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Case 4:09-cr-00098 Document 23 Filed in TXSD on 12/06/10 Page 1 of 19




Plaintiff, )E-GOVERNM ENT ACT OF 2002
) Crim inalN o.11-09-098
Defendant. )


The United States Departm entofJustice,Crim inalDivision,Fraud Section

andtheDefendant,W ojciechJ.Chodan,pursuanttoRule11(c)(1)(A)ofthe
FederalRulesofCrim inalProcedure,state thatthey have entered into an

agreem ent,the term s and conditionsofw hich are asfollow s:

TheD efendant's A greem ent

1. The D efendantagreesto plead guilty to Count1 ofthe lndictm ent,

Crim inalN o. 11-09-098.Count1 ofthe lndictm entchargeshim w ith conspiracy

to com m itan offense againstthe United States,in violation ofTitle 18,United

StatesCode,Section 371. TheD efendant,by entering thisplea,agreesthathe is

waiving any rightto have the factsthatthe law m akesessentialto theplm ishm ent

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eitherchargedintheIndictmentorproven toajuryorprovenbeyondareasonable

2. Thisplea agreem entbindsonly the Crim inalD ivision ofthe United

States Departm entofJustice and the Defendant;itdoes notbind any U nited States

A ttorney orany otherD ivision oftheD epartm entofJustice.

Punishm entRange

3. The stam tory m axim um penalty fora violation ofTitle 18,United States

Code,Section 371,isim prisonm entfora term ofnotm ore than five yearsand a

fineofnotmorethan $250,000,ortwicethegrosspecuniary gain to theDefendant

orlossto thevictimts),whicheverisgreater.Additionally,theDefendantmay
receive a term ofsupervised release afterim prisonm entofup to three years. Title

18,United StatesCode,Sections3559($(4)and3583(b)(2).TheDefendant
acknow ledges and understandsthatshould he violate conditionsofsupervised

release which m ay be im posed aspartofhissentence,then the D efendantm ay be

im prisoned for an additionalterm ofup to tw o years,w ithoutcreditfortim e

already served on the term ofsupervised release priorto such violation. Title 18,

understandsthathe cannothave the im position orexecution ofthe sentence

suspended,norishe eligible forparole.

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M andatory SpecialA ssessm ent

4.PursuanttoTitle 18,UnitedStatesCode,Section3013(a)(2)(A),
im m ediately after sentencing,the Defendantw illpay to the Clerk ofthe United

States DistrictCourta specialassessm entin the am ountofone hundred dollars

($100.00).Thepaymentwillbeby cashier'scheckormoneyorder payabletothe

Clerk ofthe United StatesDistrictCourt, c/o DistrictClerk's Office,P.O .Box

61010, H ouston,Texas 77208,A ttention:Finance.

Restitution,Forfeiture,and Fines

5. Thisplea agreem entisbeing entered into by the U nited Stateson the

basisofthe Defendant'sexpressrepresentation thatthe D efendantw illm ake a full

and com plete disclosure ofallassetsoverw hich the D efendantexercisesdirector

indirectcontrol,orin w hich theD efendanthasany financialinterest.

6. The D efendantagreesto m ake com plete fnancialdisclosure to the

United Statesby truthfully executing a sw orn financialstatem entby the deadline

setby the United States,orifno deadline is set,no laterthan sentencing. The

Defendantagrees to authorize the release ofa1lfinancialinform ation requested by

the U nited States,including,butnotlim ited to,executing authodzation form sfor

the United Statesto obtain tax inform ation,barlk accountrecords,credithistory,

and socialsecurity inform ation. The D efendantagreesto discussoransw erany

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questionsby the U nited Statesrelating to theD efendant'scom pletefinancial


