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NF Uovxcu Fort ToB,4cco RcsrwRcR-U.S.A., I~c. , ,. I KINtTTES OF THE SPECIAI. KE...E:ING OF THE BOARD OF DIRECTORS JULY 26, 1973 ' A special meetinq of the Board of Directors of The Council for Tobacco Ieesearc.i - U.S.A., Inc. ras held, pursuant to written notice given in accordance with Section 4 of article V of the By-Laws,at the offices of The Council on Thursday, July 26, 1973, at 2r30 P.M. The Chairman, H. H. Raasa, presided and the Secretary, FI. T. Hoyt, recorded the minutes. The sbembers of the Board of Directors present vere Messrs. Rcsbert X. 8eiu.n of hmerican Brands, Inc., E. P. Finch of Brown & Hillianson Tobacco Corporation, W. Brooks Georqe of Lnis & Brother CoMany, Inc., House of Edqevcrth, and Louis F. Bantle of United States Tobacco Coc~zany, being a quorum. A.lao present by invitat_ion of the Board of Directors were Kessrs. Cyril F. Hetsko and Richard H. Stinnette of American Brands, Inc., DeBaun Bryant. and Joseph E. Edens of Brvwn i Williamson Tobacco Corporation, Arthur J. Stevens of Lorillard, a Division of Loe.rs Corporation, Thomas F. Ahrensfeld, Alexander Holtzz= and Ross R. Killhiser of Philip Morris Incorporated, H. C. Roesaer, 1lilliam S. Smith and Charles B. Mad. Jr. of R. J. Reynolds Tobacco Cocpa.ny, David R. Hardy and Hilliasa W. Shinn of Shook, Hardy, liitchell & Bacon, and Ldvin J. Jacob. The Chairman opened the mestinq and advised that Mr. A. H. Galloway had tandered his resignation as a Director of the Corporation. Upon motion duly ssade and seconded, it vas unanimously CiR 64 7? ,CONMiu:r.i1n... ,i.;dN:::crA ~ ToBAcco LITIGATION ~~, ~,,.~~,( t~ t t~Y CT

.._.._ [~~. - ... . . . . -. ...... RF.SOLVED, that the resignation of A. H. Galloway be accepted. Opon motion duly made and seconded, it was una.aimously RESOLVED, that effective July 26, 1973, 1lilliaa S. Sait.ti be, and hereby is, elected a member of the Board of Directors and designated a s,amber of the Executive Coax,.ittee of the Board of Directors. •The Ch'airman presented the minutes of the Board of Directors' meeting held on January 26, 1973, which was sent to the Directors on February 5, 1973. Dpon motion duly made and seconded, the reading of the a3.autes was waived and t.he stiautes were unanimously approved. Cpon motion duly made and seconded, unanimous ag~,proval was given, effective as of July 1, 1973, to increase the salary of Acbert C. Hockett fron $43,500.00 to $45,500.00 per a.nnua, and the salary of W. T. Hoyt froA $47,000.00 to $49,000.00 per an.n=. The Chairman reviewed the requirements of The Council for quarters when its current tenth-floor lease expires on January 31, 1974. He explained that investigations indicated that the present landlord was not able or willing to fulfill those needs but that some 7,100 square feet on the ninth floor of 110 East 59th Street was available on a sublet from The World Publishing Co. at $9.00 a foot, which price included ranovations of approximately $70,000.00, on a ten-year lease with a cancellation clause at the end of five years by payment of a penalty of $35,000.00. Vpon aotion duly made and seconded, it was unanimously RESOLVED, that the Executive Vice President or the President be, and each of the.m hereby is, authorized, in the name of and on behalf of The Council, to enter into a lease.for office space on the ninth floor at 110 East 59th Street, New York City, substantially in accord with the provision: outlined by the Quirm.an and sumcoarised abovet provided, t.'sat if for any reason such lease is not obtainable, then said officers shall be authorized to enter into a lease on a substantially similar basis for office quarters elsewhere in New York City. The Cha.irman stated that the Literature Retrieval Division, whicti has its offices on the eigh Lti floor of 110 East 59th Street, xew York City, may need to obtain approximately 1,000 additional square feet of office space and that before such additional space were leased the consent of the five comoanies CTR G473 CONAIDENTIAL: MINNESOTA TOBACCO LITIGATION C•e=e1i I,1_I 0040[' Cas

2C. ] _ Tp IiV ~ responsible for the expenses of the Division would be obtained. Assuaing sucti consent were obtained, the Chairasan pointed out that a.ny lease would have to be entered into by The Council and requested that requisite authority be given for this purpose. Upon motion duly sLade and seconded, it was unanimously RESOLVED, that upon obtaining the coasent of the five oosrpari.ies responsible for the expenses of the Literature Retrieval Division for that Division to have the use of approximately 1,000 additional square feet of office space on the eighth floor of 110 Last 59th Street, New York City, the Lxecutive Vice President or the President shall be authorized in tye name of and on behalf of The Courcil to enter into a lease for such space. The Chairman discussed various staff changes a.ad stated that on July 1, 1973 Dr. William U. Gardner had becoae Scientific Director and Dr. Robert C. Hockett had become Research Director. A news release was issued announcing the appointments. In other staff realignments Drs. John H. Kreis.*,er and trederic W. Nordsiek, formerly Associate Scientific Directors, beca_e Associate Research Directors. Dr. Vincent t. Lisanti's t3tle was changed frccs Scientific Associate to Rasearch Associate. Dr. J. ?brrison Brady retired. The Chairman advised that Dr. Hcxeen Cattell, who had been one of Vhe original members of the Scientific Advisory Board, had resigned at the age of 82, and that Dr. Clayton G. Loosli, who intends to retire from active scientific investigations in 1974, may also retire soon. ae said that Averill A. LieboW, M.D., •profusor and Chairaan of the Department of Pathology at the University of California, San fiego, an outstanding pathologist, was expected to join the ScientSfic Advisory Board shortly. The Cha,irman announced that the Peter J. Schweitzer Division of T1aDerly-Cla.rk Corporation resigned as a Class B sumber of The Council. The Chairman referred to an article which appeared in THE WALL STR°:.': JGURNhL, -Kar on Cancers Trouble in the Ranks,' which enunciated various scientific viewpoints on centralized planning of cancer research and set forth , the merits of peer review of projects. CTR 6474 ( Q1:F(OI:IITIAI . T4INNESOTA LITIGATION CTR MN 004069

'f1CPJ ~. ;:_.....__~ Researcts plans for the future were outlined by Dr. Millia.. U. Gardner, the Scientific Director, who told of increasing enphasis on four fields of iarestiqations aodel systems for smoke exposure, studies of twins, saphyse_-,atous stnd.ies, and smokinq s+otivational studies. He described plans to sta?ce greater use of consultants in future and to increase in depth persona1 reviews of project applications. Drs. Sbeldnn C. Sommers, Chairrun of the Scientific Advisory Board, and Robert C. Hockett, Research Director, discussed the status of the research program and described sosne recent dsvelo;c~ents in current pro jec',,s . There being no s+ore business ccrsing before the meeting, the adjourned. same vas 6. ). .74- Secreta_ry r 4 C T R G4rl'5 .CONPIDENTIAL'. TvllhNESOTA ---- TOBACCO LITI©ATtON C I'f-=y H N 0 0 4 0 7" 0