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PHILIP MORRIS ..s.A. tNM/1K/MNUE.NEwror{acN.x,oW4= 1AOl+oroeMaesoaooo November 2,1992 Mr. H. T. Hurd, Director Virginia Polytechnic Institute and State University 301 Burruss Hall Blacksburg, Virginia 24061-0249 Re: Comnarative Evabuation of Dfsnlace ent Ventilaton and Convent[onal VAV Syatems for Indoor Air Ouali_ty Control Dear Mr. Hurd: This letter, when countersigned below, wiN consiitute the agreement ('Agreernent 2") between Virgini& Polytochnio Instituto ('VPP') and Philip Morris IncorporatAd ("PM USA") pursuant to which VPI will continue its comparative evaluation of displacement ventilation technology and other control tec:hnologies (the "HVAC Systems°) In providing acceptable Indoor air quality. 1. Oblectiv . VPI, under an agreement with PM USA dated August 22, 1991 ('Agreement 1•), has begun construction of a test fadlty to conduct the comparative evaluation. Pursuant to Agreement 2, which Is an extension of Agreement 1, VPI wiil use the funds already received from PM USA to complkto construction of the teet fadlity (RRDF II'), and will commission and conduct the evaluation of the HVAC Systems as described In the proposal attached hereto as Attechmerri A. c A. Prior to Completion of RDF II. While construotion lo being oomplotod for RDF 11, VPI will develop a revised protocol for tests lnvoiving simulated loads and short-term occupancy. Modeling of system performance will be developd and data collected in the Richmond test fadilty (the 'FAPT Chamber") for use in comparing the Muauono eEn" aWW11A Mwt vWG1W 8+ N b'd arauAWrrucbMI ruasre suuroM cMMroM urn+e MUTUr+ SLkJ2Wad Q32lOSIJOdS Z£ : Ci E6. 9[ 2lrh1

HVAG Systems. The data collected will be used to validate the models and predict system performance under different oonAguretlons. During this time period the following ten1m, more specifically described In Attachment A under the title `Physkcaf Syatems", will be compteted by the dates fisted below: 1) October 5,1992 - Completion of one manuscript for a paper to be prmpnted at the November 20, 1992 AiA Conference (tentatively titied "Qesign and Construction of a FadNty for Research and Demonstration of Healthy Buildings Concepts"), end two abstnaots for papers proposed for presentation at Indoor Air'93 conference (tentatively titled'Experimental comparison of vertk:al displacement and ceiling supply system performance under controlled thermal and air quality ioads". and "Modeling, validating and predicting system performance under controlled thermal and air quality. loads"). 2) November 15, 1992 - Devetopment of performance criteria and presentation of a progress report to PM USA Including summary reports of the design and construction of RDFII, and the protocols and testing procedures. 3) December 31, 1992 - Delivery of status reports to the Science Advisory Committee. 4) January 16, 1993 -- Dovolopment and Integration of four airflow characteristic models. 5) February 16.1993 - Presentation of a second progress report to PM USA Including validation of the model In the FACT Chamber and predictions of system porformanoe, and compietion of manuscxipts for the two abstracts proposed for presentation at Indoor Air'93. B. After completion of RdF il. Construction of RDF It is to be substantialiy completed by February 24, 1993. After completion of RDF It, baseGne data on tho HVA(: Systeme will be measured and Influences of simulated loads and short term occupancy . including smokers, will be compared. Ati data acquired from environmental, system and human response measurements will be standardized and ~ compatible with the software used for analysis. By March 15, 1993, VPI will a have completed the comparative evaluation and will provido a final report N including baseline data on the findings to PM USA. ~ ~ m ~ -2- ,~

To assure objectivity In this undertaking, during the period of this extension the external Sdence Advisory Committee assembled will continue to review and advise on the protocol to be followed Procedures regarding the use of human occupants as sources of thermal and contaninant loads will be reviewed and epproved by the Human Subject Committee at VPI before tosting with thom commences. 3.IBM The term of this agreRmAnt will n.mmmenrg upon the date of execution by both parties and will continue until the satisfactory completion of all tasks contemplated under this agreement. 4. F-ament. . PM USA agrees to process payments upon completion of the tasks outlined In 1 A and I B and in accordance with the schedule below: Due Date Tasks Payment Due 10/5192 AIA paper, 2 Abstracts $182,904 11/15/92 Progress Report $ 29,249 01/16/93 Report Richmond testing $ 29,249 02/15/93 2 1A '93 papers,Ptogress report $ 29,249 03/15I93 Completion of study arKd final report $ 29,248 Notwithstanding anything to the contrary, payment will not be due until the due date and completion of the tasks identifled for the payment period in question, whichever occurs later. Total payments by PM USA to VPI during the period of this extension will not exceed $299,899. The final payment will be made upon VPt's complete performance to the reasonable satisfaction of PM USA. 5. lndepend9nt Contractor VPI lo an Independent oontraotor and this agreement shall not be construed to create an assodation, partnership, joiM venture, relation of principal and agent or employer and employee between PM USA and VPI or VPt's agents within the meaning of any federai, state or local law. VPI will not enter into any agreement, oral or written, on behalf of PM USA or otherwise obligate PM USA without PM USA's advance written approval. 3 9• d Swda9oad a3,Y-GIAods cP- ar t Es . 91 ad9

6. Mlsceilane us. 6.1 This agreement shall not be modified or amended except by a writing signed by both parties. A waiver by either party of any term or condition of this agreement in one or more Instances sha0 not be deemed a general waiver of that or any other term or conditfon. 6.2 This agreement may not be assigned by either party without the consent of the other. 6.3 This agreement sets forth the entire agreement between the parties on its subject matter and supersedes all previous oral or written agreements between them on the subject matter. 6.4 Any notice given under the terms of this agreement will be In writing and will be sent by United States certified mall, return receipt requested, postage prepaid, and if to VPI, at Virginia Polytechnic Institute, 301 Burruss Hatl, Blacksburg, VA 24061-0249, Attention: Mr. H. T. Hurd, and If to Philip Morr(s. to Philip Morris Incorporated, 4201 Commerce Road, Richmond, VA 23234, Attention: Mr. H. Burnley, Director Process Development. If this letter accurately sets forth the terms of our agreement, please signify your acceptance and agreement by signing the enclosed copy of this letter and returning it to us. VIRGINIA POLYTECHNIC INSTITUTE PHILIP MORRIS INCORPORATED AND STATE UNIVERSITY . J. 9~&". ' t Rv- "~JJ I `Bv: l'1.. ' w. T_ re , n rActor ° Ellen Merlo Nameriitie: -""VO~r8d Px";"~`s Vice President Date: // 1ATaxpa;yer ID#/ 546001805 Filing Status: Non-Protit Fxaucatiornu i- . Xnsti r: Date: 11/4/92 N O ~ N ~ ~ -4 ~ ~ ~ 4• d' SWFi2i9021d Q~3?lOSF JOdS SE : t* [ E6 . 91 adti