Addendum To Castano Settlement

ADDENDUM TO CASTANO SETTLEMENT AGREEMENT


This Addendum to the Settlement Agreement entered into on March 12, 1996 (the "Agreement") is intended to modify certain terms and conditions of the Agreement and to become a part of the Agreement effective as of the date of the Agreement. In consideration of the promises and covenants set forth in the Agreement and in this addendum, plaintiffs on their own behalf and on behalf of the Settlement Class, and Brooke Group and Liggett hereby stipulate and agree that the Agreement shall be modified as follows:


1. DEFINITIONS.


The following definition of Attorney General Actions shall be
added:


"Attorney General Actions" means the Mississippi Action, the West Virginia Action, the Florida Action, the Massachusetts Action, and the Louisiana Action (as defined in the Attorneys General Settlement Agreement dated March 15, 1996) or any similar action commenced by or on behalf of the other states against the defendants.


The definition of Future Affiliate shall be deleted in its entirety and replaced by the following definition:


"Future Affiliate" means any entity, other than an entity with a market share greater than thirty percent as of the date of this Agreement, which is a defendant in CASTANO and which, with the prior written approval of Brooke Group, ...