L
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Stxztwv RevigM ZM-nmeLIM
30th November, 1"Q
"C" Pbesearch Prourmme
In Hcvmber 1989 a row struct=e for Ro in the GrmV was
Imed, the basic of %ftich was that Fwztmm=l PAsearch
6c@UIA be - "' I an eMblishmM (nC in Soldweptm) and
that other Group M I -dead acIzzritnte cn a;W J ad M.
An outline M pro;rm= fcr the raw ow=e was prusermad to the
TS= with a proposed bxkjet. sirce lat April, St= the chwqm
Were , there brm bem a . z of msetirqs with R&D and
tuq Dixw--irs, an o==m of which is the revised
pro;nmm raw pr%4=9md to the TOM, In s=niry fam. (A detailed
research ;M-oc--'@ t= I distributed to the CKC R&D Directors
for firml appeal).
Mm the prcTrjc= preswited a year ago, ccraiderable aWbasis was
placed an regulatcwr-dr-ven pMects (ruspmAirg either to
cmmum or =icipeted pm-am), wd an irmovative ; I I.
As a rewlt of the v=- meetings that ham taken P3 mom this
year this mvha-i- has siWaticwItly dmx_md. 7h& nod to ban
; I the priority cn niche bum
real -in =p=t-- Firmlly, -W pLvjecft &immd at
rudioully dif-1--it &-;aret:r- (r-.f. pnotigr) heye here largely
shelved.
Far ccnveniw=e the wmk areas cmmwed by the I I 11 g
are shmn in fcur catmc:mries %oh' r!h relate to wroad busirmn
d7je&-tvas:
1- Mmc:rmused onImpatitivity thr-xp -Q-1- qUaUty ixpx-uomlt_
2. M=umd Q=petitivity throlub umm=iVe - I
3. EmInlin; the CmpwW to , M its bndrom urdw
incz-airgly rm--ictive Fm7slatcry preamnm.
4. Emblim the OmpW to I M its bulsiIIIIIIIIII; urder
increasing Erwixcmmvml omwerm.
In Y=ctim, there are very few pv)je= that cmil:ribita to =Uy
cm of theme hair- objectives, but where a mirale
classificatim .=,'A be misleadiM, the paim is mmds. C>
US fcr the Fbndamwcd Research Cm=m is
row cutlizad with Praje= grcupmd urzbw these fo= cbJec:tives: C>
B.A.T INDUSTRIES P.I-C. - MINNESOTA DEPOSITORY Copy - PRODUCED PURSUANT To VII.D. OF
CONSENT JuDGmENT DATED S/11518 IN ALATE OF MINNESOTA. ET AL. V. PHILP MORRIS, ET AL- CASE No. Cl-944Lss5

sm*e cualirl Twr--@@ Ef f am allozatim .... 35%
1. chollosemmy Pjase-11ch
mis --w of ressuch is =warned with the relsti-shiP
of ---ka chemistry to tme, -11 and atkuw erganoleptic
senset1cm. M=s am two broad d;jec-Uves:
(J) to relate d-i-1 and p1rjsi=l prWartier. of =01-
(aem-cas the full delivery range) to mmkin;
sensations as a bade far the dAved g I of
=*en= pro&-ts.
(Li) for low tar/nic ratio wahh--s' to identify and
overccm the exxstvq barn-mrs to sensory
. . kility.
P=dects agived cover imme- and ix---taticn, --ka
aftertaste wd the senwdens of "bo:!y" ard "midifull",
they will relate these phanotmem-A to hmn mokLrxj
bdwvja=. in ordier to kup this work relevant, n3ch of
it will be urderta)wn an -les selected and mapplied by
CZC cccr
-'ani as.
A sPeci Al analytical research "" Uuzh was fc=wrly set
UP to hargils regulatory iftft@' has r=w ' re-criented
to give m;port to the above proj , as a first pz=wity
unless an urge= rw3ulatary issue arism.
2. Trifluenme of Cloarette Dwi= on SmWm Cuality
As a gworal doservation Failip Morris process tdmc=
1'hie-h I I Cigarettes of good pkmical properties at
tlt@L,a kL- I.,.r pr. ftw than ST. main in now bal to be
Macau
m manka
>4 tba c mcwx 2& tborefcwa
zelatimship babiew physical of the to==
rad and =mkirq qmUty.
ammexch will kabzm the effec-- of M=ru dwaity, Size
and -%qm and than promess chmps cn flow and
gs drWs' Since WI= and B&W has gm*azud
Infcamstim in this general art-, this will be ravismad
before the cm= programm is dafinad.
3. --- - -
over I . years Soadmpton PAD hm P==-11 a
Pronct, the p=p=o of stdr-11i bas been to find too=
tbwt re&= the oftacpa= facmetim of
comoras of lrgmzmt to FAVAat=s. As a result of the
Various Q=:p e14--i-0, this project'has; now broaftod
Imch ttlat opportmitims will &Iso be max**, th=xjh
similar . , to modmiss the fammatim of cativatz"Ift
-A"c% iqzwa the WAbjectrve, quaLity Of simake. axis
project imrse, tb2z I ; I to both Q-'Am Quality wd
PATAlstUry objectives.
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B.A.T ImousTmEs P.LC, - MINNESOTA DEPOSITORY COPY PRODUCED PURSUANT To VILD. OF
CONSENT JUDGMENT DATED steM IN STATE or MINNEsOTA, ET AL V. PHILIP Alogms. ET AL- CASE No. Ci-94-esss

