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76. Stanley B. Prusiner 4 February 23, 1983 the right to designate the disposition of such equipment, but only.for•.eleemosynary purposes. If the foregoing is satisfactory, please indicate your approval by signing and having the appropriate representative of the University of California, San Francisco School of Medicine sign the enclosed copy of this letter in the places indicated therefor and re- turning same to me. Sincerely, . . r Edward A. Horrigan, Jr. Chairman V%. Contributions Committee EAH/ev Enclosures cc: Frederick Seitz, Ph.D. Mr. H. C. Roemer Mr. John L. Bacon APPROVED: University of California, San Francisco School of Medicine Stanley B. Prusiner, M.D. Date Principal Investigator Name: Date Title:

Stanley B. Prusiner 3 Febru$ry 23, 1983 12-month intervals. The function of the group is to be advisory and not control- ling. It will be asked to offer such advice and criticism as its members may deem appropriate and to render a brief status report to the principal investiga- tor and to Reynolds. Its members shall be selected by mutual agreement of the prin- cipal investigator and Reynolds; their'r expenses, and such honoraria as the prin- cipal investigator may deem appropriate, shall be paid from the gift. Individual members of the group need not be invited to serve for the entire period of the gift. Rather, flexibility should be retained to assure both continuity and f reedom to make such changes in the _ group as circumstances require. 5. The principal investigator shall render reports to Reynolds prior to year-end of the anniversary of the commencement date of the gift. Reynolds may at its initia- tive request a mid-year report. The reports shall cover progress, expendi- tures,and plans of the program. The annual report shall also include justi- fication for expenditures reported in the various aspects of the program, as they relate to the aims of the program. 6. All monies contributed shall be expended in the furtherance of the program, as directed by the principal investigator. Statements so certifying shall be included in the principal investigator's reports. No disbursement of the monies contributed may be made without the written approval of the principal investigator or his duly designated delegate in his absence. At its election and expense, Reynolds may arrange for an audit of the program at any time. 7. A11 equipment purchased with funds from this gift shall be utilized only for the purposes of the program as the principal investigator may direct. At any time the principal investigator shall determine that any equipment is no longer required for the program, he shall discuss with Reynolds the appropriate disposition of such equipment, and Reynolds shall have

Stanley B. Prusiner 2 February 23, 1983 The gift is also subject to the following: 1. The gift is to the University of California, San Francisco School of Medicine, to be used for the purposes noted above; you are to be the principal investigator. In the event you become unavailable prior to the completion of the term of this research program, a substi- tute principal investigator with appropri- ate qualifications will be selected by the University of California, San Francisco School of Medicine. Reynolds' continued support shall be contingent upon its approving such substitute investigator. 2. The design and conduct of the researcb program will be generally along the lines indicated in the proposal entitled "Prions Causing Degenerative Diseases," copy attached hereto, but with freedom for the principal investigator to make such changes as he, with consultation of his participating colleagues, may consider advisable. The principal investigator shall also have freedom to make such changes in the allocations of the gift set forth above to various aspects of the program as he, with consultation of his participating colleagues, may consider advisable, either for flexibility of timing of expenditures or, if circum- stances warrant, to reflect more enduring shifts in research emphasis. In the latter event, Reynolds should be advised of the proposed reallocations. 3. All researchers are free to publish results and data developed in the program at such times and in such scientific journals as they may elect. Reynolds support for the program may be acknowl- edged where it is appropriate to do so. Copies of any published results and data are to be given or sent to Reynolds. 4. The principal investigator will invite an appropriate number of scientists (perhaps 3 to 5), nationally recognized as experts in the areas of contemplated research, to act as an advisory group. They will be invited to meet annually at approximately

J c~ no n Edward A. Horrigan, Jr. Executive Vice President R.J. Reynolds Industries, Inc. Winston-Salem, N. C. 27102 February 23, 1983 Stanley B. Prusiner, M.D. Associate Professor Department of Neurology, M-794 University of California School of Medicine San Francisco, California 94193 Dear Dr. Prusiner: This will confirm to you that R.. J. Reynolds Industries, Inc. (Reynolds) will renew its support through a gift to the University of California, San Francisco School of MediCine, as described in your June 14, 1982, letter and enclosure, copies attached, on the terms and conditions set forth below. This support will be for $500,000 for one year, beginning in 1983. It is Reynolds' practice to limit gift approvals to one year. It is our intent, however, to consider a gift for $500,000 for a second year and $500,000 for a third year, depending upon reports of progress satisfactory to us and upon other unforeseen conditions not arising to change our intent. It is Reynolds' practice to provide gifts for a limited term, the intent being to provide essential funds for important research at critical stages of the work. Because Reynolds wishes to be responsive to the needs of other researchers, it does not ordinarily extend the term of funding. Researchers are encouraged to seek orderly replacement of Reynolds gifts on a schedule which will avoid untimely interruption of the work. Reynolds recognizes that costs often exceed funds made available under its gifts. Researchers are encouraged to seek other funding sources to provide additional funds not included in gifts made by Reynolds. This gift is given on the understanding that all monies will be expended for direct project costs, it being Reynolds' general policy not to contribute for indirect costs.