Article I
General Obligations
The Parties agree that establishment of progressive measures for regional stability and arms control is essential to creating a stable peace in the region. To this end, they agree on the importance of devising new forms of cooperation in the field of security aimed at building transparency and confidence and achieving balanced and stable defense force levels at the lowest numbers consistent with the Parties' respective security and the need to avoid an arms race in the region. They have approved the following elements for a regional structure for stability.

Article II
Confidence and Security-Building Measures
in Bosnia and Herzeaovina
Within seven days after this Agreement (hereinafter "Annex") enters into force, the Republic of Bosnia and Herzegovina, the Federation of Bosnia and Herzegovina, and the Republika Srpska shall at an appropriately high political level commence negotiations under the auspices of the Organization for Security and Cooperation in Europe (hereinafter "OSCE") to agree upon a series of measures to enhance mutual confidence and reduce the risk of conflict, drawing fully upon the 1994 Vienna Document of the Negotiations on Confidence and Security-Building Measures of the OSCE. The objective of these negotiations is to agree upon an initial set of measures within forty-five (45) days after this Annex enters into force including, but not necessarily limited to, the following:
(a) restrictions on military deployments and exercises in certain geographical areas;
b) restraints on the reintroduction of foreign Forces in light of Article III of Annex 1-A to the General Framework Agreement;
(c) restrictions on locations of heavy weapons;
(d) withdrawal of Forces and heavy weapons to cantonment/barracks areas or other designated locations as provided in Article IV of Annex 1-A;
(e) notification of disbandment of special operations and armed civilian groups;
(f) notification of certain planned military activities, including international military assistance and training programs;
(g) identification of and monitoring of weapons manufacturing capabilities;
(h) immediate exchange of data on the holdings of the five Treaty on Conventional Armed Forces in Europe (hereinafter "CFE") weapons categories as defined in the CFE Treaty, with the additional understanding that artillery pieces will be defined as those of 75mm calibre and above; and
(i) immediate establishment of military liaison missions between the Chiefs of the Armed Forces of the Federation of Bosnia and Herzegovina and the Republika Srpska;

Article III
Regional Confidence and Security-Building Measures
To supplement the measures in Article II above on a wider basis, the Parties agree to initiate steps toward a regional agreement on confidence and security-building measures. The Parties agree:
(a) not to import any arms for ninety (90) days after this Annex enters into force;
(b) not to import for 180 days after this Annex enters into force or until the arms control agreement referred to in Article IV below takes effect, whichever is the earlier, heavy weapons or heavy weapons ammunition, mines, military aircraft, and helicopters. Heavy weapons refers to all tanks and armored vehicles, all artillery 75 mm and above, all mortars 81 mm and above, and all anti-aircraft weapons 20 mm and above.

Article IV
Measures for Sub-Regional Arms C

Article V
Regional Arms Control Armement
The OSCE will assist the Parties by designating a special representative to help organize and conduct negotiations under the auspices of the OSCE Forum on Security Cooperation ("FSC") with the goal of establishing a regional balance in and around the former Yugoslavia. The Parties undertake to cooperate fully with the OSCE to that end and to facilitate regular inspections by other parties. Further, the Parties agree to establish a commission together with representatives of the OSCE for the purpose of facilitating the resolution of any disputes that might arise.

Article VI
Entry into Force
This Annex shall enter into force upon signature.