E-les of projects to be pi=uad include-
(i) Cienstration of f1mlax p=acLxr=rs sLIch as amino
g@iglk, a=wnia and px;ar by bio-chmical procesmes.
(ii) ne effect of reociristitz-tim processes on C-AR,
gality-
(iii) The affect of chemical and bio-ch-J-1 processes
on the form2tion of mu= smoke c=pumms, (other
r-) .
(iv) 7he use of activated ca=bm or mol-11-or sivis
laterials to rat= min= ccrutitwits of -a or
wft= saicks qmlity.
IM03=n Bmuu Effort allocation .... 2D%
As a gurnmal principle a=uai with the chc o=panies, any work
in this area will be aimed at desuguM buildirg blocks and not
prcltotyk- px-,-=.
7b& vAin project in this Category remins pmwt greandott Much
hu. as its objective products giving biqftay --Aifi-4 M-k. in
of cmpositun and delivery. Mw mm thrLsst of the
zisualch ; g , is to create, low tar/nic. ratio I for
i time is both Mar5crting and RWlatory uIpport
WAlst a ccnsu=cr proluct trial an the first spin-off of this
want in oxczently bLiW undarta)m by BA=., with enoomragirg
reoults, the fumImmintal regauch &'mm at zut=irq the tar/nia.
ratio, father will ircluk use of cute-sheat usteriAls,
treatments of tobacco aid nicr*-arcupsulated flavo=
Materials.
Mm the --a gwaml arm of Crulatim buildim h, oil=, GM of the
important thenes in the efficient =a of tobe= In dfim@
the required mainstream and sidestzma daliuscies. In
; I I three is an excess of taboono in %station to
ru*dreasift, and tb= mews of creatirg Mtra-li= 3rj=
=== a- being p=mmd.
Altba3gh all wock almed at pro*=zq a radical alternative
yxadh= that does not I I; I an tam= ocutioutian
(r-f- Vremisr) has been abunicned, awr am I 9 I I an
laturestIM new dixection based an *lutim of volatile
WAINcials. Me tom refus to the S to a 90111
r of volatile nituicials tha we WAM7xintly dwosit-4 in
owler zw*=.) 2his wctk has shcun that tba release of
nicatim, mmitbal and several other flavo=ants to the smoke
XtZIMIIIL can be infl:uerved by the n==a of the birdim ustutal.
MIJS work will =can=, Wid be wdxffxw, toinclude 0--44- cm
the migration of owy=d- within the tcboc= rod, mend at the
qag:jf4@ V a of the CXC C=VW40Q, will materials
migmtirig from packagirIg moscials, since these a
I smxrce of off-taste prCtilms.
OF.
B.A.T INDUSTRIES P.LC. MINNESOTA DEPOSITORY COPY PRODUCED PURSUANT To VILD. OF
CONSENT JUDGMENT DATED 518/N IN S@T,,E , MNNESOTA, ET AL v. PIRLIP Mong-s ET AL- CASE No. C1-94.M5

ammgatmy Tss-'m E-1for. Allomticn ... 28t
1. PAd=ed Tgni-tion E=CaUal
Although at this stop only USA has rugulatuzIs that
namssitate establishing an Accimpted -thod for =m==2r%j
WWWtte igatim potei@' this is expected to greed
to other camcries. CMWA have set up a tnk f=m in
this-, BAT Ims taken a primi;ml lad. Activities plarrAd
for 1991 am:
- further- collaborative =idims mism at refinirg the
Wdst--q test mthod
- fabric evalunticrs to armwe ocIsistercy and
Wlifo:=ity of costim.
in additim to this wm* which is larWly =zxr=mted an
din= of measuramem, them will ultimtaly be a
i@for In== =W=x=mWzts that mkble to
be -- of iWdticn potm=al of ciWattes. Work in this
arm Wm c=mw= in 1991.
2. fim= for Ripassays
Mmm has ban conLiderable review of our aim in the arm
of Biological Testim, ard it is ; r - j I that the
falloAm PmLicy row underpus the == ressax-ch
activities in this area-
- MT vill mmitor tzuxk in the smargum of row
humsmys Wid WLU develop mpartim in thaw which
my have relumcm to tobacco pmuk=ts.
- Dempits the uzIourtmAnLy amocisted with in
vitro tests wd "-i- to oceplax
mixtures, thmest taste ==TZ cra NW - if test
xemats differ significamIttly f= .Iz- they
inlicalm that mr- ctmmi@l- bm o==rad and
fartber research is rG*drmL
- such - m am oucrwrtly smailaWs (Aimms,
cumtogalicitY, etc.) wiU be used to scrum raw
additivea; or 9iWdficm= proomms; dwips bLuq
explored in FM to check purImututim fvu the r--
- noww4gr' Cn the jn@j. of , r . scientific and
sindical evidnnom, I - appears to be ro juvr4ficatim
for seekuq xmmu%s of re&zdzq Valums; measured by the
cizimintly available bicamamemys, and this win mt be am
Cbjs=iVm of onto= rxdmwftl
3. Additive2l; Wid m"mrials Ad%dma
Wm w=k arm providmis a wavim to coamni@ by
reviftrim informiatim co p=powd im; =.: Wid
mistecials wd =ddTq rm=mmmkt1xm rwpzdiM their
CY,
C:
a-
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B.A.T INDUSTRIES P.Lc. MINNESOTA Do@osrroRy COPY - PRODUCED PURSUANT To I VILD. OF
CONSENT JuDamEmT DATED 5/8tN IN STATE OF MIAWEsoTA, ET AL V. PHALJP MORRS, Er A" CASE No. C1.9"ses

