Case 0:16-cr-60294-JIC Document 2 Entered on FLSD Docket 10/24/2016 Page 1 of 59 UNITED STATES DISTRICT COURT FO R TH E SO UT H ERN D ISTR ICT O F FL O R ID A cwssxo. lb-booqq-y a sz UNITED STATES O F AM ERICA FILED BY D.C. 22T 2112216 EM BR A ER S.A ., D efendant. STEVENK. CLEM u1 s.IAR I MOR so Dl sT c' rE . oiztk.crLkui . D EFER R ED PRO SEC U TIO N AG REEM ENT DefendantEmbraerS.A.(theitcompany''),pursuantto authoritygrantedbythe Company'sBoard ofDiredors,and the United StatesDepartmentofJustice, Crim inalD ivision, FraudSection(theitsection'),enterintothisdeferredprosecutionagreement(theStAgreemenf'). C rim inallnform ation and A cceptance ofResponsibilitv The Com pany acknowledgesand agreesthatthe Section willfiletheattached tw o-eounterim inalInform ation in the U nited States Distrid Courtforthe Southem D istrictof FloridachargingtheCompanywith(i)onecountofconspiracytocommitoffensesagainstthe United Statesin violation ofTitle l8,United StatesCode,Section 371,thatis,to violatetheantibribery and books and records provisionsofthe Foreign CorruptPracticesA ctof 1977 (çiFCPA''),asamended,Title 15,United StatesCode,Sections78dd-1,78m(b)(2)(A),78m(b)(5), and78ff(a);and (ii)onecountofviolatingtheinternalcontrolsprovisionsoftheFCPA,Title 15, UnitedStatesCode,Sections78m(b)(2)(B),78m(b)(5),and78ff(a).lnso doing,theCompany: (a)ltnowinglywaivesitsrighttoindictmentonthesecharges,aswellasal1rightstoaspeedy Case 0:16-cr-60294-JIC Document 2 Entered on FLSD Docket 10/24/2016 Page 2 of 59 trialpursuantto the Sixth A m endm entto the United StatesConstitution,Title 18,U nited States Code,Section3161,andFederalRuleofCriminalProcedure48(b);and(b)knowinglywaives anyobjectionwithrespecttovenuetoanychargesbytheUnitedStatesarisingoutofthe conductdescribed in theattached StatementofFactsand consentstothefili ng ofthe Inform ation.asprovided underthe term softhisA greement, in the United States DistrictCourt forthe Southern DistrictofFlorida. The Section agreesto deferprosecution ofthe Com pany pursuantto theterm sand conditionsdescribed below . 2. The Company adm its, accepts,and acknow ledgesthatitisresponsible under U nited StatesIaw forthe actsofitsofficerss directors,employees,and agentsas charged in the Inform ation,and assetforth in the attached Statem entofFacts. and thatthe allegations described in the lnformation and the factsdescribed in the attached Statem entofFacts are true and accurate. Should the Section pursuetheprosecution thatisdeferred by thisAgreem ent, the Company stipulatestothe adm issibility oftheattached StatementofFactsin anyproceeding, including any trial,guilty plea,orsentencing proceeding, and willnotcontradictanything in the Statem entofFactsatany such proceeding, Term ofthe Aereem ent This Agreem entiseffective fora period beginning on the date on which the lnformation isfiled andendingthreeyearsfrom thelaterofthedateonwhich theInformation is filedorthedateon which theindependentcompliancemonitor(the'çM onitor'')isretained by the Company,asdescribed in Paragraphs1l-l3 below (the$$Term'') The Com pany agrees, . how ever,that,in the eventthe Section determ ines, in itssole discretion,thatthe Com pany has know ingly violated any provision ofthisA greem ent, an extension orextensionsofthe Term m ay be imposed by the Section,in itssole discretion, forup to a totaladditionaltim e period ofone 2 Case 0:16-cr-60294-JIC Document 2 Entered on FLSD Docket 10/24/2016 Page 3 of 59 year,withoutprejudicetotheSection'srighttoproceedasprovidedinParagraphs16 20 below . - A ny extension ofthe A greem entextendsallterm softhisA greem ent, including the term softhe m onitorship in A ttachm entD , foran equivalentperiod. Conversely,in the eventthe Section finds,in itssole discretion, thatthere existsa change in circum stances sufscientto elim inate the necd forthe m onitorship in Attachm entD , andthattheotherprovisionsofthisAgreementhave been satisfied,the Agreementmay be term inated early. IftheCourtrejectstheAgreement,aIl the provisions ofthe A greem entshallbe deem ed nulland void, and the Term shallbe deem ed to have notbegun. RelevantC onsiderations The Section enters into thisAgreem entbased on the individualfacts and circum stancespresented by thiscase, including: (a) theCompanydidnotvoluntarilydisclosetheFCPA violationstotheSection;the investigation of the m attercom m enced when the Securitiesand Exchange Commission (içSEC'')servedtheCompanywith asubpoena; (b) theCompanyfullycooperatedwiththeSection'sinvestigationandprovidedall non-privileged relevantfactsknown to the Com pany, including inform ation about individualsinvolved in the m isconduct, which assisted in the prosecutionsof individualsby foreign authoritiesforthem isconductdescribed in the attached Statem entofFacts; (c) theCompanyhadan inadequatecomplianceprogram atthe timeofthe criminal conduct; (d) theCompany now hasdesigned and isimplem entinga moreadequatecompliance program and system ofinternalaccounting controls,has com m itted to ensuring 3 Case 0:16-cr-60294-JIC Document 2 Entered on FLSD Docket 10/24/2016 Page 4 of 59 thatthese w illbe im plem ented in a m annerthatsatisfies the elem ent ssetforth in Attachm entC to this Agreement, and hasagreed to engagethe M onitorpursuant to the term s described herein; the Com pany hasengaged in partialrem ediation:ithasdisciplined a num berof Company employeesandexecutivesengaged inthe misconductdescribed in the attached Statem entofFacts, butdidnotdisciplineaseniorexecuti vewhowas(at theveryIeast)awareofbriberydiscussionsinemailsin2004andhadoversight responsibility forthe em ployeesengaged in those discussions; (9 thenatureandseriousnessoftheoffense, including itspervasivenessthroughout each ofthe Com pany'sthree separate salesdivisionsand the involvementofhighIevelexecutives in each setofcrim inalconductrecounted in the attached Statem entofFacts; (g) theCompany hasnopriorcriminalhistory; (h) theCompany hasagreedto continueto cooperatewith the Section assetforth in thisA greem entin any investigation ofthe Com pany and itsofficers, directors, em ployeessagents,businesspartners, and consultantsrelating to violations ofthe FCPA ; (i) theCompanyhasagreedtodisgorgetheprofitsfrom themisconductdescribedin the attached Statem entofFactsto the SEC and to Brazilian authorities; U) accordingly,afterconsidering(a)through(i)above,theCompanywillenterinto the A greem ent,pay a crim inalpenalty of20% below the low end ofUnited States Sentencing G uidelinesrange, and the M onitorw illbe im posed pursuantto the term soutlined herein. Case 0:16-cr-60294-JIC Document 2 Entered on FLSD Docket 10/24/2016 Page 5 of 59 Future Cooperation and D isclosure Requirem ents 5. The Company shallcooperate fully w ith the Section in any and a1lm atters relating to the conductdescribed in thisAgreelnentand the attached StatelnentofF acts,and any individualorentity referred to therein, aswellas otherconductrelated to corruptpaym ents , false books,records,and accounts, orthe failure to implem entadequate internalaccounting controls , subjtcttoapplicablelaw andregulations,untilthelaterofthedateuponwhichallinvestigations and prosecutionsarising outofsuch conductare concluded, orthe end ofthe Term . Atthe requestofthe Section,the Com pany shallalso cooperate fully w ith otherdom estic orforeign law enforcem entand regulatory authoritits and agencies, asw ellastheM ultilateralDevelopm ent Banks(t'MDBs''),inanyinvestigationoftheCompany, itsparentcompany oritsaffiliates, or any ofitspresentorform erofficers, directors,em ployees, agents,and consultants,orany other party,in any and a11m attersrelating to possible corruptpaym ents. The Company agreesthatits cooperation pursuantto thisparagraph shallinclude, butnotbe lim ited to,the following: a. The Com pany shalltruthfully disclose al1factualinform ation not protected by a valid claim ofattorney-clientprivilege orw ork productdoctrine w ith respectto its activities,those ofitsparentcompany and affiliates, and those ofitspresentand form erdirectors, officers,em ployees,agents,and consultants, including any evidence orallegations and internal orexternalinvestigations,aboutwhich the Com pany hasany know ledge oraboutw hich the Section m ay inquire. Thisobligation oftruthfuldisclosure includes, butisnotlim ited to,the obligation ofthe Com pany to provide to the Section, upon request,any docum ent,record or othertangible evidenceaboutwhich the Section m ay inquire ofthe Com pany. b. Upon requestofthe Section, the Company shalldesignateknow ledgeable em ployees,agentsorattorneysto provideto the Section the inform ation and m aterials described 5 Case 0:16-cr-60294-JIC Document 2 Entered on FLSD Docket 10/24/2016 Page 6 of 59 inParagraph5(a)aboveonbehalfoftheCompany.ltisfurtherunderstoodthattheCompany m ustatalltim esprovidecom plete, truthful,and accurate inform ation. The Company shalluse itsbesteffortsto fnake available forinterviewsor testimony,asrequested by the Section, presentorform erofficers,directors, em ployees,agents and consultants ofthe Com pany. Thisobligation includes,butisnotlim ited to, sw orn tcstim ony beforeafederalgrandjuryorinfedtraltrials,aswellasinterviewswithdomesticorforeign1aw enforcem entand regulatory authorities. Cooperation underthisParagraph shallinclude identification ofw itnessesw ho, to the know ledgeofthe Company, m ay have m aterial informationregardingthemattersunderinvestigation. d. W ith respectto any infonuation, testim ony,docum ents,recordsorother tangible evidence provided to the Section pursuantto thisAgreem ent, the Company consentsto anyandalldisclosures,subjecttoapplicablelaw andregulations,toothergovernmental authorities,including United Statesauthoritiesand those ofa foreign governm ent, aswellasthe M DBS,ofsuch m aterialsasthe Section, in its sole discretion,shalldeem appropriate. 6. ln addition to the obligationsin Paragraph 5, during the Term ,should the Com pany learn ofcredible evidence orallegations ofcorruptpaym ents, false books,records,and accounts,orthe failureto implem entadequate internalaccounting controls, the Com pany shall prom ptly reportsuch evidence orallegations to the Section. Pavm entofM onetarv Penaltv The Section and the Com pany agree thatapplication ofthe U nited States SentencingGuidelinesCûUSSG''or'ssentencingGuidelines'')todeterminetheapplicableGne rangeyieldsthe follow ing analysis: 6 Case 0:16-cr-60294-JIC Document 2 Entered on FLSD Docket 10/24/2016 Page 7 of 59 Th: 2015 U SSG are applicable to thism atler. b. OffenseLevel.BaseduponUSSG j2Cll,thetotaloffenselevelis42 calculated as follow s: . , (a)(2) BaseOffenseLevel 12 (b)(1) MultipleBribes +2 (b)(3) HighLevelOfficial (b)(2) Valueofbenefitreceivedmorethan$65,000,000 +24 TO TAL C. 42 Ba ( seFine.BaseduponUSSG j8C2.4(a)(2), thebase fine is$83,816,476 asthe pecuniary gain exceedsthe fine indicated in the O ffense LevelFine Table,nam ely $72,500,000) d. Culpability Score. Based upon USSG j8C2. 