Kitsumkalum Agreement-in-Principle CHAPTER 19—FISCAL RELATIONS General 1. The Parties acknowledge they each have a role in supporting Kitsumkalum through direct or indirect financial support or through access to public programs and services, as set out in the Fiscal Financing Agreement or provided through other arrangements pursuant to the Final Agreement. 2. In Final Agreement negotiations, the Parties will address fiscal matters including: a) Final Agreement provisions regarding the ongoing fiscal relationship among the Parties, including Agreed-Upon Programs and Services; b) funding arrangements to take effect no later than Effective Date that will set out terms, conditions and funding with respect to the responsibilities, including Agreed-Upon Programs and Services, assumed by Kitsumkalum, taking into account its ability to contribute from its own source revenues; and c) any other matters agreed to by the Parties. 3. The Parties have been advised that Canada is developing a new national fiscal policy, including a transparent methodology for determining levels of federal funding that may be provided to self governing aboriginal groups in Canada to support the delivery of Agreed-Upon Programs and Services, taking into account the ability of each self governing aboriginal group to generate revenues from its own sources. 4. Unless otherwise agreed by the Parties in a Fiscal Financing Agreement, the creation of the Kitsumkalum Government, the provision of Kitsumkalum Government legislative authority under the Final Agreement, or the exercise of Kitsumkalum Government legislative authority, does not create or imply any financial obligation or service responsibility on the part of any Party. 5. Any funding required for the purposes of the Fiscal Financing Agreement, or any other agreement that is reached as a result of negotiations that are required or permitted under any provision of the Final Agreement and that provides for financial obligations to be assumed by a Party, is subject to the appropriation of funds: a) in the case of Canada, by the Parliament of Canada; b) in the case of British Columbia, by the Legislature of British Columbia; or c) in the case of Kitsumkalum, by the Kitsumkalum Government. Page 113 of 140

Select target paragraph3