acceptability. It LI= mii@ an warergm of charges
in lalislatian and rr..ifw =lt=ity of additions to
sP=J V r. WideLirl0s. It mintains a datahme an addit-:ves
em=03out the BAT Grow,
P=C8dUr25 used f= the Lssessuam of both row wd
emstim mstarials v-Lu cmrirm to be devalagped in
cmjm=ian with CAC
Effort allcmtian ... 171
1. lyfir SMO)a
ZI7VirCMWdZ1 TCbW= SjMka 0011tinUm to be a mj= 4cma
In the w3ority of the Crays =mksts. with so=
rawlatory aumcrities mmestim that oposure to =S my
be harmful to mo-smokers and rwxumwdirg restriction on
%tA- =ddrg MY oCCUr- M* r6WWCb t@= irk SardIampton
hm Im,4 It up a consid-nable dabftm an levels of =S in
real World enviromatz and bwft P*gi@@ these rum,21ts
widely- FbllowiM the mW mwtiM jn Noymbw Iggg, tha
leval of researcft m E33 was ra&=md, bit it is i1qortam
that we =Imto= cccqntwm in t2= m@m.
The L"l PrOgmm will O=U= to focus an pwviduq
f=23=9311. 2r1fCM31MtiQn on the r+@i@l wd phyr.JC&l r&tUrg of
ECS, on P-Scral eqmwm debminrcLons through nicatim
matabo3 4"!-, and an xubjective aspects of MS.
2.
Altba3gh Xwb=d Prcdoctu my over 211123atim
qppoirumitim as an J=--tiVS PCO&JIM, tta =St likely driviM
foram for inmuhzdm inch pro&=m will. be ffw2x==n61
coca=. FAmmexch to fttm bw indicated that camin
CaNtructimm Of CiPrIlfts Papor load to low sidwitzen
mirm but m yft we bills no tm32mwgaj
the mKbwAm undiwlyiM thU ;bmwmo=, of
it is p I that
thU is xbxtW in the 1991 , g - in r 4 tb&t r=tbAw
qVcmtLmdt1m can be crestmL Addlti=mLlly, gem pr@ - vin
be devoted to mplamt:=y z,I I fw low sidmatrmll
F=*=tm in SW-
b8VAWn PZCfg.
3.
As a zmadt of the mmxkatiM Directogoge 2:14 row yrodect
has bwa initiated, the primy aid of-h4rh: redL= the
wffirctswea, inch's asm=datmd wift cigamme b=ts. 7he
PLujact I I El will facm prircipally cm the wyvipi,,tjon of
callzilaw am:atzta filt-mm to POZxft Vallim clagraft of
depmdWbility mm dimpardwL mile vin be dcm in clam
canguitatim With SUCF- OMMidAMtjoin W.LU be qjVgn to th&
awb@rA&U =k1M up the ti;puq pWw, the qjum, pbq wag and
plaxticism, as wall as to the riymms,
A cb@Ckllgt Of the iSFURS rai=d for Inrlimicn in thix rogboNgal
, prapmw by the Markatirg njrwcb=, amd TM mmirxp in
AUW=t w3d 5 I I TO5PWCtivft1Y, is dwdn in Aamulix 1.
IN,
B.A.T INDUSTRIES P.L-C. MINNESOTA DEPOSITORY COPY PRODUCED PURSUANT To W.D. OF
CONSENT JUDGMENT DATED S18/98 IN. V- PHILIP MORRIS, ET AL. CASE No. C1-94-mS

Me work progrm= is based m a Wcal eUcrt of 58 mmv-1mrs in
the Fmzk=mtal Ressuch Cw=m wd Win CCSt M.M mill4rU
c=pwima With im mist I i i= ao=zlt that the crwtim
of the nC t=k affect = Apml and the &Uy mnalized rate
far the rAw cw=m for that ywr %vAd hm bm 0.632 millicyl
( g I with the C&C =ffpwAm). cb this besis the in=um
iwludlrq irdlatim is 7%.
it bas I a =notice over r ymrs to div:kk the
Luc=tim of io@@ to the triftmaral resmzrh
y=g@ by the ChC =qmnlas a==diM to the faUadrq
pazcarmagm: WCo. 32%; SW 30%; BKTCF IR; nL 19%.
an thix buis, indi@@ aUccatiom mild b.:
BAMOD. C1.2430n.
D&W C1.166WU
EX= V0.738mn.
MM fO.738mn.
OA,= separaWy, than is a bxkjatary ru*dranom of fZ96,0DO
f=- cdm=al =n=mcts cn mo)dM w3d health (Sciwtific
FAsearch GrOW proje= margrjad by Dr. R.E. Tb=ntcn m behalf of
the chc caquides). =a cmVerable f*m fcw 1990 in
c", 000. Tzaditior^Uy, VLis Jz furded an e9ml sbarm bmis
by the fcur om=dbAiM CRC ompwdm, ard tbus f= L"i
ccr:=ib=i= wcx,'A be C74,ooo.
AWsmont is SW= ft= thb TW to the hdpt of 0-885
3dllim for tha farA*ugfdml 2: .1 progiiam, and i2%,000 fcw
SdW=iliC FASIMIrCh QMUP Fmiects.
in - of 41=atim fmmula, mw is awwd to agme amw
the bist=:ic bmw fcw thms tm bx5ami; cr to cmuigkw an
altzmative fadim t--4- which my eiim s= of the tm
prahliiiiiii; asmodated vith the auxs= systm A prupoml fcw a
ftrdim f-l's wbich softly renects tucwwc of the
c=m=lbztiM ompmiy is iLbastrated in Appwdix n.
ALA=
22Xt X0vud2W, IM
I\:.
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N
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BAT lmousTRiEs P.LC. MINNESOTA DEPOSMORy Copy PRODUCED PURSUANT To I VILD. OF
CONSENT JUDGMENT DATED S/M IN STATE OF MINNESOTA, ET AL V. PHILIP MORRIS, ET AL, CASE No. CI-944W5