5,theculpabilityscoreis8, calculated asfollows: (a) BaseCulpability Score 5 (b)(3) theorganizationhad5,000ormoreemploytesand an individualwithin high-levelpersonnelofthe organization participated in,condoned, or w as w illfully ignorantofthc offense (g)(1) Theorganization fullycooperatedinthe investigation,and clearly dem onstrated recognition and affirm ative acceptance ofresponsibility forits crim inalconduct -l TO TA L 8 Calculation ofFine Ranze: Base Fine $83,816,476 M ultipliers 1.60(min)/3.20(max) Fine Range $134,106,363/$268,212,723 Case 0:16-cr-60294-JIC Document 2 Entered on FLSD Docket 10/24/2016 Page 8 of 59 The Company agreesto payam onetary penalty in theamountof$107,285,090 tothe United StatesTreasury no laterthan tsve business daysaftertht Gling ofthe lnform ation. The Company and the Section agree thatthispenalty isappropriate given the facts and circum stancesofthis case,assetforthabove.The$107,285,090penalty isfinaland shallnotberefunded. Furtherm ore,nothing in thisA greem entshallbe deem ed an agreem entby the Section that $107,285,090 isthemaximum penalty thatmay be imposed in any futureprosecution, and the Section isnotprecluded from arguing in any future prosecution thatthe Courtshould im pose a higherfine,although tht Section agrtesthatunderthose circum stances, itw illrecom m end to the Courtthatany amountpaidunderthisAgreementshould beoffsetagainstany finethe Court imposesaspartofafuturejudgment.TheCompanyacknowledgesthatnotaxdeductionmaybe soughtinconnection withthepaymentofany partofthis$107,285,090 penalty.TheCompany shallnotseek oracceptdirectly orindirectly reim bursem entorindemnification from any source w ith regard to tht penalty ordisgorgem entam ountsthatthe Com pany pays pursuantto this A greem entorany otheragreemententered into w ith an enforcem entauthority orregulator concerning the facts setforth in the attached Statem entofFacts. ConditionalR elease from Liabilitv 8. SubjecttoParagraph 1* 20,theSectionagrees,exceptasprovidedinthis Agreem ent,thatitw illnotbring any crim inalorcivilcase againstthe Com pany relating to any ofthe conductdescribed in the attached Statem entofFactsorthe crim inallnform ation filed pursuantto thisAgreem entorforthe conductthatthe Com pany disclosed to the Section priorto the signing ofthisA greem ent. The Section,however,may use any inform ation related to the conductdescribed inthe attached StatementofFactsagainstthe Company: (a)inaprosecution forperjuryorobstructionofjustice;(b)inaprosecutionformakingafalsestatement;(c)ina 8 Case 0:16-cr-60294-JIC Document 2 Entered on FLSD Docket 10/24/2016 Page 9 of 59 prosecution orotherproceeding relatingtoany crimeofviolence;or(d)in aprosecution orother proceeding relating to a violation ofany provision ofTitle 26 ofthe U nited StatesCode. a. ThisAgreem entdoes notprovideany protection againstprosecution for any future conductby the Company. ln addition,thisAgreem entdoesnotprovide any protection against prosecution ofany individuals,regardlessoftheiraffiliation w ith the Com pany. Corporate Com plianceProzram 9. The Com pany representsthatithasim plem ented and willcontinue to implem ent a com pliance and ethicsprogram throughoutitsoperations,including those ofits affiliates, agents,andjointventures,andthoseofitscontractorsandsubcontractorswhoseresponsibilities include interacting w ith foreign officialsorotheractivities carrying a high risk ofcorruption, designed to preventand detectviolationsofthe FCPA and otherapplicable anti-corruption laws. 10. ln orderto addressany deficienciesin its internalaccounting controls,policies, and procedures,the Com pany representsthatithasundertaken,and w illcontinue to undertake in the future,in a m annerconsistentw ith aIlofits obligationsunderthis Agreem ent,a review ofits existing internalaccounting controls,policies,and proceduresregarding com pliance w ith the FCPA and otherapplicable anti-corruption law s. W here necessary and appropriate,the Com pany agreesto adopta new complianceprogram ,orto m odify itsexisting one,including internalcontrols,compliancepolicies,andproceduresin orderto ensurethatitmaintains:(a)an effective system ofinternalaccounting controls designed to ensure the m aking and keeping of fairand accuratebooks,records,and accounts;and (b)arigorousanti-corruption compliance program thatincorporatesrelevantinternalaccounting controls,asw ellaspoliciesand proceduresdesigned to effectively detectand deterviolationsofthe FCPA and otherapplicable 9 Case 0:16-cr-60294-JIC Document 2 Entered on FLSD Docket 10/24/2016 Page 10 of 59 anti-corruption law s. The compliance program ,including the internalaccounting controls system w illinclude,butnotbe lim ited to,the m inim um elem ents setforth in Attachm entC. IndependentCom pliance M onitor 11. Prom ptly afterthe Section'sselection pursuantto Paragraph 12 below ,the Com pany agreesto retain a M onitorforthe term specified in Paragraph 13. The M onitor's dutiesand authority,and the obligationsofthe Com pany w ith respectto theM onitorand the Section,are setforth in Attachm entD,which is incorporated by reference into thisA greem ent. U pon the execution ofthisA greement,and afterconsultation w ith the Section,theCom pany w ill propose to the Section apoolofthree qualified candidatesto serve as the M onitor. lfthe Section determ ines,in its sole discretion,thatany ofthe candidatesare not,in fact,qualitsed to serveas the M onitor,orifthe Section,in itssole discretion,isnotsatisied w ith the candidatesproposed, the Section reservesthe rightto seek additionalnom inationsfrom the Com pany. The partiesw illendeavorto com pletethe monitorselection processw ithin sixty days ofthe execution ofthisA greem ent. The M onitorcandidatesortheirteam m em bers shallhave,ata m inim um ,the follow ing qualifications: dem onstrated expertise w ith respectto the FCPA and otherapplicable anti-conuption law s,including experience counseling on FCPA issues; experience designing and/orreview ing corporate com pliance policies, proceduresand internalcontrols,including FCPA and anti-corruption policies,proceduresand internalcontrols; the ability to accessand deploy resourcesasnecessary to discharge the M onitor'sdutiesasdescribed in the A greem ent;and 10 Case 0:16-cr-60294-JIC Document 2 Entered on FLSD Docket 10/24/2016 Page 11 of 59 d. suftscientindependence from the Com pany to ensure effective and im partialperform ance ofthe M onitor'sdutiesas described in the A greem ent. l2. The Section retainsthe right,in itssolediscretion,to choose the M onitorfrom am ong the candidatesproposed by the Com pany,though the Com pany m ay expressits preferencets)amongthecandidates.lntheeventtheSectionrejectsallproposedMonitors,the Com pany shallpropose an additionalthree candidatesw ithin twenty businessdaysafter receivingnoticeoftherejection.ThisprocessshallcontinueuntilaM onitoracceptabletoboth parties ischosen. The Section and the Com pany w illusetheirbesteffortsto com pletethe selection processw ithin sixty calendardaysofthe execution ofthisA greem ent. Ifthe M onitor resignsorisothenvise unable to fulfllhis orherobligationsas setoutherein and in A ttachm ent D,theCompanyshallwithinforty-five(45)businessdaysrecommendapoolofthreequalified M onitorcandidates from which the Section w illchoose a replacem ent. The M onitor'sterm shallbe three years from the date on which the M onitoris retainedbytheCompany,subjecttoextensionorearlyterminationasdescribedinParagraph3. The M onitor'spowers,duties,and responsibilities,aswellasadditicmalcircum stances thatm ay supportan extension ofthe M onitor'sterm ,are setforth in Attachm entD .The Com pany agrees thatitw illnotem ploy orbe affiliated w ith the M onitororthe M onitor's firm foraperiod ofnot Iess than two yearsfrom the date on which the M onitor'sterm expires. N orw illthe Com pany discussw ith the M onitororthe M onitor'sfirm the possibility offurtherem ploym entor affiliation during the M onitor'sterm . Case 0:16-cr-60294-JIC Document 2 Entered on FLSD Docket 10/24/2016 Page 12 of 59 Deferred Prosecution ln consideration ofthe undertakingsagreed to by the Com pany herein,the Section agreesthatany prosecution ofthe Com pany forthe conductsetforth in the attached Statem entofFacts be and hereby isdeferred forthe Term . The Section furtheragreesthatifthe Com pany fully compliesw ith allofits obligationsunderthisA greem ent,the Section willnotcontinue the crim inalprosecution against the Com pany described in Paragraph land,atthe conclusion ofthe Term ,thisAgreem entshall expire. W ithin six m onthsofthe Agreem ent'sexpiration,the Section shallseek dism issalwith prejudiceofthecriminallnformationfiledagainsttheCompanydescribedinParagraph 1,and agreesnotto file chargesin the future againstthe Com pany based on the conductdescribed in thisAgreem entand the attached Statem entofFacts. Breach ofthe Aereem ent 16. lf,duringtheTerm,theCompany (a)commitsany felonyunderU.S.federallaw; (b)providesin connection withthisAgreementdeliberately false,incomplete,ormisleading inform ation,including in connection w ith itsdisclosure ofinform ation aboutindividual culpability;(c)failsto cooperate assetforth in Paragraphs5 and6 ofthisAgreement;(d)failsto im plem enta com pliance program assetforth in Paragraphs9 and l0 ofthisA greementand AttachmentC;(e)commitsanyactsthat,hadtheyoccurredwithinthejurisdictionalreachofthe FCPA,wouldbeaviolationoftheFCPA;or(9 otherwisefailsspecificallytoperform orto fulfillcom pletely each ofthe Com pany'sobligations underthe Agreem ent,regardlessofw hether the Section becom esaw are ofsuch abreach afterthe Term iscomplete,the Company shall thereafterbesubjecttoprosecutionforanyfederalcriminalviolationofwhichtheSectionhas knowledge,including,butnotlim ited to,the charges in the lnform ation described in Paragraph 12 Case 0:16-cr-60294-JIC Document 2 Entered on FLSD Docket 10/24/2016 Page 13 of 59 l,which m ay be pursued by the Section in the U .S.DistrictCourtforthe Southern Districtof Florida orany otherappropriate venue. Detenuination ofw hetherthe Com pany hasbreached the A greem entand w hetherto pursue prosecution ofthe Com pany shallbe in the Section'ssole discretion. Any such prosecution m ay beprem ised on inform ation provided by the Com pany or itspersonnel. A ny such prosecution relating to the conductdescribed in the attached Statem ent ofFactsorrelating to conductknow n to the Section priorto the date on which thisAgreem ent w assigned thatisnottim e-barred by the applicable statute oflim itations on the date ofthe signing ofthisA greem entm ay be com m enced againstthe Com pany,notw ithstanding the expiration ofthe statute oflim itations,between the signing ofthisA greem entand the expiration ofthe Term plusone year. Thus,by signing thisA greem ent,the Com pany agreesthatthe statute oflim itationsw ith respectto any such prosecution thatis nottim e-barred on the date ofthe signing ofthisA greem entshallbe tolled forthe Term plus one year. ln addition,the Company agreesthatthe statute oflim itations asto any violation offederallaw related to corrupt paym ents,false books,records,and accounts,orthe failureto implem entadequate internal accounting controls,including violation ofthe anti-bribery orinternalcontrolsprovisionsofthe FCPA orviolation ofthe TravelAct,Title l8,U nited StatesCode,Section 1952,thatoccurs during the Term w illbe tolled from the date upon which the violation occurs untilthe earlierof the date upon which the Section ism ade aw are ofthe violation orthe duration ofthe Term plus five years,and thatthisperiod shallbe excluded from any calculation oftim e forpurposesofthe application ofthe statute oflim itations, 17. ln the eventthe Section determ inesthatthe Com pany has breached this A greem ent,the Section agreesto provide the Com pany w ith w ritten notice priorto instituting any prosecution resulting from such breach. W ithin thirty daysofreceiptofsuch notice,the 13 Case 0:16-cr-60294-JIC Document 2 Entered on FLSD Docket 10/24/2016 Page 14 of 59 Com pany shallhave the opportunity to respond to the Section in writing to explain the nature and circum stances ofthe breach,asw ellasthe actionstheCom pany hastaken to addressand rem ediatethe situation,w hich the Section shallconsiderin determ ining w hetherto pursue prosecution ofthe Com pany. ln the eventthatthe Section determ inesthatthe Com pany has breached this Agreement: (a)allstatementsmadeby oron behalfofthe Company to the Section ortothe Court,including the attached Statem entofFacts,and any testim ony given by the Com pany beforeagrandjury,acourt,oranytribunal,oratanylegislativehearings,whetherprioror subsequentto thisA greem ent,and any leadsderived from such statementsortestim ony,shallbe adm issible in evidence in any and a11crim inalproceedings broughtby the Section againstthe Company;and(b)theCompanyshallnotassertanyclaim undertheUnitedStatesConstitution, Rule11(9 oftheFederalRulesofCriminalProcedure,Rule410oftheFederalRulesof Evidence,orany otherfederalrulethatany such statem entsortestim ony m ade by oron behalfof the Com pany priororsubsequentto thisAgreem ent,orany leadsderived therefrom ,should be suppressed orare otherwise inadm issible.The decision whetherconductorstatem entsofany currentdirector,officerorem ployee,orany person acting on behalfof,oratthe direction of,the Com pany,w illbe im puted to the Com pany forthe purpose ofdetennining whetherthe Com pany hasviolated any provision ofthisA greem entshallbe in the solediscretion ofthe Section. 