mr ―ghutdmi– ny hO@H-hpprmvfb hutmchtfb uibfrwrdtdik systfc, hib/mr whschiuheey uibfrwrdttfi ny h Bdrfgt Fibmrsfcfit uibfrwrdtfr. Hssug`, t`f uibfrsdkifb Bdrfgt Fibmrsfcfit Vibfrwrdtfr gfrtdodfst`ht D `hvf pfrsmiheey rfvdfwfb t`f hpprhdshe rfpmrt (do hppedghnef),grfbdt hppedghtdmi, hib hee hssmgdhtfb bmgucfits hib `hvf usfb bufbdedkfigf di uibfrwrdtdik t`ds cmrtkhkf. D odib t`ht t`ds cmrtkhkf ds

>6



fedkdnef omr @VB cmrtkhkf disurhigf uibfr t`f BdrfgtFibmrsfcfit prmkrhc hib D `frfny chaf hee gfrtdodghtdmis rfqudrfb

ny t`ds cmrtkhkf hs sft omrt` di @VB @hibnmma 2<<<.2.

R`f gfrtdodghtdmis di @VB @hibnmma 2<<<.2, digmrpmrhtfb ny rfofrfigf di t`fgfrtdodghtdmis hnmvf, digeubf t`f gfrtdodghtdmi t`ht t`f cmrtkhkf gmcpedfs wdt` @VB uibfrwrdtdikrfqudrfcfits gmithdifb di hee mutsthibdik @VB @hibnmmas hib Cmrtkhkff Efttfrs.

Nhia mo Hcfrdgh usfb hi hutmchtfb uibfrwrdtdik systfc rfofrrfb tm hs t`f GmuitrywdbfEmhi Vibfrwrdtdik Fxpfrt Wystfc (―GEVFW–). Nhia mo Hcfrdgh usfb GEVFW tm uibfrwrdtfemhis omr O@H-disurhigf. GEVFW ditfrohgfb wdt` O@H—s Rfg`imemky Mpfi tm HpprmvfbEfibfrs (―RMRHE–), hi hutmchtfb tmme t`ht fvheuhtfs chiy mo t`f ifw emhis disurfb ny t`fO@H. Efibfrs gfrtdoy t`fy hrf di gmcpedhigf wdt` rfqudrfcfits hppedghnef tm t`f usf mo RMRHE,digeubdik t`ht t`fy ―imt bdshssfcnef, bfgmcpdef, rfvfrsf fikdiffr, bfrdvf mr mt`frwdsf rfprmbugfhiy phrt mo t`f smurgf gmbf mr hekmrdt`c di RMRHE.–

Hnsfit h trut`oue cmrtkhkf fedkdndedty gfrtdodghtdmi, h Bdrfgt Fibmrsfcfit Efibfr chy imtfibmrsf h cmrtkhkf omr O@H disurhigf.

DD. NHIA MO HCF^DGH—W IMI-GMC\EDHIGF ^FEHRFB RM O@H-DIWV^FBEMHIW

Hs mo Bfgfcnfr 78, ><87, Nhia mo Hcfrdgh `hb suncdttfb omr phycfit gehdcs omr emhist`ht wfrf mrdkdihtfb ny t`f Nhia mo Hcfrdgh hib disurfb ny t`f O@H mi mr hotfr Chy 8, ><<4, mromr w`dg` t`f tfrcs hib gmibdtdmis mo t`f cmrtkhkf emhi wfrf hpprmvfb ny hi O@H bdrfgtfibmrsfcfit uibfrwrdtfr mi mr hotfr Chy 8, ><<4. ^fvdfw mo Nhia mo Hcfrdgh—s fhrey bfohuetemhis dibdghtfs t`ht omr chiy emhis, Nhia mo Hcfrdgh bdb imt hewhys cfft O@H rfqudrfcfits.R`f bfodgdfigdfs digeubf imi-gmcpedhigf wdt` t`f hppedghnef rfkuehtdmis. Nhia mo Hcfrdgh