Agtion QS& List = 5AXISPS'12 W21=0 and TSRT Ygetj=
Mum were a mmber If =am raised at th-W two 111198tinP when wv= to
be assured at the mewtiM Of the PAS88rCk' Dire=mrs in 0=- im,
far inchmicn, if spprcpri@, in the bmd=W=l research PL=Fmm. me
fo] I oi ng ctAcklist sbow the dscisi= of that =Wtim.
buis
xi--, at
mine 232a= 3M1Q0-QZ=XI%r-L
=,adsd ttat this PricwitY is wn cmmxud in the
c'mosenscry wcdc area. significant of the Materials SciOrcs
and Spgc@ai Analytical ucmk armaIi; risk L this =**@a-
AU jam=stim In VI= wsl Br@ on the effectx of PhYsicR1
to*= P=Pertim en moidiv qmlity, tc7ftw vith vil- on uftt
b-ther Infamistion is needed, win be $-It to Fir-
radL= bitterns ard irritISIOn
2.
2i tbo be son in the total
@t -bantm m- and wirritaticW are
y coyered in the 0101=01111-mY wcwk
Arm.
3. Amciated --k
M3jA is now inmbxW in the Cbmcam-w: wcmk Prc;cmm'F-'
4. f@r bl!ij@ I-tmlmtw
This Is not sow as a pmvject armia for F zdomwdal Pimmiumb- INN
will defAm ttw =q- of and ImAMEM t is ptvjo=. aftw
dism-im vith otber = 0=pwLt".
5. +m=n4 -4-me ratio
Z)js pd=:Lty is covered in the jmwvmt:L!.,e pzo&=tx ams.
6. AU29093ldWe WIM
A jmw pLmj@= bw been iwlu&d in tba fxdmmftl
a to V=mus this priccit7- mu wcdc will be dome in
7. Z=WM-BZ=
am being V.-4 in bom Psc wd Do. mm
ccW""jPtjjw'..jjh no Lluplicutdoo Of
lit
v at varicus-
AMA=
A =,q,,Vmjr rwAm of cdstiM Jrd=wticn, umb of -'h4r% is
by April 2991 c:
bamed on c=3*=tmd in will be mm& r@-
kV scum C==. cr
c_-
AM=
16tt, ymmdmr, L090
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B.A.T INDUSTRIES P.LC. - MINNESOTA DEPOSITORY Copy - PRODUcED PURSUANT To I VILD. OF
CONSENr JuoGuENT DATED 518/98 IN SrATE OF Afwwsom, ET AL. v. PwLP Afoggm ET AL- CASE No. C1 -94-ONS

AatP--mtive1=diw Formla
Mm ==cm pm=?=W split of a1lo=tixrz by the CXC ampendw is based
cin a proposal -1-= the W W-azd2nator in 1986 %hid, was nodined by the
MW to rzfL@= s=* of company and its cmY=1bAicn to Q=ip AD and
tacbmlogy. 7be I=* of a zathemastiml f-11A %= -Wch amuzibutim con
ba @K23mined bas bom a scu=w of cmx:em,- O=rwziy W= is urdw
ftm t= auth=itim to aozamt f= its omftib=icne to
= and firils the &bow= of a f-'Ato be a rml wmaknem.
3= bffft 4-j 1j- coxm=.
In viw of three problimas a fm=,1 a is I that identifim tw
almicents:
1. ilixmL= by all ==ibUt= xvne=dn; 'club ammobombip', La.
the benefit of having the FIRC facility.
2. a yarimble =St --Vne=irjg the ectent to %*,4cb an individual cmqmw
Vill bgnaf4t fr= the reseexch i.e. a t%mmover related &I---nt
Tbe simplest way tO c=b2m tam almosts is to =km hLlf of the total
qf4xmd1 are the rwiainUr 'variable'. 7be f-21A racummended m
basis is:
CL - R (0.5 x -Pi +
N
'Where C1 in1iVidUL1 ibzt4-n
N rn-",-,-W@ of Ccrft-jbUt=
Ti net tmmmw of caTtributor In prwA= yww (Ls)
= t=1 net ttmovem of cantdbitlas In prwd= yuw (Es)
R cost cf al.1 owitmlimad Pja (La. PFC & SFC) (m)
in =acticm, to neat two saftwity raWAirmemmes, the cm%zibittans wowit
ymbably bays to be rucalaxIated ct year wd wd ammacticm madis such
H tmmwvw i-- to& adsting ywc is used.
Mm ompwism of c=tmWmticm fcw L990 by cozfties using the cdxtirq
and the new *-', Is as follms:
bdztirq
nc MG Total
cm 000 000 cm
Ex=. 1.2m 0.096 1.248 241
saw 1.m 0.086 1.173 3-20
N= 0. 690 0.086 0.776 0.704
0. 690 0. 096 0.776 0.738
3.631 0.3" 1 3.973 3.m
Zf the famula were spod, the mly issues to be ommidezed
such yaw are the amsts of the PAsearcb mWmimmams (boM
irAmcnal and mamwxa).
B.A.T INDUSTRIES P.Lc. MINNESOTA DEPOSITORY COPY PRODUCED PURSUANT To WI.D. OF
CONSENT JUDGMENT DATED 5/&SO IN STATE OF AoRNNESoT4 ET AL V- PHILIP MORM ET ALD CASE No. C1.94-asss