19. The Com pany acknow ledgesthatthe Section hasm ade no representations, assurances,orprom isesconcerning whatsentence m ay be imposed by the Courtifthe Com pany breachesthisAgreementandthismatterproceedstojudgment.TheCompanyfurther acknow ledges thatany such sentence issolely within the discretion ofthe Courtand thatnothing in thisAgreem entbindsorrestrictsthe Courtin the exercise ofsuch discretion. l4 Case 0:16-cr-60294-JIC Document 2 Entered on FLSD Docket 10/24/2016 Page 15 of 59 20. Thirty daysafterthe expiration ofthe period ofdeferred prosecution specified in thisAgreem ent,the Company,by the ChiefExecutive Officerofthe Com pany and the Chief FinancialOfficerofthe Company,w illcertify to the Section thatthe Com pany hasm etits disclosure obligations pursuantto Paragraph 6 ofthisA greem ent. Each certification willbe deem ed a m aterialstatem entand representation by the Com pany to the executive branch ofthe UnitedStatesforpurposesofl8U.S.C.j 1001,anditwillbedeemedtohavebeenmadeinthe judicialdistrictinwhichthisAgreementisfiled. Sale.M ereer.or O ther Chanee in Corporate Form ofCom panv Exceptasm ay otherwise be agreed by the parties in connection with aparticular transaction,the Com pany agreesthatin the eventthat during the Tenm,itundertakesany change in com orate form ,including ifitsells,merges,ortransfersbusinessoperationsthatare m aterial to the Com pany's consolidated operations,orto the operations ofany subsidiariesoraffiliates involved in the conductdescribed in the attached Statem entofFacts,asthey existas ofthe date ofthis Agreem ent,whethersuch sale isstructured asa sale,assetsale,m erger,transfer,orother change in corporate form ,itshallinclude in any contractforsale,m erger,transfer,orother change in corporate form a provision binding the purchaser,orany successorin interestthereto, to the obligationsdescribed in thisAgreem ent. The Com pany shallobtain approvalfrom the Section atleastthirty dayspriorto undertaking any such sale,m erger,transfer,orotherchange in corporate form ,including dissolution,in orderto givethe Section an opportunity to determ ine ifsuch change in corporate form w ould im pactthe term sorobligationsofthe Agreem ent. Public Statem entsbv Com panv 22. The Com pany expressly agreesthatitshallnot,through presentorfuture attorneys,officers,directors,em ployees,agentsorany otherperson authorized to speak forthe l5 Case 0:16-cr-60294-JIC Document 2 Entered on FLSD Docket 10/24/2016 Page 16 of 59 Com pany m ake any public statem ent,in litigation orotherwise,contradicting the acceptance of responsibility by the Company setforth in Paragraph 2 above orthe factsdescribed in the attachedStatementofFacts.Anysuchcontradictorystatementshall,subjecttocurerightsofthe Com pany described below ,constitutea breach ofthisA greem ent,and the Com pany thereafter shallbesubjecttoprosecutionassttforthinParagraphs16-19ofthisAgreemtnt.Thedecision whetherany public statem entby any such person contradicting a factcontained in the Statem ent ofFactsw illbe im puted to the Com pany forthe purpose ofdetennining w hetherithas breached thisAgreem entshallbe atthe sole discretion ofthe Section. lfthe Section determ inesthata public statem entby any such person contradictsin w holeor in parta statem entcontained in the attachtd Statem entofFacts,tht Stction shallso notify the Com pany,and tht Com pany m ay avoidabreachofthisAgreementbypubliclyrepudiatingsuchstatementts)withintsvebusiness daysafternotification. The Com pany shallbe perm itted to raise defensesand to assert affirm ative claim s in otherproceedings relating to the m atterssetforth in the attached Statem ent ofFactsprovided thatsuch defensesand claim sdo notcontradict,in whole orin part,a statem entcontained in the attached Statem entofFacts. ThisParagraph doesnotapply to any statem entm ade by any presentorform erofficer,director,em ployee,oragentofthe Com pany in the course ofany crim inal,rtgulatory,orcivilcase initiated againstsuch individual,unless such individualisspeaking on behalfofthe Com pany. The Com pany agreesthatifitorany ofitsdirectorindirectsubsidiaries or affiliates issues apressrelease orholdsany pressconference in connection w ith thisA greem ent, theCompany shallfirstconsultwith theSectionto determine(a)whetherthetextoftherelease orproposed statem entsatthe pressconference are true and accurate w ith respectto m atters Case 0:16-cr-60294-JIC Document 2 Entered on FLSD Docket 10/24/2016 Page 17 of 59 betweentheSectionandtheCompany;and(b)whethertheSectionhasanyobjectiontothe release. The Section agrees,ifrequested to do so,to bring to the attention oflaw enforcem entand regulatory authoritiesthe factsand circum stancesrelating to the nature ofthe conductunderlying thisAgreem ent,including the nature and quality ofthe Company's cooperation and rem ediation. By agreeing to provide thisinform ation to such authorities,the Section isnotagreeing to advocate on behalfofthe Com pany,butrather is agreeing to provide factsto be evaluated independently by such authorities. Lim itationson Bindine EffectofA zreem ent This Agreem entis binding on the Com pany and the Section butspeciflcally does notbind any othercom ponentofthe Departm entofJustice,otherfederalagencies,orany state, local,orforeign law enforcem entorregulatory agencies,orany otherauthorities,although the Section willbring the cooperation ofthe Com pany and itscom pliance w ith itsotherobligations underthisA greementto the attention ofsuch agenciesand authorities ifrequested to do so by the Com pany. N otice 26. Any notice to the Section underthisA greem entshallbe given by personal delivery,overnightdelivery by a recognized delivery service,orregistered orcertified m ail, addressed to FCPA Chief,Fraud Section,Crim inalDivision,U .S.D epartm entofJustice,1400 N ew York Avenue,W ashington,D .C.20005. A ny notice to the Company underthisA greem ent shallbe given by personaldelivery,overnightdelivery by a recognized delivery service,or registered orcertified m ail,addressed to John P.Rowley 111,815 ConnecticutA ve.N .W ., Case 0:16-cr-60294-JIC Document 2 Entered on FLSD Docket 10/24/2016 Page 18 of 59 W ashington,D .C.20006. Notice shallbe effective upon actualreceiptby the Section orthe Com pany. Com plete A ereem ent 27. ThisA greem ent,including its attachm ents,sets forth allthe term s ofthe agreem entbetw een the Company and the Section. No am endm ents,m odifications oradditions to thisA v eementshallbe valid unless they are in w riting and signed by the Section,the attorneysforthe Com pany and a duly authorized representative ofthe Com pany. A G REED : FOR EM BM ER S.A.: oate: to/5/v-oté By: /v t- oate:ko 1n /.,0/: By: - Paulo Cesarde Souza e Silva,CEO Em braerS.A . / .. Fabiana Leschzlner,G eneralCounsel E Ilate:no/qlzo/c By: Date:t 'c/blkolt- By: rS. ff , fe/. o6v = - Jo n P.Row ley III J n E.M eyer Richard N .Dean Baker& M clkenzie LLP EstherM .Flesch Erica Sarubbi Trench Rossie W atanabe FOR TH E DEPARTM ENT OF JUSTICE: Date:fo/zltto 1 ?x A ndrew W eissm ann Chief,Fraud Section Crim inalD ivision United States Departm entofJustiee BY : Ja Linder,S iorTrialAttorney Joh -A lex Rom ano,TrialA ttorney 18 Case 0:16-cr-60294-JIC Document 2 Entered on FLSD Docket 10/24/2016 Page 19 of 59 COM PANY OFFICER'S CERTIFICATE Ihave read this A greem entand carefully reviewed every partofitwith outside counsel forEm braerS.A.(thed 4company'').lunderstandthetermsofthisAgreementandvoluntarily agree,on behalfofthe Com pany, to each ofitsterm s. Before signing this A greem ent I , consulted outside counselforthe Com pany. Counselfully advised m e ofthe rights ofthe Com pany,ofpossible defenses, ofthe Sentencing G uidelines'provisions , and ofthe consequencesofentering into thisA greem ent. lhave carefully reviewed the term s ofthisA greem entw ith the Board ofDirectors ofthe Company. Ihave advised and caused outside counselforthe Com pany to advise th e Board of Directors fully ofthe rightsofthe Company, ofpossible defenses,ofthe Sentencing Guidelines' provisions,and ofthe consequences ofentering into theA greem ent. No prom ises orinducem ents have been m ade otherthan those contained in this A greem ent. Furtherm ore,no one has threatened orforced m e, orto m y know ledge any person authorizing thisAgreem enton behalfofthe Com pany, in any w ay to enterinto this Agreem ent. lam also satisfied w ith outside counsel'srepresentation in this m atter. Icertify thatlam the ChiefExecutive O fficerforthe Com pany and that1havebeen duly authorized by the Com pany to execute this Agreem enton behalfofthe Com pany. Ilate: o cx 3 t'zxït EM BRA ER S.A . By: r'Qfz...x $- h 1c . Paulo Cesarde Souza e Silva ChiefExecutive O fficer Case 0:16-cr-60294-JIC Document 2 Entered on FLSD Docket 10/24/2016 Page 20 of 59 COM PANY OFFICER'S CERTIFICATE Ihave read this Agreem entand carefully review ed every partofitw ith outside counsel forEmbraerS.A.(thetdcompany'').1understandthetermsofthisAgreementandvoluntarily agree,on behalfofthe Com pany, to each ofits term s. Before signing this A greem ent , I consulted outside counselforthe Company. Counselfully advised me ofthe rights ofthe Com pany,ofpossible defenses, ofthe Sentencing Guidelines'provisions and ofthe , consequences ofentering into thisA greem ent. lhave carefully reviewed the terms ofthisAgreem entw ith the Board ofD irectorsofthe Com pany. Ihave advised and caused outside counselforthe Company to advise the Board of Directorsfully ofthe rights ofthe Com pany, ofpossible defenses,ofthe Sentencing G uidelines' provisions,and ofthe consequences ofentering into the A greem ent. No prom ises orinducem ents have been m ade otherthan those contained in this A greem ent. Furtherm ore,no one hasthreatened orforced m e, orto m y knowledge any person authorizing this Agreem enton behalfofthe Com pany, in any w ay to enterinto thisA greem ent. lam also satisfied w ith outside counsel'srepresentation in this m atter. Icertify that1am the G eneralCounselforthe Com pany and that1have been duly authorized by the Com pany to execute thisA greem enton behalfofthe Com pany. oate: do 1s /l(; EM B M ER S.A . By: f/n h Fabiana Leschzine G eneralCounsel Case 0:16-cr-60294-JIC Document 2 Entered on FLSD Docket 10/24/2016 Page 21 of 59 CERTIFICATE OF COUNSEL 1am counselforEm braerS.A.(the(t company'')inthemattercoveredbythis Agreem ent. ln connection w ith such representation, Ihave exam ined relevantCom pany docum ents and have discussed the term softhis A greem entwith the Co m pany Board of Directors. Based on ourreview ofthe foregoing m aterials and discussions Iam ofthe opinion , thatthe representative ofthe Com pany has been duly authorized to enterinto thisA greem enton behalfofthe Com pany and thatthisA greem enthas been duly and validly authorized,executed, and delivered on behalfofthe Company and is avalid and binding obligation ofthe Com p any. Further,lhave carefully reviewed the term softhisA greem entw ith the Board ofD irectors and both theChiefExecutiveOfficerand GeneralCounseloftheCompany. 1have fully advised them oftherightsofthe Company, ofpossible defenses,ofthe Sentencing Guidelines' provisionsand ofthe consequencesofentering into this Agreement. To m y know ledge,the decision ofthe Com pany to enterinto thisA greem ent, based on the authorization ofthe Board of Directors,is an inform ed and voluntary one. w ' Date:/p/$ 9m/6 sy: #*x , :,/. êH ' -' ---- John P.Rowley III ak r& M cKenzie LLP ounselforEmbraerS.A . A-0 Case 0:16-cr-60294-JIC Document 2 Entered on FLSD Docket 10/24/2016 Page 22 of 59 A TTA CH M ENT A STATEM ENT OF FACTS The follow ing Statem entofFactsis incorporated by reference aspartofthe D eferred ProsecutionAgreement(thedsAgrtemtnf')bttwcentheUnitedStatesDepartmentofJustice, CriminalDivision,FraudSection (the'dsection'')andEmbraerSA.(CEEMBRAER''). . EM BRA ER hereby agreesand stipulatesthatthe follow ing inform ation istrue and accurate. EM BRAER adm its,accepts, and acknow ledgesthatitisresponsible forthe acts ofitsofficers , directors.em ployees,and agents. Should the Section pursue the prosecution thatisdeferred by thisA greem ent,EM BRAER agreesthatitw illneithercontestthe adm issibility of nor , contradict,thisStatem entofFacts in any such proceeding. The follow ing factstook place during the relevanttime fram e and establish beyond a reasonable doubtthe charges setforth in the crim inallnform ation attached to thisA greem ent: RelevantEntitiesand lndividuals EM BRAER w as an aircraftm anufacturing company incorporated and headquarttred in Brazil. EM BRAER m anufactured com m ercial, executive,and defense aircraft and sold them to govem mentaland privatecustomersthroughouttheworld. EM BRAER m aintained itsN orth Am erican regionaloffice in FortLauderdale, Florida. Sharesof EMBRAER'SstocktradedontheNew YorkStockExchange(i4NYSE'')asAmericandepositary receipts($(ADRs''),and EM BRAER wasrequired to fileperiodicreportswiththeSecuritiesand ExchangeCommission(iiSEC''junderSection 15(d)oftheSecuritiesExchangeAct,15U.S.C.j 78o(d). Accordingly,EM BRAER wasan issuerwithin themeaning ofthe Foreign Corrupt PracticesAct(i$FCPA''),Title l5,United StatesCode,Sections78dd-1and 78m . Case 0:16-cr-60294-JIC Document 2 Entered on FLSD Docket 10/24/2016 Page 23 of 59 EmbraerRepresentationsLLC (çfEmbraerRL'')wasasubsidiary wholly owned by EM BRAER,and incorporated in Delaw are. Em braerRL's financialstatem entsw ere consolidated into EM BRA ER'S Gnancialstatem ents. Em braerRL held and m aintained a bank accountin N ew Y ork from w hich EM BRA ER m ade im properpaym ents during the relevant tim e. iûEm braerExecutive A ,''an individualwhose identity isknown to the United Statesand EM BRAEK wasan executivein EM BRAER'SDefenseand GovernmentM arkets D ivision, ddEm braerExecutive B,''an individualw hose identity is know n to the United States and EM BRAER, was an executive in EM BRA ER'S Executive JetsD ivision. 