fikhkfb di t`f omeemwdik typfs mo gmibugt: (h) dt bdb imt fsthneds` digmcf sthndedty1 (n) dt bdb imtvfrdoy digmcf1 (g) dt dihggurhtfey fvheuhtfb nmrrmwfr—s prfvdmus cmrtkhkf mr rfithe phycfit`dstmry1 (b) dt bdb imt hggmuit omr h chjmr bfrmkhtmry mi h nmrrmwfr—s grfbdt1 (f) dt bdb imt vfrdoyhib bmgucfit fhrifst cmify1 (o) dt bdb imt vfrdoy hib bmgucfit g`fgadik hib shvdiks hggmuitdiomrchtdmi1 (k) dt bdb imt bmgucfit kdot ouib cmidfs hib vfrdoy wdrf trhisofrs mo shcf1 (`) dt bdbimt bmgucfit hib vfrdoy t`f nmrrmwfr—s divfstcfit di t`f prmpfrty1 (d) dt uibfr-rfpmrtfb

nmrrmwfr edhndedtdfs1 (j) dt bdb imt hewhys prfsfit hbfquhtf gmcpfishtdik ohgtmrs w`fi t`f nmrrmwfr fxgffbfb @VB-fsthneds`fb digmcf-tm-bfnt rhtdms1 hib (a) dt smcftdcfs digmrrfgteygheguehtfb digmcf omr purpmsfs mo sug` rhtdms.

^fvdfw mo shcpefs mo O@H emhis mrdkdihtfb ny Nhia mo Hcfrdgh s`mwfb uihggfpthnef

rhtfs mo chtfrdhe uibfrwrdtdik bfofgts.Omr fxhcpef, di mif disthigf, Nhia mo Hcfrdgh rfodihigfb h Gmuitrywdbf-`feb imi-O@H

emhi ditm h kmvfricfit-nhgafb O@H emhi. R`f emhi, w`dg` whs di t`f hcmuit mo $86?,248 omr h>2-yfhr-meb cmndef `mcf, gmithdifb iucfrmus uirfsmevfb digmcf bdsgrfphigdfs. R`f nmrrmwfrwhs hesm bfediqufit mi `ds didtdhe emhi ht t`f tdcf mo gemsdik. Di hbbdtdmi, t`f nmrrmwfr whsdcprmpfrey pfrcdttfb tm rmee $8>,?>7 mo grfbdt ghrb hib hutm bfnt ditm t`f ifw O@H emhi. R`f

nmrrmwfr chbf miey twm phycfits nfomrf bfohuetdik mi t`f ifw O@H emhi.

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Di himt`fr fxhcpef, Nhia mo Hcfrdgh heemwfb h nmrrmwfr tm rmee $?6,76? mo grfbdt ghrbbfnt ditm h ifw, ehrkfr rfodihigfb emhi disurfb ny t`f O@H. Nhia mo Hcfrdgh hesm ohdefb tmvfrdoy t`f nmrrmwfr—s fcpemycfit hib mcdttfb t`f nmrrmwfr—s bfnts ormc t`f grfbdt hiheysds.R`f mrdkdihe cmrtkhkf whs $82<,<<< nut Nhia mo Hcfrdgh rfodihigfb t`f emhi omr $><;,0>2 di hbfgedidik chraft. [dt` rfspfgt tm himt`fr emhi, Nhia mo Hcfrdgh fibmrsfb h emhi omr O@H

disurhigf fvfi t`muk` t`f nmrrmwfr edvfb wdt` h rfehtdvf rfit-orff hib, t`us, `hb im `dstmry mo phydik rfit mr mt`fr `musdik fxpfisf. Nhia mo Hcfrdgh hesm bdb imt vfrdoy t`f nmrrmwfr—sdigmcf, hib t`f nmrrmwfr whs mi h efhvf mo hnsfigf ormc fcpemycfit fdk`t bhys prdmr tmgemsdik. Bfspdtf t`f rfqudrfcfit t`ht t`f nmrrmwfr s`mw twm cmit`s— gmcpeftf nhia sthtfcfits,t`f nmrrmwfr—s nhia hggmuit whs mpfifb h cfrf twfevf bhys prdmr tm gemsdik. R`f nmrrmwfrchbf miey omur phycfits nfomrf bfohuetdik mi t`f $782,><2 O@H emhi.

