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i 783 Winston-Salem, North Carolina June 16, 1983 Minutes of a meeting of the Contributibns Committee held on June 16, 1983, at 11:30 a.m. at the offices of the Company. Present were: Albert L. Butler, Jr., Edward A. Horrigan, Jr., Juanita M. Kreps, Hicks B: Waldron, J. Tylee Wilson, and Margaret S. Wilson. Dennis Durden, Ron Sustana, and John L. Bacon were present by invitation. The Chairman, Edward A. Horrigan, presided and John L. Bacon, Secretary, acted in his capacity. Mr. Horrigan announced that a quorum was present and that the meeting was open for business. Upon motion made and seconded, the minutes of the Committee Meeting held on March 17, 1983, were approved. A brief budget status report was given.by Mr. Bacon. I Herschel H. Cudd joined the meeting at this point. At Mr. Horrigan's request, Mr. Bacon presented a proposal to implement the Agriculture Strategic Plan Focus. He said the Plan provides for expansion of the existing Executive Development Seminars for Farmers and Farm Women, the creation of an internal Agriculture Technical Advisory Group, and the assignment of an agricultural specialist within the R&D function to administer this and other programs meeting the needs of individual farmers. After discussion the Committee approved the Plan in principle. Mr. Horrigan then presented a summary of the R. J. Reynolds Tobacco Company Medical Research Program and a discussion followed. It was the sense of the Committee that the R. J. Reynolds Industries, Inc. biomedical research program should be reviewed and, where appropriate, redirected to make more effective use of research dollars. The Committee directed the Chairman to develop a strategy for bringing the two programs closer in meeting corporate objectives for research in the biomedical sciences. Mr. Bacon then presented a recommendation that a Company'Foundation be created. After discussion it was the sense of the Committee that the staff should study further the formation of a foundation and develop a plan for the Committee's consideretion. Mr. Bacon presented a request from Davidson College for $308,941 for a seven-year program of scholarships and summer business internship porgram. After discussion and upon motion made and seconded, the Committee approved $250,000 for scholarships only, payable over seven years beginning in 1984 and coupled with Davidson's agreement to refrain

784 from approaching the Company for other gifts until the end"of 1990. Mr. Bacon next presented a request to contribute up to, $1 million to match gifts of directors and stockholders of R. J. Reynolds Industries, Inc. and of present and retired former employees of R. J. Reynolds Industries, Inc. and its operating companies to the campaign to restore the Statue of Liberty and Ellis Island. In the discussion that followed a number of questions were asked after which it was the recom- mendation of the Committee that Messrs. Sustana and Bacon reconsider the request and present a revised request at a future Committee meeting. Requests from the following were considered and not approved. The Afrikan Poetry Theatre, Inc. - Jamaica, NY American GI Forum National Office - El Paso, TX Artrain Incorporated - Detroit, MI Aquatic Resources Management Services - Yountville, CA ARAM Research - Augusta, GA Association of International SKAL Clubs - Las Vegas, NV Atlanta Boy Choir - Atlanta, GA Baltimore Braille Association - Baltimore, MD Baylor University Medical Center - Dallas, TX Blinded Veterans Association - Bricktown, NJ Bloomingdale Sesquincentennial - Bloomingdale, IL Bluefield College - Bluefield, VA Boston Symphony Orchestra - Boston, MA Pearl S. Buck Foundation, Inc. -•Perkasie, PA University of California Jazz. Ensemble - Berkely, CA Cambridge Oahu Study Team - Cambridge, England Campbell Academy - Odessa-Tampa, FL Center for Creative Leadership - Greensboro, NC Central Park Conservancy Charlotte Wheelchair Athletic Association - Charlotte, NC Christ Church Episcopal School - Greenville, SC Clearinghouse for Children's Radio and Television - Washington, DC College of New Rochelle - New Rochelle, NY Columbia Hospital for Women - Washington, DC Community Service Center for the Disabled, Inc. - San Diego, CA Computers for the Handicapped, Inc. - Muncie, IN Contact Teleministries USA, Inc. - Harrisburg, PA Council for Basic Education - Washington, DC Council of Scholars of Library of Congress - Washington, DC Cumberland College - Williamsburg, KY Dallas Baptist College - Dallas, TX Dartmouth Medical School (Dr. Martin Lubin) - Hanover, NH Ducks Unlimited, Inc. - Long Grove, IL EWTN (Catholic Cable Network), New York, NY The Explorers Club - New York, NY University of Florida, College of Engineering - Gainesville, FL Folk Art America - New York, NY Fund for Rural Justice - North Conway, NH Future Homemakers of America - Reston, VA Grants and Aid for College Education - Athens, GA -.Greater Laurel Beltsville Hospital Foundation - Laurel, MD ~

