38

35

to the College 10,000 shares of New Class B Common Stock of R. J. Reynolds Tobacco
Company, subject to the following uses, trusts, terms and conditions, that is to say:

ARTICLE I

"That said stock be held as a permanent investment in a fund to be known as the
"William Neal Reynolds Agricultural Fund."

ARTICLE II

"That the income from said fund shall be used in supplementing the salaries paid
from State appropriations, or other sources, for ten professorships at the College,
and that the professorships so supplemented shall be known and designated as "The
William Neal Reynolds Distinguished Professorships", all of said Professorships to
be awarded in the School of Agriculture. It is suggested but not stipulated, that the
said Professorships be distributed as follows:

"The William Neal Reynolds Professors in Agriculture -
In Agricultural Biochemistry
In Agricultural Economics
In Agricultural Engineering
In Agronomy
In Animal Industry
In Entomology
In Horticulture
In Plant Pathology
In Poultry
In Rural Sociology

"The amounts of the individual and annual supplements may be varied in the
discretion of the College. Any income not used in any year may be used in a sub-
sequent year or years or may be added to the principal of the fund.

ARTICLE III

"The Donor reserves the right to give, assign, transfer and deliver to the
College, from time to time, other and additional moneys or securities, which the
College agrees to take, handle and administer in all respects pursuant to the terms
and conditions of this agreement.

ARTICLE IV

"The College, through the Board of Trustees of the University of North Carolina,
and its duly designated and authorized agents, including a fiscal agent or agents
selected by said Board of Trustees, is hereby granted full power and authority to
receive, hold, manage, collect the income, convert, sell, foreclose, assign, alter,
invest, re-invest and otherwise deal with the funds and properties of the William
Neal Reynolds Agricultural Fund, and with additions thereto, as it may deem for
the best interest of the said fund, except that the 10,000 Shares of Class B Common
Stock of the R. J. Reynolds Tobacco Company, delivered contemporaneously with
this agreement, shall be held as a permanent investment.

"The College, and its agents, as aforesaid, shall not be restricted to statutory
investments, but shall be authorized to invest in such stocks, bonds, securities or
other properties as may be deemed appropriate and for the best interest of the said
fund.

"The College, and its agents, as aforesaid, are authorized and empowered to
participate in the management, liquidation, reorganization, consolidation or other
financial readjustment of any corporation in which the said fund holds any stock or
other evidence of ownership or interest; to treat stock dividends or other extra-
ordinary dividends as principal, and, in general, to determine what expense and
other charges shall be charged against principal and what against income; to com-
promise, arbitrate, or otherwise adjust claims; to execute any instrument in
writing required for the administration of the said fund, and to bring any necessary
legal actions to recover rents, profits and income due to the William Neal Reynolds
Agricultural Fund.