Document:

Document

Exhibit 10.1

EXECUTION VERSION
MASTER AGREEMENT TO RESOLVE JCCP No. 4861 PRIVATE PARTY CLAIMS 
This Master Agreement to Resolve JCCP No. 4861 Private Party Claims (the “Agreement”) is entered into by and between (i) Defendant Southern California Gas Company, (ii) Defendant Sempra Energy, and (iii) the plaintiff law firms listed on the signature pages hereto under the heading “Plaintiffs’ Counsel” (each individual law firm, a “Plaintiffs’ Counsel Firm,” and such firms collectively “Plaintiffs’ Counsel”) on behalf of their respective Eligible Plaintiffs (as defined below). Defendants (as defined below) and Plaintiffs’ Counsel, on behalf of all Eligible Plaintiffs they represent, are referred to herein collectively as the “Parties” and individually as a “Party.”  
1.PREAMBLE 
This Master Agreement to Resolve JCCP No. 4861 Private Party Claims provides for the resolution of all causes of action, disputes, claims and allegations asserted by plaintiffs in individual actions in the Judicial Council Coordination Proceeding No. 4861 in the Los Angeles Superior Court (“JCCP”). Pursuant to the terms set forth herein, and subject to the satisfaction, or waiver by the Defendants (in Defendants’ sole and absolute discretion), of the Conditions Precedent as set forth herein, Defendants shall pay up to one billion eight hundred million dollars ($1,800,000,000) in full and final settlement of all Claims of all Eligible Plaintiffs.  The Final Settlement Amount shall be determined based on the number of Releasors.

2.DEFINITIONS
2.1The term “Action(s)” shall refer to the lead case captioned William Gandsey, et al., v. Southern California Gas Company, et al., Los Angeles Superior Court (“LASC”) Case No. BC601844, and all complaints or cases brought on behalf of Eligible Plaintiffs which are identified on Attachment B that have been coordinated in Judicial Council Coordination Proceeding No. 4861 titled “Southern California Gas Leak Cases”.  This Agreement excludes and is inapplicable to the complaints or cases filed by Developer Plaintiffs, property class plaintiffs and business class plaintiffs, the Proposition 65 plaintiffs, and the shareholder derivative cases, all as set forth on Attachment C.  
2.2The term “Agency Proceedings” shall mean any proceedings overseen by the California Public Utilities Commission (“CPUC”), California Department of Conservation, Geologic Energy Management Division or any other government regulatory agencies arising from the events alleged or related to the allegations in the Southern California Gas Leak Cases.
2.3The term “Attachment D Plaintiffs” shall have the meaning set forth in Section 5.3.
2.4The term “Attachment E” shall mean the Preliminary Attachment E, until the time that the Parties have approved the Updated Attachment E pursuant to Section 6.2(b), at which point in time all references to Attachment E herein shall be deemed to refer to such Updated Attachment E. 
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2.5The term “Claim(s)” shall be defined as broadly as possible, and shall include but not be limited to any and all claims of injury, loss or damage of any nature whatsoever that an Eligible Plaintiff has or may acquire against Defendants arising from, related to, or in any way pertaining to, the allegations in the Actions, or that have been or could have been asserted in the Action(s), whether presently known or unknown, developed or undeveloped, discovered or undiscovered, foreseen or unforeseen, matured or unmatured, accrued or not accrued, or now recognized by law or that may be created or recognized in the future by statute, regulation, rule, judicial decision or in any other manner.
2.6The term “Claims Administrators” shall mean Hon. Louis Meisinger (Ret.) and Hon. Scott Gordon (Ret).
2.7The term “Claims Processor” shall mean BrownGreer PLC.
2.8The term “CMO 6 Withholding” shall have the meaning set forth in Section 4.5. 
2.9The term “Condition(s) Precedent” shall mean the conditions precedent (set forth in Section 4.1) to the obligation of Defendants to transfer the Final Settlement Amount. 
2.10The term “the Court” shall have the meaning set forth in Section 5.1.
2.11The term “CP Satisfaction Date” shall mean the date upon which the Conditions Precedent have either been satisfied, or waived by Defendants (in Defendants’ sole and absolute discretion), as set forth in Section 4.1.  
2.12The term “CP Satisfaction Date Deadline” means June 1, 2022, which date is  subject to any extensions as may be agreed to by all Parties, each in their sole and absolute discretion.
2.13The term “Defendants” shall mean Southern California Gas Company and Sempra Energy, as well as any of their past, present, or future corporate subsidiaries, divisions, affiliates, parents, joint ventures, predecessors, related companies, successors and assigns, and all of their respective current or former officers, directors, employees, agents, shareholders, owners, consultants, insurers and attorneys, and all of their respective heirs, assigns and estate representatives.
2.14The term “Developer Plaintiffs” shall mean Toll Brothers, Inc., Porter Ranch Development Company, TF Hidden Creeks, L.P., Forestar Chatsworth, LLC, Shapell Liberty Investment Properties, Daniel Singh and Land Developers & Associates Corporation.
2.15The “Effective Date” for this Agreement shall be the date upon which the Parties have executed and delivered this Agreement.  
2.16The term “Eligible Plaintiff(s)” shall mean the plaintiffs who/which are listed on Updated Attachment E (including, for purposes of clarity, the Reconciled Plaintiffs identified pursuant to Section 5.3 and the EN Plaintiffs identified pursuant to Section 5.8).  For further purposes of clarity, “Eligible Plaintiff(s)” does not mean the Attachment D Plaintiffs as set forth on Updated Attachment D as agreed to by the Parties pursuant to Section 5.3. Notwithstanding 
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any other provision of this Agreement to the contrary, for purposes of calculating the numerator of the Participation Thresholds only, the term Eligible Plaintiffs shall exclude the Settling EN Plaintiffs.  The Parties acknowledge and agree that there are Eligible Plaintiffs who are represented by counsel who are not Plaintiffs’ Counsel.  
2.17The term “Eligible Plaintiffs (Bellwether)” shall mean the Eligible Plaintiffs identified on Attachment F. 
2.18The term “Eligible Plaintiffs (Discovery Pool)” shall mean the Eligible Plaintiffs identified on Attachment G.
2.19The term “Eligible Plaintiffs (Group B)” shall mean, collectively, all the Eligible Plaintiffs represented by Plaintiffs’ Counsel identified on Updated Attachment E.
2.20The term “Eligible Plaintiffs (Group C)” shall mean the Eligible Plaintiffs who resided within (or with respect to Entity Plaintiffs, whose address or place of business was within) a five-mile radius of well SS-25 located at Defendants’ Aliso Canyon Underground Gas Storage Facility as identified on Updated Attachment E.
2.21The term “Eligible Plaintiffs (Group D)” shall mean the Eligible Plaintiffs who resided outside (or with respect to Entity Plaintiffs, whose address or place of business was outside) the five-mile radius of well SS-25 located at Defendants’ Aliso Canyon Underground Gas Storage Facility as identified on Updated Attachment E.
2.22The term “EN Plaintiffs” shall mean the natural persons (capped at sixty (60)) who will be identified by name and plaintiff ID number pursuant to the provisions of Section 5.8.  
2.23The term “Entity Plaintiff” shall mean a plaintiff in the Actions that is not a natural person.
2.24The term “Final Settlement Amount” shall have the meaning set forth in Section 4.2.
2.25The term “Individual Release” shall mean (i) for each natural person, the separate “Release of All Claims of Individual Releasor (Natural Person)” in the form set forth on Attachment A-1 to be approved by the Court, and (ii) for each Entity Plaintiff, the separate “Release of All Claims of Individual Releasor (Entity Plaintiff)” in the form set forth on Attachment A-2 to be approved by the Court, in each case, to be executed and delivered to the Defendants by each settling Eligible Plaintiff. 
2.26The terms “Lien Resolution Administrator” or “LRA” shall mean BrownGreer PLC.
2.27The term “Maximum Settlement Amount” means one billion eight hundred million dollars ($1,800,000,000). 
2.28The term “Minor Eligible Plaintiff” shall mean an Eligible Plaintiff who is a minor or has a disability requiring the appointment of a legal guardian(s).
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2.29The term “Non-Settling Eligible Plaintiff” shall mean an Eligible Plaintiff who does not execute and deliver to Defendants an Individual Release.
2.30The term “Order to Show Cause” shall mean the Stipulation and Order to Show Cause re: Dismissal Relating to Private Plaintiff Discovery Questionnaires (signed and dated October 17, 2018) as clarified by the Court’s November 13, 2018, Further Clarification on Court Order re Questionnaire Deadlines.
2.31The term “Participation Thresholds” shall mean the number of Eligible Plaintiffs who must submit an Individual Release in order to meet or exceed the percentages provided in Section 4.1.  
2.32The term “Plaintiffs’ Counsel” shall mean the counsel listed in the signature pages hereto under the heading “Plaintiffs’ Counsel.”
2.33The term “Preliminary Attachment D” shall mean the Attachment D attached hereto as of the Effective Date. 
2.34The term “Preliminary Attachment E” shall mean the Attachment E attached hereto as of the Effective Date. 
2.35The term “QSF” shall have the meaning set forth in Section 4.4.
2.36The term “QSF Account” shall have the meaning set forth in Section 4.4.
2.37The term “QSF Trustee” shall have the meaning set forth in Section 4.4.
2.38The term “Reconciled Plaintiffs” shall mean all plaintiffs who/which are included on Preliminary Attachment D but who/which are not included on Updated Attachment D pursuant to the provisions of Section 5.3. 
2.39The term “Reduction” shall mean a reduction to the Maximum Settlement Amount calculated using the following formula.  First, the reduction is initially calculated by an amount equal to fifty thousand dollars ($50,000) per number of plaintiffs fewer than 35,717 Eligible Plaintiffs identified on Updated Attachment E.  Second, the amount of the reduction is then increased by an amount equal to fifty thousand dollars ($50,000) per Eligible Plaintiff for each Eligible Plaintiff on Updated Attachment E (which, pursuant to the provisions of Section 6.2(b), could include more than 35,717 Eligible Plaintiffs) who does not execute and deliver an Individual Release.  Finally, the amount of the reduction is then reduced by an amount equal to fifty thousand dollars ($50,000) multiplied by the number of Settling EN Plaintiffs, capped at three million dollars ($3,000,0000).  By way of example only, if there are only 35,000 Eligible Plaintiffs identified on Updated Attachment E, and if only 34,500 Eligible Plaintiffs execute and deliver an Individual Release, and if there are ten (10) Settling EN Plaintiffs identified pursuant to Section 5.8, then the amount of the Reduction shall equal: ($50,000 x 717) + ($50,000 x 500) – ($50,000 x 10) = $60,350,000.  By way of further example only, if there are 38,000 Eligible Plaintiffs identified on Updated Attachment E, and if only 37,500 Eligible Plaintiffs execute and deliver an Individual Release, and if there are ten (10) Settling EN Plaintiffs identified pursuant 
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to Section 5.8, then the amount of the Reduction shall equal: ($50,000 x 0) + ($50,000 x 500) – ($50,000 x 10) = $24,500,000.
2.40The term “Releasors” shall mean all Eligible Plaintiffs who execute and deliver to Defendants (via Claims Administrators) an Individual Release and, for purposes of clarity, with respect to Minor Eligible Plaintiffs, such Eligible Plaintiffs who have obtained an order approving a Settling Minors’ Compromise Petition. 
2.41 The term “Settling EN Plaintiffs” shall mean those EN Plaintiffs who have executed and delivered to Defendants an Individual Release before the CP Satisfaction Date Deadline.
2.42The term “Settling Minors’ Compromises” shall mean the settlements of all Minor Eligible Plaintiffs.
2.43The term “Settling Minors’ Compromise Petition(s)” shall have the meaning set forth in Section 6.2(c).
2.44The term “Stay Period” shall mean the period beginning on the fifth (5th) business day after the Effective Date and terminating on the day that is one hundred eighty (180) calendar days after the CP Satisfaction Date.  Notwithstanding the foregoing, if the CP Satisfaction Date does not occur by the Termination Date, then the Stay Period shall expire on the Termination Date. 
2.45The term “Taxes and Tax-Related Expenses” shall mean any and all applicable taxes, duties, and similar charges imposed by a government authority (including any estimated taxes, interest or penalties) arising in any jurisdiction, if any, with respect to the income or gains earned by or in respect of the QSF Account, including, without limitation, any taxes that may be imposed upon Defendants with respect to any income or gains earned by or in respect of the QSF Account for any period while it is held in the QSF Account.    
2.46The term “Termination Date” shall mean the forty fifth (45th) day after the CP Satisfaction Date Deadline.
2.47The term “Updated Attachment D” shall mean the revisions and updates to the Preliminary Attachment D to identify all Attachment D Plaintiffs prepared and approved by the Parties pursuant to Section 5.3. 
2.48The term “Updated Attachment E” shall mean the revisions and updates to the Preliminary Attachment E prepared and approved by the Parties pursuant to Section 6.2(b). 

