.......... ... in PROTECTED BY MINNESOTA TOBACCO LITIGATION PROTECTIVE ORD] BROWN & WILLIAMSON "No TOBACCO CORPORATION B&W December 31, 1985 Secretary British-American Tobacco Company Limited P.O. Box 482 Westminster House, 7 Millbank London, SWlP 3JE, England Dear Sir: By letter dated February 7, 1977 (as amended April 17, 1979 and January 1S, 1980), your Company and Brown Williamson Tobacco Corporation (11BU111) agreed to a formula for sharing the costs of Central Group Research equitably among major affiliates benefiting from that research effort. B annual contribution rate was set in the agreement (as amended , oil 17, 1979 and January 15, 1980) at 0.21% of net turnover.' The scope of Central Group Research has been reduced substantially, with responsibility for certain research projects being shifted to B&W, since the date the agreement was last amended. Accordingly, it is agreed that Section 2(b) of the agreement be amended and will read as follows: BWs contribution to Central Group Research for the 1986 calendar year is $1,000,000 and covers BOIS share of the cost of supporting a fundamental research program and other special areas of research. The amount of B&W I contribution to Central Group Research for the calendar years after 1986 is to be negotiated annually based on planned research projects. Sincerely, BROWN & WILLIAMSON TOBACCO CORPORATION BY AGREED: BRITISH-AMERICAN TOBACCO CO. LTD. BY 620857081 UW BROXVN A %VILUAMSON 11MVER. PQ BaX XAM. L.0t!1.%V1t.LE. KY 4(rva. [-Au) Smqckln