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128 December 15, 1954 A regular meeting of the Board of Directors of P. Lorillard Company was held today at the office of the Company, 119 West 40th Street, New York City. There were present Messrs.: H. W. F. D. I. L. A. Kent J. Halley Hopewell A. Henderson H. Peak Gruber I H. E. Dawley H. F. Temple F. G. Searle H. B. Parmele F. M. Walson A. James J. J. Blacknall Anna F. Woessner, Secretary Mr. Kent, Chairman of the Board, presided and the Secretary acted as Secretary of the meeting. On motion duly made and seconded, the reading of the minutes of the previous meeting was-dispensed with. The Secretary presented to the meeting memorandum dated November 30, 1954, from the Retirement Board for the Employees` Retirement Plan, recommending that the Board of Directors extend the coverage of the Plan to the salaried employees of the Federal Tin Company, a wholly- owned subsidiary of this Company, and proposed Amendment to the Trust Agreement for the Plan. Thereupon, after full discussion, On motion of Mr. Henderson, seconded by Mr. Searle, the following preamble and resolutions were unanimously adopted: WHEREAS: It is the opinion of the Board of Directors that this Company should extend the coverage of the Employees' Retirement Plan, which Plan was approved at a meeting of the stockholders held in 1945, to the eligible salaried employees of the Federal Tin Company, a wholly- owned subsidiary of P. Lorillard Company, effective January 1, 1954, pursuant to resolution adopted by the Board of Directors of this Company at a meeting held on January 19, 1945, and to Section 1, sub- section (4) of the Rules and Regulations Governing the Operation of the Employees' Retirement Plan, authorizing participation in the Plan of eligible employees of affiliated and subsidiary companies, NOW, THEREFORE, BE IT RESOLVED: That pursuant to resolution of the Board of Directors adopted at a meeting held on January 19, 1945, and in accordance with Section 1, subsection (4) of the Rules and Regulations Governing the Operation of the Employees' Retirement Plan, the coverage of said Plan is hereby extended to the eligible salaried employees of the Federal Tin Company, a wholly-owned subsidiary of P. Lorillard Company, effective January 1, 1954; and FURTHER RESOLVED: That the proper officers and agents of this Company be and they hereby are authorized and directed to do all that

129 may be necessary or proper to carry out the extension of this Plan to said eligible salaried employees of the Federal Tin Company; and FURTHER RESOLVED: That the proper officers of this Company be and they hereby are authorized and directed to execute the said pro- posed Amendment No. 2 to Trust Agreement dated May 25, 1945, between this Company and City Bank Farmers Trust Company, Trustee, in the form in which said proposed Amendment No. 2 was presented to this meeting, and to deliver said executed Amendment to City Bank Farmers Trust Company, Trustee; and FURTHER RESOLVED: That the draft of said proposed Amendment No. 2 presented to this meeting be annexed to the minutes of this meeting as a part hereof. On motion of Mr. Hopewell, seconded by Mr. Temple, it was unani- mously RESOLVED: That the firm of Haskins & Sells, Certified Public Accountants, of 67 Broad Street, New York, New York, who have here- tofore been serving this Company as Auditors, be and they hereby are appointed Auditors of this Company for the year 1955. On motion of Mr. Henderson, seconded by Mr. Searle, it was unanimously RESOLVED: That the following increases in salary, by reason of additional responsibilities and being individual merit increases in operation of an established plan of salary increases based upon merit and/or length of service within established salary rate ranges, be and the same hereby are in all respects approved, ratified and confirmed: Effective January 1, 1955: From the rate of: To the rate of: New York Office Geor ge 0. Dav ies $17 , 000 per annum $18 , 000 per annum Joel Howard 7,800 " 8,200 " Joseph C. Kienast 5,400 " 5,700 " Vincent F. Miele 4,450 " 4,650. " Alexander Eichhorn 6,250 " 6,550 " Edward G. Kontos 6,250 " 6,550 " William J. Nazaruk 7,800 " 8,200 " Edward J. Chouinard 4,404 " 4,654 " Jonathan W. Winters 5,000 " 5,250 " William G. Driscoll 5,666 " 6,000 " Edward W. Naumann 13,500 " 14,500 " Frederick H. Weiske 13,700 " 14,700 " Harry A. Dooley 12,000 " 12,850 " John J. Darby 17,000 " 18,000 " John L. Mason 11,500 " 12,200 Ralph W. Stevenson 9,600 " 10,100 " p James R. McDermott . 10,780 " 11,500 " W John M. Combs 10,750 " 11,400 " N Robert L. Ross 9,600 " 10,200 Anthony H. Henelt 9,600 " 10,200 " ~ George H. Mackie 6,250 " 6,750 " ~ John J. Galvin 6,500 " 6,750 " ~ Edward P. Hahn 7,800 " 8,275 "

