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E X E C U T I V E S U M M A R Y BIOCHEMICAL/BIOBEHAVIORAI R&D GROUP Contracted Professional Services 1987-1989 Amounts Paid Budgeted 1989 CLE 1987 1988 1989 CLE Decrease Program I. Nicotine Research & Pharmacology l1,123,907 51,138,260 f1,218,535 i1,118,776 f99,759 (600,000)1 (540,241)1 Program II. Product Support $1,254,822 i978,085 i1,431,155 $1,061,155 t370,000 Program III. External Issues & Manufacturing Supp $534,476 $1,000,418 i3,056,453 $2,068,453 5988,000 529 743 2 7 529 3 2 [ , 1 [ , 4 1 Program IV. Environmental Tobacco Smoke 5394,919 $158,335 f144,000 f134,000 f10,000 Program V. Biomedical Research $82,439 i122,978 $330,857 f207,857 l123,000 See note ()1 (t600,000)1 ($540,241)1 s::eassss :acmasa aae::a: ::mse::=e msze:maa Bio/Bio 9010 Total 53,39D,563 53,398,076 $5,581,000 $4,050,000 f1,590,759 Amounts Paid Budgeted 1989 CLE 1987 1988 1989 CLE Decrease Divisions - 774 & 800 Contributions to Medical Research i1,841,413 $1,541,185 51,663,000 $1,363,000 $300,000 ()1 Nicotine research funded by Contributions Division 800 was included in Program I for clarity and continuity, but is not included in 9010 total. [32 Research contracted in support of Nabisco Brands, Inc. which is offset by allocation to NBI - 9997. 4/27/89

1989 CLE Contrac ted Servic es BiochemicaLBiobehavioral R&D E X E C U T I V E S U M M A R Y BIOCHEMICAL/B10BEHAVIORAL R&D GROUP Contracted Professional Services 1987-1989 AAounts Paid Budgeted 1989 CLE Program I. 1987 1988 1989 CLE Decrease Nicotine Research 8 Pharmacotogy $1,123,907151,138,260 i1,218,535 l1,118,776 $99,759 Program II. (600,000)1 (540,241)1 Product Support f1,254,822 $978,085 i1,431,155 $1,061,155 l370,000 Program 111. External Issues & Manufacturing Supp $534,476 %1,000,418 $3,056,453 l2,068,453 Program IV. (529,74312 [529,74332 Environmental Tobacco Smoke l394,919 $158,335 l144,000 $134,000 $10,000 Program V. i988,000 Bioniedical Research f82,439 f122,978 f330,857 $207,857 $123,000 See note ()1 (f600,0001 (l540,241)1 Bio/Bio 9010 Total ::::::as ::::m:: :8nasss: :a:::::: :::::::n 53,390,563 $3,398,076 $5,581,000 t4,050,000 $1,590,759 ()1 Nicotine research furxkd by Contributions Division 800 was included in Program I for clarity and continuity, but is not included in 9010 total. (12 Research contracted in support of Nabisco 8rands, Inc. which is offset by allocation to NBI - 9 997.