3.ACKNOWLEDGEMENTS AND ATTACHMENTS
3.1Defendants have denied and continue to deny any liability, wrongdoing or responsibility for any Claim(s). Moreover, Defendant Sempra Energy has denied and continues to deny that it should be a party to the Actions.  In deciding to enter into this Agreement, Plaintiffs’ Counsel and Defendants have considered the uncertainties, delays, expenses and 
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exigencies of the litigation process, including trials and appeals, and have concluded that settlement is preferred to continuing to litigate these disputed Claim(s) by and between them.
3.2Plaintiffs’ Counsel has evaluated individually the Claim(s) of each of their respective Eligible Plaintiffs from a settlement perspective, considering the nature and extent of each such Eligible Plaintiff’s alleged injury, damages and losses, and the alleged liability of Defendants.  This Agreement and the terms herein were achieved through contentious litigation and/or negotiations in this case, in an adversarial context, and were at all times an arms-length negotiation conducted in good faith by all parties.
3.3The Parties desire to fully settle and resolve all disputes between Eligible Plaintiffs and Defendants, including those asserted in, or related directly or indirectly to, the Actions.
3.4Defendants and Plaintiffs’ Counsel intend that the payments made by Defendants pursuant to the terms and conditions of this Agreement after satisfaction, or waiver by Defendants (in Defendants’ sole and absolute discretion), of the Conditions Precedent, will fully and completely settle any and all Releasors’ Claims against Defendants including, without limitation, any liens, subrogated interests or other encumbrances of any third parties, including, but not limited to, government entities, health care providers, lien holders, insurance carriers, health maintenance organizations, and Plaintiffs’ Counsel, including associated or prior counsel.
4.CONDITIONS PRECEDENT AND FINAL SETTLEMENT AMOUNT 
4.1Conditions Precedent to the Transfer of the Final Settlement Amount.  It shall be an express condition precedent to the obligations of Defendants to transfer the Final Settlement Amount pursuant to Section 4.4 and Section 4.5 that each of the following conditions be satisfied by the CP Satisfaction Date Deadline, unless Defendants expressly waive in writing any such condition precedent in Defendants’ sole and absolute discretion:
i.The Court has approved the agreed-upon settlement allocation criteria and methodology, claims protocol, opt-in packet, informed consent letter, and the form of Individual Release – each as set forth and developed pursuant to Section 6.2 and Section 6.3, as applicable, and as submitted to the Court for approval;
ii.For all Minor Eligible Plaintiffs who have delivered to the Claims Administrators a fully executed Individual Release, the Court has approved, directly or through a duly appointed special master or referee, all Settling Minors’ Compromise Petitions with respect to all such Minor Eligible Plaintiffs;
iii.The Parties have finalized and approved the Updated Attachment E pursuant to Section 6.2(b); 
iv.The QSF Account has been created pursuant to Section 4.4;
v.99% of Eligible Plaintiffs (Bellwether) have delivered to the Claims Administrators a fully executed Individual Release; 
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vi.98% of Eligible Plaintiffs (Discovery Pool) have delivered to the Claims Administrators a fully executed Individual Release; 
vii.For each Plaintiffs’ Counsel Firm, 98% of the Eligible Plaintiffs (Group B) whom or which such Plaintiffs’ Counsel Firm represents have delivered to the Claims Administrators a fully executed Individual Release;
viii.96% of Eligible Plaintiffs (Group C) have delivered to the Claims Administrators a fully executed Individual Release; 
ix.94% of Eligible Plaintiffs (Group D) have delivered to the Claims Administrators a fully executed Individual Release;
x.The stay(s) contemplated by Section 5.2 has been approved by the Court; and 
xi.The dismissals contemplated by Section 5.3 have been entered by the Court.
4.2Maximum Settlement Amount; Final Settlement Amount. In exchange for the good and valuable consideration and terms set forth in this Agreement, subject to the satisfaction, or waiver by Defendants (in Defendants’ sole and absolute discretion), of the Conditions Precedent, Defendants agree to pay an amount equal to the Maximum Settlement Amount less the Reduction (such amount, the “Final Settlement Amount”).  The Final Settlement Amount is in full and final settlement of all Claims of all Releasors, including all attorneys’ fees and all costs or demands for reimbursements of costs, including costs to administer this Agreement in excess of the ten million dollars ($10,000,000) referred to in Section 6.8.  For purposes of clarity, the Final Settlement Amount in no case shall exceed the Maximum Settlement Amount.  No portion of such Final Settlement Amount constitutes or shall be considered consideration for punitive or exemplary damages, notwithstanding that such additional damage claims are within the scope of the Individual Releases.  
4.3Delivery to Defendant of Individual Releases.  If the CP Satisfaction Date occurs, the Parties hereby irrevocably authorize the Claims Administrators to release to the Defendants all executed original copies of the Individual Releases. 
4.4Transmission of Final Settlement Amount. Upon the satisfaction, or waiver by Defendants (in Defendants’ sole and absolute discretion), of the Conditions Precedent, within forty-five (45) calendar days after the CP Satisfaction Date, Defendants shall transfer ninety three percent (93%) of the Final Settlement Amount in immediately available funds to a trust intended to be treated as a qualified settlement fund established pursuant to § 468B of the Internal Revenue Code of 1986, as amended, and United States Treasury Regulation § 1.468B-1 et seq (the “QSF Account”).  The Parties shall select a qualified firm to be used as a QSF Account trustee (the “QSF Trustee”), which shall have the sole and entire responsibility for distribution of payments from the QSF Account to the Eligible Plaintiffs and any other payees.  The QSF Trustee shall be solely responsible for filing tax returns and any other tax reporting for or in respect of the QSF Account and amounts paid from the QSF Account and any Taxes and Tax-Related Expenses.  Such tax returns shall be consistent with this Section 4.4 and in all events shall reflect that all taxes (including any interest or penalties) on the income earned by the QSF 
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Account shall be paid out of the income earned by the QSF Account.  The QSF Account shall indemnify and hold harmless the Parties and their counsel for Taxes and Tax-Related Expenses (including, without limitation, taxes payable by reason of any such indemnification payments).  The Parties and their respective counsel shall make no representation or warranty with respect to the tax treatment by any Party of any payment or transfer derived from or made pursuant to the QSF Account.  The Parties shall agree that the QSF Account shall be treated as a QSF from the earliest date possible and shall agree to any relation-back election required to treat the QSF Account as a qualified settlement fund from the earliest date possible.  The QSF Trustee shall provide a detailed accounting of any and all funds in the QSF Account, including any interest accrued thereon and payments made pursuant to this Agreement, upon request of any of the Parties.  Defendants shall have no right to participate in any way in the determination or distribution of any individual Eligible Plaintiff’s allocated share from the QSF Account.  Wiring instructions will be provided within a week of the CP Satisfaction Date.  Defendants only form 1099-MISC reporting obligation shall be to the QSF Account.
4.5CMO 6 Withholding.  In accordance with Case Management Order No.6 (“CMO 6”) issued in the JCCP, Defendants shall withhold seven percent (7%) of the Final Settlement Amount in order to pay the assessments for the “Fee Fund” and “Cost Fund” established in accordance with CMO 6 (the “CMO 6 Withholding”).  Defendants shall send to “Private Plaintiffs’ Liaison Counsel” (as established by Case Management Order Number 2) such withheld amounts in accordance with CMO 6.  Defendants’ only form 1099-MISC reporting obligations with respect to such withholding shall be to such Private Plaintiffs’ Liaison Counsel.
4.6Termination of Agreement After CP Satisfaction Date Deadline. If the CP Satisfaction Date has not occurred by the Termination Date, then (i) this Agreement and all obligations contained therein shall automatically terminate on such Termination Date other than the obligations set forth in Section 6.5 and (ii) Individual Releases executed by an Eligible Plaintiff will be considered null and void.  
4.7Accord and Satisfaction. If the CP Satisfaction Date occurs, the consideration set forth in the Individual Release of each Releasor shall represent a complete accord and satisfaction of all Claims of such Releasors.
4.8Costs and Attorneys’ Fees. With the exception of Defendants’ obligation to pay $10,000,000 in the aggregate for the fees and costs set forth in Section 6.8, the Parties shall bear their own costs, including attorneys’ fees, arising out of and/or relating to this Agreement or the claims being settled.
5.OBLIGATIONS AND RESPONSIBILITIES AS OF THE EFFECTIVE DATE
5.1Jurisdiction to Enforce Agreement. Promptly after the Effective Date, the Parties shall jointly request that the Honorable Daniel J. Buckley of the LASC or whatever LASC judge is at that time presiding over the JCCP (the “Court”) retain jurisdiction over the Parties and the Actions for purposes of enforcing this Agreement.  Except as expressly stated otherwise in Section 5.3, Section 5.8 and Section 6.2(b), any dispute between the Parties regarding this Agreement, including the satisfaction of its terms, shall be submitted to the Court for resolution. While the Parties shall jointly request the Court to retain jurisdiction for such purposes, 
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Defendants acknowledge, understand, and agree that: (i) this Agreement is between Defendants and Plaintiffs’ Counsel, not their respective clients; (ii) Plaintiffs’ Counsel represent that they do not presently have authority to settle the Claims filed by any particular Eligible Plaintiff; (iii) no Eligible Plaintiff shall have any obligation by virtue of the execution of this Agreement by their counsel to resolve or settle their Claims against Defendants or execute and deliver an Individual Release; and (iv) this Agreement does not by itself reflect the settlement of any Eligible Plaintiff’s Claims against Defendants.
5.2Stay of Case. The Parties acknowledge and agree that there will need to be substantial efforts by all concerned to effectuate the terms of this Agreement, including efforts to provide appropriate client disclosures, obtain adequate informed consent, prepare Individual Releases, coordinate with counsel to Eligible Plaintiffs who are not Plaintiffs’ Counsel, and otherwise carry out the terms of this Agreement.  The Parties also acknowledge that the Defendants would not have entered into this Agreement without the certainty that the Actions would be stayed by the Court.  Therefore, Plaintiffs’ Counsel, their respective Eligible Plaintiffs, and Defendants agree: (i) to exercise best efforts toward the resolution of these cases and claims under the terms of this Agreement; and (ii) that they will promptly and jointly seek a stay of the Actions with the Court for the Stay Period, while the Parties continue their best efforts to finalize the settlement of the claims subject to this Agreement.  This provision does not preclude any Non-Settling Eligible Plaintiff represented by counsel other than Plaintiffs’ Counsel from seeking an exception to such stay.   