The Defendantagreesto forfeitto the U nited Statesallofhisright,title,

and interestin thesum of$726,885.lnpartialsatisfaction oftheforfeitureofthis

am ount,the partiescontem plate that,upon execution ofthisplea agreem ent,the

United Statesw illseek the transferto the U nited Statesofthe D efendant's assets

inUBS (Geneva)accountsnumberedxxx-xxxxxx andxxx-xxxxxxin Switzerland

thathavebeen frozen by the Sw issauthorities. The D efendantagreesto forfeitto

the U nited Statesand to w aive allrightsin,interestin,and title to the

aforem entioned accounts,to take allstepsasrequested by the U nited Statesto

facilitate the transferofthe assetsin the aforem entioned accountsto theU nited

States and the forfeiture ofthe assets therein,and to testify truthfully in any related

proceeding. The D efendantagreesthatal1ofthe aforem entioned property

constitutespropertysubjecttoforfeiturepursuanttoTitle18,United StatesCode,
Section 981(a)(1)(C).TheDefendantknowinglyandvoluntadly agreestowaive
any claim ordefense he m ay have underthe Eighth A m endm entto the United

States Constitution,including any claim ofexcessive tine orpenalty asto the

forfeited assets.

8. TheD efendantunderstandsthatunderthe United StatesSentencinM

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Guidelines,the Courtm ay orderthe D efendantto pay a fine to reim burse the

governm entforthe costs ofany im prisonm entorterm ofsupervised release.

C ooperation

9.Thepartiesunderstand thisagreem entcaniesthe potentialfora m otion

fordepartureunder Section 5K 1.1 oftheU nited States Sçntencina G uidelines.

The D efendantunderstands and agreesthatwhethersuch a m otion istsled w illbe

determ ined solely by the United States through the Fraud Section ofthe Crim inal

D ivision ofthe United StatesD epartm entofJustice. Should the D efendant's

çtsubstantialassistance,''the U nited Statesreservesthe sole rightto file a m otion

fordeparture pursuantto Section 5K 1.1 ofthe U nited States Sentencing

Guidelines. The Defendantunderstands and agreesthatthe U nited Statesm ay

requestthatsentencing be deferred untilhiscooperation iscom plete. The

Defendantagreesto persistin his pleaofguilty through sentencing and to fully

cooperate w ith the United States asdescribed below .

10. TheD efendantunderstandsand agreesthatttfully cooperate,''asused

herein,includesproviding a11inform ation relating to any crim inalactivity known

to the D efendant,including providing assistance to foreign authoritiesatthe

direction ofthe United States. The D efendantunderstandsthatthisincludes

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providing inform ation abouta1lstate,federal,and foreign 1aw offensesabout

which he hasknow ledge. ln thatregard:

(a) Defendantagreestotestifytruthfullyasawitnessbeforeagrandjury
upon to do so by the U nited States,including in a proceeding in a
A m endm entprivilege againstself-incrim ination forthe purpose of
this agreem ent;

(b) Defendantagreestovoluntarily attend anyinterviewsand

conferences asthe U nited Statesm ay request;

(c) Defendantagreestoprovidetruthful,completeandaccurate
inform ation and testim ony and understandsthatany false statem ents
m adeby theD efendantto the Grand Jury,atany courtproceeding
obstruction statutes;and

(d) DefendantagreestoprovidetotheUnitedStatesalldocumentsinhis
possession orunderhiscontrolrelating to allareasofinquiry and

(e) Shouldtherecommendeddeparture,ifany,notmeettheDefendant's
expectations,the Defendantunderstandshe rem ainsbound by the
term softhisagreem entand cannot,forthatreason alone,w ithdraw

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W aiver ofAppeal

11. The Defendantisaware thatTitle 18,United StatesCode,Section 3742

affordsa Defendantthe rightto appealthe sentence im posed. A dditionally,the

D efendantisaw are thatTitle 28,United StatesCode,Section 2255,affordsthe

rightto contestorttcollaterally attack''a conviction or sentence afterthe

conviction orsentence hasbecom e Rnal. The Defendantagrees to w aivethe right

to appealthe sentence im posed orthe m anner in w hich itwas determ ined,and the

D efendantw aivesthe rightto contesthisconviction or sentence by m eans ofany

post-conviction proceeding.

