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<br />G-2 <br />of the Distributor Settlement Agreement, dated as of July 21, 2021 (as subsequently updated) <br />(the “Global Agreement”), a copy of which is attached hereto as Exhibit B (together with the <br />Washington Agreement, the “Agreements”) unless stated otherwise in the Washington <br />Agreement. Unless stated otherwise in the Washington Agreement, the terms of the Washington <br />Agreement are intended to be consistent with the terms of the Global Settlement and shall be <br />construed accordingly. <br />I. RECITALS: <br />1. Each Party warrants and represents that it engaged in arm’s-length negotiations in good <br />faith. In hereby executing the Agreements, the Parties intend to effect a good-faith settlement. <br />2. The State has determined that the Agreements are in the public interest. <br />3. The Settling Distributors deny the allegations against them and that they have any <br />liability whatsoever to the State, its Subdivisions, and/or (a) any of the State’s or Subdivisions’ <br />departments, agencies, divisions, boards, commissions, districts, instrumentalities of any kind and <br />attorneys, including its Attorney General, and any person in his or her official capacity whether <br />elected or appointed to serve any of the foregoing and any agency, person, or other entity claiming <br />by or through any of the foregoing, (b) any public entities, public instrumentalities, public <br />educational institutions, unincorporated districts, fire districts, irrigation districts, and other <br />Special Districts, and (c) any person or entity acting in a parens patriae, sovereign, quasi- <br />sovereign, private attorney general, qui tam, taxpayer, or other capacity seeking relief on behalf of <br />or generally applicable to the general public. <br />4. The Parties recognize that the outcome of the Action is uncertain and a final resolution <br />through the adversarial process likely will require protracted litigation. <br />5. The Parties agree to the entry of the injunctive relief terms pursuant to Exhibit P of the <br />Global Agreement. <br />6. Therefore, without any admission of liability or wrongdoing by the Settling Distributors <br />or any other Released Entities (as defined in the Global Agreement), the Parties now mutually <br />consent to the entry of this Judgment and agree to dismissal of the claims with prejudice pursuant