Question $1$

Is the Enterprise a VIE as defined in the Codification Master Glossary? If so$,$ what

criteria cause it to be deemed a VIE? Assume that $(1)$ the Enterprise does not qualify for

any scope exceptions and $(2)$ the equity investment by the Nominee Shareholders in the

Enterprise represents equity investment at risk.

Question $2$

If the Enterprise is deemed to be a VIE, would the WFOE $($excluding any related party or

de facto agency relationships$)$ consolidate the Enterprise?