V. ADVERTISING AND MARKETING

The Company adheres to the provisions of the Master Settlement Agreement ("MSA"), which was signed in November 1998, by the major U. S. tobacco companies. The MSA sets forth restrictions regarding the advertising, promotion or marketing of tobacco products, and all employees are responsible for abiding by these restrictions. For example, the MSA specifically bans:

• The use of cartoon characters in advertising, promoting, packaging or labeling of cigarettes;
  
  
• Billboards, stadium signs and transit signs advertising tobacco products;
  
  
• Tobacco-brand-logoed merchandise (such as caps and tee shirts);
  
  
• Free product sampling anywhere, except for a facility or enclosed area where the operator ensures or has a reasonable basis to believe that no minors are present;
  
  
• Payments for use of cigarettes in movies, television programs, live recorded performances, videos or video games; and
  
  
• The supply to any person, without sufficient proof that such person is an adult, of any item in exchange for the purchase of tobacco products.
  

In addition to adhering to the provisions of the MSA, the Company's operating subsidiaries continue to follow certain rules, as stated in the voluntary Cigarette Advertising and Promotion Code. (The remainder of the voluntary code was included in or superceded by the MSA.) All employees are expected to follow such rules in the performance of their jobs. These rules of the voluntary code provide:

• Cigarette advertising shall not appear in publications directed primarily to those under 21 years of age, including school, college or university media (such as athletic, theatrical or other programs), comic books or comic supplements.
  
  
• No one depicted in cigarette advertising shall be or appear to be under 25 years of age.
  
  
• Cigarette advertising shall not suggest that smoking is essential to social prominence, distinction, success or sexual attraction, nor shall it picture a person smoking in an exaggerated manner.
  
  
• Cigarette advertising may picture attractive, healthy looking persons provided there is no suggestion that their attractiveness and good health is due to cigarette smoking.
  
  
• Cigarette advertising shall not depict as a smoker anyone who is or has been well known as an athlete, nor shall it show any smoker participating in, or obviously just having participated in, a physical activity requiring stamina or athletic conditioning beyond that of normal recreation.
  
  
• No sports or celebrity testimonials shall be used or those of others who would have special appeal to persons under 21 years of age.
  

Additionally, employees must follow any other applicable policies of the Company as they relate to the advertising and marketing of the Company's products. For example, employees who are involved in advertising the Company's products are required to fully comply with any policies or guidelines that relate to the placement of advertising.