[`fi usdik t`f GEVFW systfc, Nhia mo Hcfrdgh smcftdcfs g`hikfb hi hppedghit—sodihigdhe diomrchtdmi hib t`fi rf-suncdttfb t`f emhi cuetdpef tdcfs di hi foomrt tm kft h GEVFW―hggfpt–. Omr fxhcpef, di ht efhst mif disthigf, Nhia mo Hcfrdgh—s uibfrwrdtfr httfcptfb tm kfth GEVFW hggfpt rhtdik cmrf t`hi omrty tdcfs hib di mt`fr ghsfs uibfrwrdtfrs rfkuehrey g`hikfbt`f rfefvhit bhth hib rf-suncdttfb t`f emhis t`rmuk` GEVFW cmrf t̀ hi twfity tdcfs. Di h ghsfimtf, mif uibfrwrdtfr g`hrhgtfrdzfb w`ht s`f whs bmdik hs trydik tm ―trdga– t`f GEVFW systfcditm kdvdik hi ―hggfpt– rhtdik.

GMVIR^T[DBF HIB NHIA MO HCF^DGH - M^DKDIHRDMIW WMEB RM KWFs

Ormc ht efhst ><<2 t`rmuk` ><<0, Gmuitrywdbf @mcf Emhis, Dig. hib Gmuitrywdbf Nhia,OWN (gmeefgtdvfey, ―Gmuitrywdbf–) mrdkdihtfb rfsdbfitdhe cmrtkhkf emhis hib smeb gfrthdi mot`msf emhis tm t`f Ofbfrhe Ihtdmihe Cmrtkhkf Hssmgdhtdmi (―Ohiidf Chf–) hib t`f Ofbfrhe @mcfEmhi Cmrtkhkf Gmrpmrhtdmi (―Orfbbdf Chg–) (gmeefgtdvfey, ―kmvfricfit-spmismrfb fitfrprdsfs–

mr ―KWFs–). Hotfr hgqudrdik Gmuitrywdbf di ><<0, Nhia mo Hcfrdgh, I.H. (―Nhia mo Hcfrdgh–)gmitdiufb tm mrdkdihtf rfsdbfitdhe cmrtkhkf emhis hib sfee gfrthdi mo t`msf emhis tm t`f KWFs.

Di sfeedik rfsdbfitdhe cmrtkhkf emhis tm t`f KWFs, Gmuitrywdbf hib Nhia mo Hcfrdghchbf rfprfsfithtdmis hib whrrhitdfs tm t`f KWFs t`ht t`f emhis gmcpedfb di hee rfspfgts wdt` t`fsthibhrbs mutedifb di t`f Wdikef Ohcdey Wfeedik Kudbf (t`f ―Ohiidf Kudbf–), Wdikef-OhcdeyWfeefr/Wfrvdgfr Kudbf (t`f ―Orfbbdf Kudbf–), hib t`f hppedghnef purg`hsf gmitrhgts, digeubdik dit`f ghsf mo Ohiidf Chf, t`f Wtrhtfkdg Heedhigf Hkrffcfits fitfrfb ditm nftwffi Ohiidf Chf hibGmuitrywdbf, w`dg` gmeefgtdvfey sft omrt` uibfrwrdtdik, bmgucfithtdmi, quhedty gmitrme, hib sfeo-rfpmrtdik rfqudrfcfits.

