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JAMES A. FYOCK & ASSOCIATES One Triad Park Box 30 200 West Second St. Winston-Salem, N.C. 2710| Tel! (919) 741-2727 Fax: (919) 741-5449 JAMES A. F¥OCK President April 28, 1988 Mr. Guy Smith Vice President Corporate Affairs Philip Morris 120 Park Avenue New York, New York 10017 Dear Guy: I apologize for my brief call to you last week regarding further support for Dr. Spitzer's work on passive smoking at M:cGill University. I confess, I: fell into. the trap of concluding that when you communicate something to a particular person in a company, the whole company has been informed. Please allow me to start over. Following our initial telephone conversation on this subject I secured RJRN's approval to issue a check to Rockefeller Un£versity in the amount of $156,634. This was the amount I discusse6 with you and in the interest of getting the study underway I had RJRN pay the entire cost with the idea we could~ settle up later as we do in so many matters relating to ~itigation costs incurred by our companies. To be frank, I don't know whether our legal department admin,istrative manager ever made arrangements to get PM's half or not. The study has progressed quite well and as Spitzer's team. has gotten into it, they concluded that thei.r efforts could be strengthened by involving leading epidemiologists in Great Britain., France and west Germany. The thought was that results could be published in peer-reviewed journals in all those countries in addition to Canada. The expansion in scope however, quite understandably upped the cost. Additional funding in the amount of $140,000 (actual amount is $136,833) is needed to complete the work and I would like your agreement to share this additional cost. You should know that Dr. Fred Seitz, former president of Rockefel~er University (and a former president of the National Academy of Science is coordinating the project for Rockefeller University. Fred is being assisted in this effort (on a pro bono basis) by Dr. Alvi.n Feinstein, a. noted epidemiologist at Yale University. The assurance I have received from Fred and Alvin is that this work is scientifical~y well-structured and is bein~ carried out in an exemplary manner by Dr. Spitzer and his colleagues. LITIGATION PUBLIC RELATIONS AND PUBLIC AFFAIRS

-2- To bring you fur£her up to date, I am enclosing a copy of the letter justifying the need for additional funding along with a progress report I sent in March to Murray Bring (.catching him by surprise as well)and Harold Henderson. I believe they speak for themselves. Again, in the interest of time, ~ am requesting a check for the full amount (~$140,000) from RJR Nabisco, but hope to have your agreement to share the cost. Again my apologies for my rather truncated communication. Best regards, JAF:gj, Enclosures cc: Mr. K. Bradford Earle