5.3Dismissals.  Without limiting the provisions of Section 5.8, the Parties shall work together amicably and in good faith to update the Preliminary Attachment D to identify all plaintiffs on such Preliminary Attachment D whose Claims should be dismissed (such plaintiffs whose Claims the Parties agree should be dismissed and included on Updated Attachment D, the “Attachment D Plaintiffs”).  The Parties agree to use their best efforts to finalize the Updated Attachment D by forty-five (45) days after the Effective Date, but in all cases prior to finalizing Updated Attachment E.  After agreement by the Parties on such Updated Attachment D, and notwithstanding any stay that may be issued pursuant to Section 5.2, Defendants will take all steps necessary to secure dismissals of such Attachment D Plaintiffs, and Plaintiffs’ Counsel will cooperate with Defendants in such efforts, including stipulating to the bases for such dismissals.  If a dispute arises as to whether a plaintiff belongs on the Updated Attachment D, the Parties will amicably and in good faith attempt to resolve such dispute and, absent a consensual resolution, will submit the dispute to the Claims Administrators for resolution.  Without limiting Section 5.8, in preparing the Updated Attachment D, the Parties agree that all plaintiffs identified on Preliminary Attachment D who/which did not timely serve a questionnaire response by the deadline set forth in the Order to Show Cause shall be included on the Updated Attachment D and shall be excluded from Updated Attachment E. 
5.4Authority of Counsel. Plaintiffs’ Counsel represent that they have carefully reviewed the provisions of this Agreement and, after exercising their independent judgment, have concluded that it is in the best interests of their respective Eligible Plaintiffs and any interests represented by them to participate in the Agreement, and that this Agreement provides for the establishment of a fair and efficient method of compensating such Eligible Plaintiffs and any interests represented by them.  Plaintiffs’ Counsel therefore represent that following Court 
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approval of the settlement allocation criteria and methodology, claims protocol (including the procedures for the participation of Minor Eligible Plaintiffs in the allocation process through execution of Individual Releases by duly appointed guardians ad litem pursuant to California Code of Civil Procedure section 372), opt-in packet, informed consent letter, and the form of Individual Release as referenced in Section 4.1(i), Plaintiffs’ Counsel will recommend to 100% of their respective Eligible Plaintiffs that they settle their Claim(s) pursuant to such Court approved methodologies and protocols under the terms of this Agreement.
5.5Present Intentions.  While nothing in this Agreement is intended to operate as a restriction on the right of Plaintiffs’ Counsel to practice law within the meaning of Rule 5.6(b) of the California Rules of Professional Conduct or within the meaning of a provision in professional rules of conduct for a foreign jurisdiction governing Plaintiffs’ Counsel that is analogous to Rule 5.6(b) of the California Rules of Professional Conduct, Plaintiffs’ Counsel represent that they have no present intent to solicit or represent new clients, including Developer Plaintiffs, for the purpose of bringing claims against Defendants in connection with the Aliso Canyon Underground Gas Storage Facility, unless the Agreement terminates in accordance with the terms of Section 4.6.  Further and in accordance with the above, Plaintiffs’ Counsel represent that they have no present intent to participate in the litigation of any Claim(s), in any manner whatsoever, including but not limited to participation in depositions or any other court or agency proceeding, unless the Agreement terminates in accordance with the terms of Section 4.6.  However, Alan Schimmel may continue to represent current Developer Plaintiff clients in ongoing Developer Plaintiff Action(s).  
5.6Agreements Re: Developer Plaintiffs and Disclosure or Transmission of Work Product. Plaintiffs’ Counsel, their Eligible Plaintiffs, and their authorized representatives agree to terminate any agreement sharing work product information, including expert work product, such as common interest agreements entered into with the Developer Plaintiffs in connection with the litigation.  In addition, and except as such agreement may be forbidden by Rule 1.16(d) and/or Rule 5.6(b) of the California Rules of Professional Conduct or, for any Plaintiffs’ Counsel not admitted in California, any State-law equivalent to the foregoing rules or any State-law equivalent to Model Rule 3.4 of the American Bar Association’s Model Rules of Professional Conduct that governs the conduct of such Plaintiffs’ Counsel, Plaintiffs’ Counsel agree that they will not discuss, share or make available to anyone other than the Non-Settling Eligible Plaintiffs, TF Hidden Creeks, L.P, Forestar Chatsworth, LLC, and Land Developers & Associates Corporation and their respective counsel: (i) any materials or information or other work product that has been developed in the Action(s), including but not limited to correspondence, notes, analyses, interview memoranda, exhibit and witness lists, demonstrative exhibits, witness examination outlines, expert reports and exhibits, and results of jury research; or (ii) experts, if any, with whom Plaintiffs’ Counsel have entered into exclusive retention agreements.  
5.7Participation in Agency Proceedings. This Agreement does not impact any Party’s right to participate in any pending or future Agency Proceedings.  However, Plaintiffs’ Counsel shall take no position in any Agency Proceedings concerning the assessment of penalties against Defendants.  
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5.8EN Plaintiffs.  The Parties shall work together amicably and in good faith to identify within forty-five (45) days after the Effective Date the EN Plaintiffs, if any.  Upon the final identification of any such EN Plaintiffs, the Parties shall jointly notify the Claim Administrators of the same by identifying any such EN Plaintiffs by name.  If a dispute arises as to whether a plaintiff qualifies as an EN Plaintiff, the Parties will amicably and in good faith attempt to resolve such dispute and, absent a consensual resolution, will submit the dispute to the Claims Administrators for resolution.  In order for a plaintiff to qualify as an EN Plaintiff, such plaintiff must satisfy each of the following criteria: (1) such plaintiff timely served a questionnaire response by the deadline set forth in the Order to Show Cause or by the deadline set forth in Case Management Order No. 5, as applicable; and (2) such plaintiff was, through benign neglect or other excusable mistake, identified on a filed request for dismissal with the Court.  
5.9Cooperation in Reporting to CMS. Plaintiffs’ Counsel and their respective Eligible Plaintiffs acknowledge that under the Medicare Secondary Payer Act of 1980 (“MSP”) and Section 111 of the Medicare, Medicaid, and SCHIP Extension Act of 2007 (“MMSEA”), Defendants may be required to report to the Centers for Medicare & Medicaid Services (“CMS”) certain settlements entered into with Medicare beneficiaries. CMS may seek reimbursement for those portions of a settlement that are duplicative of certain amounts that were already paid through Medicare.
Plaintiffs’ Counsel and their respective Eligible Plaintiffs agree to cooperate with Defendants to determine whether any such Eligible Plaintiff’s Claims are such that Defendants must report to CMS any settlement reached with that Eligible Plaintiff. All Releasors who are natural persons shall complete and sign the “Medicare and Medicaid Information Declaration” attached as Exhibit 1 to their Individual Releases, to assist Defendants in initially determining whether their Claims require reporting. Plaintiffs’ Counsel agrees to use its best efforts to obtain from Releasors who are natural persons all Medicare and Medicaid Information Declarations to determine whether each Releasor’s Claims are such that settlement thereof must be reported to CMS.
5.10Defendants’ Defenses.  The Parties agree that this Agreement has no impact on any and all defenses that Defendants might have, whether asserted or unasserted, known or unknown, including defenses based on statutes of limitation, jurisdiction, venue, with respect to this Action or any litigation outside of this Agreement.
6.PROCEDURES TO IMPLEMENT SETTLEMENT TERMS
6.1Appointment of Claims Administrators and Claims Processor.  The Parties hereby agree to engage the Claims Administrators, the QSF Trustee and Claims Processor to effectuate the terms of this Agreement.  The Parties agree to seek to have the Court appoint the Claims Administrators and QSF Trustee for purposes of effectuating the terms of this Agreement. 
6.2Plaintiffs’ Counsel Obligations.  
(a)Plaintiffs’ Counsel shall work with Claims Administrators to develop a settlement allocation criteria and methodology, claims protocol (including the procedures for the 
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participation of Minor Eligible Plaintiffs in the allocation process through execution of Individual Releases by duly appointed guardians ad litem pursuant to California Code of Civil Procedure section 372 pursuant to Section 6.2(c)), opt-in packet, and informed consent letter – each of which is to be approved by the Court.  As soon as reasonably practicable after the appointment of the Claims Administrators by the Court, but no later than sixty (60) days thereafter, Plaintiffs shall cause the Claims Administrators to develop a written settlement allocation criteria and methodology.  Plaintiffs’ Counsel and the Claims Administrators will send to each Eligible Plaintiff a “Consent to Allocation Protocol and Disclosure of Settlement Framework,” which shall describe the Court-approved settlement allocation criteria and methodology and claims protocol, and shall clearly inform the Eligible Plaintiffs that the transfer of the Final Settlement Amount will not occur unless the Conditions Precedent are satisfied, or expressly waived by Defendants (in Defendants’ sole and absolute discretion), by the CP Satisfaction Date Deadline.  The “Consent to Allocation Protocol and Disclosure of Settlement Framework” shall inform Eligible Plaintiffs of the potential that Eligible Plaintiffs may not receive any portion of the Final Settlement Amount if such possibility exists under the Court approved settlement allocation criteria and methodology and claims protocol.  Prior to submittal to the Court for approval, the Claims Administrator will provide a certification to the Defendants that the proposed final “Consent to Allocation Protocol and Disclosure of Settlement Framework” complies with the provision of this Section 6.2.  
(b)The Parties shall work together amicably and in good faith to update the Preliminary Attachment E to identify all Eligible Plaintiffs (including, for purposes of clarity, all EN Plaintiffs identified pursuant to Section 5.8 and all Reconciled Plaintiffs identified pursuant to Section 5.3) who/which shall be afforded the opportunity to participate in the protocol identified in Section 6.2(a).  The Updated Attachment E shall list all such Eligible Plaintiffs by name, assigned plaintiff ID number (if available) and Plaintiffs’ index number, address, the identity of their primary counsel for purposes of determining whether such Eligible Plaintiff belongs to the Eligible Plaintiff (Group B) group, and to which categories set forth in Section 2.19, Section 2.20 and/or Section 2.21 they belong.  The Parties agree to use their best efforts to finalize the Updated Attachment E by sixty (60) days after the Effective Date.  In preparing the Updated Attachment E, the Parties agree as follows: 
(1). All plaintiffs identified as Attachment D Plaintiffs on Updated Attachment D shall be excluded from the Updated Attachment E. 
(2). All Reconciled Plaintiffs (to the extent not already included on Preliminary Attachment E) and all EN Plaintiffs shall be included in Updated Attachment E.