Julius C. Brisotti Frank T. Caldararo Samuel Mintzer Meyer Miller Sam D. Sperry Joseph P. Leben John F. Eustice William E. Duffy Walter M. Birn Floyd T. Fredrickson Bussey H. Vance John Berner M. Sabel Block Paul W. Kayser William C. Harding Robert B. Wyland Arthur L. Davies Fred M. Walson Patrick G. Connors Charles E. Fitzgerald Fred G. Robbe Henry L. Hayden George H. Whitmore Howard F. Cummings Edwin S. Diehl John C. Ferriter David J. MacMillan Earl J. Hoyt Walter H. Schmitt Frank Krause, Jr. Gerard A. Cusick Leonard D. Grosso Jacob Seeman Max R. Schmidt Harris B. Parmele John L. Keffer John E. Zarembo Russel B. Choman David A. Anderson Edward L. Beraholz, Jr. Richard A. Wagner Albert A. Knopf Dolores Arlotto John H. M. Bohlken James J. Ledwith James J. O'Connell Anna F. Woessner August C. Nuber Henry E. Erickson Petterson B. Marzoni Caleb C. Brokaw, Jr. Harold F. Temple William Andre Arthur I. Corby Manuel Yellen John E. Murray Frederick W. Storm From the rate of: To the rate of: $ 8,725 per annum 8,580 6,200 5,550 6,700 5,500 4,925 5,000 6,250 7,800 15,000 8,200 12,150 18,500 13,350 9,500 7,150 17,000 10,750 5,000 15,000 11,000 8,750 5,725 10,000 7,750 17,250 11,100 8,200 7,400 .5,400 4,580 4,450 4,300 25,000 9,200 6,950 6,500 4,500 4,625 4,925 4,900 4,200 4,300 4,200 4,500 8,500 6,200 7,800 15,350 7,150 25,000 8,500 14,000 18,500 13,500 14,000 .s tf it 11 ., $ 9,285 per annum 9,130 6,400 5,850 7,100 5,800 5,175 5,300 6,625 8,250 16,000 8,700 12,950 19,500 14,000 10,300 7,800 18,000 11,750 5,250 16,200 11,575 9,600 6,250 10,575 8,000 18,250 11,800 8,500 7,900 5,700 5,000 4,725 4,550 279000 9,700 7,350 6,950 4,825 4,900, 5,300 5,100 4,400 4,700 4,500 4,700 9,500 6,700 8,500 16,350 7,800 26,000 9,000 14,800 . 191506 14 ,100 14,800. 9i, it ., It it V 1, It I, .f .~ 1 IT of ., tt it 9, ., ., t, rV .t „ 9, 11 f1 IT ,1 1

131 From the rate of: To the rate of: I Morgan J. Cramer, Jr. Edmund P. Primus Howard C. Gercken Robert W. Snyder Walter Sullivan Harold A. Sherer George E. Rodman John J. Smith Herbert C. Juneman Raymond W. Young Rubin L. Borchardt Roswell S. Billings $13,750 per annum $15,000 per annum 14,100 " 15,000 •' 15,000 " 15,750 •' 10,850 •' 11,600 •' 7,100 " 7,600 " 8,600 " 9,350 " 5,550 •' 6,050 •' 5,000 " 5,250 " 5,125 " 5,550 " 8,500 •' 9,000 •' 14,750 •' 15,750 " 5,625 " 6,250 " I Leaf Activities Joseph J. Harpring George D. Rockefeller Charles R. Erb Hugh M. Fanning John H. Rose William W. Aiston James L. McCauley Raymond T. Faulkner John W. Pile Fred F. Taylor Louisville Branch Alexander J. Cheek, Jr. William D. Comstock Donald M. Hall Paul R. Jacoby Lawrence L. Lenharr Courtland E. Calvert Harry E. Everson William A. Greenfield George W. Kirzinger, Jr. Robert W. Lotz Earl McKinney Ellerbe Powe, Jr. Benjamin R. Smith Ray Summers William B. Young Joseph Miller Earl T. Siers Whitlock Branch Seth H. Ellis Edward Francis Thomas J. Doherty, Jr. Old Gold Branch Eugene C. Fieg William D. Okerson Harold J. Rainbow Clarence J. Reichert Albert A. Schultz Theodore B. Smith Edwin A. Hendricksen John A. Kraus 19,000 7,500 9,700 9,400 22,800 12,000 5,400 6,000 17,420 9,100 17,800 7,800 6,250 6,500 5,000 5,250 5,089 5,775 6,250 6,250 6,250 6,950 6,500 6,250 7,800 5,800 10,000 6,275 5,625 4,502 15,000 10,750 7,800 5,500 5,725 7,800 5,300 7,800 It I , t, H t, .I 1. 9. .1 20,000 8,000 10,500 10,000 24,000 13,000 6,000 6,500 18,420 10,100 18,800 8,300 6,600 6,850 5,250 5,450 5,550 6,250 61600 6,550 7,150 7,150 6,800 6,650 8,100 6,100 120000 6,950 6,250 5,000 16,000 11750 8,,300 6,000 6,250 8,100 5,500 8,300 i. IV „ t. i. IV ,1 1. t, t, „ /t 1, 1, Cit, ^ It Cc f f1 .f I. f.