L @6-r L-((,@ -
Dim= Stratew Fgyiew Mm Hasetim
3= November, 1990
Proposed M -- d,
In November 1989 a new structize fcr R&D In the GmW was
preposed, the basic of wb'e+% was; that Fundamental FAsearch
sballd be , -, - I On am establishment (FRC In Saudompton) and
that Other Group RO , 1 1 r 1 1 should cmmentrate cn appl 'ad PAD.
An cutlim PW programme fcr the new oantre was presented to the
TM with a proposed budget. Since 2st April, utwn tin changes
WMV effected, I I have bow a 1. , of meetings with R&D and
II I eting Directcrx, an afarme of whiell is the revised
PL%grmm now proposed to the MW, in summary fcm. (A detailed
research poogramme: has bow distributed to the Cac Rf.D Direct=s
for final appLvval).
In the program presented a year &W, considerable eapbasis -.ms
placed an regulatcry-driven praj -1- (responding either to
current or anticipated presz;ares), and an innovative concepts.
As a result of the var3x= meetings that base taken place this
year this emptmis has signdlumitly changed. Mm need to hrve
lbroducts %ftich we mVerior to coepetition (p@xly Milip
Iftlarris) is the clear G=;P Priority, and this is now refLected,
Ilin the Proposed Flandamwital, FAsearch prIogramna. Mils vack will
utftpin the oonsiderable, effort baiM devotad to this challenge
by the am' 'ad Ro , 1, . 7be other major change is in the
area of Proft--t Irrovation: since the Ormp rocognIzes as first
pr2crity the work aimed at strericrity of adating xty3w of
pro&=t, the priority an research for nir4- xoz)mtr. has bun
in isporbance- Finally, any projects .4--q at
radically diaerent cigarettes (c.f. Premier) hm bem largely
sholved.
Fbr cmTeenieras the Wm* areas covered by the programme
are shown in ftm categorim which relate to hrmd bmuiess
objectives:
1. D=Wsed cacpstit-tvity through ano)a qzlity 1qorm=wYt.
2. D=vasdd compstitivity tbrcugh Innovative prodticts.
3. Enablingthe Compary to perfcm its. ban@= mndmr
increasingly restrictive Regulatory pressures.
4. M-hl4rq th- CmpwW to pwfcm its basines;& under
increasim Dwircrawital, concerns.
in Practice, there are very few pro3ects that 0WAx%hzte to cinly
cra of them busirms cbjectives, but Qhere a single
classification wa" be misleading, the paint, is made.
7he proposed star== for the Furdamuftal. PAsearch amtre is r1Q
now cutlined with projects gxo4xd under them four clojectives:
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TEXT MISSING
B.A.T INDUSTRIES P.LC. - MINNESOTA DEPOSITORY Copy - PRODUCED PURSUANT To VILD. OF
CONSENT JuDo#AEwr DATED 5*98 IN STATE OF MIAMsom Er AL. v. P#@LiP Mogge, ET A" CASE No. C14M-M5

ago 04ality lwrmwo7t Effort allocation 35%
i. gxn2xw_A2m FAsearrh
mis Aria of research is concerrmd with the relaturshiP
of wrilm dmmistry to taste, -11 ard other Or9w1oleptic
sensatAons. 7here are two brand objectives:
(i) to relate rt-ical and "ical. properties of smo)m
(acxmm the full delivery rww) to mokin;
sersations as a basis for the devalopmear, of
- Jor Pro&xft.
(ii) for low tar/nic ratio prodicts, to identify wd
overormn the existuv barriers to xwwory
PxcJects acizved ommar impact and irritation, -ke-
aftertmotA and the sensations of mbody* and Omftftll"o
they will relate them Il to ban mddTq
behancur. In order to )mW this work rmlevant, =xh of
it win be =tWrtWm On satples selected and mVpUmd by
Chc coupani".
IL T=mr14==rYw"aa===== Z='It'"dt
W
to give w*p=t to the above projects as a first priority
unless an urgent regulatory issm arises.
2. Beluerm 91 Cimmetbe DISIM On &dW 001-ity
As a gwmma observation Phillp M=ris t4bacco
hi,!h profticas cigarettes of good at
- 1,,xw prommIre drill then IRT. 2his is row b&Uaml__tA be
JM =@W!r=_Ert_y lnm cbj
key featurm affect active or-
316 7 the SR tYMWfttigate_ the
=ship batmm ph3mical prqmrties of the tobtm=
rod and moking 9mlity.
Research win U=b4e the effect of particle density, size
ard shape and other ; P, cbwxps on f kw rates ard
A CPS. Sin= BA= ard BW Mm gathered
3
t@Z in this ganeral arva, this win bee rwdand
before the --,t I - g is defined.
OVW I years Soudwipton = has purund a research
project, the purpose of wbich bw been to find tobacco
treatmtm that rodx* the xubmapent tomstion of minor
cmWomes of Interest to Fayulators. As a remit of the
various Grmp diammions, this project bas now broaderied
wxb that cpportudtims will also be sow;ht, thrush
similar meatments, to mvinise the foontien of coq=rds
shich lqzom the subjective qwLUty of m-m- Ws
Project Arva tt- remuft to both &=)a Qmlity and
INgulatory objectives.
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CONSENT JUDGMENT I)ATED 518/W IN STATE OF AIINNESOrA, ET Al_ V. P#v1.1P MORRIS, ET AL. CASE NO- CI'944MS