12. ln agreeing to these w aivers,the D efendantisaw are thata sentence has

notyetbeen determ ined by the Court. The Defendantis also aw are thatany

prom ise,representation,orestim ate ofthe possible sentencing range underthe

Sentencing Guidelinesthathe m ay have received from hiscounsel,the U nited

States,orthe Probation Offce isa prediction,notaprom ise,did notinduce his

guilty plea,and isnotbinding on the U nited States,the Probation Office,orthe

Court. The D efendantfurtherunderstands and agreesthatthe U nited States

SentençinMsuidelinesareiçeffectively advisory''totheCourt. United Statesv.

although the Courtm ustconsultthe United States Sentencing G uideline:and m ust

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take them into accountw hen sentencing the Defendant,the C ourtis notbound to

follow the United StatesSentencina Guidelines and is notrequired to sentence the

D efendantwithin the calculated guideline range.

13. The D efendantunderstandsand agreesthatallw aiverscontained in the

agreem entarem ade in exchange forthe concessionsm ade by the United States in

thisplea agreem ent. lfthe D efendantinstructshis attorney to file a notice of

appealofhissentence orofhisconviction,orifthe Defendantinstructshis

attorney to file any otherpost-conviction proceeding attacking hisconviction or

sentence,theD efendantunderstandsthatthe United States willseek specific

perform ance ofthe Defendant'sw aiversin thisplea agreem entofthe Defendant's

rightto appealhis conviction orsentence and ofthe Defendant'srightto file any

post-conviction proceedings attacking his conviction orsentence.

The United States'A greem ents

14. The U nited Statesagreesthat,ifthe D efendantpleads guilty to Count 1

ofthe lndictm entand persistsin thatplea through sentencing,and ifthe Court

acceptsthisplea agreem ent,the U nited Statesw illm ove to dism issthe rem aining

colm tsofthe Indictm entatthe tim e ofsentencing.

United States'N on-W aiver ofAppeal

The U nited Statesreservesthe rightto cany outitsresponsibilities

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underguidelinessentencing. Specitk ally,the U nited Statesreservesthe right:

(a) to bring itsversion ofthefactsofthiscase,including itsevidencefile

and any investigative files,to the attention ofthe Probation O ffice in
connection w ith thatoffice'spreparation ofa presentence report;

(b) tosetforthordisputesentencingfactorsorfactsmaterialto

(c) toseekresolution ofsuchfactorsorfactsinconferencewiththe

Defendant'scounseland the Probation O ffice;

(d) tofileapleadingrelatingtotheseissues,inaccordancewithU.S.S.G.
Section6A1.2andTitle 18,UnitedStatesCode,Section 3553(a)'

(e) toappealthesentenceimposedorthemalmerin whichitwas


Sentence D eterm ination

16. The D efendantisaw arethatthe sentence w illbe im posed after

consideration ofthe U nited States SentencinM Guidelinesand Policy Statem ents.

which are only advisory,asw ellastheprovisions ofTitle 18,U nited States Code,

Section 35534$.TheUnitedStatesandtheDefendantagreethattheapplicable
Sentencing Guidelinesrange exceedsthe statutory m axim um sentence offive

years'im prisonm ent. Therefore,pursuantto U .S.S.G .Section 5G 1.1,the

applicable guideline sentence isfive years'im prisonm ent. The D efendantagrees

thathe w illnotm ove fora downw ard departure on any groundsand that,asofthe

tim e ofthis agreem ent,no such groundsare applicable,norw illhe seek a variance

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from the applicable guidelinessentence pursuantto the factorsin Title 18,United

Courthas authority to im pose any sentence up to and including the statutory

m axim um forthe offense to w hich the Defendantpleadsguilty,and thatthe

the Coul'thasconsulted the applicable sentencing guidelines. The partiesagree

thata sentence w ithin the applicable Sentencing G uidelinesrange,ifdeterm ined in

accordance w ith the parties'stipulations in thisA greem ent,w ould constitute a

reasonable sentence in lightofallofthe factors setforth in Title 18,U nited States

positionsregarding the application ofthe Sentencing G uidelines do notbind the

Courtand thatthe sentence im posed isw ithin the discretion ofthe sentencing

judge.lftheCourtshouldimposeanysentenceuptothemaximum establishedby
statute,the D efendantcannot,forthatreason alone,w ithdraw hisguilty plea,and

willrem ain bound to fulfillal1ofthe obligationsunderthisplea agreem ent.