(3). No plaintiffs who filed their respective action after September 1, 2021, shall be included on the Updated Attachment E.     
(4). If a plaintiff is represented by both Plaintiffs’ Counsel and counsel who is not a member of a Plaintiffs’ Counsel Firm, such plaintiff shall be 
12

identified as being within the Eligible Plaintiff (Group B) category and the Plaintiffs’ Counsel Firm shall be identified as such plaintiff’s counsel on Updated Attachment E.  

(5). For purposes of determining whether a plaintiff belongs in either the Eligible Plaintiff (Group C) or Eligible Plaintiff (Group D) category in the Updated Attachment E, for those Eligible Plaintiffs identified on Attachment H who/which are assigned to either the Eligible Plaintiff (Group C) or the Eligible Plaintiff (Group D) category, the Parties agree that such Eligible Plaintiffs shall be assigned to the same category in the Updated Attachment E.  

(6). The only Entity Plaintiffs which may be included on Updated Attachment E are those Entity Plaintiffs who are included on Preliminary Attachment E.

If an issue arises over the appropriate categorization of a particular Eligible Plaintiff within the Eligible Plaintiff groups identified in Section 2.19, Section 2.20, and Section 2.21, the Parties will work in good faith to resolve such dispute and, absent a consensual resolution, will submit the dispute to Claims Administrators for resolution.  Upon agreement by the Parties of the final Updated Attachment E, the Parties shall send a joint notice to the Claims Administrators of such fact, and at such point the Preliminary Attachment E shall be deemed automatically amended and restated to replace the contents of the same with the Updated Attachment E approved by the Parties.  For purposes of clarity, (i) there shall be no adjustment to how the Reduction is calculated pursuant to Section 2.39 as a result of the updates or modification to Preliminary Attachment E or the approval by the Parties of the Updated Attachment E, even if the number of Eligible Plaintiffs listed on the Updated Attachment E is different from 35,717; and (ii) for purposes of calculating whether or not the Conditions Precedent have been satisfied with respect to the Participation Thresholds, the denominator which shall be used shall be the number of applicable Eligible Plaintiffs for the applicable Participation Threshold set forth on the Updated Attachment E. 
(c)The protocols adopted by the Claims Administrators and Plaintiffs’ Counsel pursuant to Section 6.2(a) shall include the following with respect to all Minor Eligible Plaintiffs who wish to participate in the settlement process:  
First, each Minor Eligible Plaintiff who wishes to participate in the settlement allocation criteria and methodology and claims protocol shall have a guardian ad litem duly appointed.
Second, the duly appointed guardian ad litem shall execute the Individual Release on behalf of the Minor Eligible Plaintiff. 
Third, counsel for each Minor Eligible Plaintiff shall petition the Court or special master or referee appointed by the Court for approval of the Settling Minors’ 
13

Compromise, based on: (i) the executed Individual Release; (ii) the settlement allocation criteria and methodology and claims protocol approved by the Court pursuant to Section 6.2(a); (iii) the agreement between counsel and such Minor Eligible Plaintiff regarding attorneys’ fees; (iv) the CMO 6 Withholding; (v) any costs or litigation expenses incurred by counsel for the Minor Eligible Plaintiff’s claims that are attributable to such Minor Eligible Plaintiff’s claims; and (vi) any other relevant information with respect to such Minor Eligible Plaintiff known at the time (the “Settling Minors’ Compromise Petition”).   The Settling Minors’ Compromise Petition need not identify such Minor Eligible Plaintiff’s specific allocation of the Final Settlement Amount under the settlement allocation criteria and methodology or any sum certain for the Minor Eligible Plaintiff’s settlement payment, attorney’s fees, or other costs.  
The Parties agree to petition the Court to appoint a special master or referee for purposes of appointing guardians ad litem for the Minor Eligible Plaintiffs and approving the Settling Minors’ Compromise Petitions to the extent permitted by applicable law.

6.3Forms of Individual Release.  Plaintiffs’ Counsel shall submit the forms of Individual Release set forth in Attachment A-1 and Attachment A-2 to the Court for approval.  For purposes of clarity, a signed Individual Release must be provided to Defendants by each Eligible Plaintiff in order for any such Eligible Plaintiff to participate in the settlement and receive any portion of the Final Settlement Amount.
6.4Compliance Provision. Plaintiffs’ Counsel agree in obtaining executed Individual Releases that they will make to each such Eligible Plaintiff disclosures sufficient to satisfy the obligations of Rule 1.8.7 of the California Rules of Professional Conduct.  
6.5Collection of Individual Releases Prior to CP Satisfaction Date.  Plaintiffs’ Counsel shall be solely responsible for obtaining and submitting Individual Releases and distribution of the Final Settlement Amount.  All Individual Releases executed by Eligible Plaintiffs’ shall be delivered to the Claims Administrators to be held in trust for the Parties until the CP Satisfaction Date or the earlier termination of this Agreement.  If the CP Satisfaction Date occurs, the Claims Administrators shall deliver the original Individual Releases to the Defendants in accordance with Section 4.3.  If the termination of this Agreement occurs prior to the CP Satisfaction Date occurring, then the Parties irrevocably authorize the Settlement Administrator to return all Individual Releases to Plaintiffs’ Counsel or to the counsel of the Eligible Plaintiffs, as applicable.  
6.6Reporting. The Parties agree that the Claims Administrators shall be instructed to provide a report each month after the Effective Date which report shall detail the activities performed in the prior month and identify the Eligible Plaintiffs who have executed and delivered Individual Releases as of month’s end, together with a copy of each Individual Release received by the Claims Administrators in such month (for purposes of clarity, such Individual Releases shall not be deemed delivered to Defendants unless and until the CP Satisfaction Date occurs).  Defendants shall inform Plaintiffs’ Counsel within thirty (30) days of each report whether the Individual Releases received by Defendants are acceptable to Defendants.  In addition, if the CP Satisfaction Date has not occurred forty five (45) Days prior to the CP Satisfaction Date 
14

Deadline, the Parties agree that the Claims Administrators shall be instructed to provide a report which: (i) identifies the Eligible Plaintiffs who have executed and delivered Individual Releases as of such date; (ii) identifies by name which Eligible Plaintiffs have affirmatively opted not to execute an Individual Release; and (iii) identifies by name the Eligible Plaintiffs with whom there has been no response after outreach and identifies when such outreach was made.  If the Claims Administrators have reason to believe that any of the Participation Thresholds have been achieved, they shall provide notice to Defendants and Plaintiffs’ Counsel.  
6.7Certain Claims.  Consistent with Section 7.1(b), the process of allocating the Final Settlement Amount to Releasors shall include procedures necessary to resolve all lien holder claims (including Medicare and Medicaid claims) that have been or may be asserted against Releasors arising out of or in any way related to the allegations underlying the Action(s), as well as to satisfy all obligations under any other applicable court order, rule, or regulation.
6.8Administration and Allocation of Final Settlement Amount.  Defendants agree to pay $10,000,000 in the aggregate to the Claims Administrators and/or to any other referees or special masters, for the fees and costs of the preparation, administration, allocation and processing of the Final Settlement Amount, resolving any disputes pursuant to Section 5.3, Section 5.8 and Section 6.2, processing and adjudicating guardian ad litem petitions and the Settling Minors’ Compromise Petitions, and the performance of other obligations under this Section 6.  The Parties agree that Defendants have no responsibility or liability for such costs and fees to the extent such costs and fees exceed $10,000,000, or for the distribution or the allocation of the Final Settlement Amount.   
6.9    Tax Matters.  Each Party shall be solely responsible for the U.S. federal, state, local and foreign tax consequences to such Party of the receipt of funds from the QSF Account pursuant to this Agreement.  The Parties agree that the Parties shall treat the QSF Account as a QSF for all reporting purposes under the federal tax laws.
7.POST-CP SATISFACTION DATE OBLIGATIONS
7.1If the CP Satisfaction Date occurs, and provided Defendants transfer the Final Settlement Amount pursuant to Section 4.4 and Section 4.5, Plaintiffs’ Counsel agrees as follows: 
(a)Eligible Plaintiffs’ Dismissals.  Within fourteen (14) days of the transfer of the Final Settlement Amount pursuant to Section 4.4 and Section 4.5, Plaintiffs’ Counsel shall file with the Court executed requests for dismissal with prejudice of all Claims of the Releasors in their entirety against Defendants.  Plaintiffs’ Counsel shall take all necessary steps to work with the Court to ensure prompt entry of such dismissals.  
(b)Liens.  The Parties hereby agree to engage the LRA to perform certain functions pursuant to the Agreement in connection with liens and/or reimbursement claims, including, but not limited to, those that may be asserted with respect to federal Medicare (Parts A and B) benefits (“Medicare”) as contemplated by the MSP; Medicaid liens; and certain other governmental health care programs with statutory reimbursement or subrogation rights (specifically, TRICARE, CA, and Indian Health Services benefits).  
15

Each Releasor shall be required to cooperate with the procedures and protocols established by the LRA and approved by Defendants, which includes, but is not limited to, completing and signing the Medicare and Medicaid Information Declaration, as set forth above in Section 5.9.

Regardless of any limitation as to the scope of the LRA’s responsibilities described above, as to any right or claim to any portion of the Final Settlement Amount hereunder, including without limitation any right or claim based on payment for or reimbursement of any injury-related medical expenses alleged to be directly or indirectly arising from, related to or in any way pertaining to the events described in the Actions, which include, but are not limited to, drug costs, hospital expenses, medical expenses, physician expenses, or any other health care provider expenses arising from or based on the provision of medical care or treatment to Releasors, each Releasor shall identify (i) all statutory claim or lien holders, including government payors such as Medicare and Medicaid; (ii) any other holders of claims or liens as to which the Releasors or Plaintiffs’ Counsel have received notice or have knowledge; and (iii) any parties to lawsuits or interventions, including by subrogation, possessing any right or making any claim.