5. ikEmbraerExecutive C ,''an individualw hose identity is know n to the United Statesand EM BRA ER , w asan executive in EM BRAER'SComm ercialJets Division. 6. (tEm braerExecutive D ,''an individualwhose identity isknown to the United Statesand EM BRAER,wasan executive in EM BRAER 'SCom m ercialJetsD ivision. KsDom inican Official,''an individualwhose identity isknow n to the U nited States and EM BRAER,was an officialin ahigh-leveldecision-m aking position in the governm entof the Dom inican Republic. Dom inican Officialhad influence overdecisionsm ade by the Fuerza AéreadeReptiblicaDominicana(ddFAD''),which wastheDom inicanRepublic'sAirForceand which w as a dddepartm ent''and iiagency''ofa foreign governm ent, asthose term s are defined in the FCPA,Title 15,U nited StatesCode, Section 78dd-1(9(1).Beginningatleastby M ay 2007, EM BRA ER rtferred to Dom inican Offk ialasthe itG eneralM anager''orûûM anaging Directorof theProject.'' DominicanOfficialwasakçforeignofficial''asthatttrm isusedintheFCPA, Title 15,UnitedStatesCode,Section78dd-1(9(1)(sûforeignofficial''). A -2 Case 0:16-cr-60294-JIC Document 2 Entered on FLSD Docket 10/24/2016 Page 24 of 59 8. issaudiArabia Official,''an individualw hose identity isknown to the United Statesand EM BRAER,w asan officialin a high-leveldecision-m aking position in a state-owned and controlled com pany in SaudiArabia thatperform ed a governm entfunction. SaudiArabia Officialhad intluenceoverdecisionsmadeby the instrumentality (ddsaudiArabia Instrumentality''),which wasan ttinstrumentality''ofaforeign government,asthattenm is definedintheFCPA,Title l5,United StatesCode,Section78dd-l(9(1)('dinstrumentality''). SaudiA rabia Officialw as a foreign official. iiM ozam biqueO fficial,''an individualwhose identity isknown to tht United States and EM BRAER ,wasan officialin a high-leveldecision-m aking position in the governm entofM ozam bique.M ozambique O fficialhad intluence overdecisionsm ade by LinhasAéreasdeMoçambique,S.A.($$LAM ''),thestate-ownedcommercialairlinein M ozam bique thatperformed a governm entfunction,and which w asan instrum entality. M ozam bique Officialw as a fortign official. dsA gentA,''an individualw hose identity is known to the United Statesand EM BRAER,purportedly provided legitim ate agency servicesto EM BRAER in connection with the sale ofaircraftto the governm entofJordan. ln reality,A gentA w as retained forthe purpose offunneling bribesto Dom inican Officialto obtain orretain businessin the Dom inican Republic. iiA gentB,''a com pany,the identity ofwhich is known to the United Statesand EM BRA ER,purportedly provided legitim ate agency servicesto EM BRAER in connection w ith the sale ofaircraftto SaudiA rabia lnstrum entality. ln reality,AgentB w asretained forthe purposesoffunneling bribesto SaudiA rabia Officialto obtain orretain business in connection with the sale. Case 0:16-cr-60294-JIC Document 2 Entered on FLSD Docket 10/24/2016 Page 25 of 59 12. AiA gentC,''an individualwhose identity isknow n to the United States and EM BRAER,purportedly provided legitim ate agency servicesto EM BRAER in connection with the sale ofaircraftto the governm entofM ozambique. In reality,AgentC w asretained forthe purposesoffunneling bribesto M ozam bican ofscials,including M ozam bique Official,to obtain orretain business in M ozam bique. 13. itA gentD,''an individualwhose identity is known to the United Statesand EM BRAEK purportedlyprovided legitimate agency servicestoEM BRAER pursuantto two separate agency agreem entsin connection w ith the sale ofaircraftto the governmentofIndia. The Unlaw fulSchem es The Dom inican Republic 14. From in oraround August2008 through atleastin oraround October2010, EM BRAER,through itsem ployeesand agents,agreed to pay and did pay Dom inican Official approximately $3.52 million to obtainadefensecontractvaluedatapproximately $96.4 million. Beginning in oraround June 2007,EM BRAER began effortsto sellthe Super Tucano aircraft,a turbine-driven m ilitary aircrafttypically used form issionsto fightdrug trafficking,counterinsurgence m issions,and training,to theFAD . There w asno public bid or tenderforthis sale. Rather,EM BRAER developed and negotiated the sale directly w ith representativesofthe FA D,and Dom inican O fficialw asEM BRAER 'Sprim ary pointofcontact atthe FA D . 16. By m id-2008,m any ofthetenmsofthe sale had been negotiated butthe DominicanRepublicSenate(leDominican Senate'')hadnotyetapproved thedeal'sfinancing or the purchase agreem ent,which w ere necessary stepsforthe com pletion ofthe sale. EM BRAER A -4 Case 0:16-cr-60294-JIC Document 2 Entered on FLSD Docket 10/24/2016 Page 26 of 59 employeesand Dom inican Officialbegan discussing how they could influence the Dom inican Senate to providethe necessary approvals. 17. On oraboutA ugust25,2008,an EM BRA ER executive informed Em braer Executive A by emailthatDom inican Officialw ould be talking to a Dom inican Senatorabout com pensation forthe SenatorbutthatDom inican Officialw anted to talk to Em braerExecutive A before having thatconversation. Em braerExecutive A inform ed the otherEM BRAER executive thatEm braerExecutive A and Dom inican Officialhad already spoken. 18. On oraboutSeptem ber 1,2008,Em braerExecutive A agreed to pay D om inican Official3.7% ofthevalueofthecontract(whichultimately cametoapproximately $3.52 million)ifthesalewascompleted.Thatsameday,EmbraerExecutiveA emailedanother EM BRAER executive thatthe D om inican Senate'sm eeting to approve financing ofthe transaction w ould soon take place and thatSdthey w antto have the agentagreem entdoc signed before the m eeting.'' 19. ln oraround early Septem ber2008,Dom inican Officialand Embraer Executive A agreed thatthepaym entreferred to in Paragraph 18 would bepaid to three separate D om inican shellentities:onewould receive$2.5million,asecond would receive$920,000,and athird would receive$100,000. 20. ln oraround A ugust2008,Dom inican Officialprom oted the SuperTucano contractbefore the Dom inican Senate Finance Comm ittee and presented the term softhedealto the Dom inican Senate. The following m onth,on oraboutSeptem ber 16,2008,the D om inican Senate approved the financing forthe deal. On oraboutDecem ber24,2008,the D om inican Senate approved the sale and financing contracts forthe eightSuperTucano aim lanes,agreeing to purchase the aircraftfor A -5 Case 0:16-cr-60294-JIC Document 2 Entered on FLSD Docket 10/24/2016 Page 27 of 59 approximately $96.4 million.Shortly beforeitdid so,the Secretary oftheFAD issued aletterto EM BRAER authorizing Dom inican Officialto sign,on behalfofthe D om inican Republic, invoicesand certificatescalled forby the salescontract. 22. On oraboutJanuary 9,2009,EM B RAER publicly announced its sale ofeight SuperTucano aircraftto the Dom inican Republic. 23. Beginning atleastw hen EM BRAER publicly announced the sale,Dom inican Officialrepeatedly contacted EM BRA ER requesting the paym entsthathad been prom ised. For example,on oraboutM arch 16,2009,Dom inican Officialem ailed an EM BRAER em ployee demanding thatEM BRAER begin m aking the agreed-upon paym ents,noting that(sinterested and comprom ised parties''w ere exerting pressure. 24. Based on theserepeated requests,on oraboutApril24,2009,Em braerRL wired $100,000to oneoftheshellcompaniesreferenced in Paragraph 19 from EmbraerRL'sbank accountin N ew York to a bank accountin the D om inican Republic. 25. Following the$100,000paymentreferenced inParagraph 24,Dominican Official persisted w ith effortsto collectthe prom ised paym ents,and an executive in EM BRAER'Slegal departm entprovided seniorEM BRAER m anagersw ith guidance on how to m akethose paym ents in a m annerthatw ould concealtheirtrue purpose. 26. Forexample,on oraboutSeptem ber30,2009,an EM BRAER em ployee sentan em ailto an EM BRA ER executive detailing how an executive in EM BRA ER 'S legaldepartment had advised using a third-party agent,(lAgentA,''who had previously provided agency services to EM BRAER,to rem itthe rem aining tw o paym entsto Dom inican Officialinstead ofdirectly paying the shellcompaniesthatD om inican Officialhad identified. A-6 Case 0:16-cr-60294-JIC Document 2 Entered on FLSD Docket 10/24/2016 Page 28 of 59 27. On oraboutO ctober16,2009,an EM BRAER executive em ailed the sam e executive in EM BRA ER'Slegaldepartm entasking foradditionalguidanceon how to proceed, adding thatEM BRA ER feared pressureatany m om entfrom Etfourstarsr''which w asa reference to Dom inican governm entofficials. 28. O n oraboutN ovem ber5,2009,Em braerExecutive A em ailed A gentA to say thatD om inican Oftscialwould be A gentA 'spointofcontactin the D om inican Republic,that Dom inican O fficialw asan ''FA D colonelbutthe classm ate of4 stargenerals,''thatDom inican O fficialhad provided a 'ssafe''phone num berto use,and thatDom inican O fficialhad been designated asthe interm ediary betw een EM BR AER and the groupsS'involved on the otherside.'' On oraboutNovem ber 16,2009,Dom inican Officialem ailed Em braerExecutive A to confirm thatDom inican Oftscialhad spoken w ith A gentA ,and expressed satisfaction over A gentA 'scooperation,butw arned thatatleastone ofthe outstanding paym entsneeded to be m ade by the end ofthem onth. 30. On oraboutM arch 12,20l0,Em braerRL and A gentA 'scom pany entered into a purported agency agreem ent,pursuantto which Em braerRL w ould pay AgentA 'scom pany an 8% com m ission on any successfulsalesofaircraftto the Jordanian A irForce. The agreem ent called forEmbraerRL to make advancepaymentstoAgentA'scompanyof$2.5million and $920,000,which,when totaled,equaled the$3,420,000thatEM BRAER hadpromisedto D om inican Official. On oraboutApril6,20l0,AgentA 'scom pany subm itted to Em braerRL two invoicesforddsalespromotion services''inthe amountsof$2.5millionand$920,000.An internalEM BRAER m em orandum indicated thatthe paym entswere related to the com m ission owed forthe SuperTucano aircrafts sold to the governm entofthe Dom inican Republic,not Case 0:16-cr-60294-JIC Document 2 Entered on FLSD Docket 10/24/2016 Page 29 of 59 potentialsalesto the Jordanian A irForce. lndeed,EM BRA ER neversold any aircraftto the Jordanian A irForce,A gentA rendered no services in connection w ith any attem pted sale to the Jordanian A irForce,and A gentA rendered no legitim ate servicesto EM BRAER related to the sale ofSuperTucanosto the FAD . On oraboutM ay 24 andJune25,2010,EmbraerRL wired$2.5m illion and $920,000,respectively,from itsNew York bankaccountto AgentA'scompany'sbankaccount in Uruguay. On oraboutOctober21,2010,D om inican O fficialsentan em ailto A gentA from an emailaccountin the United Statesthatcontained w iring instructions fora Panam anian bank account.AgentA transferred morethan$3 million to Dominican Official,including morethan 61m illion to thePanam anian bank accountidentified in the October21,2010,em ail. 34. The paym entsto A gentA 'scom pany w ere falsely booked as sales com m issions in Em braerRL'sinternalaccounting recordsand asselling expensesin EM BR AER'S consolidated20l0snancialstatement. TheApril24,2009,paym entof$100,000 to oneofthe Dom inican shellcom paniesw as Iikew ise falsely booked asa selling expense in EM BRAER'S consolidated 2010 statem ent. SaudiA rabia From in oraround N ovem ber2009 through February 2011,EM BRA ER agreed to payanddid pay SaudiArabiaOftscialmorethan $1.5million to obtain acontractforthesaleof threebusinessjets,valuedatapproximately$93million,to SaudiArabialnstrumentality. 36. ln oraround 2007,EM BRAER learned thatSaudiA rabia lnstrum entality was interestedinpurchasingexecutivejets.By2009,SaudiArabialnstrumentalityhadnarrowedits interestto purchasing aircraftfrom EM BRAER and one otherm anufacturer. A-8 Case 0:16-cr-60294-JIC Document 2 Entered on FLSD Docket 10/24/2016 Page 30 of 59 ln oraround early Decem ber2009,EmbraerExecutive B m etw ith SaudiArabia O fficialin London.SaudiArabia Ofûcialoffered to help EM BRAER win the aircraftcontract andtochangethetermsofthedealfrom thesaleofusedjetstonew jets,whichwouldbeamore lucrativetransaction forEM BRA ER,ifEM BRAER com pensated SaudiA rabia Official. Em braerExecutive B knew thatSaudiArabia Officialwasa high-leveloffcialatSaudiArabia lnstrum entality and believed thatSaudiA rabia Officialcould deliveron the prom ise. 38. SaudiArabia Officialand EmbraerExecutive B negotiated the am ountofSaudi ArabiaOficial'spayment.SaudiArabiaOfficialrejectedaninitialofferof$200.000per aircraft. Em braerExecutive B sentan em ailto Em braerExecutive B's supervisorand another EM BRAER executive on oraboutDecem ber l0,2009,indicating thatSaudiArabia O fficialhad justifiedtherequestforahigherpaymentonthegroundsthatSdlhlehasbudgetforusedonlyand willhavetolobby formorefundstotakenew raircraft)overused.''EmbraerExecutiveB added, ''ltlhereismoretocometoreplacetheentirefleettheyhavewith 170,s(sic)(SaudiArabia Official)seesthisaslongterm.''EmbraerExecutiveB'ssupervisorapprovedofferingaperaircraftpaymentof$550,000. 39. On oraboutDecember2:,2009,EmbraerExecutive B and SaudiArabia Official agreed on aper-aircraftpaymentof$550,000.foratotalamountof$1.65 million.Two days later,on oraboutDecem ber30,2009,Em braerExecutive B told anotherEM BRA ER executive thatSaudiArabialnstrumentalityhadoptedtopurchasethreenew jets. 40. Em braerExecutive B devised a plan to concealthe paym entsto SaudiArabia Officialby funneling them through A gentB ,which had no experience in the aircraftindustry or in SaudiArabia. A -9 Case 0:16-cr-60294-JIC Document 2 Entered on FLSD Docket 10/24/2016 Page 31 of 59 41. On oraboutJanuary 5,2010,Em braerExecutive B sentan em ailaboutthe transaction w ith SaudiA rabia lnstrum entality to a numberofEM BRA ER em ployees summarizingûswherewearebasedonourlatesttalkstodaylqwithgjseniormngt(forSaudi Arabialnstrumentality)andthepartydrivingthisdealthroughwhogm)weareworkingwithon an(agencyjbasis.''EmbraerExecutiveB reportedintheemailaboutameetingbetweenitthe headofgsaudiArabialnstrumentality's)AviationDept(whoishclpinguswiththisdeall,''and the com m ittee thatallocated funds forthe purchase, and stated that''ourcontacton the transaction (headofthedept)hasadvisedthatwemusthold ourpriceduringthenegotiation on thebasiswehaveputforwardourbestofferforthebasicaircraftandthereforellcannotnegotiate furtheronthis.''EmbtaerExecutiveB explainedthatit(dhaEd)beenmadeextremelyclearand agreedwithourcontactg)thatshouldanyadditionalfundsberequiredtocoveranyother concessionthatexceedsour$120klimit,thiswouldbefrom the(agencycommissionlamountin VCSCrVC.53 42. On oraboutFebruary 26,2010,pursuantto Em braerExecutive B'srequest, EM BRA ER extcutives,including one in EM BRAER'S legaldepartm ent,approved the agency arrangem entw ith AgentB,pursuantto which A gentB would purportedly serve asEM BRA ER'S salesagentforthe dealwith SaudiA rabia Instrum entality. 43. On oraboutM arch 5,2010,EmbraerRL executed an agency contractw ith Agent B signed by EM BRA ER executives,pursuantto w hich A gentB w asto içprom ote salesof... aircraftm anufactured by Em braer...solely and specifically to''a subsidiary ofSaudiArabia Instrum entality. 44. Lessthan two weekslater,on oraboutM arch l5,2010,EM BRAER and a U.S.- based subsidiary ofSaudiArabia Instrum entality entered into an aircraftpurchase agreem ent, A-10 Case 0:16-cr-60294-JIC Document 2 Entered on FLSD Docket 10/24/2016 Page 32 of 59 pursuanttowhicb the subsidiary agreedtopurchasethreenew aircraftforapproximately$93 m illion. The aircraftwere delivertd in oraround N ovtm berand Decem berof2010. 45. ln oraround Decem ber2010,AgentB subm itted three invoices, each in the amountof$550,000,foritspurportedcommission,even though AgentB hadnotrenderedany servicesto EM BRAER in connection w ith tht sale. ExecutivesatEM BRAER approvtd paying the invoices. The paym entsw ere m adethrough tw o w ire transfers from Em braerRL'sbank accountinNew York to AgentB'sbank accountin SouthAfrica:$550,000 on orabout Dectmber22,20l0,and $1.1milliononoraboutFebruary 18s201l.Em braerRL booked tht paym ents asddsales com m issions''and the paym entswere consolidated into the parent'sfinancial statem ents. 46. AgentB subsequently transferred morethan $1.4 million ofthe $1.65m illion it received from Em braerRL to bank accountsheld by SaudiA rabia Oftscial's longtim e acquaintance,who in turn kepta portion ofthe m oniesand transferred the rem ainderto Saudi Arabia O fficial. M ozam bique 47. From in oraround M ay 2008 through atleastSeptem ber2008,EM BRAER negotiated the sale oftw o com m ercialaircraftto LAM . 48. EM BRAER subm itted a formalproposalto LA M on oraboutM ay 21,2008,for thesaleoftwo commercialaircraftforapproximately $32 million each,with an option forLAM to buy tw o m ore aircraftatthe sam e price. The proposalfollowed nearly three yearsofwork by EmbraerExecutive D to convince LA M to purchase from EM BRAER ratherthan com petitors. 49. ln m id-August2008,during negotiationsbetw een EM BRAER and LAM ,A gent C,who had notpreviously w orked orhad any contactw ith EM BR AER,contacted Em braer Case 0:16-cr-60294-JIC Document 2 Entered on FLSD Docket 10/24/2016 Page 33 of 59 Executive D and said thatAgentC would be serving as a consultanton the dealreferenced in Paragraph 48. 50. RatherthanrejectAgentC'ssolicitation,onoraboutAugust11,2008,Embraer Executive D sentan em ailto tw o EM BRA ER executivesand proposed thatthey iicreate som e m arginsforthecom m issions''forA gentC in the pricing ofthe tw o optionalaircraftLAM could buy afterpurchasing the firsttw o. On oraboutA ugust 13,2008,Em braerExecutive C sentan em ailto several EM BRA ER executivesrecounting a conversation w ith AgentC , in which AgentC told Embraer Extcutivt C that,tven though EM BRAER had notbeen prepared to have a consultant, isw e'd like to have a (gesture'when delivering the firstplane.'' Em braerExecutive C proposed in the emailthatddwehaveto show somegestureandmaybethevaluementionedbyganother EMBRAER executive)(50K to80K)wouldfittheactualneed....''EmbraerExecutiveC had advised AgentC how to setup a com pany to which EM BRAER could m ake purported consultancy paym ents,telling AgentC thatin orderto receive a paym entfrom EM BRA ER, AgentC iineedstohaveacompany,names,addressandnotbeestablishedinatax-heaven(sicq country ....'' ln response,an EM BRAER executive who had received the em ailreferenced in Paragraph 51,agreed thatthey couldoffertopay AgentC $50,000foreach ofthefirsttwo planessold,and goup to $80,000perplaneifnecessary,whilealsoagreeingtoapaymentof som ewhere betw een 2 and 2.5% ofthe purchase price ofthe two optionalplanes, should LA M purchase them . On oraboutAugust18,2008,EmbraerExecutiveC conveyedthe$50,000 offer to A gentC. Em braer Executive C reported afterward in an em ailto otherEM BRAER executives Case 0:16-cr-60294-JIC Document 2 Entered on FLSD Docket 10/24/2016 Page 34 of 59 thatitappearedthatAgentC wasiiexpectingga1muchhigherfee,''and,indeed,afterhearingthe am ount,AgentC intimated thatLAM may award the contractto a com petitorinstead. 54. On oraboutAugust25, 2008,M ozam bique O fficialcalled Em braerExecutive D . ln an em ailthe sam e day to otherEM BRAER executives, Em braerExecutive D recounted the conversation,notingthatMozambiqueOfficialhad(lhighlightedthat(M ozambiqueOfficiallhad received very nasty com m entsfrom som e individuals, in relation to Em braer'scomm ission proposalto(AgentC).''M ozambiqueOfficialfurtherS'indicatedthatsomeindividualsfeltthat Em braer'sproposalwasan insult, and in a sense,itw ould have been less insulting to give nothing,even ifthisw asnotan acceptable solution.'' Em braerExecutive D asked M ozam bique OfficialSswhatwouldgAgentCqexpectfrom Embraer.''MozambiqueOfficialrespondedthat, i'in the currentcircum stances, EM ozambi queOfficial)thoughtaboutonemillionUSD.''After som e pushback from Em braerExecutive D ,M ozambiqu: Oficiali'finally suggested thatwe mightgetawaywith800,000USD (2x400,000).''WhenEmbraerExecutiveD told M ozam bique OftscialthatEM BRAER %%had no budgetforsuch consultancy fee,''M ozam bique Officialsuggested taking itfrom the profitm argin on thetwo optionalaircraftand also ibasked if (EMBRAER)could increasetheaircraftprice....'' O n oraboutSeptem ber 15,2008,EM BRAER and LA M executed the purchase agreementforthe saleoftwo E190 aircraftatapproximately $32,690,000 eachwith a$312,000 dow n paym entfora third aircraft. M ozam bique Officialw asone ofthree LA M executivesthat signed the purchase agreem enton behalfofLA M . 56. On oraboutApril22,2009,seven m onthsafterthe execution ofthe purchase agreem entbutbefore delivery ofthe tsrstaircraft,Em braerRL entered into an agency agreement with a com pany A gentC had recently form ed in the Dem ocratic Republic of Sâo Tom é and A -13 Case 0:16-cr-60294-JIC Document 2 Entered on FLSD Docket 10/24/2016 Page 35 of 59 Principe. Tw o EM BRAER executivessigned the agency agreem enton EM BRAER'Sbehalf. Tht agency agrtementauthoriztd AgentC'scom pany to prom ote salesofthe E190 iisoltly and specifically''to LAM ,even though the sale ofsuch aircrafthad already been completed seven m onthspriorto the execution ofthe agreem ent,A gentC's com pany did notexistatthe tim e the purchaseagreementwassigned,andAgentC'scompanydidnotperform any legitim atework in connection w ith the purchase agreem ent. The agreem entw ith AgentC'scom pany falsely stated thatthe salesprom otion efforts identified therein had begun in oraround M arch 2008. 57. Pursuantto the agency agreem entdtscribed in Paragraph 56,Em braerRL agreed topay AgentC'scompany $400,000 peraircraft(theexactamountM ozambique Officialhad previously saidEM BRAER could ttgetaway''with paying). However,neitherAgentC nor A gentC 'scom pany everprovided any legitim ate servicesto EM BRA ER . 58. EM B RAER delivered the tw o aircraftto LA M on oraboutJuly 30,2009,and Septem ber2,2009.Follow ing the delivtry ofeach aircraft,AgentC's com pany subm itted two invoicestoEM BRAER for$400,000 each,onedatedAugustl5,2009,and onedated September 24,2009. An EM BRAER executive signed and approved both invoices forpaym ent. On or aboutAugust3l,2009,EmbraerRL wired $400,000,from itsU.s.-based bank accountto an accountata bank in Sâo Tom éand Prfncipe,forfurthercreditto the an accountata bank in Portugal,w hich w as held by A gentC 'scom pany. On oraboutOctobtr2,2009,Em braerRL wired an additional$400,000 from itsU.s.-based bank accountto AgentC'scompany's Portugal-based bank account. Em braerRL recorded these paym entsasiisales Com m ission''and they wereconsolidatedinto EM BRAER'SbooksunderiiNetOperating (expenses)income''asa iiselling''expense,specifically,SssalesCom m ission.'' Case 0:16-cr-60294-JIC Document 2 Entered on FLSD Docket 10/24/2016 Page 36 of 59 India On oraboutJuly 3,2008,EM BRAER executed acontractto provide three highly specialized militaryaircrafttothe lndian AirForce forapproximately $208 million.ln connection w ith the deal,EM BRAER retained the servicesofA gentD pursuantto a 2005 agency agreement.ltlaterpaid $5.76millionto AgentD pursuantto afalseagency agreement signed in oraround 2008. 60. ln oraround January 2005,EM BRAER executed an agency agreem entw ith a shellcompany domiciled in theUnited Kingdom and aftsliatedwith AgentD (although Agent D'snameneverappeared in theagreement).Undertheagency agreement,EM BRAER agreedto pay the shellcom pany a com m ission of9% ofthe value ofany defense contracts EM BRAER obtained in India because EM BRAER believed AgentD could help ensure thatany contract would be aw arded on a single-source,ratherthan com petitive,basis. EM BRA ER personnel thoughtthe agreem entw ith AgentD w asillegalunderIndian law and thustook stepsto conceal itstxistence,including secreting tht solt fully-extcuted version ofthe agretm tntin a safe dtpositbox in London thatcould be opened only w hen b0th an EM BR AER em ployee and Agent D oran associate ofAgentD were present. Lessthan a m onth afterexecuting the agency agreem entw ith the shellcompany, on oraboutFebruary 8,2005,EM BRA ER announced thatithad signed a mem orandum of understanding((1M OU'')with India'sDefenceResearchand DevelopmentOrganisation to supportthe developm entofa new early warning radarsystem forthe lndian A irForce,which EM BRAER believed could ultim ately resultin EM BRAER securing a contractforthe sale of three Em braer 145 aircraft. A-15 Case 0:16-cr-60294-JIC Document 2 Entered on FLSD Docket 10/24/2016 Page 37 of 59 62. On oraboutJuly 3,2008,nearly three yearsaftersigning theM OU , the lndian Air Forceagreed to purchasethreeaircraftfrom EM BRAER forapproximately $208m illion (the dslndiacontract'').Thenextday,on oraboutJuly 4,2008,AgentD contactedEM BRAER employeesand demanded paym entofthe com m ission pursuantto thecontractreferenced in Paragraph 60. 63. A gentD continued making dem andsforpaym entand, in oraround February and M arch 2009,an EM BRAER executive m etwith lawyersrepresenting A gentD to discussAgent D'spaymentdemands.Followingthesediscussions,EM BRAER executivesagreed to pay $5.76 m illion to AgentD to sdtle the claim . 64. To concealthe paym entreferenced in Paragraph 63, EM BRAER created a false agency agreem ent. On oraboutN ovem ber21,2009,m ore than a yearafterEM BRAER was awarded the lndia contract,EM BRAER,through itswholly owned subsidiary, ECC Investm ent SwitzerlandAG ($iECC''),executedanagencyagreementwithashellcompanydomiciledin Singapore and aftiliattd w ith A gtntD foritspurported services asan agentin a sale EM BRAER had m ade to an unrelated custom erin anothercountry thathad purchased an EM BRAER aircraft m ore than a yearearlier,in oraround July 2008. The Singaporean shellcom pany never perform ed any servicesrelated to thatsale orto the sale to the lndian A ir Force. 