Rightsat Trial

17. The D efendantrepresents to the Courtthathe is satisfied thathis

attorneyshaverendered effective assistance. The D efendantunderstandsthatby

enteling into thisagreem ent,he surrenderscertain rightsasprovided in thisplea

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agreem ent. The Defendantunderstandsthatthe rights ofa defendantinclude the


(a) lftheDefendantpersistedinapleaofnotguiltytothecharges,the

(b) Atatrial,theUnited Stateswouldberequiredtopresentwitnesses

and otherevidence againstthe D efendant. The D efendantw ould
have the opportunity to confrontthose witnessesand his attorney
would be allow ed to cross-exam ine them . ln t'urn,the Defendant
could,butwould notbe required to,presentw itnessesand other
evidence on hisown behalf. lfthe w itnesses forthe D efendant
w ould notappearvoluntarily,he could require theirattendance
through the subpoena powerofthe court.

(c) Atatrial,theDefendantcouldrelyonaprivilegeagainstself-
incrim ination and decline to testify,and no inference ofguiltcould be
drawn from such refusalto testify. How ever,ifthe D efendantdesired
to do so,he could testify on hisown behalf.

FactualBasisfor G uilty Plea

contained in Count1 ofthe lndictm ent. Ifthiscase were to proceed to trial,the

United Statesw ould prove each elem entofthe offense beyond a reasonable doubt.

The follow ing facts,am ong others,w ould be offered to establish theD efendant's


a. Atal1tim esrelevantto the Indictm ent,CH OD AN wasa United

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K ingdom citizen and a residentofEngland,United K ingdom .

CHODAN wasacommercialvicepresident(anon-offcerposition)
and then,begirm ing in 1999,a consultantforM .W .K ellogg Ltd.,
w hich w as a United K ingdom subsidiary ofThe M .W .K ellogg
CompanyandthenKellogg,Brown& Root,lnc.(collectively,
tçKRR'').CHODAN reportedtoKBR'SCEO,AlbertJacksonStanley
(1çStanley''),amongothers.CHODAN actedasan agentofa
tçdom estic concem ''w ithin the m eaning ofthe Foreign Com zpt
PracticesAct,Title 18,United StatesCode,Section 78dd-2(a)and
(h)(1)(B).CHODAN andhisco-conspiratorgcommittedactsin
furtherance ofthe schem e described below in Houston,Texas.

b. A ta11tim esrelevantto the Indictm ent,CHO DA N assisted KBR and

engineering,procurement,andconstruction (:çEPC'')contractsto
between 1995 and 2004 (corresponding to Trains 1and 2, 'Train 3'
Trains4and 5, 'andTrain 6),collectivelyvaluedatover$6billion,to
build liquefied naturalgas(çtNG'')facilitieson Bonny Island,
N igeria.

C. CHO DA N believed thatthe supportofN igerian governm entofficials,

including top-levelexecutive branch officials,high-levelPetroleum
M inistry offkials,N N PC oftk ials,and N LN G officialsand
employees,wasnecessaryfortheBonnyIslandProjectEPC contracts
to be awarded to TSK J. CHO D AN believed thatitwas necessary for
TSK Jto pay bribesto N igerian governm entofficialsin orderto
secure theirsupportforthe aw ard ofthe EPC contractsto TSK J.
From in oraround 1994 through in oraround June 2004,CH OD AN
agreed with Stanley and others to pay bribesto N igerian govem m ent
offcials in orderforTSK J,KB R,and othersto obtain and retain the
EPC contractstobuildtheBonnyIslandProject.CHODAN knew
thatitw asunlaw fulunderU .S.1aw to bribe foreign governm ent