Plaintiffs’ Counsel and their respective Eligible Plaintiffs shall be solely responsible for liens, subrogation interests, or other encumbrances arising from or related to any of their respective Claims.  Plaintiffs’ Counsel and Eligible Plaintiffs further agree to satisfy, pursuant to and consistent with the MSP and MMSEA, any and all known medical liens and/or claims arising from medical expenses, including liens by any health care provider, Medicare, Medicaid, or any other third party incurred as a result of the allegations in the Actions, prior to or concurrently with the distribution of any portion of the Final Settlement Amount to the respective Eligible Plaintiffs.  Plaintiffs’ Counsel also agrees that it will provide Defendants (whether through the LRA or otherwise) with documentation indicating that any and all liens that any lien holder, including Medicare or Medicaid, may have against the Final Settlement Amount or any individual Eligible Plaintiff’s portion of the Final Settlement Amount have been paid, preferably in the form of communications from Medicare or other lien holder acknowledging payment in satisfaction of its final demands.  Plaintiffs’ Counsel  specifically agree that if Medicare or Medicaid is entitled to any portion of a given Eligible Plaintiff’s settlement distribution, Medicare or Medicaid, as applicable, will be paid its portion prior to or concurrently with any payment of any portion of the Final Settlement Amount to that Eligible Plaintiff.   

(c)Further Indemnity Re: Final Settlement Amount.  Plaintiffs’ Counsel agrees to release, indemnify, defend and hold harmless Defendants from any liens or claims of any kind (including subrogation claims) by and amongst all such Plaintiffs’ Counsel and their respective Eligible Plaintiffs arising out of or related to the distribution of or allocation of the Final Settlement Amount, including but not limited to any act or omission, whether intentional, negligent, or otherwise, on the part of the Claims Administrators or Plaintiffs’ Counsel.
(d)Withdrawal From Leadership.  Provided that the CP Satisfaction Date has occurred, within fourteen (14) days after the expiration of the Stay Period, and excepting 
16

solely with respect to the continued administration of the provisions of this Agreement, Plaintiffs’ Counsel agree to take all necessary steps to withdraw from their positions on the “Plaintiffs’ Steering Committees” and/or “Private Plaintiffs’ Liaison Counsel” as established by Case Management Order No. 2 in the Southern California Gas Leak Cases or otherwise and/or any other leadership roles in the Action(s), subject to approval of the Court.  
8.REPRESENTATIONS AND WARRANTIES
8.1Eligible Plaintiffs. Plaintiffs’ Counsel represent and warrant that, to their actual knowledge, they are not aware of any other persons or entities who are not Eligible Plaintiffs who are asserting Claim(s) against Defendants.  
8.2Plaintiffs’ Counsel Authority.  Plaintiffs’ Counsel represent and warrant that collectively they represent at least eighty (80) percent of Eligible Plaintiffs, and that they have the authority under Case Management Order No. 2 to enter into this Agreement.  This Agreement has been duly authorized, executed and delivered by or on behalf of themselves.  Upon execution and delivery, this Agreement constitutes the legal, valid, and binding obligation of the Plaintiffs’ Counsel, enforceable against such persons in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency or similar laws affecting creditors’ rights generally, by rules of professional responsibility in applicable jurisdictions governing the professional conduct of individual lawyers of Plaintiffs’ Counsel reflected on the signature page(s) of this Agreement, and by general equitable principles. 
8.3    Defendants’ Representation.  This Agreement has been duly authorized, executed, and delivered by or on behalf of the Defendants. Upon execution and delivery, this Agreement constitutes the legal, valid, and binding obligation of such Defendants, enforceable against such Defendants in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency or similar laws affecting creditors’ rights generally and by general equitable principles. 

9.ADDITIONAL TERMS
9.1No Admission of Liability. This Agreement is entered into solely by way of compromise and settlement. Neither this Agreement nor any exhibit, document, or instrument delivered hereunder, nor any statement, transaction, or proceeding in connection with the negotiation, execution or implementation of this Agreement, is intended to be or shall be construed as evidence of an admission or concession by Defendants of any fault, liability, or wrongdoing, or of the truth of any allegations asserted by any Eligible Plaintiff against Defendants in the Actions.
9.2Entire Agreement and Construction. This Agreement and the Individual Release from each settling Releasor constitute the entire agreement between the Parties and supersede all other prior or contemporaneous agreements and understandings between the Parties, whether written or oral. This Agreement and any Individual Release may be amended or modified only by a written instrument executed by the parties to be bound thereby. The Parties understand and agree that each and every term and condition of this Agreement has been 
17

mutually negotiated, prepared and drafted, and if at any time the Parties desire or are required to interpret or construe any such term or condition or any agreement or instrument subject thereto, no consideration shall be given to the issue of which Party actually prepared, drafted or requested any term or condition.
9.3Confidentiality. 
(a)For purposes of this Section 9.3, the term “Settlement Negotiation Confidential Information” shall mean all the terms in any term sheets exchanged during negotiations of this Agreement, all of the negotiations culminating in the Agreement, and any other information shared by and between the Parties pursuant to the Settlement and Mediation Privileges pursuant to Evidence Code sections 1119, 1152 and 1154.  The Parties hereby agree to hold in strict confidence the Settlement Negotiation Confidential Information, the terms of this Agreement and the Individual Releases, the amount of the Settlement Funds, and the amount paid to each Eligible Plaintiff (collectively, “Confidential Information”), and agree not to disclose such Confidential Information to any other person or entity except: (i) to their financial and/or tax advisors and for Medicare reporting purposes; (ii) upon the Parties’ prior written consent; (iii) as may be related to Defendants’ disclosures in connection with the applicable securities laws and the rules of any exchange in which Defendants’ securities are listed; (iv) to Defendants’ insurers; (v) in the case of Defendants, to any rating agencies such as S&P, Moody’s and Fitch; (vi) in response to a judicial order; and (vii) in the case of Plaintiffs’ Counsel, as necessary for Plaintiffs’ Counsel to satisfy their obligations under this Agreement or as necessary to comply with their professional ethical obligations. Notwithstanding the foregoing, “Confidential Information” shall not include any information which is or becomes published or otherwise available in the public domain through no wrongful act of a Party hereto.  In the event that any person or entity, including, but not limited to, a judicial or other governmental forum, makes a request to receive Confidential Information or invokes a process to obtain Confidential Information, the Parties agree to cooperate in preventing such disclosure and to provide prompt written notice of such fact to each other within five (5) business days after receiving the request to provide an opportunity to contest such request.  All obligations of the Parties under this Section 9.3(a) shall expire on the earlier of (1) Defendants’ filing of this Agreement with the Securities and Exchange Commission; or (2) the eighth (8th) calendar day after the Effective Date.  Notwithstanding any such expiration, each Party shall continue to be obligated hereunder to keep in strict confidence and not disclose the Settlement Negotiation Confidential Information, and neither Party intends to waive its Settlement and Mediation Privileges rights with respect to such information.  After Defendants file this Agreement with the Securities and Exchange Commission, they will promptly advise Plaintiffs’ Counsel that such filing has occurred.
(b)Plaintiffs’ Counsel acknowledge that they continue to be bound by the obligations set forth in Case Management Order No. 4 in the Southern California Gas Leak Cases.
9.4Non-Disparagement. Plaintiffs’ Counsel agree that they will not publicly, orally or in writing: (a) make or express any comment, view or opinion critical or disparaging of the 
18

Agreement in any way related to the JCCP; or (b) authorize any agent or representative to make or express such a comment, view or opinion, except as may be compelled by law.  
9.5Notice by Parties. All notices and other communications under this Agreement shall be in writing and shall be deemed to have been duly given as of the date such notices or other communications are: (i) delivered by hand; (ii) sent by facsimile with receipt confirmed, provided that a copy is mailed on the same date by registered mail, return receipt requested; or (iii) received by the addressee, if sent by Express Mail, FedEx or other express delivery service with receipt requested; in each case, to the appropriate addressees and/or facsimile numbers set forth below (or to such other addressees and facsimile numbers as a Party may designate as to itself by notice to the other Party):
(a)If to Defendants:
Morgan, Lewis & Bockius LLP
James J. Dragna
jim.dragna@morganlewis.com
David L. Schrader
david.schrader@morganlewis.com
Deanne L. Miller
deanne.miller@morganlewis.com
Yardena R. Zwang-Weissman
Yardena.zwang-weissman@morganlewis.com
300 South Grand Avenue
Twenty-Second Floor
Los Angeles, CA 90071-3132
Tel:    213.612.2500
Fax:    213.612.2501

O’Melveny & Myers LLP
Daniel M. Petrocelli 
dpetrocelli@omm.com
M. Randall Oppenheimer
roppenheimer@omm.com
Sabrina H. Strong
sstrong@omm.com
Jonathan R. Schneller 
jschneller@omm.com
1999 Avenue of the Stars 
Eighth Floor
Los Angeles, CA  90067-6035
Tel:      310.553.6700
Fax:     310.246.6779

19

(b)If to Plaintiffs’ Counsel on behalf of Eligible Plaintiffs:
Panish, Shea & Boyle LLP
Brian Panish
panish@psblaw.com
Jesse Creed
creed@psblaw.com
11111 Santa Monica Blvd., Suite 700
Los Angeles, CA 90025
Tel:    310.477.1700
Fax:    310.477.1699

Boucher LLP
Raymond Boucher
ray@boucher.la
21600 Oxnard Street, Suite 600
Woodland Hills, CA 91367
Tel:    818.340.5400
Fax:    818.340.5401

(c)If to the Claims Administrators:
Signature Resolution
Louis Meisinger
judgemeisinger@signatureresolution.com
Scott Gordon
judgegordon@signatureresolution.com
633 W. 5th St, Suite 1000
Los Angeles CA 90071 
Tel:    213.622.1002

9.6Governing Law. The Agreement and the Individual Releases shall be construed according to the laws of the State of California.
9.7Waiver of Inconsistent Provisions of Law. To the fullest extent permitted by applicable law, each Party waives any provision of law (including the common law) that renders any provision of this Agreement invalid, illegal, or unenforceable in any respect.
9.8Severability. Without limiting Section 9.7, in the event that any provision in or obligation under this Agreement is determined to be invalid, illegal, or unenforceable in the applicable jurisdiction, the validity, legality, and enforceability of all other provisions in or obligations under this Agreement shall not be affected or impaired in any way.
9.9Headings. The headings used herein are intended for convenience of reference only and are not intended to be a part of, or to affect the meaning or interpretation of, this Agreement.
20

