KEY PROVISIONS OF TOBACCO AGREEMENT

Highlights of the draft agreement between state attorneys general and major
tobacco companies:

Total cost to tobacco companies would be roughly $200 billion over 25 years.

If all states participate, annual payments will begin at $4.5 billion next
year, and rise to $9 billion beginning in 2018. The attorneys general will
decide how the money will be split between the states.

Companies will reimburse states for their attorney fees, and the cost does
not come out of the annual payments.

All outdoor cigarette advertising, merchandise with brand-name logos and
use of cartoon characters in advertising tobacco products would be banned.

Tobacco companies would be limited to one brand-name sponsorship a year.
Corporate sponsorship of events that does not include brand names could
continue.

The Tobacco Institute and Council for Tobacco Research would be disbanded.

Tobacco companies would be banned from opposing new state or local laws
intended to fight youth smoking.

The industry would pay $25 million for 10 years to fund a foundation to
reduce teen smoking, and $1.45 billion over the next five years for a
national public education fund.