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Tuesday, March 2, 2010

Santa Fe Natural Tobacco Company Settlement Agreement

This Agreement is entered into effective March 1,2010 by Santa Fe Natural Tobacco Company, Inc. (SFNTC) and the Signatory States through their respective Attorneys General.
WHEREAS, SFNTC advertises some of its Natural American Spirit brand cigarettes and roll your own (R YO) tobacco as containing "organic" and/or" I 00% organic" tobacco; and
WHEREAS, the Attorncys General allege that consumers may be misled by this advertising and believe that "organic" or "I 00% organic" is safer or less harmful than other tobacco; and
WHEREAS, SFNTC does not have competent, reliable, scientific evidence that organic tobacco is safer or less harmful than other tobacco; and
WHEREAS, the Attorneys General believe that the advertisements are deceptive and misleading in violation of the Master Settlement Agreement and Consent Decree as well as various state consumer protection laws; and
WHEREAS, SFNTC believes that the advertisements are true and not misleading because SFNTC uses exclusively tobacco that is certified under the National Organic Program of the United States Department of Agriculture to manufacture its Natural American Spirit brand cigarettes made with organic tobacco and organic roll your own tobacco, and thus are not deceptive; and
WHEREAS, the parties have determined that it is the interest of all parties to enter into this Agreement rather than proceed to litigation; and
WHEREAS, the parties wish to completely settle, release and discharge all claims under the MSA and the Consent Decree. as well as state consumer protection statutes that relate to the legality of advertising cigarettes or R YO tobacco as containing "organic" or "100% organic" tobacco; and
WHEREAS, this Agreement constitutes a good faith selliement of the dispute and disagreement between the parties relating to the advertising of "organic tobacco";
NOW, THEREFORE, in consideration of their mutual agreement to the terms of this Agreement, and other such consideration described herein, the sufficiency of which is hereby acknowledged. the parties, acting by and through their attorneys, stipulate and agree as follows:
For purposes of this Agreemcnt, the following dcfinitions shall apply:

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