9.10References. As used in this Agreement or any Attachment hereto, the words “include” and “including,” and words of similar import, are not limiting and shall be construed to be followed by the words “without limitation.” The definitions contained in this Agreement or any Attachment hereto are applicable to the singular as well as the plural forms of such terms. The words “herein,” “hereof,” and “hereunder,” and other words of similar import, refer to the Agreement in its entirety, rather than to only the particular portion of the Agreement.
9.11No Third-Party Beneficiaries; Assignment. No provision of this Agreement or any Attachment thereto is intended to create any third-party beneficiary to this Agreement. This Agreement shall be binding upon, and inure to the benefit of, each Party’s successors and permitted assigns. Any rights, interests, or obligations that Plaintiffs’ Counsel’s Eligible Plaintiffs have under the Agreement and/or their Individual Releases are personal to them and are not assignable, and may not otherwise be transferred, sold or given away without prior written consent from Defendants. Any assignment or transfer in violation of this provision shall be null and void ab initio.
9.12No Implied Waiver. Except where a specific period of action or inaction is expressly provided herein, no failure on the part of a Party to exercise, and no delay on the part of a Party in exercising, any right, power or privilege under this Agreement shall operate as a waiver thereof; nor shall any waiver on the part of a Party of any such right, power, or privilege, or any single or partial exercise of any such right, power, or privilege, preclude any other or further exercise thereof or the exercise of any other right, power, or privilege; nor shall any waiver on the part of a Party, on any particular occasion or in any particular instance, of any particular right, power, or privilege operate as a waiver of such right, power, or privilege on any other occasion or in any other instance.
9.13Time of the Essence. Time is of the essence with respect to all provisions of this Agreement that specify a time for performance.
9.14Further Assurances. The Parties represent that they will act in good faith in satisfying their respective obligations under this Agreement.  From time to time following the execution of this Agreement, each Party shall take such reasonable actions consistent with the terms of the Agreement as may reasonably be requested by the other Party, and otherwise reasonably cooperate with the other Party in a manner consistent with the terms of this Agreement as reasonably requested by such other Party in order to effectuate the intent and purposes of this Agreement and to carry out the terms herein.
9.15Incorporation of Attachments by Reference.  All attachments identified below herein are incorporate herein by this reference.   
Attachment A-1 – Form of Individual Release, including Certificate of Counsel and Medicare Disclosure Form (Natural Person)
Attachment A-2 – Form of Individual Release, including Certificate of Counsel (Entity Plaintiff)
Attachment B – Actions List
Attachment C – Excluded Cases
Attachment D – Preliminary Attachment D
21

Attachment E – Eligible Plaintiffs 
Attachment F – List of Eligible Plaintiffs (Bellwether)
Attachment G – List of Eligible Plaintiffs (Discovery Pool) 
Attachment H – Preliminary List of Eligible Plaintiffs (Group C) and Eligible Plaintiffs (Group D)

9.16Electronic Signatures and Counterparts. This Agreement and any amendments thereto, to the extent signed and delivered electronically or by facsimile, shall be treated in all manner and respects as an original agreement, and shall be considered to have the same binding legal effect as if it were the original signed version thereof, delivered in person. This Agreement may be executed in any number of counterparts, each of which shall be an original and all of which shall constitute one and the same instrument.  Any Individual Release, to the extent signed and delivered electronically or by facsimile, shall be treated in all manner and respects as an original agreement, and shall be considered to have the same binding legal effect as if it were the original signed version thereof, delivered in person, upon delivery by the Claims Administrators to Defendants in accordance with the terms of this Agreement.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

22

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date.
DEFENDANTS:

									
	SOUTHERN CALIFORNIA GAS COMPANY
		SEMPRA ENERGY

	By: /s/ David J. Barrett		By: /s/ Peter R. Wall
	Name: David J. Barrett
		Name: Peter R. Wall

	Title: Vice President & General Counsel 
		Title: Senior Vice President - Controller & Chief Accounting Officer

	Date: September 26, 2021
		Date: September 26, 2021

APPROVED AS TO FORM AND CONTENT ONLY:

									
	O’MELVENY & MYERS LLP
		MORGAN, LEWIS & BOCKIUS LLP

	By: /s/ Sabrina H Strong		By: /s/ James J. Dragna
	Name: Sabrina H Strong
		Name: James J. Dragna

	Title: Partner
		Title: Partner

	Date: September 26, 2021
		Date: September 26, 2021

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

[Signature Pages to Master Agreement to Resolve JCCP No. 4861 Private Party Claims]

PLAINTIFFS’ COUNSEL:
									
	By: /s/ Brian Panish		By: /s/ Raymond Boucher
	Name: Brian Panish
		Name: Raymond Boucher 

	Date: September 25, 2021
		Date: September 25, 2021

	Panish, Shea & Boyle LLP (on its own behalf and on behalf of Kenneth T. Haan & Associates)
Brian Panish, Esq. (panish@psblaw.com)
Jesse Creed, Esq. (creed@psblaw.com)
11111 Santa Monica Boulevard, Suite 700
Los Angeles, CA 90025
Phone: (310) 477-1700
Fax: (310) 477-1699		Boucher LLP
Raymond Boucher, Esq. (ray@boucher.la)
Maria Weitz, Esq. (weitz@boucher.la)
21600 Oxnard Street, Suite 600
Woodland Hills, CA 91367
Phone: (818) 340-5400
Fax: (818) 340-5401

									
	By: /s/ Rex Parris		By: /s/ Paul R. Kiesel
	Name: Rex Parris
		Name: Paul R. Kiesel

	Date: September 25, 2021
		Date: September 23, 2021

	Parris Law Firm (on its own behalf and on behalf of Kenneth T. Haan & Associates)
R. Rex Parris, Esq. (rrparris@parrislawyers.com)
43364 10th Street West
Lancaster, CA 93534
Phone: (661) 949-2595
Fax: (661) 949-7524		Kiesel Law LLP (on its own behalf and on behalf of Keosian Law LLP)
Paul Kiesel, Esq.
Mariana McConnell, Esq.
8648 Wilshire Blvd.
Beverly Hills, CA 90211
Phone: (310) 854.4444
Fax: (619) 525-7672

[Signature Pages to Master Agreement to Resolve JCCP No. 4861 Private Party Claims]

									
	By: /s/ Robin L. Greenwald		By: /s/ Frank Petosa
	Name: Robin L. Greenwald
		Name: Frank Petosa

	Date: September 25, 2021
		Date: September 25, 2021

	Weitz & Luxenberg, P.C.
Robin Greenwald, Esq. (rgreenwald@weitzlux.com)
Devin Bolton, Esq. 
(dbolton@weitzlux.com)
1880 Century Park East, Suite 700
Los Angeles, CA 90067
Phone: (310) 247-0921
Fax: (310) 786-9927		Morgan & Morgan (on its own behalf and on behalf of Kenneth T. Haan & Associates)
Frank Petosa, Esq. (fpetosa@forthepeople.com)
8151 Peters Road, 4th Floor
Plantation, FL 33324
Phone: (954) 318-0268
Fax: (954) 327-3018

									
	By: /s/ Roland Tellis		By: /s/ Frank M. Pitre
	Name: Roland Tellis
		Name: Frank M. Pitre

	Date: September 23, 2021
		Date: September 25, 2021

	Baron & Budd P.C.
Roland Tellis, Esq. (rtellis@baronbudd.com)
15910 Ventura Blvd., Suite 1600
Encino, CA 91436
Phone: (818) 839-2333
Fax: (818) 986-9698		Cotchett, Pitre & McCarthy LLP
Frank Pitre, Esq. (fpitre@cpmlegal.com)
Gary Praglin, Esq. (gpraglin@cpmlegal.com)
2716 Ocean Park Boulevard, Suite 3088
Santa Monica, CA 90405
Phone: (310) 392-2008
Fax: (310) 392-0111

									
	By: /s/ Walter Lack		By: /s/ Alan Schimmel
	Name: Walter Lack
		Name: Alan Schimmel

	Date: September 25, 2021
		Date: September 25, 2021

	Engstrom, Lipscomb & Lack
Walter Lack, Esq. (wlack@elllaw.com)
10100 Santa Monica Boulevard, 12th Floor
Los Angeles, CA 90067
Phone: (310) 552-3800
Fax: (310) 552-9434		Schimmel & Parks
Alan Schimmel, Esq. (aischimmel@spattorneys.com)
15303 Ventura Boulevard, Suite 650
Sherman Oaks, CA 91403

[Signature Pages to Master Agreement to Resolve JCCP No. 4861 Private Party Claims]

									
	By: /s/ James P. Frantz		
	Name: James P. Frantz
		
	Date: September 25, 2021 
		
	Frantz Law Group, APLC
James Frantz, Esq. (jpf@frantzlawgroup.com)
2029 Century Park East, Suite 400
Los Angeles, CA 90067
Phone: (323) 425-8138
Fax: (619) 525-7672		

[Signature Pages to Master Agreement to Resolve JCCP No. 4861 Private Party Claims]Exhibit 10.2

[_________], 2021

 

Hawks Acquisition Corp

600 Lexington Avenue, 9th Floor

New York, NY, 10022

 

Re: Initial Public Offering

 

Ladies and Gentlemen:

 

This letter (this “Letter
Agreement”) is being delivered to you in accordance with the Underwriting Agreement (the “Underwriting
Agreement”) entered into or proposed to be entered into by Hawks Acquisition Corp, a Delaware corporation (the
 “Company”), and [_________] [and [_________]] as [the representatives [the
 “Representative[s]”) of] the [several] underwriter[s] named therein ([each] an
 “Underwriter” [and collectively, the “Underwriters”]), relating to an
underwritten initial public offering (the “Public Offering”), of 23,000,000 of the Company’s units
(including up to 3,000,000 units that may be purchased to cover the Underwriters’ option to purchase additional units, if any)
(the “Units”), each comprised of one share of Class A common stock of the Company, par value $0.0001 per
share (“Class A Common Stock”), and one-half (1/2) of one redeemable public warrant (each whole public
warrant, a “Public Warrant”). Each Public Warrant entitles the holder thereof to purchase one share of
Class A Common Stock at a price of $11.50 per share, subject to adjustment, as described in the Prospectus (as defined below). The
Units will be sold in the Public Offering pursuant to a registration statement on Form S-1 and a prospectus (the
 “Prospectus”) filed by the Company with the U.S. Securities and Exchange Commission (the
 “Commission”) and the Company has applied to have the Units listed on the New York Stock Exchange. Certain
capitalized terms used herein are defined in paragraph 11 hereof.

 

In order to induce the Company and the [Representative(s) on
behalf of the] Underwriter[s] to enter into the Underwriting Agreement and to proceed with the Public Offering and for other good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Hawks Sponsor LLC, a Delaware limited
liability company (the “Sponsor”), and the other undersigned persons (each such other undersigned persons,
an “Insider” and collectively, the “Insiders”), each hereby agrees, severally
but not jointly, with the Company as follows:

 

1. The Sponsor and each Insider agrees that if the Company seeks
stockholder approval of a proposed Business Combination, then in connection with such proposed Business Combination, it, he or
she shall (i) vote any Shares owned by it, him or her in favor of any proposed Business Combination (including any proposals recommended
by the Company’s Board of Directors in connection with such Business Combination) and (ii) not redeem any Shares owned by
it, him or her in connection with such stockholder approval. If the Company seeks to consummate a proposed Business Combination
by engaging in a tender offer, the Sponsor and each Insider agrees that it, he or she will not sell or tender any shares of Capital
Stock owned by it, him or her to the Company in connection therewith.