I I BIOCHEMICAL/BIOBEHAVIORAL R&D GROUP, Contracted Professional Services 1987 1989 S U M M A R Y 0 F P R 0 G R A M S - Program I. Nicotine Research & Pharmacology Amounts Paid Budgeted 1989 CLE 1987 1988 1989 CLE Decrease Neurophysiology of Nicotine f629,913 $671,736 $727,642 $650,896 $76,746 Nicotine Receptor Pharmacology f438 534,415 t66,000 $52,063 $13,937 Psychophysiology of Smoking 5226,858 $180,388 5126,000 f124,975 $1,025 Smoke Conponent Dose 5100,726 $28,415 526,358 $18,307 $8,051 Nicotine Pharmscokinetics & Metaboti $165,972 $223,306 t272,535 t272,535 s0 sszsssszs ssszszszs sssszszzs z::=::az ::::::a 51,123,907 S1,138,260 i1,218,535 $1,118,776 $99,759 (600,000)1 (540,241)1 Program II. Product Support Amounts Paid Budgeted 1989 CLE 1987 1988 1989 CLE Decrease Genotoxicity of Tobacco Products 5397,678 5495,476 5600,000 t200,000 5200,000 Histopathology/In-house Studies f272,387 t84,219 $365,350 $265,350 5100,000 Animal Care & QA 5159,954 5217,298 5246,500 5246,500 s0 Expert Consultation 5123,163 $61,428 590,615 540,615 $50,000 Support Product Development 5282,425 515,927 $253,690 5253,690 s0 Scientific Advisory Board 519,215 528,392 555,000 545,000 510,000 Review Scientific Document S0 575,345 520,000 t10,000 210,000 ::~:::::: ::::::::_ ! St,254,822 5978,085 51,431,155 51,061,155 5370,000 Program III. External Issues & Manufacturing Supp Amounts Paid Budgeted 1989 CLE i 1987 1988 1989 CLE Decrease Pesticides $509,804 5825,309 5647,710 $559,710 S88,000 Industrial Hygiene S0 $92,560 $1,879,000 5979,000 $900,000 ! Support to NBI $24,672 $82,549 $529,743 $529,743 s0 a:a::a: :es:zzs:: aa:::a a:::::::: ::as:: $534,476 51,000,418 53,056,453 52,068,453 $988,000 t529,743]2 (529,743J2 • Program IV. Environmental Tobacco Smoke Amounts Paid Budgeted 1989 CLE 1987 1988 1989 CLE Decrease Environmental Tobacco Smoke 5394,919 5158,335 $144,000 $134,000 510,000 Program V. Biomedical Research Amounts Paid Budgeted 1989 CLE 1987 1988 1989 CLE Decrease Medical Research Comeittee $25,623 $13,548 s0 s0 s0 Biomedical Research Programs $50,000 t106,000 $100,000 $100,000 s0 Biomedical Research - Miscellaneous f6,816 $3,430 5230,857 i107,857 $123,000 zzzszzz szzszzz zzzzzzz zzzzzzz zzzzzzs $92,439 $122,978 $330,857 $207,857 $123,000 See note ()1 (600,000)1 (540,241)1 sss:::e:: s::a:ass: :zas::e: :::zzass :m:csz:a Bio/Bio 9010 Total $3,390,563 $3,398,076 $5,581,000 $4,050,000 $1,531,000 [529,74312 t529,74312 I Amounts Paid Budgeted 1989 CLE Divisions - 774 & 800 1987 1988 1989 CLE Decrease Contributions to Medical Research $1,841,413 $1,541,185 $1,663,000 f1,363,000 t300,000 ()1 Nicotine research furxled by Contributions Division 800 was inctuded in Program I for clarity and continuity, but is not included in 9010 total. 112 Research contracted in support of Nabisco Brands, Inc. which is offset by s!loestion to N81 - 9997.

I Contrac ted 1'rofessional Servic es BiochemicaVBiobehavioral f2dcD Pro`rams I TI 1987 II 1988 III rv = V CLE '89 ® T E X E C U T I V E S U M M A R Y BIOCNEMICAL/BIOBEHAVIORAL R&D GROUP Contracted Professional Services 1987-1989 Amoants Paid Budgeted 1989 CLE Program 1. 1987 1988 1989 CLE Decrease Nicotine Research & Pharmacology $1,123,907 $1,138,260 $1,218,535 $1,118,776 $99,759 Program !I. (600,000)1 (540,241)1 Product Support 51,254,822 l978,085 $1,431,155 $1,061,155 $370,000 Pro9ram 111. External Issues i Manufacturing Supp $534,476 $1,000,418 $3,056,453 $2,068,453 Program IV. [529,74312 [529,74312 Environnental Tobacco Smoke i394,919 $158,335 f144,000 f134,000 $10,000 Program V. f988,000 Biomedical Research $92,439 f122,978 $330,857 9207,857 f123,000 See note ()1 ($600,000)1 ($540,241)1 17 sssssssss ssssssimi sssssasss s:sssesss ssssasssa Bio/Bio 9010 Total f3,390,563 t3,398,076 $5,531,000 $4,050,000 $1,590,759 ()1 Nicotine research funded by Contributions Division 800 was included in Program I for clarity and continuity, but is not included in 9010 total. [l2 Research contracted in support of Nabisco Brands, Inc. which is offset by allocation to NBI - 9997. T T ®

