STATE OF MARYLAND OFFICE OF THE ATTORNEY GENERAL TOBACCO PRODUCT MANUFACTURER CERTIFICATION (Pursuant to Md. Code, Bus. Reg. §§ 16-501 to 16-508) I. GENERAL INFORMATION Who is required to file this certification? Any Tobacco Product Manufacturer that intends to sell cigarettes or roll-your-own (RYO) tobacco within the State of Maryland, whether directly or through any distributor, retailer, or similar intermediary. This certification is in addition to any certificate of compliance that may be required pursuant to Maryland Code Annotated, Business Regulation Article §§ 16-401 to 16-403. When is this certification due? Tobacco Product Manufacturers wishing to be listed on the Maryland Tobacco Directory must execute and file an annual certification postmarked on or before April 30th of each year. Manufacturers must file a supplemental certification thirty calendar days prior to making any changes to the information provided in their annual certification. A manufacturer not previously listed on the Maryland Tobacco Directory may file a new certification at any time. Definitions used in the certification: (a) "Affiliate" means a person who directly or indirectly owns or controls, is owned or controlled by, or is under common ownership or control with, another person. Solely for purposes of this definition, the terms "owns," "is owned," and "ownership" mean ownership of an equity interest, or the equivalent thereof, of 10 percent or more, and the term "person" means an individual, partnership, committee, association, corporation or any other organization or group of persons. "Brand Family" means all styles of cigarettes sold under the same trademark, including cigarettes differentiated from one another by means of additional modifiers or descriptors such as "menthol", "kings", "100s", or other differentiation. (b) American LegalNet, Inc. www.FormsWorkFlow.com (c) "Cigarette" means any product that contains nicotine, is intended to be burned or heated under ordinary conditions of use, and consists of or contains: (1) any roll of tobacco wrapped in paper or in any substance not containing tobacco; (2) tobacco, in any form, that is functional in the product, which, because of its appearance, the type of tobacco used in the filler, or its packaging and labeling, is likely to be offered to, or purchased by, consumers as a cigarette; or (3) any roll of tobacco wrapped in any substance containing tobacco which, because of its appearance, the type of tobacco used in the filler, or its packaging and labeling, is likely to be offered to, or purchased by, consumers as a cigarette described in item (1) of this paragraph. Cigarette includes roll-your-own tobacco (i.e., any tobacco which, because of its appearance, type, packaging, or labeling is suitable for use and likely to be offered to or purchased by consumers as tobacco for making cigarettes). For purposes of this definition of cigarette, 0.09 ounces of roll-your-own tobacco shall constitute one individual cigarette. "Directory" means the listing of all Tobacco Product Manufacturers that have provided current and accurate certifications that meet the requirements of Md. Code Ann., Bus. Reg. § 16-503 and have been certified by the Attorney General as in full compliance with both the Escrow Act and Md. Code Ann., Bus. Reg. §§16-501 et seq. and the Brand Families that are listed in their certifications. "Escrow Act" means the Tobacco Product Manufacturers Escrow Act, as codified in Md. Code Ann., Bus. Reg. §§ 16-401 to 16-403. "Master Settlement Agreement" means the settlement agreement and related documents entered into on November 23, 1998, by the State and leading United States tobacco product manufacturers. "Nonparticipating Manufacturer" means any Tobacco Product Manufacturer that is not a Participating Manufacturer in the Master Settlement Agreement agreed to by most States, the major tobacco product manufacturers, and many smaller tobacco product manufacturers. "Participating Manufacturer" means a Tobacco Product Manufacturer that is or becomes a signatory to the Master Settlement Agreement, as further qualified by the definition in Section II(jj) of the Master Settlement Agreement and all amendments to the agreement. "Qualified Escrow Fund" means an escrow arrangement with a federally or state chartered financial institution having no affiliation with any Tobacco Product 2 (d) (e) (f) (g) (h) (i) American LegalNet, Inc. www.FormsWorkFlow.com Manufacturer and having assets of at least $1,000,000,000 where such arrangement requires that such financial institution hold the principal of the escrowed funds for the benefit of releasing parties and prohibits the Tobacco Product Manufacturer that places the funds into escrow from using, accessing, or directing the use of the principal of the funds except as consistent with the Escrow Act. (i) "Tobacco Product Manufacturer" (TPM) means an entity that, after June 1, 1999, directly and not exclusively through any Affiliate: (1) manufactures cigarettes anywhere that the manufacturer intends to be sold in the United States, including cigarettes intended to be sold in the United States through an importer (except where such importer is an original participating manufacturer (as that term is defined in the Master Settlement Agreement) that will be responsible for the payments under the Master Settlement Agreement with respect to such cigarettes as a result of the provisions of subsection II(mm) of the Master Settlement Agreement and that pays the taxes specified in subsection II(z) of the Master Settlement Agreement, and provided that the manufacturer of the cigarettes does not market or advertise the cigarettes in the United States); is the first purchaser anywhere for resale in the United States of cigarettes manufactured anywhere that the manufacturer does not intend to be sold in the United States; or becomes a successor of an entity described in subparagraph (1) or (2) of this paragraph. (2) (3) The term "Tobacco Product Manufacturer" shall not include an Affiliate of a Tobacco Product Manufacturer unless such Affiliate itself falls within any provisions of subparagraph (1), (2), or (3) of this paragraph. (j) "Units Sold" means the number of individual cigarettes sold in the State by the applicable TPM, whether directly or through a distributor, retailer, or similar intermediary or intermediaries, during the year in question, as measured by excise taxes collected by the State on packs bearing