 

2. The Sponsor and each Insider hereby agrees
that in the event that the Company fails to consummate a Business Combination within 18 months from the closing of
the Public Offering (or up to 24 months, as provided by Section
9.1(c) of the Company’s amended and restated certificate of incorporation (the “Charter”)), or such other
time period in which we must consummate an initial business combination pursuant to an amendment to the Charter (the “Completion Window”), the Sponsor and each Insider shall take all reasonable steps to cause the Company to (i) cease all operations
except for the purpose of winding up, (ii) as promptly as reasonably possible but not more than ten (10) business days thereafter, subject
to lawfully available funds therefor, redeem 100% of the Class A Common Stock sold as part of the Units in the Public Offering (the “Offering
Shares”), at a per share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account, including
interest (which interest shall be net of (i) taxes payable and (ii) amounts withdrawn to fund the Company’s working capital requirements,
subject to an annual limit of $$1,000,000 (“Permitted Withdrawals”) and less up to $100,000 of interest to
pay dissolution expenses), divided by the number of then outstanding Offering Shares, which redemption will completely extinguish all
Public Stockholders’ rights as stockholders (including the right to receive further liquidating distributions, if any), subject
to applicable law and (iii) as promptly as reasonably possible following such redemption, subject to the approval of the Company’s
remaining stockholders and the Company’s board of directors, dissolve and liquidate, subject in each case to the Company’s
obligations under Delaware law to provide for claims of creditors and any other requirements of applicable law. The Sponsor and each
Insider agrees to not propose any amendment to the Charter (A) to modify the substance or timing of the Company’s obligation to
allow redemption in connection with the Company’s initial Business Combination or to redeem 100% of the Offering Shares if the
Company does not complete its initial Business Combination within the Completion Window or (B) with respect to any other material provision
relating to stockholders’ rights or pre-initial Business Combination activity, unless the Company provides its Public Stockholders
with the opportunity to redeem their Offering Shares upon approval of any such amendment at a per share price, payable in cash, equal
to the aggregate amount then on deposit in the Trust Account, including interest (which interest shall be net of Permitted Withdrawals),
divided by the number of then outstanding Offering Shares.

 

     

     

    

 

The Sponsor and each Insider acknowledges that it, he or she
has no right, title, interest or claim of any kind in or to any monies held in the Trust Account as a result of any liquidation
of the Company with respect to the Founder Shares held by it. The Sponsor and each Insider hereby further waives, with respect
to any Shares held by it, him or her, if any, any redemption rights it, he or she may have in connection with (x) the consummation
of a Business Combination, including, without limitation, any such rights available in the context of a stockholder vote to approve
such Business Combination or in the context of a tender offer made by the Company to purchase shares of Class A Common Stock and
(y) a stockholder vote to approve an amendment to the Charter (A) to modify the substance or timing of the Company’s obligation
to allow redemptions in connection with the Company’s initial Business Combination or to redeem 100% of the Offering Shares
if the Company has not consummated its initial Business Combination within the Completion Window or (B) with respect to any other
material provision relating to stockholders’ rights or pre-initial Business Combination activity (although the Sponsor and
the Insiders shall be entitled to redemption and liquidation rights with respect to any Offering Shares it or they hold if the
Company fails to consummate a Business Combination the time period set forth in the Charter or in connection with a stockholder
vote to approve an amendment to the Charter to modify the substance or timing of the Company’s obligation to redeem 100%
of the Offering Shares if the Company does not complete a Business Combination within the time period set forth in the Charter
or with respect to any other material provisions relating to stockholders' rights or pre-initial Business Combination activity).

 

3. Notwithstanding the provisions set
forth in paragraphs 7(a) and (b) below, during the period commencing on the effective date of the Underwriting Agreement and
ending 180 days after such date, the Sponsor and each Insider shall not, without the prior written consent of the
Representative[s], (i) offer, sell, contract to sell, pledge or grant any option to purchase or otherwise dispose of (or
enter into any transaction that is designed to, or might reasonably be expected to, result in the disposition (whether by
actual disposition or effective economic disposition due to cash settlement or otherwise)), directly or indirectly, or
establish or increase a put equivalent position or liquidate or decrease a call equivalent position within the meaning of
Section 16 of the Securities Exchange Act of 1934, as amended, and the rules and regulations of the Commission promulgated
thereunder (the “Exchange Act”), with respect to, any Units, shares of Class A Common Stock,
Public Warrants or any securities convertible into, or exercisable, or exchangeable for, shares of Class A Common Stock, (ii) enter
into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of
ownership of any Units, shares of Class A Common Stock, Public Warrants or any securities convertible into, or exercisable, or
exchangeable for, shares of Class A Common Stock owned by it, him or her, whether any such transaction is to be settled by
delivery of such securities, in cash or otherwise, or (iii) or publicly announce an intention to effect any such transaction
specified in clause (i) or clause (ii); provided, however, that the foregoing does not apply to the forfeiture
of any Founder Shares pursuant to their terms or any transfer of Founder Shares to any current or future independent director
of the company (as long as such current or future independent director transferee is subject to this Letter Agreement or
executes an agreement substantially identical to the terms of this Letter Agreement, as applicable to directors and officers
at the time of such transfer; and as long as, to the extent any reporting obligation pursuant to Section 16 of the Exchange
Act is triggered as a result of such transfer, any related filing includes a practical explanation as to the nature of the
transfer). Each of the Insiders and the Sponsor acknowledges and agrees that, prior to the effective date of any release or
waiver, of the restrictions set forth in this paragraph 3 or paragraph 7 below, the Company shall announce the impending
release or waiver by press release through a major news service at least two business days before the effective date of the
release or waiver. Any such release or waiver granted shall only be effective two business days after the publication date of
such press release. The provisions of this paragraph will not apply if (i) the release or waiver is effected solely to permit
a transfer of securities that is not for consideration and (ii) the transferee has agreed in writing to be bound by the same
terms described in this Letter Agreement to the extent and for the duration that such terms remain in effect at the time of
the transfer.

 

     2

     

    

 

4. In the event of the liquidation of the Trust Account, the
Sponsor (which for purposes of clarification shall not extend to any other holder of common stock or any members or managers of
the Sponsor or to any other Insider) agrees to indemnify and hold harmless the Company against any and all loss, liability, claim,
damage and expense whatsoever (including, but not limited to, any and all legal or other expenses reasonably incurred in investigating,
preparing or defending against any litigation, whether pending or threatened, or any claim whatsoever) to which the Company may
become subject as a result of any claim by (i) any third party (other than the Company’s independent registered public accounting
firm) for services rendered or products sold to the Company or (ii) a prospective target business with which the Company has discussed
entering into an agreement for a Business Combination (a “Target”); provided, however,
that such indemnification of the Company by the Sponsor shall apply only to the extent necessary to ensure that such claims by
a third party for services rendered (other than the Company’s independent registered public accounting firm) or products
sold to the Company or a Target do not reduce the amount of funds in the Trust Account to below (i) $10.00 per Offering Share or
(ii) such lesser amount per Offering Share held in the Trust Account as of the date of the liquidation of the Trust Account due
to reductions in the value of the trust assets as of the date of the liquidation of the Trust Account, in each case, net of Permitted
Withdrawals, except as to any claims by a third party who executed a waiver of any and all rights to seek access to the Trust Account
and except as to any claims under the Company’s indemnity of the Underwriters against certain liabilities, including liabilities
under the Securities Act of 1933, as amended. In the event that any such executed waiver is deemed to be unenforceable against
such third party, the Sponsor shall not be responsible to the extent of any liability for such third party claims. The Sponsor
shall have the right to defend against any such claim with counsel of its choice reasonably satisfactory to the Company if, within
15 days following written receipt of notice of the claim to the Sponsor, the Sponsor notifies the Company in writing that it shall
undertake such defense. For the avoidance of doubt, none of the Company’s officers or directors will indemnify the Company
for claims by third parties, including, without limitation, claims by vendors or any Target.

 

5. To the extent that the Underwriters do not exercise their
over-allotment option up to an additional 3,000,000 Units within 45 days from the date of the Prospectus (and as further described
in the Prospectus), the Sponsor agrees that it shall forfeit, at no cost, an aggregate number of Founder Shares in the aggregate
equal to the product of (a) 3,000,000 multiplied by a fraction, (i) the numerator of which is 750,000 minus the number of Units
purchased by the Underwriters upon the exercise of their option to purchase additional Units, and (ii) the denominator of which
is 750,000. All references in this Letter Agreement to Founder Shares of the Company being forfeited shall take effect as a contribution
of such Founder Shares to the Company’s capital as a matter of Delaware law. The forfeiture will be adjusted to the extent
that the over-allotment option is not exercised in full by the Underwriters so that the number of Founder Shares will equal an
aggregate of 20.0% of the Company’s issued and outstanding shares of Capital Stock after the Public Offering. The Initial
Stockholders further agree that to the extent that the size of the Public Offering is increased or decreased, the Company will
effect a capitalization or share repurchase or redemption or stock split, reverse stock split or other appropriate mechanism, as
applicable, immediately prior to the consummation of the Public Offering in such amount as to maintain the number of Founder Shares
at 20.0% of the Company’s issued and outstanding shares of Capital Stock upon the consummation of the Public Offering. In
connection with such increase or decrease in the size of the Public Offering, then (A) the references to 750,000 in the numerator
and denominator of the formula in the first sentence of this paragraph shall be changed to a number equal to 15.0% of the number
of shares of Class A Common Stock included in the Units issued in the Public Offering and (B) the reference to 750,000 in the formula
set forth in the immediately preceding sentence shall be adjusted to such number of Founder Shares that the Sponsor would have
to return to the Company in order for the number of Founder Shares to equal an aggregate of 20.0% of the Company’s issued
and outstanding shares of Capital Stock after the Public Offering.

 

6. The Sponsor and each Insider hereby agrees and acknowledges
that: (i) the Underwriters and the Company would be irreparably injured in the event of a breach by such Sponsor or Insider of
its, his or her obligations under paragraphs 1, 2, 3, 4, 5, 7(a), 7(b), and 9, as applicable, of this Letter Agreement, (ii) monetary
damages may not be an adequate remedy for such breach and (iii) the non-breaching party shall be entitled to seek injunctive relief,
in addition to any other remedy that such party may have in law or in equity, in the event of such breach.

 

     3

     

    

 

7. (a) Subject to the exceptions set forth herein, the Sponsor
and each Insider agrees that it, he or she shall not Transfer (as defined below) any Founder Shares (or shares of Class A Common
Stock issuable upon conversion thereof) until the earlier of (A) one year after the completion of the Company’s initial Business
Combination and (B) subsequent to the Business Combination, (x) if the last reported sale price of the Class A Common Stock equals
or exceeds $12.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for
any 20 trading days within any 30-trading day period commencing at least 150 days after the Company’s initial Business Combination
or (y) the date on which the Company completes a liquidation, merger, stock exchange, reorganization or other similar transaction
that results in all of the Public Stockholders having the right to exchange their shares of Class A Common Stock for cash, securities
or other property (the “Founder Shares Lock-up Period”).

 

(b) Subject to the exceptions set forth herein, the Sponsor
and each Insider agrees that it, he or she shall not Transfer any Private Placement Warrants or Working Capital Warrants (or shares
of Class A Common Stock issued or issuable upon the conversion or exercise of the Private Placement Warrants), until 30 days after
the completion of a Business Combination (the “Private Placement Warrants Lock-up Period,” together with
the Founder Shares Lock-up Period, the “Lock-up Periods”).

