Guam § 221202 - Definitions.

§ 221202. Definitions.

(a) “Adjusted for inflation” means increased in accordance

with the formula for inflation adjustment set forth in Exhibit C to

the Master Settlement Agreement.

(b) “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

ten percent (10%) or more, and the term “person” means an

individual, partnership, committee, association, corporation or

any other organization or group of persons.

(c) “Allocable share” means Allocable Share as that term is

defined in the Master Settlement Agreement.

(d) “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; or

(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

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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 clause (1) of this definition.

The term “cigarette” includes “roll-your-own” (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 (1) individual “cigarette.”

(e) “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.

(f) “Qualified escrow fund” means an escrow arrangement

with a federally or State chartered financial institution having no

affiliation with any tobacco product manufacturer and having

assets of at least $1,000,000,000 where such arrangement requires

that such financial institution hold the escrowed funds principal

for the benefit of releasing parties and prohibits the tobacco

product manufacturer placing the funds into escrow from using,

accessing or directing the use of the funds principal except as

consistent with section 221203(b).

(g) “Released claims” means Released Claims as that term is

defined in the Master Settlement Agreement.

(h) “Releasing parties” means Releasing Parties as that term

is defined in the Master Settlement Agreement.

(i) “Tobacco Product Manufacturer” means an entity that

after the date of enactment of this article directly (and not

exclusively through any affiliate):

(1) manufactures cigarettes anywhere that such

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

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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

such cigarettes does not market or advertise such cigarettes

in the United States);

(2) 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

(3) becomes a successor of an entity described in

Paragraph (1) or (2). The term “Tobacco Product

Manufacturer” shall not include an affiliate of a tobacco

product manufacturer unless such affiliate itself falls within

any of Paragraph (1) through (3) above.

(j) “Units sold” means the number of individual cigarettes

sold in the State by the applicable tobacco product manufacturer

(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 (or “roll-

your-own” tobacco containers) bearing the excise tax stamp of the

State. The Department of Revenue and Taxation shall promulgate

such regulations as are necessary to ascertain the amount of State

excise tax paid on the cigarettes of such tobacco product

manufacturer for each year.

(k) “State” means Guam or the government of Guam, as the

case may be.