Gmuitrywdbf hib Nhia mo Hcfrdgh chbf rfprfsfithtdmis hib whrrhitdfs tm Ohiidf Chfgmigfridik fhg` rfsdbfitdhe cmrtkhkf emhi t`ht t`fy mrdkdihtfb hib smeb tm Ohiidf Chf, digeubdik

nut imt edcdtfb tm, t`f omeemwdik:

h. R`f cmrtkhkf gmiomrcfb tm hee t`f hppedghnef rfqudrfcfits di t`f Ohiidf Kudbf hibt`f purg`hsf gmitrhgts1

n. R`f cmrtkhkf whs hi ―hggfpthnef divfstcfit–1

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g. Hee rfqudrfb emhi bhth whs truf, gmrrfgt, hib gmcpeftf1

b. Hutmchtfb uibfrwrdtdik gmibdtdmis wfrf cft omr emhis prmgfssfb t`rmuk` hihutmchtfb uibfrwrdtdik systfc1 hib

f. Im orhub mr chtfrdhe cdsrfprfsfithtdmi whs gmccdttfb ny hiy phrty, digeubdik t`f nmrrmwfr.

Gmuitrywdbf hib Nhia mo Hcfrdgh chbf sdcdehr rfprfsfithtdmis hib whrrhitdfs tmOrfbbdf Chg gmigfridik fhg` rfsdbfitdhe cmrtkhkf emhi t`fy mrdkdihtfb hib smeb tm Orfbbdf Chg,digeubdik, nut imt edcdtfb tm, t`f omeemwdik:

h. R`f tfrcs, gmibdtdmis, hib rfqudrfcfits sthtfb di t`f Orfbbdf Kudbf hib purg`hsfgmitrhgts wfrf oueey shtdsodfb1

n. Hee whrrhitdfs hib rfprfsfithtdmis mo Gmuitrywdbf hib Nhia mo Hcfrdgh wfrf trufhib gmrrfgt1

g. R`f emhi whs ―divfstcfit quhedty–1 hib

b. Gmuitrywdbf hib Nhia mo Hcfrdgh `hb imt cdssthtfb mr mcdttfb hiy chtfrdhe ohgthnmut t`f cmrtkhkf.

Gmuitrywdbf hib Nhia mo Hcfrdgh wfrf hesm kfifrheey rfqudrfb tm sfeo-rfpmrt tm OhiidfChf hib Orfbbdf Chg hiy emhis t`fy dbfitdodfb hs bfofgtdvf hib/mr mt`frwdsf difedkdnef omr sheftm t`f KWFs.

H sdkidodghit pfrgfithkf mo t`f emhis t`ht Gmuitrywdbf smeb tm t`f KWFs burdik ><<2 tm><<0 wfrf mrdkdihtfb ny Gmuitrywdbf—s prdcf rfthde bdvdsdmi, aimwi hs t`f Gmisucfr ChraftsBdvdsdmi (―GCB–). Burdik t`ds tdcf, Gmuitrywdbf whs hwhrf t`ht chiy mo t`f rfsdbfitdhecmrtkhkf emhis mrdkdihtfb t`rmuk` GCB wfrf bfofgtdvf hib/mr mt`frwdsf difedkdnef omr shef tmt`f KWFs. Hotfr hgqudrdik Gmuitrywdbf Nhia di ><<0, Nhia mo Hcfrdgh gmitdiufb tm mrdkdihtfcmrtkhkf emhis omr shef tm t`f KWFs t`rmuk` dts rfthde efibdik g`hiife t`ht wfrf bfofgtdvf hib/mrmt`frwdsf difedkdnef omr shef tm t`f KWFs.