Dmiples of projects to be pmsued ir-13-1a:
(i) Generation of navour pLv=== such as =Lim
acids, --da and siger by bico-dbemical processes.
(ii) 7he affect of xe==tit&-icn processes an
quality-
(iii) Mu effort of cheadcal and bio-chemical Promases
an the formation of minor smoin I (other
nmae).
(1v) The use of activated cambm or molecilar zieft
materials to red" minor Ocnaptitudeft Of -908 or
enhance -I- quality.
Imlewative EMQ= Effort allocation ....201
As a general Principle g with the ChC oaWanies, any work
in this area k1l be aimed at desagning building blocks and not
pt.totype products.
Ml* setin project in this catepory remains: project fimd= which
has, as its objective products giving highly maiified -,- =
twrza of composition and delivery. 7b& main thrust of the
research ;' 4 is to create 1w tar/hic. ratio I for
ublet them is both Marketing and Awgulatairy su;Vcwt-
Ibilst a consumer pzoluct trial an the first spin-off of this
work in curruttly being M&rW= by MM., with enccuraglM
results, the fundstmntal zessarch aimed at reducing the tar/nic.
ratio further will include use of cast&-shest materials,
cbmdcal I i oil - P of tobacco and Al farm=
r4AIM.
in the more general -w of creating building blocks, cm of the
Is the efficient use of tobacco In obtaining
iii's-rogtdred wdratzem and &idestrem deliveries. in cu:crent
is an excess of tcbom= In relation to I
and thus meeins of creating MZM=U= waicht
j are bear PMWAICL
Although all wcxk aimed at producing a radical altatmative
product that does Wt daipand en tcba= cadmxtim
(c.f. Premier) has bsm abandoned, Our am I . generated an
Interesting new direcLim based an slution of volatile
materialis. (The ta= alu:tim B to the I F, to a
streall of volatile materials that are subisequently 414md in
coWer regions.) M:ds work has shown that the release of
nicatins, menthol and sevexal other flavowmrits to the swd-
can be influencied by the nabire of the binding material.
His work win =&-inue, and be ' I 1, to include studies, en
the migration of ccupoundis within the tobacco rod, and at the
specific request of the CRC cmpwdA=, will Are materials
migrating ftm packaging materials, since these mg I a
source of off-taste problem.
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B.A.T INDUSTRIES P.LC. - MINNESOTA ClEposrroFty COPY - PRODUCED PURSUANT To VILD. OF
CONSENT JUDGMENT DATED 5W98 IN STATE OF AONNESOTA, ET AL AL-, CASE No. CI-944MS

alagatory isgas Effort alloation ... zat
1. Rkhxed Ignition B2=W
Although at thas stage Only MA has roodations that
rAORSSitiktO establishing an nooepted mirthod for
cigarette ignition potential, this is expiected to spre-l'
to other =mines. CMMM hwm met up a t&* F in
%birth BAT has Wan a principal lead. Activities planned
for 1991 are:
- further collaborative studim Aimed at refinirxj the
existing test -thod
- fabric evaluations to ensure consistAncy wd
UMUOMMity of coatim.
In addition to this work wh4e!h is largely conmitrated on
din= methods of measuremwit, there will ultlaetely be a
i@far IUU= measurements that enable predictions to
ha unda nf iemit-Am nntantiwl of ciggargtteg. Ulcrk in this
ATW Win ComIence in 1991.
2. Search for Ricassays
Them has been considerable renew of our aim In the
of Biolo#czLl Testing, antt it is I j I that the
following POUCY now UnIMPIM the future research
activities in this area:
- WX will ncnitor tr-xk In the amoxgurme of nm
bioassrys and will drielop expertise in those utlet
say have ralwamoe to taboooo products.
- Despite t1- uncertainty associated with cu=o= in
vi@ I la IN aw their applicability to OCIM34M
mixtures, these I la axe ussful in cm way - if test
results differ xigrdficantly fram currwit norms t2W
iWicate that ame dmical change has c=z=ed wd
ftztbw research is reguind. -
- S=b I a, as are currently available (Anns,
Mastogenicity, etc.) will be used to acreen new
additivias or siWdfizant I , - --x.,es being
eqaored in RAD to I I parbmtstim frm the rk--
- Hoavver, an the basis of ;z- P"11 scientific and
y,ftlieml eVidwm, there gppWrZ to be no justificatim
for seekirq means of .-- values -by the
currently available bioamiyi, and thJx will not be an
objective of current ftd=wAzl rommth.
3.
Mm work arm ;rovuies a sernae to cperatuil coqxudes by
renomq inf=wtun an pztponed now additives and
Uffberiffik's and zekirg rations regazdirg their
01
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B.A.T INDUSTRIES P.LC. - MINNESOTA DEPOSITORY COPY - PRODUCED puRsuANT To I VILD. OF
CONSENT JUDGMENT DATED 518M IN STATE OF MWESOTA, ET AL v. PH&ip AWRW. ET A-L CASE No. CI-94-MS