i f Contrac ted Professional Servic es BiochemicaVBIobehavioral R&D / / / 1987 1988 = Program I. Nicotine CLE '89 Program 1. Nicotine Research & Pharmacology Amounts Paid Budgeted 1989 CLE 1987 1988 1989 CLE Decrease Neurophysiology of Nicotine $629,913 $671,736 $727,642 $650,896 $76,746 Nicotine Receptor Pharmacology t438 $34,415 $66,000 $52,063 t13,937 Psychophysiology of Smoking l226,858 l180,388 i126,000 $124,975 $1,025 Smoke Conponent Dose $100,726 $28,415 $26,358 518,307 t8,051 Nicotine Pharmacokinetics i Metaboli t165,972 $22.3,306 t272,535 5272,535 s0 :e::aa::: :a:a.:: ::::aa: a: :a: a s::: : as::: $1,123,907 $1,138,260 $1,218,535 i1,118,776 $99,759 (600,000)1 (540,241)1 01 Nicotine research funded by Contributions Division 800 was included in Program I for clarity and continuity, but is not included in 9010 total. %

l i BIOCHEMICAL/BIOBEHAVIORAL R&D GROUP Contracted Professional Services 1987-1989 Program I. Nicotine Research & Pharmacology P R 0 G R A M D E T A I L S Project/Description: Neurophysiotogy of Nicotine - Develop understanding of the action of nicotine in the central nervous system (CNS) through the study in the rodent model of its electrophysiological, behavioral, biochemical and pharmacological effects. Group/Individual Contracted Contract Nos. Amounts Paid Budgeted 1989 CLE 1987 1988 1989 CLE Decrease Dr. S.A. Deadwyler 87-771-012/A $102,318 $139,770 $147,000 i87,304 i59,696 Bowman Gray School of Medicine 88-774-002 88-800-001 Dr. A.C. Collins 86-771-011 $174,569 f156,512 $38,6.42 i38,642 University of Colorado 87-771-011/A $128,000 $127,996 S4 Dr. D.J. Woodward 88-771-031/A i117,663 s0 s0 SO Univ. Texas, HSCD Drs. Lunt & Wonnacott 87-771-030 $111,869 i168,244 $191,000 $190,988 $12 University of Bath, U.K. 88-771-024 88-771-030/A Dr. L. Daniel 88-771-012 s0 f10,000 510,000 $10,000 Bowman Gray School of Medicine 89-800-002 Dr. J. Langone 88-771-003 SO $49,713 $50,000 f49,966 $34 Baylor College of Medicine 89-800-001 Dr. J. Gray 87-771-076 $113,294 $147,497 $163,000 $146,000 $17,000 University of London 87-774-001 88-771-049 Nicotine Research $10,200 s0 s0 SO Exchange Program ....... ------- ------- ------- ------- t629,913 $671,736 $727,642 $650,896 i76,746 Project/Description: Nicotine Receptor Pharmacology - Define the receptor systems in the brain which interact with nicotine by determining the kinetic, thermodynamic and pharmacological properties of the CNS receptor sites usin a rodent model. Determine the location of CNS nicotinic receptors in the brain and in cultured ceils derived from the brain. Determine the functional properties of nicotinic recptors in the CNS. Group/individual Contracted Contract Nos. Amounts Paid Budgeted 1989 CLE 1987 1988 1989 CLE Decrease Dr. H.W. Davies Wake Forest University 88-771-077/A s0 f6,250 $25,000 $19,750 55,250 TDC Research, Inc. Blacksburg, VA 88-771-042 $0 $10,286 s0 s0 Dr. A.C. Collins University of Colorado 88-771-076 t0 $17,438 t40,000 l32,313 $7,687 Dr. K. McCarthy 87-771-003 f438 f441 f1,000 SO f1,000 88-771-005 ------ ...... ------ ...... ...... t438 $34,415 f66,000 $52,063 f13,937