132 From the rate of: To the rate of: John L. Jockel $ 6,250 per annum $ 6,550 per annum Danville Leaf Dept. r Carl A. Taylor 5 625 ., 6,250 ., , „ ., Andrew B. Seward Annie E. Scruggs 5,920 3,810 , 6,270 4,010 ., L_J Louis H. Lindsey 9,600 , 10,500 „ Lancaster Leaf Dept. Richard A. Lantz 3,935 , 4,450 1' Lexington Leaf Dept. William A. Rose 5,200 .T 5,550 t, John L. Thomas, Jr. 5,000 „ 5,350 t, Charles C. Spissu 4,775 ., 5,550 „ Thomas H. Shinkle 6 600 „ 7 600 „ William R. Brewer- , 4,650 ., , 4,800 ., Wisconsin Leaf Dept. John L. Nichols 7,600 , 8,000 ., Ole F. Ellingson 5 600 ., 5 950 ., Marlowe D Klinefelter , 5 400 ., , 5 750 ., . William A. McCormick , 4,800 , , 5,060 Effective December 31, 1954: Louisville Branch George N. Cooper 105 per week 110 per week Junius R. Goulder 104 " 109 " Estell R. Singleton 105 " 110 •' Charles W. Welborn 100 •' 106 •' Maynard Allen 74 " 75 " Boyd D. Batts 82 " 88 •' Thomas J. Dunphy 77 •' 79 " Carl H. Geiser, Jr. 78 " 80 " Eugene D. Rains 82 " 87 •' Carl E. Raser 86 " 91 " Arnaud J. Rassinier 82 " 88 " Ernest E. Sears 74 " 75 " Adrian J. Van Bakel 82 " 88 " Lloyd H. Williford 82 " 87 " Wendall R. Hawkins 68 •' 73 " Malcolm E. Head 68 " 71 " William T. Ransdall 72 •' 77 " John E. Rathburn 68 " 72 „ M. E. Eanes 77 " 80 " Neale Parsons 77 " 80 " Paul S. Hardesty, Sr. 62 " 65 " Joseph E. Best 82 " 86 " Ermon H. Bentley 68 " 71 " Delbert F. Bube 8 2 •' 86 " George C. Hite, Jr. 82 " 86 " Elmon R. Miller 82 " 86 " Edward D. Smith 68 " 71 " w Robert P. Weiss 68 •' 71 " ~ Stanley R. Williams 66 " 70 " ~ Raymond L. Quaack, Sr. 9 6 *' 101 William L. Hazel 72 " 78 John R. Hubbard 65 •' 69 " ~ Robert L. Lindauer 88 '• 93 " Mickey N. Sabo 79 •' 86 " Clark Coy 7 5 •' 80 "

133 From the rate of: To the rate of: I I I Millard Highley, Sr. George E. Hraus Harold B. Schleicher Howard E. Brown Joseph R. May Joseph D. Durbin Millard Highley, Jr. John J. Lehmann Elmo K. Warden, Jr. Leon E. White Earl Gillis Reuben Myrick William C. Siers John E. Bruner John W. Daugherty Deward B. Tomes William L. Johnson Edward Beckwith Louisville Leaf Dept. Calvin Cundiff Ernest White Thomas A. White Old Gold Branch Harry McCulloch Douglas A. Browne Adam Kraus Gerard J. M. Langlois Armand Maebe Miguel Dancausse Martin Leszczynski Alice D. Lent Richard P. Bernard John H. Robertson Bernard F. Mohring Nicholas De Graaf William F. Schneider William J. O'Brien Salvatore Randazzo Arthur J. Chadderton Carol L. Bernhardt Sanford D. Brush Gregory Boratgis Thomas L. Cowan Michael Tunnicliffe Henry C. Liebold Edward T. Callahan Walter C. Kelly Jerry Wanek Alexander Robertson Frieda J. Faria Louis M. Henning Leonardo Forte Raymond E. Williams Danville Leaf Dept. Frederick E. Kinder $ 83 72 62 62 71 84 70 66 86 75 65 58 72 78 97 100 96 96 79 84 66 115 101 110 100 100 105 100 86 85 82 86 87 89 96 78 69 71 79 72 73 85 75 73 72 85 74 65 62 66 68 75 per week 11 I t a t I , .t $ 85 78 69 69 83 88 73 70 90 79 68 59 79 82 99 105 102 98 83 86 68 120 106 115 105 105 110 105 90 89 85 91 90 93 99 81 72 74 81 74 78 88 78 76 75 87 77 68 64 69 70 79 per week t, „ tt , a H ,t I I „ „ I t „ ft t t, „ t, tt , I ., t, t, a t, 91