d. ln 1994,1999,2001,and 2002,CH ODA N recom m ended and agreed

to thehiring ofJeffreyTeslerand Tri-starlnvestmentsLtd.(ççTri-

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Star'')byTSKJ,expectingthatTeslerand Tri-starwouldpaybribes
to high-levelNigerian governm entoftk ialsto assistTSKJ, K BR,and
othersin w inning the EPC contracts to build the Bolm y Island
Project.In 1996,1999,and2001,CHODAN alsorecommendedand
agreed to the hiring ofa globaltrading com pany headquartered in
Tokyo,Japan(çf onsultingCompanyB'')byTSKJ,expectingthat
Consulting Com pany B would pay bribesto low erlevelN igerian
governm entofficialsto assistTSK J,K BR,and others in w inning the
EPC contractstobuildtheBonnylslandProject.
e. AtcrucialjuncturesinthelifeoftheBomly IslandProject,
CH ODA N ,Stanley,and othersm etw ith successiveholdersofa top-
leveloffice in the executivebranch ofthe Govem m entofN igeria to
confirm thatTSK J should use Tesleras itsagentand to learn or
confirm who the office holderhad designated asa representative w ith
whom TSK J and Teslershould negotiate bribesto N igerian
govem m entofficials. O n oraboutN ovem ber30,1994,Stanley and
othersm etw ith the firstsuch top-levelexecutive branch officialin
M inistry ofPetroleum ashisrepresentative. Thereafter,Stanley and
othersauthorized TSKJ to enterinto a consulting agreem entwith Tri-
Starproviding forTSKJtopay it$60 million iftheEPC contractfor
Trains 1 and 2 w asaw arded to TSKJ. CH O DAN understood that
Teslerhad negotiatedthe$60m illion feewith the high-levelofficial
oftheM inistryofPetroleum andthatthe $60 million feewould be
used,in part,to pay bribesto N igerian govem m entofficials.

On oraboutM ay 1,1997,CH O DAN ,Stanley,and othersm etin

Abuja,Nigeria,withthesametop-levelexecutivebranch officialto
ask the officialto nom inate arepresentative w ith w hom TSK J should
negotiatebribesto N igerian goverm nentofficials in exchange forthe
aw ard to TSK J ofan EPC contractto build Train 3. A tthe m eeting,
the top-levelexecutive branch officialdesignated a seniorexecutive
branch officialashisrepresentative.

g. On oraboutFebruary 28,1999,CH OD AN ,Stanley,and others m etin


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the m eeting,Stanley asked the top-levelexecutive branch officialto

nom inate a representativew ith whom TSK J should negotiate bribes
to N igerian governm entofficials in exchange forthe aw ard to TSK J
ofan EPC contractto build Train 3 Atthe m eeting,the second top-

levelexecutive branch offcialdesignated one ofhis advisers ashis


h. On oraboutM arch 5,1999,CH ODA N , Stanley,and otherco-

conspiratorsm etatahotelin London,England,w ith the adviser
designated by the second top-levelexecutivebranch oflcialto
negotiate the am ountofbribesto be paid to the second top-level
executive branch officialand otherN igerian governm entofficialsin
exchange forthe aw ard to TSK J ofan EPC contractto build Train 3 .

The am ountnegotiated w ith the representative form ed the basisfor

the$32.5m illion feethatTSKJprom isedto pay Tri-starifthe Train
3 EPC contractw asaw arded to TSKJ.

On oraboutN ovem ber 11,2001,Stanley and anotherco-conspirator

to ask the officialto nom inate a representative w ith w hom Joint
Venture should negotiate bribesto N igerian govem m entofficialsin
exchange forthe award to JointV enture ofan EPC contractto build
Trains4 and 5. Atthe m eeting,the third top-levelexecutivebranch
offk ialdesignated a top-levelofficialofN NPC as hisrepresentative.
A sEPC ContractorA l's seniorrepresentative on JointV enture's
Steering Com m ittee,STAN LEY authorized JointV enture to enter
into a consulting agreem entwith Consulting Com pany A providing
forJointVenturetopay it$51m illion iftheEPC contractforTrains4
and 5 w asaw arded to JointV enture. A tthe tim e,STAN LEY
intended thatthe$51m illion feewouldbeused,in part,topaybribes
to N igerian governm entofficials.