65. The sam eday thatthe agency agreem entw asexecuted,the Singaporean shell company delivcredthreeinvoicesto ECC,each for$1.92m illion.EM BRAER,throughECC, rem itted three paym entsto the shellcom pany shortly thereafter.EM BRA ER'Sbooks and recordsdid notreflectthatthistransaction wasrelated to itsarrangem entw ith AgentD . A-16 Case 0:16-cr-60294-JIC Document 2 Entered on FLSD Docket 10/24/2016 Page 38 of 59 Profits 66. From the unlawfulconductdescribed above,Em braer's totalprofits were $83,816,476. EM BR AER 'SInternalAccountine Controls 67. D uring the relevantperiod,EM BRAER know ingly and w illfully failed to devise and maintain an adequate system ofinternalaccounting controls. In particular,and asrelevant here,EM BRAER hadnointernalaccountingcontrolsthat,amongotherthings,(a)required adequateduediligencefortheretentionofthird-partyconsultantsandagent;(b)requiredafully executed contractwith athird-party beforepaymentcouldbemadeto it;(c)required docum entation orotherproofthatserviceshad been rendered by a third-party before paym ent couldbemadetoit;or(d)implementedoversightofthepaymentprocesstoensurethat paym entswere m ade pursuantto appropriate controls,including those described above. 68. Forexam ple,in connection with the Dom inican Republic bribery schem e, EM BRA ER m ade paym entsto one ofthe shellcom panies identified by D om inican O fficial, even though a foreign ofûcialhad told EM BRA ER to which com pany to m ake agency paym ents, and EM BRAER had conducted no diligence on the shellcom pany,did nothavea signed contract w ith the shellcom pany,and knew thatthe shellcom pany had notperform ed any legitim ate services in exchange forthepaym ent. 69. A lso in connection with the Dominican Republic bribery schem e,EM BRAER m ade paym entsto AgentA forservicespurportedly rendered in connection with an aircraftsale to the Jordanian A irForce,even though EM BRAER neversold any aircraftto the Jordanian A ir Force,and EM BRAER knew thatA gentA had rendered no servicesin connection w ith any attem pted sale to the Jordanian A irForce,and even though an internalEM BRAER m em orandum Case 0:16-cr-60294-JIC Document 2 Entered on FLSD Docket 10/24/2016 Page 39 of 59 indicated thatthe paym entsw ere related to the com m ission ow ed forthe SuperTucano aircrafts sold to the governm entofthe Dom inican Republic,notpotentialsalesto the Jordanian A irForce 70. Further,in connection w ith the SaudiArabia bribery schem e,EM BRAER m ade paymentsto AgentB ,even though ithad conducted m inim aldue diligence on AgentB,did so alm ostexclusively on the basisofinform ation Em braerExecutive B personally provided to its contractsand legaldepartm ents,and did notrequire any proofofservices from A gentB before m aking paym ent. Sim ilarly,in connection w ith the M ozam bique schem e,the only due diligence thatEM BRAER conducted on AgentC 'scom pany w asIim ited to collecting the com pany's registration docum ents,corporate by-laws,and board m inutesdirectly from A gentC,and EM BRAER did notrequire any proofofservicesfrom AgentC before m aking paym ent. 72. N um eroushigh-levelEM BRAER executivesknew thatthe variousagency agreem entsreferenced above falsely represented thatpaym entsw ere being m ade forlegitim ate agency services,and thatthe true purpose ofthe paymentsm ade to the agentsw asto funnel bribesto foreign officials. M any ofthe high-levelexecutivesw ho knew aboutthe false nature of the agreem entsand the im properpurpose ofthe paym entshad the authority and responsibility to ensure thatEM BRA ER devised and m aintained an adequate system ofinternalaccounting controls,knew thatEM BRA ER 'S then-existing internalaccounting controlsfailed to prevent EM BRA ER from entering into false agency agreem entsand m aking im properpaym ents,and know ingly and w illfully failed to implementadequate internalaccounting controlsto addressthe known weaknesses,in partto perm itEM BRAER to enterinto false agency agreem entsand funnelbribesto foreign officials. A -18 Case 0:16-cr-60294-JIC Document 2 Entered on FLSD Docket 10/24/2016 Page 40 of 59 ATTACH M ENT B C ERTIFICATE OF C O RPO RA TE RESOLU TIO N S W HEREAS,EmbraerS.A.(theidcompany'')hasbeen engaged in discussionswith the United StatesDepartmentofJustice,CriminalDivision,FraudSection(the''Section'')regarding issuesarising in relation to certain improperpaymentsto foreign officialsto facilitatetheaward ofcontractsand assistin obtaining businessforthe Com pany;and W HEREAS,in orderto resolve such discussions,it isproposed thatthe Com pany enter into a certain agreem entw ith the Section;and W HEREA S,the Company'sG eneralCounsel,Fabiana Leschziner,togetherw ith outside counselfor the Com pany,have advised the Board of Directors of the Com pany of its rights, possible defenses,the Sentencing G uidelines'provisions,and the consequences ofentering into such agreem entwith the Section; Therefore,the Board ofD irectorshas RESOLVED that: l. TheCompany(a)acknowledgesthefilingofthetwo-countlnformationcharging the Company with (i)one countofconspiracy to comm itoffensesagainstthe United States in violation ofTitle l8.United StatesCode,Section 37l,thatis,to violate the anti-bribery and books and recordsprovisionsoftheForeign CorruptPracticesActof1977 (k6FCPA''),asamended,l5 U.S.C. jj78dd-1,78m(b)(2)(A),78m(b)(5),and 78ff(a);and (ii)onecountofviolation ofthe internalcontrolsprovisionsoftheFCPA,l5U.S.C.jj78m(b)(2)(B),78m(b)(5),and78ff(a);(b) waives indictm ent on such charges and enters into a deferred prosecution agreem ent with the Section;and(c)agreestoacceptamonetarypenaltyagainstCompanytotaling $107,285,090,and to pay such penalty to the United States Treasury w ith respect to the conductdescribed in the lnform ation' , Case 0:16-cr-60294-JIC Document 2 Entered on FLSD Docket 10/24/2016 Page 41 of 59 The Com pany acceptsthe term sand conditionsofthis A greem ent,including,but notlimitedto,(a)aknowingwaiverofitsrightstoaspeedytrialpursuanttotheSixthAmendment to the United States Constitution,Title 18,United StatesCode,Section 3161,and FederalRule of CriminalProcedure 48(b);and (b)a knowing waiverforpurposesofthisAgreementand any chargesby the United Statesarising outoftheconductdescribed in the attached Statem entofFacts ofany objectionwithrespecttovenueandconsentstothefilingoftheInformation,asprovided underthe term s ofthisA greem ent,in the United StatesD istrictCourtforthe Southern Districtof Florida;and (c)a knowing waiverofany defensesbased on the statute of limitationsforany prosecution relating to the conduct described in the attached Statem ent of Facts or relating to conductknow n to the Section prior to the date on which this A greem entw as signed that is not tim e-barred by the applicable statuteoflim itationson thedate ofthe signing ofthisAgreem ent; Paulo Cesarde Souza e Silva,ChiefExecutive OfficerofCom pany,and Fabiana Leschziner,G eneralCounselof Company,are hereby authorized.em pow ered and directed,on behalfofthe Company,to execute the Deferred Prosecution Agreem entsubstantially in such form as reviewed by this Board ofD irectors atthis m eeting w ith such changes asthe Paulo Cesar de Souza e Silva,ChiefExecutive O fficerofCom pany,and Fabiana Leschziner,GeneralCounselof Com pany,m ay approve; 4. Paulo Cesarde Souza e Silva,ChiefExecutive Officerof Com pany,and Fabiana Leschziner,GeneralCounselofCompany,are hereby authorized,em pow ered and directed to take any and all actions as m ay be necessary or appropriate and to approve the form s,term s or provisionsofany agreem entorotherdocum ents as may be necessary orappropriate,to carry out and effectuate the purpose and intentofthe foregoing resolutions;and B-2 Case 0:16-cr-60294-JIC Document 2 Entered on FLSD Docket 10/24/2016 Page 42 of 59 5. A 11of the actions of Paulo Cesar de Souza e Silva,Chief Executive O fficer of Com pany, and Fabiana Leschziner, General Counsel of Com pany, which actions w ould have been authorized by the foregoing resolutions except that such actions w ere taken prior to the adoption of such resolutions,are hereby severally ratified,confirm ed,approved,and adopted as actions on behalfofthe Com pany. oate: lo/o/. p. mf: Sy: B-3 / ' C Corporate Secretary EmbraerS.A . Case 0:16-cr-60294-JIC Document 2 Entered on FLSD Docket 10/24/2016 Page 43 of 59 A TTA CH M ENT C CO RPO R ATE CO M PLIA NCE PR O GR AM ln orderto addressany deficiencies in itsinternalcontrols,com pliance codt,policies, andproceduresregardingcompliancewiththeForeignCorruptPracticesAct('iFCPA''),15 U.S.C.jj78dd-1,etseq.,andotherapplicableanti-corruptionlaws,EmbraerS.A.(the S'Company'')agreesto continueto conduct,in amannerconsistentwith al1ofitsobligations underthisAgreem ent,appropriate reviewsof itsexisting internalcontrols,policies,and procedures. W here necessary and appropriate,the Company agreesto adoptnew orto m odify existing internalcontrols,com pliance code,policies,and proceduresin orderto ensure thatit maintains; (a)asystem ofinternalaccounting controlsdesigned toensurethatthe Company makesandkeepsfairandaccuratebooks,records,andaccounts;and(b)arigorousanticorruption com pliance program thatincludespoliciesand proceduresdesigned to detectand deterviolationsofthe FCPA and otherapplicable anti-corruption law s. Ata m inim um ,this should include,butnotbe lim ited to,the follow ing elem entsto the extentthey are notalready partofthe Company'sexisting internalcontrols,com pliance code,policies,and procedures: H igh-LevelComm itment The Com pany w illensurethatits directorsand seniorm anagem entprovide strong,explicit,and visible supportand com m itm entto itscom orate policy againstviolations of theanti-corruption law sand itscompliancecode. C-1 Case 0:16-cr-60294-JIC Document 2 Entered on FLSD Docket 10/24/2016 Page 44 of 59 Policiesand Procedures The Company willdevelop and prom ulgate a clearly articulated and visible corporatepolicy againstviolationsofthe FCPA and otherapplicableforeign law counterparts (collectively,thelsanti-corruption 1aws,''),whichpolicy shallbememorialized in awritten com pliancecode. 3. The Com pany w illdevelop and prom ulgate compliance policiesand procedures designed to reduce the prospectofviolations ofthe anti-corruption law s and the Com pany's compliance code,and the Com pany w illtake appropriate m easuresto encourage and supportthe observance ofethics and com pliance policiesand procedures againstviolation ofthe anticorruption law sby personnelatalllevelsofthe Com pany. These anti-corruption policies and proceduresshallapply to alldirectors,officers,and employeesand,w here necessary and appropriate,outsidepartiesactingonbehalfoftheCompanyinaforeignjurisdiction,including butnotlim ited to,agentsand interm ediaries,consultants,representatives,distributors,team ing partners,contractorsandsuppliers,consortia,andjointventurepartners(collectively,dsagents andbusinesspartners').TheCompanyshallnotifyallemployeesthatcompliancewiththe policiesand procedures isthe duty ofindividualsatalllevelsofthe com pany. Such policiesand proceduresshalladdress: a. gifts; b. hospitality,entertainm ent,and expenses; custom ertravel' , d. politicalcontributions' , charitable donations and sponsorships; facilitation paym ents' ,and C-2 Case 0:16-cr-60294-JIC Document 2 Entered on FLSD Docket 10/24/2016 Page 45 of 59 g. 4. solicitation and extortion. The Com pany w illensure thatithasa system offinancialand accounting procedures,including a system ofinternalcontrols,reasonably designed to ensurethe maintenance offair and accurate books,records,and accounts. Thissystem should be designed to provide reasonable assurances that: a. transactionsare executed in accordance with m anagem ent's generalor specific authorization; b. transactionsare recorded asnecessary to perm itpreparation offinancial statem ents in conform ity with generally accepted accounting principles orany othercriteria applicable to such statem ents,and to m aintain accountability forassets; accessto assets isperm itted only in accordance with m anagem ent's generalorspecific authorization;and d. the recorded accountability forassetsis com pared w ith the existing assets atreasonable intervalsand appropriate action istaken w ith respectto any differences. Periodic Risk-Based Review 5. The Com pany w illdevelop thesecom pliance policiesand procedures on the basisofa periodic risk assessm entaddressing the individualcircum stancesofthe Com pany,in particularthe foreign bribery risksfacing the Com pany,including,butnotIim ited to,its