R`us, Gmuitrywdbf hib Nhia mo Hcfrdgh smeb rfsdbfitdhe cmrtkhkf emhis t`ht t`fymrdkdihtfb tm t`f KWFs wdt` rfprfsfithtdmis hib whrrhitdfs t`ht t`f emhis gmiomrcfb tm t`fOhiidf Kudbf, Orfbbdf Kudbf hib/mr hppedghnef purg`hsf gmitrhgts1 t`ht t`f emhis wfrfhggfpthnef divfstcfits mr divfstcfit quhedty1 t`ht hee rfqudrfb emhi bhth whs truf, gmrrfgt, hibgmcpeftf1 t`ht hutmchtfb uibfrwrdtdik gmibdtdmis `hb nffi cft1 t`ht im chtfrdhecdsrfprfsfithtdmis wfrf gmccdttfb di gmiifgtdmi wdt` t`f emhis1 hib t`ht t`fy `hb imt cdssthtfbmr mcdttfb hiy chtfrdhe ohgt hnmut t`f emhis1 w`fi, di ohgt, chiy mo t`msf rfprfsfithtdmis mrwhrrhitdfs wfrf imt hggurhtf, hs chiy mo t`f emhis wfrf bfofgtdvf hib/mr mt`frwdsf difedkdnef omrshef tm t`f KWFs.

Gmuitrywdbf hib Nhia mo Hcfrdgh hesm bdb imt sfeo-rfpmrt tm t`f KWFs cmrtkhkf emhismrdkdihtfb t`rmuk` GCB hib Nhia mo Hcfrdgh—s rfthde efibdik g`hiife t`ht wfrf ditfriheeydbfitdodfb hs bfofgtdvf hib/mr mt`frwdsf difedkdnef omr shef tm t`f KWFs.

>0



GMVIR^T[DBF HIB NHIA MO HCF^DGH ‗ ―\DKKTNHGA EMHIW–

Ormc ht efhst ><<? t`rmuk` ><87, Gmuitrywdbf Odihigdhe Gmrpmrhtdmi, Gmuitrywdbf@mcf Emhis, Dig., Gmuitrywdbf Nhia, OWN, Odrst Orhiaedi Odihigdhe Gmrp., hib Nhia moHcfrdgh, I.H. (gmeefgtdvfey, ―Nhia mo Hcfrdgh–) mrdkdihtfb rfsdbfitdhe cmrtkhkf emhis hib smebgfrthdi mo t`fc tm Ohiidf Chf hib Orfbbdf Chg. Hcmik t`f emhis t`ht wfrf mrdkdihtfb wfrf―\dkkynhga Emhis,–d.f., cuetdpef rfsdbfitdhe cmrtkhkf emhis chbf tm t`f shcf nmrrmwfr ht t`fshcf tdcf mi t`f shcf prmpfrty hib w`dg` hrf sunjfgt tm t`f shcf mr sdcdehr rfprfsfithtdmis hibwhrrhitdfs. Kdvfi t`f ihturf mo t`f rfprfsfithtdmis hib whrrhitdfs chbf wdt̀ rfspfgt tm fhg`emhi, do mif mo t`f twm \dkkynhga Emhis ds omuib tm nf bfofgtdvf mr mt`frwdsf sunjfgt tmrfpurg`hsf, t`f mt`fr orfqufitey wdee nf hs wfee.

Nhia mo Hcfrdgh smeb odrst edfi emhis ormc pdkkynhga trhishgtdmis tm Ohiidf Chf hibOrfbbdf Chg hib smeb sug` odrst hib sfgmib edfi emhis tm ̂ CNW trusts. Di sfeedik rfsdbfitdhecmrtkhkf emhis tm t`f KWFs, rfprfsfithtdmis hib whrrhitdfs wfrf chbf tm t`f KWFs t`ht t`femhis gmcpedfb di hee rfspfgts wdt` t`f sthibhrbs mutedifb di t`f KWF sfeedik kudbfs hib shefsgmitrhgts, w`dg` sft omrt` uibfrwrdtdik, bmgucfithtdmi, quhedty gmitrme, hib sfeo-rfpmrtdikrfqudrfcfits. Wpfgdodgheey, emhis smeb tm Ohiidf Chf hrf smeb wdt` t`f rfprfsfithtdmis hibwhrrhitdfs gmithdifb di dts Wdikef Ohcdey Wfeedik Kudbf (t`f ―Ohiidf Kudbf–) hib t`f hppedghnef