I 785 Hofstra University - Hempstead,.NY ' The Hudson Institute - Croton-On-Hudson, NY Immaculata College - Immaculata, PA The Institute of Cultural Affairs - Chicago, IL Intercollegiate Studies Institute, Inc. - Bryn Mawr, PA International Host Committee - Oakland, CA International College - Beirut,Lebanon - New York, NY International Human Assistance Programs, Inc. - New York, NY Lancaster County Rescue Squad - Lancaster, SC Leadership Foundation - Washington, DC Marin Symphony - San Rafael, CA Metropolitan Opera Centennial Fund - Washington, DC Midway College - Midway, KY Mount Union College - Alliance, OH Museum of Vintage Fashion and Textile Conservation Centre - Moraga, CA National Hospice Organization - Arlington, Va National Rural Fellows Program - New York, NY National Trust for Historic Preservation (Rural Project) - Washington, DC New England Museum of Sports - Boston, MA New Jersey Business Group on Health, Inc. - Englewood Cliffs, NJ Northern Light Productions - Boston, MA Northwood Institute - Midland, MI North Carolina Biotechnology Center - Research Triangle Park, NC North Carolina Organization for the Advancement of the Visually Impaired - Raleigh, NC North Carolina Outward Bound School - Morganton, NC Onslow County Museum - Richlands, NC Operation Grass Roots - Louisville, KY Partnerships Dataline - Washington, DC Floyd Patterson Children's Fund, Inc. - Closter, NJ Pediatric Research Foundation - Houston, TX Pendleton County Chamber of Commerce - Falmouth, KY Planned Parenthood Federation of America, Inc. - New York, NY Power House of Deliverance - Greensboro, NC The Reason Foundation - Santa Barbara, CA Ride for Life (World Hunger) - Cambridge, MA Robeson Historical Drama Association - Pembroke, NC Sacramento Guild for the Performing Arts - Sacramento, CA Saint Edward's University - Austin, TX Sandy Ridge Little League - Sandy Ridge, NC Seattle University - Seattle, WA Services for the Blind - Santa Ana, CA Southern Senior High School (National Honor Society Scholarship) - Harwood, MD South Stokes March of Dimes Walk-A-Thon - King, NC Southwest Forsyth Little League, Inc. - Clemmons, NC University of South Carolina, Riegel and Emory Human Resource Research Center - Columbia, SC Spoletto Festival USA - Charleston, SC Stokes County Economic Development Commission - Danbury, NY Stokes County Board of Education.- Danbury, NC Third Annual Women's Leadership Conference - Winston-Salem, NC Trinity High School - Trinity, Nq I I

786 United Daughters of Confederacy - Asheville; NC United Way of Bowling Green-Warren County, Inc. (Computer Support System) Bowling, KY The United States-South Africa Leader Exchange Program - Washington, DC United States Telecommunications Training Institute - Washington, DC Untapped Resources, Inc. - New York, NY Washington Legal Foundation - Washington, DC Western Guilford High School - Greensboro, NC Whitetails Unlimited Inc. - Sturgeon Bay, WI World Wildlife Fund-U.S. - Washington, D.C. The Wrestling Booster Association - Pine Grove, PA Youth Symphony of Kansas City - Shawnee Mission, KS Mr. Bacon then presented for ratification the following three biomedical research requests approved by the Chairman since the last meeting: 1. Eleanor Roosevelt Institute for Cancer Research, Inc. (Dr. Theodore T. Puck) - $435,000 to increase the current grant to $200,000 per year for 1983 and 1984 and to extend the grant for one year at $200,000 in 1985. 2. The Salk Institute (Dr. W. Maxwell Cowen) - $46,850, payable in 1983, for the purchase of equipment. 3. University of Colorado Health Sciences Center (Dr. G. Barry Pierce) -. $113,000 to restructure the balance of the current grant and to extend support at a reduced level for 1983, 1984 and 1985. After discussion and upon motion made and seconded, the Chairman's approval of the above requests was ratified. Mr. Bacon submitted an update by Dr. Frederick Seitz, advisor to the Company on its biomedical research program, reviewing the status of projects being supported under this program. Mr. Bacon submitted requests from Winston-Salem Health Care and Winston-Salem Dental Care to participate in the RJR Education and Arts Matching Grants Plans, effective July 1, 1983; and a request from Heublein, Inc. to participate for itself and its subsidiaries, Heublein Spirits and Wine Company and Kentucky Fried Chicken Corporation, in the RJR Education and Arts Matching Grants Plans, effective January 1, 1984. After discussion and upon motion made and seconded, the Committee approved the requests. Mr. Bacon presented a recommendation that the portion of a membership payment to an eligible arts organization deductible as a contribution under the Internal Revenue Code qualify for matching funds under the RJR Arts Matching Grants Plan. After discussion and upon motion made and seconded, the Committee approved the requests. Mr. Horrigan reminded the members that at its meeting Mareh 18, i

