'whereby' the union will receive

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Senior Member
Hi guys! I have been confused by the word "whereby", wondering what it means and how it works..

As in "They voted to accept a deal whereby the union will receive nearly three-quarters of a million pounds from the International Miners Organisation"

My dictionary gives me all the vague meanings over it. so I can't really understand how it works, so I am desperately eager to know its exact meaning. Thanks
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