Project/Description: Psychophysiology of Smoking - Develop knowledge/expertise in effects of tobacco product use on psychophysiological states of consusers, including interactions with (for example); personality traits, emotions, stress, short-term activity level, and life-style factors. These areas of research could provide valuable support to product development efforts. E Group/Individual Contracted Contract Nos. Amounts Paid Budgeted 1989 CLE 1987 1988 1989 CLE Decrease Drs. Jensen & Gilbert 86-774-003 t86,801 $98,973 f125,000 5124,975 S25 Southern Illinois University 88-774-001 88-800-002 Dr. H. Eysenck 85-771-016 l139,022 $78,292 s0 s0 University of London 86-771-036 87-771-073 Dr. C.D. Speilberger 86-771-022 $1,035 $3,123 $1,000 s0 S1,DD0 88-771-004 ------- ....... ------- ....... ....... f226,858 5180,388 $126,000 5124,975 $1,025 Project/Description: Smoke Component Dose - Develop/inprove means to accurately assess yields of smoke components to huean smokers and use these to determine relationships of smoking behavior patterns to product properties or smoker characteristics and to investigate physiological or psychophysiological effects of smoking. Group/Individual Contracted Contract Nos. Amounts Paid Budgeted 1989 CLE 1987 1988 1989 CLE Decrease Latham-Hall 87-43498 $12,622 s0 s0 s0 87-52790 Mr. R. Ellison 88-771-078/A s0 $3,500 $5,000 52,000 $3,000 Autrec, Inc. 86-771-056 $10,000 s0 S0 s0 Etcatech 87-771-044 51,000 t0 s0 s0 Dr. H.M. McNair 87-771-049 $7,500 s0 s0 s0 Dr. M. Karol 88-771-010 s0 $1,311 s0 s0 Bellomy Research 88-771-002 $42,125 i10,350 f20,000 $20,000 88-771-010 88-771-015 88-771-069 88-771-079 Dr. N. Benowitz Gen. Found. for Medicine 87-780-034 $19,579 t0 s0 s0 Subject Incentive Fees $7,900 $12,675 $20,000 $0 520,000 Miscellaneous s0 f579 s0 s0 To be determined :0 t0 ($18,642) ($3,693) ($14,949) ------ ------ ------ ------ ------ t100,726 i28,415 $26,358 518,307 i8,051 i

! Project/Description: Nicotine Pharmscokinetics and Metabolism - Evaluate the pharmacokinetics of nicotine/cotinine and other metabolites in huasn antl/or animal models. Group/Individual Contracted Contract Nos. Amounts Paid Budgeted 1989 CLE 1987 1988 1989 CLE Decrease Dr. E.S. Vesell 87-774-002 $114,844 $144,000 $100,000 f100,000 Penn State University 88-774-003 Hershey Medicsl Center 88-771-016 Dr. N. Benowitz 87-780-034 t0 $23,055 $90,000 $90,000 University of California 88-780-011/A _ Dr. P. Crooks 86-771-053 s0 s0 $35,535 $35,535 University of Kentucky 88-771-043 TEXms, Inc. 88-771-044 90 $13,818 $7,000 $7,000 Battelle-NW 87-771-053 s0 i13,183 s0 s0 88-780-033 88-771-039 Dr. S. Wrighton SO s0 l40,000 $40,000 Dr. M. Anderson 87-771-039/A $0 $13,000 s0 SO Nathan Kline Institute Dr. Brebbia 87-771-014 t48,750 $16,250 t0 s0 Dr. John A. Ewing i2,378 s0 s0 s0 ....... ....... ....... ....... i165,972 5223,306 5272,535 $272,535 iiLStii iiiisi= EL=LCLt ii7.i2SL •li!=LSC 51,123,907 i1,138,260 $1,218,535 51,118,776 599,759 (600,000)1 (540,241)1 i