I 787 1982, the Committee had delegated to its Chairman authority to approve renewals of support for scholarships for employees' children under the National Merit Scholarship Corporation Program and the Achievement Scholarship Program for Outstanding Negro Students. He further said that under that delegation,• the Chairman was required to report any changes in either the number of students authorized to participate or the minimum or maximum levels of support. Mr. Horrigan then said that from time to time it is desireable to add or delete affiliates authorized to participate in the plan for employees' children, and that the costs of the programs were included in budgets reviewed and approved by the Committee annually. He recommended that the Chairman's authority be extended to include authority to aprove adding or deleting partici- pating affiliates and that the requirement to report certain changes to Committee meetings be deleted. After discussion and on motion made and seconded it was unamiously RESOLVED that the resolutions relating to Merit Scholarships adopted by the Committee at its March 18, 1982, meeting are amended as follows: The authority to approve (i) participating companies and (ii) renewals or changes of scholarships for children of employees under the National Merit Scholarship Corporation and the Achievement Scholarships for Outstanding Negro Students be and is hereby delegated to the Chairman of the Contributions Committee. Mr. Horrigan then presented a proposal that the Committee should inform the Board of Directors of delegations by the Contributions Committee of its authority to approve contributions 'not in excess of $500,000; that the Contributions Committee had delegated to its Chairman the authority to approve (1) any.contributions not in excess of $100,000 and (2) subject to Contributions Committee ratification any contribu- tions relating to biomedical research grants (the Board of Directors had approved this latter action at its meeting October 21, 1982); and that as Chairman of the Contributions Committee, he had further delegated.thee authority to approve any contributions not in excess of $10,000 to the Company's Director of Contributions. After discussion and upon motion made and seconded, the Committee approved Mr. Horrigan's submitting this statement to the Board. Mr. Bacon presented a recommendation to authorize the Committee to expend operating companies' budgeted funds remaining uncommitted after December 1, 1983, on behalf of the consolidated enterprise. He said this action was similar to that approved in 1982 and would maintain the integrity of the approved strategy for contributions in 1983. After discussion and upon motion.made and seconded, the Committee approved this recommendation. Other matters, including payments approved by.management since the last Committee meeting, not requiring formal action were discussed.

788 There being no further business to come before the meeting, it was adjourned. e Approved: 71

1983 CONTRIBUTIONS COMMITTE~ BUDGET Geographic Allocations (1) (dollars in thousands) Before September Meetings Assuming Approval of Request at September Meetings Committee Budget $14,902 $14,902 Winston-Salem Share of Budget $ 2,351 $ 2,351 Less: Obligations (1,628) (1,628) Balance Available $ 723 $ 723 Other North Carolina Share of Budget $ 1,880 $, 1,880 Less: Obliga,tions ( 1,091) (1,091) Balance Available $ 789 $ 789 National Share of Budget $ 5,171 $ 5,171 Less: Obligations (4,291) (4,791) Balance Available $ 880 $ 380 Biomedical Research Share of Budget $ 5,500 $ 5,500 Less: Obligations (4,714) (4,714) Balance Available $ 786 $ 786 Winston-Salem Other North Carolina 25% 20% (1) Excluding Biomedical Research . vDW:8-30-83 National 55%