Settlement agreement

Abstract

2. California and Reynolds are parties to the Master Settlement Agreement (“MSA”) which settled the litigation entitled People of the State of California v. Philip Morris Inc., Sacramento County Superior Court No. 97AS03031, Judicial Council Coordination Proceeding No. 4041, and other claims and matters pending at the time of the settlement. Pursuant to the MSA, the Superior Court of California entered the Consent Decree and Final Judgment (“Consent Decree”) on December 9, 1998, retaining continuing jurisdiction for the purposes of implementing and enforcing the MSA and the Consent Decree.