(B&W) PROTECTED By MINNESOTA TOBACCO LITIGATION PR-:--" tOTECTIVE )ORD, )BIELCOWIV AL nrC)3E3jkCCC> CC@Xt)PC>3K.A,, I r c> zv 16(0 West HillSirect-P 0. Box 3,50.90 - Lo Kentucky 40212 April 17. 1979 Secretary British-American Tobacco Co. Ltd. P.O. Box 482 -Westminster House, 7 Millbank London. SW1P 3 JE, England Dear'Sir: By letter dated February 7. 1977, your company and Brown & Williamson Tobacco Corporation ("B&W") agreed to a formula for sharing the costs of Central Group Research equitably among the major affiliates benefiting from that research effort.- B&W1 s annual contribution rate was set in the agreement at 0. 151/6 of net turnover. The Group commitment to research and development has increased sub- stantially since the date of the agreement, necessitating a change in the contribution formula. Accordingly, it is agreed that, beginning October I , 1978, B&W shall ute to the cost of Central Group Research an amount equal to. 215, @f- its net turnover for each fiscal year. Sincerely, BROWN & WILLIAMSON TOBACCO CORPORATION AGREED: BRITISH-AXERICAN TOBACCO CO. LTD. BY 620857086