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then the account is not a U.S. Reportable Account, but payments to the Account Holder must be reported as

contemplated in subparagraph 1(b) of Article 4 of the Agreement.

VI. Special Rules and Definitions. The following additional rules and definitions apply in implementing the

due diligence procedures described above:

A. Reliance on Self-Certifications and Documentary Evidence. A Reporting Portuguese Financial Institution

may not rely on a self-certification or documentary evidence if the Reporting Portuguese Financial Institution

knows or has reason to know that the self-certification or documentary evidence is incorrect or unreliable.

B. Definitions.The following definitions apply for purposes of this Annex I.

1. AML/KYC Procedures. “AML/KYC Procedures” means the customer due diligence procedures of a

Reporting Portuguese Financial Institution pursuant to the anti-money laundering or similar requirements of

Portugal to which such Reporting Portuguese Financial Institution is subject.

2. NFFE. An “NFFE” means any Non-U.S. Entity that is not an FFI as defined in relevant U.S. Treasury

Regulations or is an Entity described in subparagraph B(4)(j) of this section, and also includes any Non-U.S.

Entity that is established in Portugal or another Partner Jurisdiction and that is not a Financial Institution.

3. Passive NFFE. A “Passive NFFE” means any NFFE that is not (i) an Active NFFE, or (ii) a withholding

foreign partnership or withholding foreign trust pursuant to relevant U.S. Treasury Regulations.

4. Active NFFE. An “Active NFFE” means any NFFE that meets any of the following criteria:

a) Less than 50 percent of the NFFE’s gross income for the preceding calendar year or other appropriate

reporting period is passive income and less than 50 percent of the assets held by the NFFE during the preceding

calendar year or other appropriate reporting period are assets that produce or are held for the production of

passive income;

b) The stock of the NFFE is regularly traded on an established securities market or the NFFE is a Related

Entity of an Entity the stock of which is regularly traded on an established securities market;

c) The NFFE is organized in a U.S. Territory and all of the owners of the payee are bona fide residents of

that U.S. Territory;

d) The NFFE is a government (other than the U.S. government), a political subdivision of such government

(which, for the avoidance of doubt, includes a state, province, county, or municipality), or a public body performing

a function of such government or a political subdivision thereof, a government of a U.S. Territory, an international

organization, a non-U.S. central bank of issue, or an Entity wholly owned by one or more of the foregoing;

e) Substantially all of the activities of the NFFE consist of holding (in whole or in part) the outstanding stock

of, or providing financing and services to, one or more subsidiaries that engage in trades or businesses other

than the business of a Financial Institution, except that an entity shall not qualify for NFFE status if the entity

functions (or holds itself out) as an investment fund, such as a private equity fund, venture capital fund, leveraged

buyout fund, or any investment vehicle whose purpose is to acquire or fund companies and then hold interests

in those companies as capital assets for investment purposes;

f) The NFFE is not yet operating a business and has no prior operating history, but is investing capital into

assets with the intent to operate a business other than that of a Financial Institution, provided that the NFFE shall

not qualify for this exception after the date that is 24 months after the date of the initial organization of the NFFE;

g) The NFFE was not a Financial Institution in the past five years, and is in the process of liquidating its assets

or is reorganizing with the intent to continue or recommence operations in a business other than that of a Financial

Institution;

h) The NFFE primarily engages in financing and hedging transactions with, or for, Related Entities that are

not Financial Institutions, and does not provide financing or hedging services to any Entity that is not a Related

Entity, provided that the group of any such Related Entities is primarily engaged in a business other than that of

a Financial Institution;

i) The NFFE is an “excepted NFFE” as described in relevant U.S. Treasury Regulations; or

j) The NFFE meets all of the following requirements: