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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 UNITED STATES DISTRICT COURT DISTRICT OF MINNESOTA FOURTH DIVISI0IJ 3-82-1299' HUBBARD 3ROADCASTING, INC., A Minnesota Corporation, d/b/a KSTP-TV, KSTP-AM, Inc., and KSTP-FM, Inc., A Minnesota Corporation, Plaintiffs vs. METROPOLITAN SPORTS FACILITIES COMMISSION, A Public Body; AMERICAN SIGN AND INDICATOR CORPORATION, A Washington Corporation; T!ATIN CITY FEDERAL SAVINGS & LOAN ASSOCIATION, A Minnesota Corporation; and AMERICAN SIGN AND INDICATOR CORPORATION/TWIN CITY FEDERAL SAVINGS AND LOAN ASSOCIATION, A Joint Venture, ) DEPOSITION OF: ) ) RICHARD L. DILWORTH t 0 Defendants The following deposition of RICHARD L. DILWORTH was taken before Clarice Einstein at the office of Wayne Juchatz, R. J. Reynolds Tobacco Company, Reynolds Building, 401 North Main Street, Winston-Salem, North Caifolina, beginning at 9:34 o'clock a.m. on Tuesday, February lll, 1984. Clarice Einstein dc Associates Court Reporting Services 2914 Oakland Drive Wiaston•Sateist. NC 2?106 fn. el n~Q~~a6a

-2- 1 2 3 4 5 7 8 9 10 11 12 13 14 15 16 20 _ g 22 D t 0 W 23 24 A P P E A R A N C E S Clay R. Moore, Esq. MACKALL, CROUNSE & MOORE 1600 TCF Tower Minneapolis, Minnesota 55402 David E. Johnston, Esq. WOMBLE, CARLYLE, SANDRIDGE & RICE 2400 Wachovia Building Post Office Drawer 84 Winston-Salem, North Carolina 27102 Wayne W. Juchatz, Esq. Assistant General Counsel R. J. Reynolds Tobacco Company Winston-Salem, North Carolina 27102 Robert L. Barrows, Esq. LEONARD, STREET AND DEINARD 1200 National City Bank Building 510 Marquette Avenue Minneapolis, Minnesota 55402 ! 25

2' 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 -3- STIPULATIONS: I N D E X 4 EXAMINATION: Mr. Moore 5, 69 .Mr. Barrows 24 REPORTER CERTIFICATION: 80 WITNESS CERTIFICATION: 81 EXHIBITS Number Identified Dilworth Exhibit Sixty 10 Dilworth Exhibit Sixty-One 37 t

-4- 2' 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 STIPULATIONS - 'Pursuant to Notice of Deposition, the deposition of RICHARD L. DILWORTH was taken before C7arice Einstein, Notary Public and Court Reporter. The deposition was taken at the office of Wayne Juchatz, R. J. Reynolds Tobacco Com- pany, 401 North Main Street, Winston-Salem, North Carolina, commencing at 9:34 o'clock a.m. on Tuesday, February 14, 1984 All formalities with reference to notice of time and place and purpose of taking the deposition were expressly waived. Formalities with reference to sealing and filing the deposition were waived, and it is stipulated that the original transcript, upon being duly certified by the under- signed court reporter, shall be delivered t6* Clay R. Moore, Esq., Mackall, Crounse & Moore, 1600 TCF Tower, Minneapolis,l Minnesota, and he shall then be responsible for its preserva tion and delivery to the Court if needed or so ordered. It is further stipulated that, except as to the form of any question, all objections to questions and motions to strike answers need not be made at the time of the taking of this testimony, but may be made at the time the testimony or any part thereof is offered in qvidence. Reading and signing of the deposition was requestcd by counsel and the witness.

-5- 1 2- 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 2s 24 25 The witness, RICHARD L. DILWORTH, upon being first duly _.sworn to state.the truth, the whole truth, and nothing but the truth, on his oath, testified as follows: (9_:34 o'clock a.m4) EXAMINATION BY MR. MOORE TO RICHARD L. DILWORTH: Q. Would you state your name and address, sir? A. Richard L. Dilworth, 421 Ransom Road, Winston- Salem, North Carolina 27106. Q. And by whom are you employed? A. R. J. Reynolds Tobacco Company. Q. What is your present title? A. Manager, Out-of-Home Operations. Q. How long have you been employed by R. J. Reynolds? A. Twenty-five years. Q. And beginning irn the year 1959? A. 1958. Q. '58? Upon graduation from college, I gather? A. Yes, sir. Q. Give us a statement, if you like, or summary of your employment with R. J. Reynolds t since that date -- '58. A. Do you mean by that the various departments? Q. The various departments you have been in. A. Personnel Department, Public Relations, Marketing Department, Media Department, Special Events Promotion