geographicalorganization,interactionsw ith varioustypesand levels of governm entofficials, industrialsectorsofoperation,involvementinjointventurearrangements,importanceoflicenses and perm itsin the Company'soperations,degree ofgovernm entaloversightand inspection,and volum e and im portance ofgoodsand personnelclearing through custom s and im m igration. C-3 Case 0:16-cr-60294-JIC Document 2 Entered on FLSD Docket 10/24/2016 Page 46 of 59 6. The Com pany shallreview itsanti-corruption com pliance policiesand proceduresno lessthan annually and update them as appropriate to ensure theircontinued effectiveness,taking into accountrelevantdevelopm entsin the field and evolving international and industry standards. ProperO versightand Independence The Company w illassign responsibility to one ormore seniorcorporate executivesofthe Company forthe implem entation and oversightofthe Company'santi- corruptioncompliancecode,policies,andprocedures.Suchcorporateofficialts)shallhavethe authority to reportdirectly to independentm onitoring bodies,including internalaudit,the Com pany'sBoard ofD irectors,orany appropriate com m ittee ofthe Board ofDirectors,and shallhave an adequate levelofautonom y from m anagem entasw ellassufficientresourcesand authority to m aintain such autonom y. Training and Guidance 8. The Com pany willimplem entm echanism sdesigned to ensure thatitsanti- corruption com pliancecode,policies,and proceduresare effectively com m unicated to all directors,officers,em ployees,and,where necessary and appropriate,agentsand business partners.Thesemechanismsshallinclude:(a)periodictrainingforaIIdirectorsandofficers,all employeesin positionsofleadership ortrust,positionsthatrequiresuch training(e.g.,internal audit,sales,legal,compliance,finance),orpositionsthatotherwiseposeacorruption risktothe Company,and,wherenecessary andappropriate,agentsand businesspartners;and (b) corresponding certifications by alIsuch directors,officers,em ployees,agents,and business partners,certifying com pliance w ith the training requirem ents. C-4 Case 0:16-cr-60294-JIC Document 2 Entered on FLSD Docket 10/24/2016 Page 47 of 59 The Com pany w illm aintain, orwhere necessary establish , forprovidingguidanceand adviceto directors oftk ers,em ployees , , an effective system and,where necessary and appropriate,agentsand businesspartners, on complying with the Company'santi-corruption com pliance code,policies, and procedurts,including when they need advice on an urgentbasis orinanyforeignjurisdictioninwhichtheCompanyoperates . InternalReporting and Investigation 10. The Com pany willm aintain, orw here necessary establish , an effective system forinternaland,w hert possiblc, confidentialreporting by and protection of,directors , ficers, , of em ployees,and,where appropriate, agentsand business partners concerning violationsofthe anti-corruption law sorthe Com pany'santi- corruption com pliance code , policies,and procedures. The Com pany w illm aintain, orwhere necessary establish, an effective and reliable processw ith sufficientresourcesforresponding to, investigating,and docum enting alltgationsofviolationsofthe anti-conuption law sorthe Com pany's anti- corruption compliance code,policies,and procedures. EnforcementandDisci pline The Company willim plem entm echanism sdesigned to effectively enforce its compliance code,policies,and procedures, including appropriately incentivizing com pliance and disciplining violations. 13. The Company w illinstitute appropriate disciplinary procedures to address, am ong otherthings,violationsofthe anti-corruption lawsand the Com pany'santi- corruption compliance code,policies,and procedures by the Com pany'sdirectors, officers,and em ployees. Such proceduresshould be applied consistently and fairly, regardless oftheposition held by,or C-5 Case 0:16-cr-60294-JIC Document 2 Entered on FLSD Docket 10/24/2016 Page 48 of 59 perceived im portance of, tht director,officer, oremployee.The Com pany shallim plem ent proceduresto ensure thatwhere m isconductis discovered , reasonable stepsare taken to rem edy the harm resulting from such m isconduct, and to ensure thatappropriate stepsare taken to preventfurthersim ilarm isconduct including assessing the internalcontrols,compliance code , policies,and proceduresand m aking m odifications necess arytoensuretheoverallanticorruption com pliance program iseffective. Third-partyRelationshl ps The Com pany w illinstitute appropriaterisk- based due diligence and compliance requirem entspertaining to the retention and oversightofallagentsand b usiness partners, including: a. properly documented due diligencepertaining to the hiring and appropriate and regularoversightofagentsand businesspartners; b. inform ing agentsand businesspartnersofthe Com pany'scom m itmentto abiding by anti-corruption law s, and ofthe Com pany'santi-corruption com pliance code , policies,and procedures;and seeking a reciprocalcom m itm entfrom agentsand businesspartners. 15. W here necessary and appropriate, the Com pany w illinclude standard provisions in agreem ents,contracts, and rencwalsthereofw ith aIlagentsand business partnersthatare reasonably calculated to preventviolationsofthe anti-corruption law s, w hich m ay,depending uponthecircumstances,include:(a)anti-corruptionrepresentationsandundertakingsrelatingto compliancewiththeanti-corruptionIaws;(b)rightstoconductauditsofthebooksandrecordsof theagentorbusinesspartnertoensurecompliancewith theforegoing;and (c)rightsto ttrminate an agentorbusinesspartnerasa resultofany breach ofthe anti-corruption law s, the Com pany's Case 0:16-cr-60294-JIC Document 2 Entered on FLSD Docket 10/24/2016 Page 49 of 59 com pliancecode,policies, orprocedures,orthe representations and undertakingsrtlated to s uch m atters. M ergers andAcquisitions l6. The Com pany w illdevelop and implem entpolicies and proceduresformergers and acquisitionsrequiring thatthe Com pany conductappropriaterisk-basedduediligenceon potentialnew businessentities, including appropriate FCPA and anti- corruption due diligence by legal,accounting, and com pliance personnel. The Com pany w illensure thatthe Com pany's com pliance code policies,and , proceduresregarding the anti-corruption law sapply asquickly as ispracticable to new ly acquired businessesorentitiesm erged w ith the Com pany and w illprom ptly: train the directors,officers, em ployees,agents,and businesspartners consistentwithParagraph 8above on theanti-corruption lawsandtheCom pany'scom pliancc code,policies,andproceduresregardinganti-corruption laws;and where warranted,conductan FcpA -specific auditofaIlnewly acquired orm erged businesses asquickly aspracticable. M onitoring and Testing 18. The Com pany w illconductperiodic reviews and testing ofits anti- corruption com pliance code,policies,and proceduresdesigned to evaluate and improve theireffectiveness in preventing and detecting violationsofanti-corruption law sand the Com pany'santi- corruption code,policies,and procedures,taking into accountrelevantdevelopm ents in the tseld and evolving internationaland industry standards. Case 0:16-cr-60294-JIC Document 2 Entered on FLSD Docket 10/24/2016 Page 50 of 59 ATTA CH M ENT D INDEPENDENT CO M PLIA NCE M O N ITO R Thedutiesand authority ofthelndependentComplianceM onitor(theiiM onitor''), and the obligationsofEm braerS.A.(the(d company''),onbehalfofitselfanditssubsidiariesand affiliates,with respectto the M onitorand the U nited StatesD epartm entofJustice, Crim inal Division,FraudSection(thei'Section'),areasdescribedbelow: TheCompanywillretaintheMonitorforaperiodofthree(3)years(theti-lkrm of theMonitorship''),unlesstheearlyterminationprovisionofParagraph3oftheDeferred ProsecutionAgreement(thediAgreement'')istriggered. M onitor' sM andate The M onitor'sprim ary responsibility isto assessand m onitorthe Com pany's com pliance with the term softhe A greem ent, including the Corporate Com pliance Program in Attachm entC,so asto specifically addressand reduce the risk ofany recurrence ofthe Company'sm isconduct. D uring the Term ofthe M onitorship, theM onitorwillevaluate,in the m annersetforth below ,the effectivenessofthe internalaccounting controls, record-keeping,and financialreporting policies and proceduresofthe Com pany asthey relate to the Com pany's currentand ongoing com pliance w ith the FCPA and otherapplicable anti-conuption laws (collectivtly,theSsanti-corruptionlaws'')andtakesuchreasonablestepsas,inhisorherview, maybenecessarytofulfilltheforegoingmandate(thedtMandate'').ThisM andateshallinclude an assessm entofthe Board ofDirectors'and seniorm anagem ent'scom m itm entto, and effective im plem entation of,the corporatecom plianceprogram described in Attachm entC ofthe A greem ent. D -l Case 0:16-cr-60294-JIC Document 2 Entered on FLSD Docket 10/24/2016 Page 51 of 59 Company ' s Obligations 3. The Company shallcooperate fully w ith the M onitor, and the M onitor shallhave theauthority to take such reasonable steps as, in hisorherview ,m ay be necessary to be fully inform ed aboutthe Company'scom pliance program in accordance w ith the principles setforth herein and applicable law , including applicabledataprotection andlaborlawsand regulations . To thatend,the Com pany shall:facilitate the M onitor'saccessto the Com pany's docum entsand resources;notlim itsuch access,exceptasprovided in Paragraphs5- 6;and provide guidance on applicablelocallaw (suchasrelevantdataprotectionandlaborlaws) TheCom pany shall . provide the M onitorw ith accessto allinform ation, docum ents,records,facilities, and employees,asreasonably requested by the M onitor, thatfallw ithin the scope ofthe M andate of tht M onitorunderthe Agreem ent. The Com pany shalluse itsbestefforts to provide the M onitor w ith accessto the Company'sform eremployeesand itsthird-party vendors, agents,and consultants. Any disclosure by the Company to the M onitorconcerning corruptpaym ents, false books and records,and internalaccounting controlfailures shallnotrelieve the Com pany of any otherwise applicable obligation to truthfully disclose such mattersto the Section, pursuantto the A greem ent. Withholding Access The parties agret thatno attorney-clientrelationship shallbe form ed betw een the Company and the M onitor. ln the eventthatthe Com pany seeksto withhold from the M onitor accessto inform ation,docum ents,records,facilities, orcurrentorformer em ployeesofthe Companythatmay besubjecttoaclaim ofattorney-clientprivilegeortotheattorneyworkproductdoctrine,orwhere the Com pany reasonably believes production would otherwise be Case 0:16-cr-60294-JIC Document 2 Entered on FLSD Docket 10/24/2016 Page 52 of 59 inconsistentwith applicable law , the Company shallwork cooperatively with the M onitorto resolvethe m atterto the satisfaction ofthe M onitor. 6. lfthe m attercannotbe resolved, atthe requestofthe M onitor, the Com pany shall prom ptly provide written notice to the M onitorand the Section. Such notice shallinclude a generaldescription ofthenature ofthe inform ation, docum ents,records,facilities orcurrentor formeremployees thatare being w ithheld, asw ellasthe legalbasisforw ithholding access. The Section m ay then considerwhetherto m ake a furtherrequestforaccessto such inform ation, docum ents,records,facilities,orem ployees. M onitor's Coordination with the Company and Review M ethodology ln carrying outthe M andate,to the extentappropriate underthe circum stances, the M onitorshould coordinate w ith Com pany personnel, including in-house counsel,com pliance personnel,and internalauditors,on an ongoing basis. The M onitorm ay rely on the productof the Com pany's processes,such asthe resultsofstudies, reviews,sam pling and testing m ethodologies,audits,and analysesconducted by oron behalfofthe Com pany, aswellasthe Company'sinternalresources(e.g.,legal,compliance,andinternalaudit),whichcanassistthe M onitorin carrying outthe M andate through increased efficiency and Com pany-specific exptrtise,provided thatthtM onitorhas confidence in the quality ofthose resources. 