 

(c) Notwithstanding the provisions set forth in paragraphs 3
and 7(a) and (b), Transfers of the Founder Shares, Private Placement Warrants and shares of Class A Common Stock issued or issuable
upon the exercise or conversion of the Private Placement Warrants or the Founder Shares and that are held by the Sponsor or any
Insider or any of their permitted transferees (that have complied with this paragraph 7(c)), are permitted (a) to the Company’s
officers or directors, any affiliates or family members of any of the Company’s officers or directors, any members of the
Sponsor, or any affiliates of the Sponsor, (b) in the case of an individual, by gift to a member of the individual’s immediate
family or to a trust, the beneficiary of which is a member of the individual’s immediate family or an affiliate of such person,
or to a charitable organization; (c) in the case of an individual, by virtue of laws of descent and distribution upon death of
the individual; (d) in the case of an individual, pursuant to a qualified domestic relations order; (e) by private sales or transfers
made in connection with the consummation of the Company’s Business Combination at prices no greater than the price at which
the securities were originally purchased; (f) by an Insider to an entity that is an Affiliate of such Insider; (g) in the event
of the Company’s liquidation prior to the Company’s completion of an initial Business Combination; (h) by virtue of
the laws of Delaware or the Sponsor’s limited liability company agreement, as amended, upon dissolution of the Sponsor; (i)
to a nominee or custodian of a person or entity to whom a disposition or transfer would be permissible under clauses (a) through
(h) above; or (j) in the event of the Company’s completion of a liquidation, merger, stock exchange, reorganization or other
similar transaction which results in all of the Public Stockholders having the right to exchange their shares of Class A Common
Stock for cash, securities or other property subsequent to the Company’s completion of an initial Business Combination; provided,
however, that in the case of clauses (a) through (f) and (i), these permitted transferees must enter into a written agreement
with the Company agreeing to be bound by the transfer restrictions and other applicable restrictions in this Letter Agreement.
 “Affiliate” means, with respect to any holder any other person who, directly or indirectly (including
through one or more intermediaries), controls, is controlled by, or is under common control with, such person. For purposes of
this definition, “control,” when used with respect to any specified person, shall meant the power, direct or indirect,
to direct or cause the direction of the management and policies of such person, whether through ownership of voting securities
or partnership or other ownership interests, by contract or otherwise; and the terms “controlling” and “controlled”
shall have correlative meanings.

 

8. The Sponsor and each Insider represents and warrants that
it, he or she has never been suspended or expelled from membership in any securities or commodities exchange or association or
had a securities or commodities license or registration denied, suspended or revoked. Each Insider’s biographical information
furnished to the Company, if any (including any such information included in the Prospectus), is true and accurate in all respects
and does not omit any material information with respect to such Insider’s background. The Sponsor and each Insider’s
questionnaire furnished to the Company, if any, is true and accurate in all respects. The Sponsor and each Insider represents and
warrants that: it, he or she is not subject to or a respondent in any legal action for, any injunction, cease-and-desist order
or order or stipulation to desist or refrain from any act or practice relating to the offering of securities in any jurisdiction that would require disclosure in the Prospectus under Item 401 of Regulation S-K under the Securities Act of 1933, as amended;
it, he or she has never been convicted of, or pleaded guilty to, any crime (i) involving fraud, (ii) relating to any financial
transaction or handling of funds of another person, or (iii) pertaining to any dealings in any securities and it, he or she is
not currently a defendant in any such criminal proceeding.

 

     4

     

    

 

9. Except as disclosed in, or as expressly contemplated by,
the Prospectus, neither the Sponsor nor any Insider nor any affiliate of the Sponsor or any Insider, nor any director or officer
of the Company, shall receive from the Company any finder’s fee, reimbursement, consulting fee, monies in respect of any
repayment of a loan or other compensation prior to, or in connection with any services rendered in order to effectuate the consummation
of the Company’s initial Business Combination (regardless of the type of transaction that it is), other than the following,
none of which will be made from the proceeds held in the Trust Account prior to the completion of the initial Business Combination:
(i) repayment of a loan and advances of up to $750,000 made to the Company by the Sponsors to cover expenses related to the organization
of the Company and the Public Offering; (ii) reimbursement for any reasonable out-of-pocket expenses related to identifying, investigating
and consummating an initial Business Combination; and (iii) repayment of loans, if any, and on such terms as to be determined by
the Company from time to time, made by the Sponsor or certain of the Company’s officers and directors to finance transaction
costs in connection with an intended initial Business Combination, provided, that, if the Company does not consummate an
initial Business Combination, a portion of the working capital held outside the Trust Account may be used by the Company to repay
such loaned amounts so long as no proceeds from the Trust Account are used for such repayment. Up to $1,500,000 of such loans may
be convertible into warrants (the “Working Capital Warrants”) of the post Business Combination entity
at a price of $1.00 per warrant at the option of the lender. Such warrants would be identical to the Private Placement Warrants,
including as to exercise price, exercisability and exercise period.

 

10. The Sponsor and each Insider has full right and power, without
violating any agreement to which it is bound (including, without limitation, any non-competition or non-solicitation agreement
with any employer or former employer), to enter into this Letter Agreement and, as applicable, to serve as an officer and/or a
director on the board of directors of the Company and hereby consents to being named in the Prospectus as an officer and/or a director
of the Company.

 

11. As used herein, (i)
 “Business Combination” shall mean a merger, consolidation, capital stock exchange, asset acquisition,
stock purchase, reorganization or similar business combination, involving the Company and one or more businesses; (ii)
 “Capital Stock” shall mean, collectively, the Class A Common Stock and the Founder Shares; (iii)
 “Founder Shares” shall mean the 5,750,000 shares of Class B Common Stock, par value $0.0001 per share,
issued and outstanding immediately prior to the consummation of the Public Offering; (iv) “Initial
Stockholders” shall mean the Sponsor and any Insider that holds Founder Shares; (v) “Private Placement
Warrants” shall mean the warrants to purchase up to an aggregate of 6,500,000 shares of Class A Common Stock of the
Company  that the Sponsor has agreed
to purchase for an aggregate purchase price of $6,500,000,  or
$1.00 per Private Placement Warrant, in a private placement transaction that shall occur simultaneously with the consummation of
the Public Offering; (vi) “Public Stockholders” shall mean the holders of securities issued in the Public
Offering; (vii) “Trust Account” shall mean the trust fund into which a portion of the net proceeds of the
Public Offering and the sale of the Private Placement Warrants shall be deposited; and (viii) “Transfer”
shall mean the (a) sale or assignment of, offer to sell, contract or agreement to sell, hypothecate, pledge, grant of any option to
purchase or otherwise dispose of or agreement to dispose of, directly or indirectly, or establishment or increase of a put
equivalent position or liquidation with respect to or decrease of a call equivalent position within the meaning of the Exchange Act
with respect to, any security, (b) entry into any swap or other arrangement that transfers to another, in whole or in part, any of
the economic consequences of ownership of any security, whether any such transaction is to be settled by delivery of such
securities, in cash or otherwise, or (c) public announcement of any intention to effect any transaction specified in clause (a) or
(b) herein.

 

12. This Letter Agreement constitutes the entire agreement and
understanding of the parties hereto in respect of the subject matter hereof and supersedes all prior understandings, agreements,
or representations by or among the parties hereto, written or oral, to the extent they relate in any way to the subject matter
hereof or the transactions contemplated hereby. This Letter Agreement may not be changed, amended, modified or waived (other than
to correct a typographical error) as to any particular provision, except by a written instrument executed by (1) each Insider that
is the subject of any such change, amendment modification or waiver and (2) the Sponsor.

 

13. Except as otherwise provided
herein, no party hereto may assign either this Letter Agreement or any of its rights, interests, or obligations hereunder
without the prior written consent of the other parties. Any purported assignment in violation of this paragraph shall be void
and ineffectual and shall not operate to transfer or assign any interest or title to the purported assignee. This Letter
Agreement shall be binding on the Sponsor and each Insider and their respective successors, heirs and assigns and permitted
transferees.

 

     5

     

    

 

14. Nothing in this Letter Agreement shall be construed to confer
upon, or give to, any person or entity other than the parties hereto any right, remedy or claim under or by reason of this Letter
Agreement or of any covenant, condition, stipulation, promise or agreement hereof. All covenants, conditions, stipulations, promises
and agreements contained in this Letter Agreement shall be for the sole and exclusive benefit of the parties hereto and their successors,
heirs, personal representatives and assigns and permitted transferees.

 

15. This Letter Agreement may be executed in any number of original
or facsimile counterparts and each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts
shall together constitute but one and the same instrument.

 

16. This Letter Agreement shall be deemed severable, and the
invalidity or unenforceability of any term or provision hereof shall not affect the validity or enforceability of this Letter Agreement
or of any other term or provision hereof. Furthermore, in lieu of any such invalid or unenforceable term or provision, the parties
hereto intend that there shall be added as a part of this Letter Agreement a provision as similar in terms to such invalid or unenforceable
provision as may be possible and be valid and enforceable.

 

17. This Letter Agreement shall be governed by and construed
and enforced in accordance with the laws of the State of New York, without giving effect to conflicts of law principles that would
result in the application of the substantive laws of another jurisdiction. The parties hereto (i) all agree that any action, proceeding,
claim or dispute arising out of, or relating in any way to, this Letter Agreement shall be brought and enforced in the courts of
New York City, in the State of New York, and irrevocably submit to such jurisdiction and venue, which jurisdiction and venue shall
be exclusive and (ii) waive any objection to such exclusive jurisdiction and venue or that such courts represent an inconvenient
forum.

 

18. Any notice, consent or request to be given in connection
with any of the terms or provisions of this Letter Agreement shall be in writing and shall be sent by express mail or similar private
courier service, by certified mail (return receipt requested), by hand delivery or facsimile or other electronic transmission.

 

19. Each party hereto shall not be liable for any breaches or
misrepresentations contained in this Letter Agreement by any other party to this Letter Agreement (including, for the avoidance
of doubt, any Insider with respect to any other Insider), and no party shall be liable or responsible for the obligations of another
party, including, without limitation, indemnification obligations and notice obligations.

 

20. This Letter Agreement shall terminate on the earlier of
(i) the expiration of the Lock-up Periods and (ii) the liquidation of the Company; provided, however, that this Letter
Agreement shall earlier terminate in the event that the Public Offering is not consummated and closed by [●], 2021; provided
further that paragraph 4 of this Letter Agreement shall survive such liquidation.

 

[Signature page
follows]

 

     6

     

    

 

	 	Sincerely,
	 	 
	 	HAWKS SPONSOR LLC
	 	 	 
	 	By:	 
	 	 	Name: 
	 	 	Title: 
	 	 
	 	 
	 	[D&O Name]
	 	 
	 	 
	 	[D&O Name]
	 	 
	 	 
	 	[D&O Name]
	 	 
	 	 
	 	[D&O Name]

 

	 	[OTHER ADVISOR]
	 	 
	 	By:	 
	 	 	Name: 
	 	 	Title: 

 	Acknowledged and Agreed:	 
	 	 
	HAWKS ACQUISITION CORP	 
	 	 	 
	By:	 	 
	 	Name: 	 
	 	Title: 	 

 

[Signature Page to Letter Agreement]

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