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R E C f(v f 0 TMMM C:ENRJR^I-FOX LICENSING coRPORATMi HUBERT A. NELSON PRODUCT SEA V ICES' January 16, 1984 Mr. Frank A. SauuY3ers Staff Uice President Corporate PGelatiions arad' Cccnunicatiions Philip Morris Incorporated 120 Park Avenue: hTewYork,N.Y., 10017 Dear Frank: ;(A% 1'7 13-% It was a pleasure to have met you last Wednesday. As we have discussed, Twentieth Century-Pbx would like to enter into an a eemerit' with Phili Morris for prod aL,2l aQ=mn_~~ +*tes in major moon pi nres praduced by Us. Twentieth Century-Fox wpuld like to enter into an 18-mmnth agree- ~: that would offer Philip Morris a uniqne publicity opportunity vam tee ~a product lacement in in our feature films. We would the f'iral version of four feature film_s_ during the 18-mnth pe~' i'~-. e woul o er your products exc~ vity for the period ooontract. You wnuld have script approvalifor the pl.acenent of ' yowr products. After tthe rel,ease of the films, your approval sole71y determines that the exposuire is consistent with our agreatnent. If' ymiare not pleased with the length of visual exposure, a negatiated refwnd' or credit wrnsld be workedi out for that particular project. In the highly unli.kely situation of Fox being unable to satisfy youi, with four feature films, your payment will be refunded on a prorated basis. T`tve_Qg&t for tbe guaranteedplacement of Philip Morris cigarettes in four inaj+or, moti.on plctuires prodixed by Ttaientieth Century-Fox wrnald be $1010, 0I0'0 .. According to the Mot.ion Pictwre Association of Anierica, Inc. (WAP,),. mrvie admissions for the first sewemmcmths of 1983 were 745.7 million,, up 20.5 million over ttfe same periiod last year. Based on a maving annual trend, it is projected that admissions for 1983 will be 1.2 billion. Total box office gross for the first seven nronths of 19'8 were $2.3 billion; it is projected that box office gross for 1983 will be $3'.7 billion. The 1983 gross will tflp 1982', which was a reoord setting year, by approximately a quarter, bblliiion~dollars. These figures are for U.S. releases only and do~nat reflect theatre admissions in the rest of the world. BOX 900. BEIYERLV' HILLS. CALIFORNIA W213 PHONE: (213) 2p33D17'. CABLE ADDRESS: CENTFOX, LOS ANGELES-TELEX'674B74 A DIVISION OF TWENTIETH P-NITURWrFOX Fli • rnRPMTir

Mr. P'rank A. Saunders ' January 16, 1984 • Page Two In 1982 the MPAA ccaYputerized the tracki ng and recording of films released in the!U.S. for all identifiable distributors. As a result of this nrsw capability, the total count of films released in 1982 by 64 distributors was 474. Total U.S. box office gross for 1982'was $3.5billion. Based on these figures, the average film gross was $7.4 million. The average admission cost for 1982 was $2.90. Thus, the average admission per mavie for 1982'was 2.6 million. It should be noted that in 1982 there were 45 films that grossed $8 million or mc>re and there wexe 36 films that grossed $10 million or mre. This should be kept in mindiwhen doing an analysis of 1982 imvie admission on a cost per thousand basis. If you desire, there cambe collateral publicity opportunities involving Fox stars which we can develop once a contract is executed. In addition, we can arrange appropriate screenings for you and yourr wholesalers. I look forward~ to further discussing this unique opportunity with you, for our Product Pl;acement Program can.assist Philip Nbrris in achieving its.marketing objectives. Sincerely,. Hubert A. Nelsom Product Services HAN/han cc: Chuck Ashman Tony Hoffman