134 From the rate of: To the rate of: Howard W. Lewis $ 71 per week $ 74 per week Charlie-G. Rogers 82 , 87 " Marion N. Starkey 75 „ 79 „ John M. Tilley 73 76 „ Ernest H. Wall 71 I , 74 ~ Lexington Leaf Dept. Orville C. Drury 54 „ 62 William C. Tincher 71 „ 75 ~ Lee R. Tucker, Jr. 75 I I 82 William B. Wheeler 71 ft I 1 75 Stanley D. Williams 75 „ ., 77 Wisconsin Leaf Dept. Donald O. Gumz 62 I , 65 Bartholmew Henning 68 „ 71 ., Daniel J. Mulrine 65 , 68 Norman K. Nielsen 62 , 65 „ There was presented to the meeting a Sales Promotion Budget for the year 1955 calling for an expenditure of $6,361,400., to be allo- cated as follows: OLD GOLD Cigarettes $4,875,000.00 KENT Cigarettes 1,355,000.00 Tobacco Brands: BEECH-NUT Tobacco $50,000.00 Smoking Tobaccos 75,000.00 125,000.00 . EMBASSY Cigarettes (Export) 6,400.00 ~ Thereupon, after full discussion, on motion of Mr. Dawley, seconded by Mr. Temple, it was unanimously RESOLVED: That the Sales Promotion Budget for the year 1955, as presented, in the sum of $6,361,400.00, be adopted and that it shall be reviewed by the Board periodically during the year. There was presented to the meeting a Cigar Sales Promotion Budget for the year 1955 calling for an expenditure of $351,482.00, to be allocated as follows: MURIEL $253,518.00 HEADLINE 64,546.00 VAN BIBBER 32,998.00 ROCKY FORD 420.00 Thereupon, after full discussion, on motion of Mr. Dawley, seconded by Mr. Temple, it was unanimously RESOLVED: That the Cigar Sales Promotion Budget for the year 1955, as presented, in the sum of $351,482.00, be adopted and that it shall be reviewed by the Board periodically during the year. There was presented to the meeting an Advertising Budget for the year 1955 calling for an expenditure of $17,250,000., to be allo- cated as follows:

135 OLD GOLD (Including Government Sales) Magazines $1,690,330. Newspapers 776,943. Radio 1,545,910. Television 7,552,860. Miscellaneous 122,900. $11,688,943. KENT Magazines 912,000. ~,._ Newspapers 306,543. Radio 200,000. Television 3,604,000. Miscellaneous 10,386. 5,032,929. BRIGGS, Magazines 60,000. BEECH-NUT Newspapers 100,000. Miscellaneous 40,000. 140,000. MURIEL IZagaz ines 1,650. Newspapers 300,000. 301,650. HEADLINE, Magazines 1,650. EMBASSY Newspapers 7,400. Miscellaneous 17,428. 24,828. Thereupon, after full discussion, on motion of Mr. Dawley, seconded by Mr. Temple, it was unanimously RESOLVED: That the Advertising Budget for the year 1955, as presented, in the sum of $17,250,000.00, be adopted and that it shall be reviewed by the Board periodically during the year. It was stated to the meeting that it was deemed advisable to sell the Grumman-Mallard airplane owned by this Company, and that an agreement for its sale was entered into on November 30, 1954, with Ad Properties, Inc., which agreement was presented and read to the meeting. Thereupon, after full discussion, On motion of Mr. James, seconded by Mr. Hopewell, it was unani- mously RESOLVED: That the Agreement dated November 30, 1954, between this Company and Ad Properties, Inc., a Delaware corporation, for the sale by this Company of its Grumman-Mallard airplane No. J-49, License No. NC 2979, for the sum of $88,000.00 payable in four in- stallments of $22,000.00 on the 1st day of June in the years 1955, 1956, 1957 and 1958, together with interest at 6% per annum payable quarterly on the amount outstanding prior to each such quarter, with provision for use of the airplane by this Company during 1955 at a charge of $28,000.00, and for continuance of the "Dancing Pack" in- signia thereon during ownership by Ad Properties, Inc., be and the same hereby is approved, ratified and confirmed in all respects. ~w:~..;,:,. .....

136 On notion duly made and seconded, the meeting adjourned. ~ Secretary I I ~