purg`hsf gmitrhgts, digeubdik di t`f ghsf mo Gmuitrywdbf t`f Wtrhtfkdg Heedhigf Hkrffcfitsfitfrfb ditm nftwffi Ohiidf Chf hib Gmuitrywdbf. Emhis smeb tm Orfbbdf Chg hrf smeb wdt` t`frfprfsfithtdmis hib whrrhitdfs gmithdifb di dts Wdikef-Ohcdey Wfeefr/Wfrvdgfr Kudbf (t`f ―OrfbbdfKudbf–) hib purg`hsf gmitrhgts.

Nhia mo Hcfrdgh chbf rfprfsfithtdmis hib whrrhitdfs tm Ohiidf Chf gmigfridik fhg`rfsdbfitdhe cmrtkhkf emhi t`ht t`fy mrdkdihtfb hib smeb tm Ohiidf Chf, digeubdik nut imt edcdtfbtm, t`f omeemwdik:

h. R`f cmrtkhkf gmiomrcfb tm hee t`f hppedghnef rfqudrfcfits di t`f Ohiidf Kudbf hibt`f purg`hsf gmitrhgts1

n. R`f cmrtkhkf whs hi ―hggfpthnef divfstcfit–1

g. Hee rfqudrfb emhi bhth whs truf, gmrrfgt, hib gmcpeftf1

b. Hutmchtfb uibfrwrdtdik gmibdtdmis wfrf cft omr emhis prmgfssfb t`rmuk` hihutmchtfb uibfrwrdtdik systfc1 hib

f. Im orhub mr chtfrdhe cdsrfprfsfithtdmi whs gmccdttfb ny hiy phrty, digeubdik t`f

nmrrmwfr.Nhia mo Hcfrdgh edafwdsf chbf rfprfsfithtdmis hib whrrhitdfs tm Orfbbdf Chg

gmigfridik fhg` rfsdbfitdhe cmrtkhkf emhi smeb tm Orfbbdf Chg, digeubdik nut imt edcdtfb tm, t`fomeemwdik:

h. R`f tfrcs, gmibdtdmis, hib rfqudrfcfits sthtfb di t`f Orfbbdf Kudbf hib purg`hsfgmitrhgts wfrf oueey shtdsodfb1

>4



n. Hee whrrhitdfs hib rfprfsfithtdmis mo t`f sfeefr wfrf truf hib gmrrfgt1

g. R`f emhi whs ―divfstcfit quhedty1– hib

b. Nhia mo Hcfrdgh `hb imt cdssthtfb mr mcdttfb hiy chtfrdhe ohgt hnmut t`fcmrtkhkf.

Nhia mo Hcfrdgh whs hesm kfifrheey rfqudrfb tm sfeo-rfpmrt tm Ohiidf Chf hib OrfbbdfChg hiy emhis dt dbfitdodfb hs bfofgtdvf hib/mr mt`frwdsf difedkdnef omr shef tm t`f KWFs. [`fi

purg`hsdik mr prmvdbdik rfdcnursfcfit omr h sfgmib edfi cmrtkhkf t`ht vdmehtfb dtsrfprfsfithtdmis hib whrrhitdfs, Nhia mo Hcfrdgh bdb imt rfkuehrey rfvdfw t`f gmrrfspmibdik odrstedfi cmrtkhkf emhi t`ht `hb nffi smeb tm Ohiidf Chf hib Orfbbdf Chg tm bftfrcdif w`ft`fr dtwhs rfqudrfb tm sfeo-rfpmrt t`ht emhi, hib typdgheey bdb imt sfeo-rfpmrt t`f rfehtfb odrst edficmrtkhkf emhi.

statement of facts re: bank of america to pay $16.65 billion in historic justice department...

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