Tobacco Documents Online

. C LAW OFFICES SHOOK, HARDY & BACON CMARLES L.SACON DAVID N'.C1ARR: LANE O iAUER f'RAMw r 5E5REE.L fRCDERiCn,SEINL WIL'LIAM W SN1NNJOMNC DODS DONALD Q NOEL EVERETT A OLSON:JR. JOHN T MARTIN DAVID W fMINN' wILL1AM'.6 MIAUGM. JR LEE E.STANfORD DAVID K. MAR^JY WILLIAM G-2iMMERNAN' ROCERT E. NORTMRIP PATRICR MCLARNEY. MARVET, L /4PLAN JOHN C MONICA. CMARLES R.WALL p.M.L COLVILLE GENE E. VO/GTE JAMES T.NEWS.OM LEOP.DRETERELWOOD L.THOMAS STEPHEN D ALIeER PATRICR M. SIRRIDGE DAVID R. MORRIS LARRT, R. O'NCAL TWENTIETH FLOORM£RCANTULE 6ANK TOWER1f01 WALNUT. KANSAS CfTYI MISSOURI 64106 (816) 474'-6550 TELEX 42-6291 TELECOP+ER (816) . 42/-5547' TRANn.P.SEEREE SAM e.SEeREC EDGAR SNOOK DAVID R.NARDYpee4-1a4o), (ieea•1o5e) Ileo4-IOTO) (lalz-la7e)' June 27, 1979 RT Mr. Henry C. Meadow Dean for Planning and Special Projects 25 Shattuck Street Boston, Massachusetts 02 RUSSELL 5- NOeLET LAUREL M'CORNALLEN',R. PURVIS STEVEN CPARRISM RiCMARD owooo5 BERNARD V O'NEILL.JR. GARY R- LONGTIMOTMT A. PRATT GARY L. WMITTIER CHARLES L.OACON.JR.. VIVIAN W w1eERG. DENNIS R..DOW' DONALD G..STOUFfER JAMES M:OTTMAN Or CDUNSEL WASM I NOTO N. ,D.. C. O F FIC E COOK & MENDERSON, P. C- 17J5R STRCET.,N: W: WASl1INOTON, D..C. 20006 4202), 531-07e7 Re:~'Harv~ Smoking and Health Research Project Dear Dean Mead'ow: The Statement of Unreimbursed Expenses for the period January 1, 1978, through March 31, 1979, with supporting docu- ments and the Summary Budget for the period April 1, 1979, through June 30, 1980, with supporting,documents, including the assurances containedin your letter of May 18, 1979, have been transmitted to the sponsoring companies. With respect to the unreimbursed expenses identified to date in the amount of $699,131, most of the companies have agreed to pay a proportionate share. Checks fr=American ($85,294), Philip Morris ($185,941), Lorillard ($61,481) and R. J. Reynolds ($228,797) are enclosed. As you know, Brown & Williamson has already sent checks to Harvard Medical School and Dr. Gary Huber in the total amount of $158,728.46. This amount exceeds, by the sism of $49,844.46, Brown & Williamson's share of the unreimbursed expenses which have been identified to date and which this company has agreed to pay. Such excess should be held by Harvard Medical School to the credit of Brown & Williamson for application towards any additional amounts which Brown & Williamson may agree to pay. 03'750234 Most of the sponsoring companies have also approved in principle the Summary Budget for the phase-out period with the understanding that by reason of cost-saving efforts by Dr. Huber

SHOOK, HARDY Fi BACON Mr. Henry C. Meadow June Page 27, Two 1979 and his -staff and expected personnel attrition, actual expendi- tures can be expected to be less than the budget submitted. The commitment is conditioned upon the understanding that the Project will be governed during the phase-out period by the provisions of the 1972 and 1977 Agreements. As you know, these agreements include provisions that expenditures for direct costs require the prior approval of Dr. Huber; equipment purchased with Project funds shall be the property of the sponsors and its use shall be determined by Dr. Huber; and Dr. Huber shall have the sole responsibility for the design and conduct of the tobacco research project. I understand Dr. Huber plans to specifically implement these principles with the persons with whom he will be working. It is our understanding that at the conclusion of each quarter Dr. Huber will prepare and approve a statement of expenses incurred during the quarter (by budget category) and submit it to Dean Mitchell Adams. Dean Adams will add a 10% supplement to that statement andforward it to Lee Stanford who will submit it to the sponsoring companies. Each:company will be asked to pay its proportionate share of the statement. Final financial settlement shall be made on the basis of a statement prepared and submitted by Harvard within.120 days after June 30, 1980. This final financial statement will originate with the University's accounting system and will be submitted to Dr. Huber for his review before being forwarded by Dean Adams to Mr. Stanford. Mr. Stanford will review the final statement to determine the appropriateness of the items listed and submit the statement to the sponsoring companies for consideration. The tobacco companies specifically reserve all legal rights which they may have by contract or otherwise and no pay- ment, statement or other action by the companies or their repre- sentatives shall be construed as a waiver or admission. The cooperation and efforts of Joyce Brinton and you during this time of transition are very much appreciated. Sincerely, William W. Shinn WWS/rf Enclosures cc: Dr. Gary Huber

C SyOOK,HARDY & BACON Mr. Henry C. Meadow June 27, 1979 Page Three bc: Thomas F. Ahrensfeld Max` H . Crohn~, Jr. Joseph H. Greer Arnold Henson Ernest Pepples Arthur J. Stevens DeBaun Bryant James W. Chapin Alexander Holtzman Henry C. Roemer Horace R. Kornegay Edwin J. Jacob Janet Brown

---