On oraboutM ay 28,2002,CH OD AN and othersauthorized TSK Jto

enter into a consulting agreem entwith Tri-starforthe Train 6 EPC
contract.Atthetime,CHODAN intended thatthe $23 million fee
w ould be used,in part,to pay bribesto N igerian govem m entoffcials.

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B reach ofPlea A greem ent

19. Ifthe D efendantshould failin any w ay to 1 1f111com pletely allofthe

obligationsunderthisplea agreem ent,the U nited Statesw illbe released from its

obligationsunderthe plea agreem ent,and the D efendant'splea and sentencew ill

stand. Ifatany tim e the D efendantretains,conceals ordisposesofassetsin

violation ofthisplea agreem ent,orifthe D efendantknow ingly withholds

evidence orisotherwise notcom pletely trtlthfulw ith the U nited States,then the

United Statesm ay m ove the Courtto setaside the guilty plea and reinstate

prosecution. Any inform ation and docum entsthathave been disclosed by the

Defendant,whetherprioror subsequentto thisplea agreem ent,and allleads

derived therefrom ,w illbe used againstthe D efendantin any prosecution.

20. W hetherthe D efendanthasbreached any provision ofthisplea

agreem entshallbe determ ined solely by the U nited Statesthrough the Fraud

Section ofthe Crim inalDivision ofthe United StatesD epartm entofJustice,

C om plete Agreem ent

21. Thisw ritten plea agreem ent,consisting of 18 pages,including the

attached addendum ofthe D efendantand his attom ey,constitutesthe com plete

plea agreem entbetw een the United States,the D efendant,and hiscounsel. N o

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prom isesorrepresentationshave been m ade by the United Statesexceptas set

forth in writing in this plea agreem ent. The Defendantacknow ledgesthatno

threatshave been m ade againsthim and thathe is pleading guilty freely and

voluntarily becausehe isguilty.

22. Any m odification ofthisplea agreem entm ustbe in w riting and signed

by allparties.

FiledatHouston,Texas,onl 4,2010.
/v ')
r w
gyj ay . e t>

subscubedandswomtobeoremeon( ,2a10.

By: O
D u United States DistrictClerk




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W illiam J.Sm c isch

A ssistantChief
D .C.BarN o.457278

ï X
Patrick F.Stokes
Deputy Chief
M aryland State Bar

Fraud Section,Crim inalDivision

U .S.D epartm entofJustice
1400 N ew York A ve,ltm 3428
W ashington,D C 20005

) ,x.,-z ..

-. ..
. yp
A ndrew Lourie
AttorneyforDefendantW ojciechJ.Chodan

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Plaintiff, )
) Crim inalN o.11-09-098
Defendant. )


lhavefully explained to the Defendanthis rightsw ith respectto the

lndictm ent. l have reviewed the provisionsofthe United States SentencinM

Guidelinesand 1have fully and carefully explained to theD efendantthe

provisionsofthose Guidelinesw hich m ay apply in thiscase. Ihave also

explained to the D efendantthatthe Sentencing Guidelinesare only advisory.

Further,lhave carefully reviewed every partofthisplea agreem entw ith the

D efendant. To m y knowledge,the D efendant'sdecision to enter into this

agreem entis a info ed and voluntary one.


:14-. /2sl o/
AttorneyfortheDefeâdant ate

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1have consulted w ith m y attorney and fully understand allm y rights with

respectto the Indictm entagainstm e. M y attom ey hasfully explained and 1

understand allm y rightsw ith respectto theprovisionsofthe United States

Sentencing Guidelineswhich m ay apply in m y case. 1have read and carefully

review ed every partofthisplea agreem entw ith m y attorney. 1understand this

agreem entand lvoluntarily agree to itsterm s.

I/ (/ lo
D endant D ate

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