8. The M onitor'sreviews should use a risk-based approach,and thus, the M onitoris notexpected to conducta comprehensive review ofal1businesslines, al1businessactivities,or allmarkets. In carrying outthe M andate,the M onitorshould consider, forinstance,risks presentedby:(a)thecountriesand industriesin whichtheCompany operates;(b)currentand futurebusinessopportunitiesand transactions;(c)currentand potentialbusinesspartners, Case 0:16-cr-60294-JIC Document 2 Entered on FLSD Docket 10/24/2016 Page 53 of 59 includingthirdpartiesandjointventures,andthebusinessrationaleforsuchrelationships;(d) theCompany'sgifts,travel,andentertainmentinteractionswithforeignofficials;and (e)the Com pany'sinvolvem entwith foreign officials, including the am ountofforeign governm ent regulation and oversightofthe Com pany, such aslicensing and perm itting,and the Company's exposure to custom s and im m igration issues in conducting itsbusinessaffairs. In undertaking the review sto carry outthe M andate, the M onitorshallform ulate conclusionsbasedon,amongotherthings:(a)inspection ofrelevantdocum ents, including the Company'scurrentanti-corruptionpoliciesandprocedures;(b)on-siteobservationofselected system sand proceduresofthe Com pany atsam ple sites, including internalaccounting controls, record-keeping,andinternalauditprocedures;(c)meetingswith,andinterviewsof,relevant currentand,where appropriate,formerdirectors, oftscers,em ployees,businesspartners, agents, andotherpersonsatmutuallyconvenienttimesandplaces;and(d)analyses,studies.andtesting ofthe Com pany'scom pliance program . M onitor's Written W ork Plans 10. To carry outthe M andate,during the Term ofthe M onitorship, theM onitorshall conductan initialreview and prepare an initialreport,follow ed by atleasttw o follow-up reviews and reports asdescribed in Paragraphs 16-19 below . W ith respectto the initialreport, after consultation w ith the Company and the Section,the M onitorshallprepare the firstw ritten w ork planwithinthirty(30)calendardaysofbeingretainedandtheCompanyandtheDepartment shallprovidecommentswithinthirty(30)calendardaysafterreceiptofthewrittenworkplan. W ith respectto each follow -up report,afterconsultation w ith the Com pany and the Section, the M onitorshallprepare awritten work plan atleastsixty (60)calendardayspriortocommencing a review,andtheCompany andtheSection shallprovidecommentswithin thirty(30)calendar D -4 Case 0:16-cr-60294-JIC Document 2 Entered on FLSD Docket 10/24/2016 Page 54 of 59 daysafterreceiptofthe w ritten work plan. Any disputesbetween the Com pany and the M onitor w ith respectto any w ritten w ork plan shallbe decided by the Section in itssole discretion. 11. Allw ritten w ork plans shallidentify with reasonable specificity the activitiesthe M onitorplansto undertake in execution ofthe M andate, including aw ritten requestfor docum ents. The M onitor's work plan forthe initialreview shallinclude such steps asare reasonably necessary to conductan effective initialreview in accordance w ith the M andate, including by developing an understanding, to theextentthe M onitordeem sappropriate, ofthe factsand circum stancessurrounding any violations thatm ay have occurred before the date ofthe Agreem ent. ln developing such understanding the M onitoristo rely to the extentpossible on available inform ation and docum entsprovided by the Com pany. ltisnotintended thatthe M onitorw illconducthisorherow n inquiry into the historicaleventsthatgave rise to the A greem ent. InitialSpvfew Theinitialreview shallcommenceno Iaterthanonehundred twenty (120) calendardaysfrom thedattoftheengagementoftheM onitor(unlessotherwiseagreedby the Company,theM onitor,andtheSecsion).TheMonitorshallissueawrittenreportwithinone hundred twenty (120)calendardaysofcommencingtheinitialreview,setting forththeM onitor's assessm entand,ifnecessary,m aking recom m endationsreasonably designed to im prove the effectivenessofthe Com pany'sprogram forensuring com pliance w ith the anti-corruption laws. The M onitorshould consultwith the Company concerning hisorherGndingsand recom m endationson an ongoing basisand should considerthe Com pany'scom m entsand input to the extentthe M onitordeem sappropriate. The M onitorm ay also chooseto share a draftofhis orherreportsw ith the Com pany priorto finalizing them .The M onitor'sreportsneed notrecite Case 0:16-cr-60294-JIC Document 2 Entered on FLSD Docket 10/24/2016 Page 55 of 59 ordescribe com prehensively the Com pany'shistory orcom pliancepolicies,procedures and practices,butratherm ay focus on those areasw ith respectto which the M onitorw ishesto m ake recom m endations,ifany,forim provem entorw hich the M onitorotherw ise concludesm erit particularattention. The M onitorshallprovide the reportto the Board ofDirectors ofthe Company and contem poraneously transm itcopiesto the FCPA Chief Fraud Section,Criminal , Division,U.S.Departm entofJustice, at1400 New York A venue N .W .,W ashington,D .C . 20005. Afterconsultation with the Com pany, the M onitorm ay extend the tim e period for issuance ofthe initialreportfora briefperiod oftim e w ith priorwritten approvalofthe Section. W ithin ninety (90)calendardaysafterreceiving theM onitor'sinitialreport, the Com pany shalladoptand im plem entallrecom m endations in thereport, unless,withinsixty(60) caltndardaysofreceiving the reporq the Com pany notifiesin w riting the M onitorand the Section ofany recom m endationsthatthe Com pany considers unduly burdensom e, inconsistent with applicable law orregulation, im practical,excessively expensive, orotherw ise inadvisable. W ith respectto any such recom m endation, the Company need notadoptthatrecom m endation withintheonehundred andtwenty (120)daysofreceivingthereportbutshallproposein writing to the M onitorand the Section an alternative policy, procedure orsystem designed to achievethe sameobjectiveorpurpose.AstoanyrecommendationonwhichtheCompanyandtheMonitor donotagree,suchpartiesshallattemptingoodfaithtoreachanagreementwithinfortpfive(45) calendardaysafterthe Com pany servesthe written notice. 14. In the eventthe Com pany and the M onitorare unableto agree on an acceptable alternative proposal,the Com pany shallprom ptly consultw ith the Section. The Section may considerthe M onitor'srecom m endation and the Com pany's reasons fornotadopting the recomm endation in determ ining whetherthe Com pany hasfully com plied w ith itsobligations Case 0:16-cr-60294-JIC Document 2 Entered on FLSD Docket 10/24/2016 Page 56 of 59 undertht Agreem ent. Pending such determ ination, the Com pany shallnotbe required to implementanycontestedrecommendationts) . W ith respectto any recomm endation thatthe M onitordeterm inescannot reasonablybeimplementedwithinonehundredandtwenty(120)calendardaysafterreceiving the report,the M onitorm ay extend the tim e period for im plemtntationw ithpriorwritten approvalofthe Section. Follow-up Reviews A follow -up review shallcom mence no laterthan one hundred- ei ghty (180) calendardaysaftertheissuance oftheinitialreport(unlessotherwiseagreed by theComp any, theMonitorandtheSection).TheM onitorshallissueawrittenfollow up reportwithin one - hundred-twenty(120)calendardaysofcommencingthefollow-upreview, setting forth the M onitor'sassessm entand, ifnecessary,making recom m endationsin the sam e fashion as set forth in Paragraph 12 w ith respectto the initialreview . Afterconsultation w ith the Com pany , the M onitorm ay extend the tim e period forissuance ofthe follow - up reportfora briefperiod of tim e w ith priorwritten approvalofthe Section. W ithin ninety(90)calendardaysafterreceiving theM onitor'sfollow-up report, the Com pany shalladoptand im plem entallrecomm endationsin the report unless,within thirty , (30)calendardaysafterreceiving thereport,the Company notifiesinwriting theM onitorandthe Section concerning any recom mendationsthatthe Com pany considersunduly burdensom e , inconsistentw ith applicable law orregulation, im practical,excessively expensive, orotherw ise inadvisable. W ith respectto any such recom m endation, the Com pany need notadoptthat recommendation withintheninety (90)calendardaysofreceiving thereportbutshallproposein writing to the M onitorand the Section an alternative policy, procedure,orsystem designed to Case 0:16-cr-60294-JIC Document 2 Entered on FLSD Docket 10/24/2016 Page 57 of 59 achievethesameobjectiveorpumose.AstoanyrecommendationonwhichtheCompanyand the M onitordo notagree, such partiesshallattem ptin good faith to reach an agreem entw ithin thirty(30)calendardaysaftertheCompanyservesthewrittennotice . 18. ln the eventthe Com pany and the M onitorare unable to agree on an acceptable alternative proposal, the Company shallpromptly consultw ith the Section. The Section may considerthe M onitor'srecom m endation and the Com pany'sreasons fornotadopting the recom m endation in determ ining whetherthe Com pany hasfully com plied w ith itsobligations underthe Agreem ent. Pending such determ ination, the Com pany shallnotbe required to implementanycontestedrecommendationts).W ithrespecttoanyrecolnmendationthatthe Monitordeterminescannotreasonablybeimplementedwithinninety(90)calendardaysafter receiving the report, the M onitorm ay extend the tim e period forim plem entation with prior written approvalofthe Section. 19. TheM onitorshallundertake a second follow -up review pursuantto the sam e proceduresdescribed in Paragraphs 16-18. Follow ing the second follow -up review , the M onitor shallcertify w hetherthe Com pany'scom pliance program , including itspolicies and procedures , isreasonably designed and im plem ented to preventand detectviolationsofthe anti- corruption Iaw s, The finalfollow-up review and reportshallbe com pleted and delivered to the Section no laterthan thirty (30)daysbeforetheendoftheTerm . Monitor' sDiscoveryofpotentialorActualMisconduct 20. (a) Exceptassetforthbelow insub-paragraphs(b)and(c), should the M onitordiscoverduring the course ofhisorherengagem entthat: . im properpaym entsoranything else ofvalue may have been offered, prom ised,m ade,orauthorized by any entity orperson w ithin the D -8 Case 0:16-cr-60294-JIC Document 2 Entered on FLSD Docket 10/24/2016 Page 58 of 59 Com pany orany entity orperson w orking, directly orindirectly fororon , behalfofthe Com pany;or * the Com pany m ay have m aintained false books, recordsoraccounts;or (collectively,:tpotentialM isconduct''),theM onitorshallimmediattly reportthePotential M isconductto the Com pany'sGeneralCounsel, ChiefCom pliance O fficer and/orA udit , Com m ittee forfurtheraction, unlessthe PotentialM isconductw asalready so disclosed. The M onitoralso m ay reportPotentialM isconductto the Section atany tim e, and shallreport PotentialM isconductto the Section when itrequeststhe inform ation. (b) lftheMonitorbelievesthatanyPotentialMisconductactuallyoccurredor may constituteacrim inalorregulatory violation (ûW ctualM isconduct''), the M onitorshall im m ediately reportthe ActualM isconductto the Section. W hen the M onitordiscoversActual M isconduct,the M onitorshalldisclose the ActualM isconductsolely to the Section, and,in such cases,disclosureofthe A ctualM isconductto theG eneralCounsel, Chief Com pliance O fficer, and/orthe AuditCom m ittet ofthe Com pany should occurasthe Section and the M onitordeem appropriate underthe circum stances. The M onitorshalladdress in hisorherreportstheappropriatenessofthe Com pany'sresponse to disclosed PotentialM isconductorA ctualM isconduct, w hether previously disclosed to the Section ornot. Further, ifthe Com pany orany entity orperson working directly orindirectly fororon behalfofthe Com pany w ithholds inform ation necessary fortheperform ance ofthe M onitor'sresponsibilitiesand the M onitorbelievesthatsuch withholdingiswithoutjustcause,theMonitorshallalsoimmediatelydisclosethatfacttothe Section and addressthe Com pany'sfailure to disclose the necessaty infonmation in hisorher reports. Case 0:16-cr-60294-JIC Document 2 Entered on FLSD Docket 10/24/2016 Page 59 of 59 (d) TheCompany noranyoneacting on itsbehalfshalltakeany action to retaliate againstthe M onitorforany such disclosures orforany other reason. MeetingsDuringPendency ofMonitorshlp TheM onitorshallmeetwiththeSectionwithinthirty(30)calendardaysafter providing each reportto the Section to discussthereport, to befollowed by ameeting between the Section,the M onitor, and the Com pany. 22. Atleastannually, and more frequently ifappropriate, representativesfrom the Com pany and the Section w illm eettogetherto discussthe m onitorship and any suggestions, com m ents,orim provem entsthe Com pany m ay w ish to discussw ith orpropose to the Section, including with respectto the scope orcostsofthe m onitorship. ContemplatedConsdentialit y ofMonitor' sReports 23. The reports willlikely include proprietary, financial,confidential and com petitive , business inform ation. M oreover, public disclosure ofthereportscould discourage cooperation , orim pede pending orpotentialgovernm entinvestigationsand thusunderm ineth eobjectivesof the m onitorship. Forthese reasons, am ong others,the reportsand the contentsthereofare intended to rem ain and shallrem ain non-public, exceptasotherw ise agreed to by the partiesin w riting,orexceptto the extentthatthe Section determ ines in itssole discretion thatdisclosure would be in furtherance ofthe Section'sdischarge ofitsduties and responsibilitiesoris otherwise required by law. D -10
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