Executive Directors' external appointments

Executive Directors and members of the Management Board are able to accept one substantive external Board appointment provided that permission is respectively sought from the Board or Chairman. Any fees from such appointments are retained by the individual in recognition of the increased level of personal commitment required.

None of the Executive Directors or Management Board members currently holds such an appointment.

During the year, Nicandro Durante, an Executive Director of the Company, was a non-executive director of Reynolds American Inc (RAI) (an associate undertaking of the Company) having been designated by Brown & Williamson Holdings, Inc. (a wholly-owned indirect subsidiary of the Company), as its nominee to sit on the board of RAI. In accordance with present arrangements, the Group received a fee of US$195,525 from RAI (2009: US$215,020) in respect of Nicandro Durante's service in that role up to 1 December 2010, the date of his resignation from that position.

On 1 December 2010, John Daly, an Executive Director of the Company, became a non-executive director of RAI. Further to the present arrangements, the Group received a fee of US$17,775 from RAI in respect of John Daly's service in that role up to 31 December 2010.