accaptabi.lity. It also mintains an awareness of cbarxps
in legislation and ravieds conformity of additims to
Rmcific mick-lines. It noint&ins a database an additives
ummugimt the Bu Qmup.
PL=o&mw used for the assecownt of both now and
anstirg mterials Vill cmtirm to be developed in
option with CAC ccopmlies.
Md=MWW mmm Effort allg=icn ... 17%
1. Alk V,
Dwirunwrital 7bbbooo Swice =*Anm to be a mjw Ismse
In the unjority of the Grove. mricuts, Vith soem
regulatory mAborities suggesting that eqxmm to Ms may
be h*r-,n2l to non-smokerm and iding rowtidmien an
iftra mokuq my omour Tba
rAw Wilt up a =miserable datmb@ on loyale of MS in
real world mWiramuft and hum =mb3 izhmd three row.11tr.
widaly. ftllWirq the TSHT Metiri@ in Now@ 1989, the
loyal of research on ZIS was rw%xxd, bit it is INPortant
that we mintain cmqxtwm in this area.
The 1991 progrmw will continum to F -- an providing
furidameftal inforgertiM on the e+-i@l and phygiCLI natLIM Of
=9, an permal eqx-= doterminaticra throLigh nimtim
I II 'it-, and an wAbjective aspects of zm.
2. Total Sidestralm Had=tion
Al"-Zb ze&cod aidestxam pro*=tz =W off= umdcating,
qV=twdti6s 02 On inmwstivs Pro&=, the M&t likely drivuq
form for introd=irv such products Vill be awirmamitai
cmumm. FAmomrcb to daft box indicator' that omrb&in
of danotte paper land to low sidextrum
we ham no txxlmwftl q 2 Of
tto =gone,= =YZ this V L. rt is I that
this is mbrHad In the l."I I 9 In I that fmrther
qWortidties can be cructed. Additionally, mcm effort win
be devoted to mplormtory remazcb . for lcw sidestra=
j r I I in which effectively the cigerume does not b=
bobam pzffs.
3.
As a rowlt of the Mrketia.; Directorm I muting, a =w project
has bow initiated, the primry aim of %Mirb is to re&= the
onvir-umatal problems associated with cigarette kx&U. Mu
pwaJor= dwrefdre will focue prir=ip&Uy an the modif=tion of
colls'lope acetMm filters to pexuit varying I g of
debility dim7mrded. m3da Wm be dam in Clow
cmw1tation with WMT. Ozoukrotian will to given to the
leterials =Odrq W the tippiTq paper, the gl-, p1%q wrap and
plasticiser, as Well as to the f3bres.
A cbeddist of the Issues raim-A far J=IuLicn in this fUn*mwgtml M.)
reomrch propmme by the mcketinig Direct=, and TW metings in CD
M.)
Au;k-t and September respectively, is sbmm In AMmidix 1.
CT,
B.A.T INDUSTRIES P.LC. - MINNESOTA DEPOSITORY COPY - PRODUCED PURSUANT To I VILD. OF
CONSENT JuDGmENT DATED SIMS IN STATE OF MINNESOTA, ET AL V. PHILP MORRIS, ET AL, CASE No. CI-9"565

The work yropwm is based on a toml eacwt of sa zww-ysem in
the hxdmoftl Research amatre and win cost MM miLlion.
ompWisons with MO =at twa irft micommit that the creation
of the nc took effect In Aprn and the fully wwouLtsed -
f= the ym ml 1 9, for that year would have basm C3.632 xMion
(agrod with the CZC CMPWdW). On ULLS NWJA the incrumm
ininludiM Inflation is 7%.
Xt has bm a practice ever ym= to divide the
,"location of contributicra to the rardisawgal research
I 9 by the ChC cmpwdm a==dirq to the follaAng
I I I gas: MM. 32%; 1W 30%; MM 194; M 19%.
on this besis, irdbt2ml anocations would be-
BAW00. C1.243nn.
SW M166M.
BA= E0.73emn.
17L 0.738m.
Quite snarately, is a bj*ptmry ru*dxwwnt of 0%,000
Z= external contracts on immoking a-id bmith (Scientific
Ammarch M-p project =ranged by Dr. R.F- Thornton en baboaf of
the CRC cmqmi-) - MM colvarlablift flomm for im in
044,000. TraditionAlly, this is f=W on equal dmtw basis
bV the faw c2ftibitim CRC comenfes, and ftn for 299i
i--b itione would be C74,ooo.
haremm*. is foxght ftm the TSU to the bdvat of MM
million fw the fundimmental research ptagraimmet, wd =%,ow for
- -ant4rin. Ressurch Grow Projects.
Zn 'I,,- of allocation forimul&, MW is selmd to agm either
the histwic bases fgkr II I tm IxIdgets or to mmidkw an
altamativa f0dim basis %beef% my samet somet of the tax
ptrblems ammodfilt-& with the aMXU* System. A pmposal fW a
ftmdirq formula this% PWtlY reflects VmmWW of that
ftutin; cmtmw is illustrated in Aamxxix xr.
229t YoVmdW, MO
C)
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B.A.T INDUSTRIES P.LC. MINNESOTA DEPOSITORY Copy pRooucEv PURSUANT To VII.D. OF
CONSENT JuDOMENT DATED SAM IN STATE OF MINNESOTA, ET AL V- PHLF AIORRM, ET AL, CASE No. CI-944US

