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1 ($1,600,000.00) in civil penalties is stayed for a period of five years and is referred to in th 2 proposed Final Judgment as the Stayed Penalty- Payment of the Stayed Penalty is subject t3 certain provisions set forth in the proposed Final Judgment. 4 b. Supplemental Environmental Projects: K MART is to pay eight hundrec 5 and fifty thousand dollars ($850,000.00) as cy pres restitution pursuant to section 17203 of the 6 Business and Professions Code, to be allocated by the prosecuting agencies to the projects se 7 forth in Exhibit C attached to the Final Judgment. In addition, K MART is to pay two millior. 8 five hundred thousand dollars ($2,500,000.00) for supplemental environmental projects in 9 accordance with the terms of Exhibit D attached to the Final Judgment. 10 C. Costs: K MART is to pay three hundred thousand dollars ($300,000.00) 11 as partial recovery of costs incurred by the People in connection with the investigation of this 12 matter, to be disbursed as set forth in Exhibit E attached to the Final Judgment. 13 2. Permanent Injunctive Relief: 14 Pursuant to Health and Safety Code sections 25181 and 25516.2, Business and 15 Professions Code section 17203, and the Court's equitable powers, K MART will be 16 permanently enjoined from failing to comply with Chapters 6.5 and 6.95 of Division 20 of the 17 Health and Safety Code and the regulations promulgated under those chapters and the 18 requirements of the relevant Certified Unified Program Agencies ("CUPAs") pertaining to those 19 laws and regulations, at the Covered Facilities as well as at retail facilities that K MART may 20 open in California after the entry of the Final Judgment. K MART will also be subject to further 21 specific injunctive provisions as set forth in the proposed Final Judgment, 22 3. Scope of the Settlement: 23 The scope of the settlement set forth in the Final Judgment is consistent with prior 24 settlements of statewide environmental enforcement actions brought by the Attorney General's 25 Office and District Attorneys. 26 4. Penalties for Violations of the Injunction. 27 The Final Judgment imposes injunctive provisions pursuant to Health and Safety Code 28 sections 25181, 25516.2, Business and Professions Code section 17203, and the Court's -6- MEMORANDUM OF POINTS AND AUTHORITIES