-6- 1 2a 3 4 5 6 7 9 10 11 12 13 14 15 16 g 19 ~ e ~ 20 V 22 O t O ~ 23 24 Department, and the RJR Media Services Division of Marketing. Q. And presently what division or department are you in as manager? Well, you are manager of a--- A. The Media Department•-- RJR Media Services, to be absolutely proper. Q. And I use the description advertising or promotion to describe many of the duties you have just described. How many years and what years have you been in that general area? A. As far as out-of-home operations, since November, 1976. Q. And prior to that time what connection did you have with advertising or promotional activities on behalf of R. J.I Reynolds? A. From 1965 through 1971 involved in both brand marketing and the media area during that period of time. Q. Does this all have to do with the development of advertising -- advertising programs, the placement of adver- tising? A. Specifically, developing of implementation of ad- vertising, rather than the development of advertising itself, and plans relative to that. • ! Q. Nov, you mentioned the phrase, "out-of-home." What do you mean by that? A. -Out-of-home would mean all forms of advertising not counting print advertising, such as newspapers and 25

r -7- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 magazines. -•Q. Have you been involved on behalf of R. J. Reynolds in advertising -- print and newspaper advertising in the past? A. Prior to 1971 I was involved to a small degree in our -- in the company's activities involving print. Q. All right, now, you have described what out-of- home advertising is not. What does it include? A. Out-of-home advertising would encompass what is generally known as outdoor advertising or billboard adver- tising -- all those forms relating to outdoor advertising, such as thirty-sheet billboards, bulletins, transient adver- tising. Q. All right, does it also encompass advertising in a sports stadium or sports arena? A. Yes, sir. Q. You draw a distinction, do you not, for your pur- poses, between stadia and arenas? A. Yes, we would, for record purposes only. Q. In case it comes up, what do you mean when you use the word "arena" as distinguished,from "stadium"? A. Arena would more specifically encompass those facilities, enclosed facilities, for example, which would specifically relate to basketball events, hockey events. Q. All right, and "stadium"? d t0 01

-8- (~1 1 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 ' 22 23 24 25 .A. Stadium would clarify more directly the baseball and'footba-ll -- the outside type of sports activity. Q. What would you classify the Hubert H. Humphrey -Metrodome as? A. Stadium. Q. You don't mean to say that stadium, in your lexico would be always outside or not enclosed? A. No. Q. As the manager of -- give me that title.again - out-of-home --= A., Operations. Q. --- operations. What do you do with respect to advertising? A. We implement the company's out-of-home advertising programs. By that, I mean we plan, evaluate, execute those plans and monitor the out-of-home inventory for the corpora- tion. Q. Can you be just a littlt~ more specific about what you mean by those terms? Do you develop the copy itself, for example? A. No, we do not develop cmpy. Q. That is done where? A. The advertising agencies for the particular brands that R. J. Reynolds markets. The advertising agencies develop those plans. v %o N v

1 2- 3 4 5 6 7 8 9 10 11 12 13 \-~ 14 15 16 's 17 e 19 s 20 I _ ; 21 < . g 22 0 < ° Y leJ 24 25 -9- Q. Do you negotiate agreements with respect to adver- •.tising in stadia or arenas? A. Yes. Q. And is •that-your-personal function? A. It's my function to recommend to the management of the media and Marketing Department in regards to those plans. Q. But are you the person that actually does the negotiation within such guidelines or standards as set for you by your superiors? A. Yes. Q. And were you.in fact the person that conducted negotiations with respect to the contract that R. J. Reynoldo has in the Hubert H. Humphrey Metrodome? A. Yes. Q. And those negotiations were carried out by you specifically with whom? A. With Jim Turner, American Sign and Indicator, and my immediate superior within R. J. Reynolds. Q. And who is he? A. Mr. Dan Pearson. j Q. Now, the Media Departmentc that you operate within well, more specifically, your function as manager of out-of- home operations -- does that cover all of the various brands of cigarettes manufactured by R. J. Reynolds? A. Yes, sir. In the United States. Un 0 w m 64

-10- 1 2 3 .4 5 6 7 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 . 25 Q. Can you give me the number of brands manufactured by R. J. Reynolds? ~ A. - To be specific, I can name the brand families for you. - Q. Why don't you do that? A. Winston, Camel, Salem, Doral, More, Sterling, Bright, Vantage. I may have missed one or two, but those are the main brand families, each of those having line ex- tensions. Q. Line extensions meaning long or short? A. Eighty-five millimeter or one hundred millimeter. Q. The particular brand that is advertised in the Hubert H. Humphrey Metrodome is Winston, is it not? A. Yes, it is. MR. MOORE: Would you mark this as --- MR. BARROWS: We can do this off the record. (Off-record discussion.) MR. MOORE: Let's mark this Dilworth Sixty. (Dilworth Exhibit 60 was marked for the purpose bf identification.) Q. (By Mr. Moore) I am handing you what we have agreed to mark here as Dilworth Exhibit Number 60, Mr. DiI- worth, and ask you whether you recognize that document. v N ~