Tobacco Documents Online

PROGRAMME OVERVIEW Records management/s a BATCo priority Two m~jor goals ,Ini.~ week Teach programme to you Teach you how to manage the progr:~mme What is records ma.uagement? - Records creation - Re~rds retention These are the key elements of the programme BATCO LTD - FLORIDA AG TOBACCO LITIGATION

Records creation - T~ink before you write Does it really need to be in writing to get job done? Wo~fld a face-to-face conversation or phone call be more effective? Oral comm~micafion is best if subject is sensitive Mental copy rule 2 BATCO LTD - FLORIDA AG TOBACCO LITIGATION

Records retest/on - Two b~sic steps - schedul{,~g a~d disposal - Scheduling .. IAt files by series - Series is goup of folders filed together in a common file structure w/th a common retention period - Identify ser~es as~ as possible .. Designate recent/on period .. Survey - process of gathering information about the records to facL]Jtate scheduling Disposal .. Dipose of records whose retention per'iod has exph'ed BATCO LTD - FLORIDA AG TOBACCO LITIGATION

Basic Concepts Definition of records Everythhag on wh/ch information is recorded Ownerstdp of records - All records belong to the company - Records retention decisions - m:~de by company Temporary records Intent at time of creation Dra~, messages Also/.ncludes "rou~e records" such as administrative correspondence, travel memos Need not be filed Copies - Ke~p to minimum - Need not be filed 4 BATCO LTD - FLORIDA AG TOBACCO LITIGATION

Yeacly review - set aside one week for disposal Update retention schedu.les - arm~,~l pro=ss Annual audits - assure compliance Records management is "art" not "science" Accountability - Department heads accountable - Delegation to "coordinators" Work group concept Employees who create and work with a set of flies BATCO LTD - FLORIDA AG TOBACCO LITIGATION

One day's attention - Sched,,l~g can be aa:ompIished i/you am get people's attention for one day How important is it to retain records? - Most record-~ obsolete after one year Change in corporate culture Records creation .. Think before you write - Records retention .. land conservative "just in case" attitude .. Acceptable business risks Visible support of # I BATCO LTD - FLORIDA AG TOBACCO LITIGATION

Document creation - Better communication - Efficiency, productivity - Focus on key business goals - More face-to-face commlmlcation and teamwork - May find job more enjoyable - Reduce potential for legal, PR problems Retention Cost savings .. Floor space savings .. Storage cost savings Better focus on information .. Efficiency .. Productivity - Reduce potential for legal, PR problems- BATCO LTD - FLORIDA AG TOBACCO LITIGATION

Further improvements in records management procedures Until this point - benefits flow from key elements Key elements of programme .. Records creation .. Records retention As you focus on pro~amme - look at way you operate - Opportunities for knprovLug system - Programme policy - item N Don't lose sight of" two key dements But take advantage of opportunities - Filing systems - More focus on computer and elecu'on/c information a~ opposed to paper - Use of micro~l~ microfiche - Training manual h~ more detail 8 BATCO LTD - FLORIDA AG TOBACCO LITIGATION

Leg~l ~sues - Opposing party in lawsuit obtai~ company documents through "discovery~ process - Doc~,r-ent discovery part of most legal systems Examples of doc~,rnent requests Attorneys must analyze document request Attorneys must read and analyze the company documents Company employees interviewed Information summarized Summ~-y information data entered into computers Attorneys must determine which documents are responsive Arguments before judge Witnesses prepared Months of executive time involved Disruption of business BATCO LTD - FLORIDA AG TOBACCO LITIGATION

Attorneys fees Docnments taken.out of contex~ Potential adverse judgment Potential adverse precedent Media coverage Types of cases where documents can be problem .. Competition, product liabffity, patent, trademark, contract, etc. .. Governmental investigations - EC Liggett case .. Competition and trademark case .. 7-1/2 month trial .. $150 million verdict (later reversed) .. $~. biEdon theory .. MHIions of pages of documents .. Enormous outside legal fees 10 BATCO LTD - FLORIDA AG TOBACCO LITIGATION