an QWk Llst f= VAd=JW DirliCtims' and TM MWt
7here were a muber of acticm raised at then two meatirgs what were to
be considered at the metiril of the Passarch Directors in Octobw 1990,
for iwausim, if qpWriate, in the ftdammital research 1 2be
fallowing checklist shows the docisicro of that wwtirg-
1. Projects almd at JmdC33&W3JJm the 1
us Lcoim uraducts utdch cmin-em C;O-id- x--icr
Z2-fi=M=
It was eooClIjdgd that this priority is well covered In the
Cbmummunmory work aren. Significant Parts Of the Material% Sciffam
and Speditl ArIalytical work arms also address this BU12jeCt.
jLU relevant kommatum in WZ7 and SW on the effects of phym@
tobacco properties an amckin; quality, together with viam; an what
rmrthw infazimstam is needed, will be sent to FW-
2. Chemosensory research to rG&JOe W==0= and Imitatim
With the proviso that bitte=mma should be sem in the total
cmitiert of "aftertaste" and that "harshnam" and mi:critaticn" are
closely Jimimd, this priority is covered in the Cbmasiumory work
area.
3. ASSOCiatad W=k ZQ UMIlerstand Wp)=S' kAbMd9IX
M31s JA row inclixied in the chanomensory wcck 1 9
4. DFMICMENt of ium - - , -. WIDLUS=W
We is not mom as a project area for Fundmmital Research. BW
vill defins the scope of and implement this project, after
discussion with othw chc cmvmi-.
S. Develop aimu=m Id=
We priority is covered in the Drovative Pzc&=tx arm.
e Filter
A new pMect bas bow Irchrud in the farxWmItal zemrcb
me to p-- this primity. 7be wc& will be done in
.o-4-/CO3l&borat1m with BLU7.
7.
ru of this pricrity, am being pummud In both PW ani BW. 7he
tk; a;p=mdus ---,id be complementary with no duplicatim of
effort.
S. To investigate tcbtm= leaf ammira for
AMMUSIM
A COMPreba-sive review of adsting inforia2tim, nxh of stdch is r)
based an experiments catzIucted in-ft=il, win be mde by April 1991
by sm= Cruz.
A1WW C)
im Novacher, 1990
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B,A.T INDUSTRIES P.LC. MINNESOTA DE,
.pOSITORy Copy PRODUCED PURSUANT TO VILD. OF
CONSENT JUDGMENT DATED SON IN STATE OF MINNESOTA, ET AL. V. PHILP MORRIS, ET AL, CASE NO. C14K-MS

Amadix ri
Altemitive Rmdirn BMWIA
Mw current percentage split of allocaticris by the CAC companim in based
an a proposal rrcm the Ro ca-c=1untor in M6 which weis =2ified by the
TM to reflect sim of cap and its corYcribution to Q=ip R&D and
lack of a ustbeimittical fmm,'-% upm whiet, contribution can
Urder
to
weakness.
IM have al"I I ar
in vjAw of these pttblams a fcm=,',, is proposed that ider*1fies; two
elements:
a fired Cost by all contributcmu reflectim 'club mobership', i.e.
the benefit of brnM the FW famility.
2. I 33gJ&M2 cost reflecting the extent to which an irAividual caqwq
will benefit from the research i.e. a tmumw related element.
mbe siWiest way to camoine theme elements is to mke half of the total
tried' and the remaindAr 'variable'. The f-y1A recommarxW on
this basis is:
Ci - R (0.5 x Ti + W)
wbare Ci - imuVidual Conbribution (co)
N - ' of ountribut=
Tj - rorp- +ITV,mer of contributor in pmwjiom yew Cgs)
=L - total not Ummmer Of Contrib*JWN in ptvviax yaw (ft)
R - cost of all centralimed PAD (i.e. FSC & SIG) (0)
mm pract-ice, to I tax INIUMICity r8olirIMMIntil, the CWteAbU!U=W VOIdd
probably br4e to be rumloulated at year wid wid correction =aft vxb
that tLursomw in the exiI;ting year is tuaL
Min competrizon of Contributions for 1990 by cuunf:ries usiM the existing
method and the raw fc=,'A is as follow:
EICLstim Now
PW SIG Tcltla
mm LOW am 000
Nam. 1.162 0.086 1.240 2-241
BW 1.009 0.086 1.175 1.289
at= 0.690 0.086 0.776 0.704
0.690 0. 086 0.776 0.738
F 3.631 0.3" 3.M 3.rn
C:)
31 the ftnzzla were agrad, the only J sons to be considered r%j
each yaw are the , , - of the PAsearch Programmes (both Cy%
interml Wd orternal). C:0
B.A.T INDUSTRIES P.I-C. - MINNESOTA DEPOSITORY COPY - PRODUCED PURSUANT To VII.D. OF
CONSENT JUDGMENT DATED W8518 IN STA TE OF UNNESOTA, ET AL V- PNX'P MORRIS. Er d6 CASE No. CI-94-MS