i Contracted Professional Services BiochemicaVBiobehavioral R&D I 1987 1988 CLE '89 ~ Program II. Product Program 11. Product Support Amounts Paid Budgeted 1989 CLE 1987 1988 1989 CLE Decrease Genotoxicity of Tobacco Products $397,678 9495,476 $400,000 t200,000 $200,000 Nistopatholopy/ln-house Studies t272,387 f84,219 $365,350 f265,350 5100,000 Animal Care & QA $159,954 $217,298 5246,500 f246,500 s0 Expert ConsuLtation $123,163 $61,428 t90,615 f40,615 i50,000 Support Product Development $282,425 t15,927 f253,690 $253,690 s0 Scientific Advisory Board i19,215 f28,392 $55,000 f45,000 l10,000 Review Scientific Document $0 $75,345 i20,000 t10,000 i10,000 a:::ass ::.::a::a :a::::U: ::::::us ::::::: t1,254,822 i978,085 f1,431,155 f1,061,155 $370,000

Program 11. Product Support Project/Description: Genotoxicity of Tobacco Products - Mutagenicity assays of flavors, additives, components and smoke condensates in support of product developreent. Group/Individual Contracted Contract Nos. Amounts Paid Budgeted 1989 CLE 1987 1988 1989 CLE Decrease SRI International 87-771-006 i279,390 f276,908 $200,000 i0 $200,000 Dr. J. Mirsalis 88-780-018 Hazleton Laboratories 87-771-010/A l101,883 $208,099 $200,000 i200,000 Dr. D. Busick 88-780-017 Dr. G. Smith 87-771-005 f16,405 $7,489 s0 s0 88-771-007 Dr. Huang s0 $2,980 s0 s0 The Trill, Inc. ------- t397,678 f495,476 t400,000 i200,000 $200,000 Project/Description: Histopathology/In-house Studies - Provide histopathology, hematology, health screens, clinical chemistry, and necropsy services for in-house studies. Group/Individual Contracted Contract Nos. Amoants Paid Budgeted 1989 CLE 1987 1988 1989 CLE Decrease Dr. J. Sagartz 86-771-044 $245,300 $51,567 5340,350 $265,350 f75,000 Veritas Laboratories 87-771-019 88-19577 87-771-022 88-28839 87-771-048 88-30962 88-771-035 Roche Biomedical 87-61135 $2,337 i1,715 s0 s0 I Alpha Biomedical Labs 88-771-018 $0 f30,937 s0 s0 Cardiovascular Analog Program s0 s0 $25,000 $0 525,000 Hazleton Laboratories 87-771-043 $24,750 t0 s0 SO 87-771-048 ....... ....... ------- t272,387 t84,219 $365,350 t265,350 5100,000 Project/Description: Animal Care & OA - Provide animal care for in-house studies and quality assurance for all studies. Group/Individual Contracted Contract Nos. Amounts Paid Budgeted 1989 CLE 1987 1988 1989 CLE Decrease Program Resources, Inc. 86-771-052 $158,698 i216,848 $240,000 $240,000 87-771-018 88-771-028 Dr. B.C. Bullock 88-771-068 s0 s0 $2,500 52,500 ~ Dr. K. Laber-Laird 87-771-051 $1,256 t450 s0 s0 Dr. J. Woodward so so f4,000 t4,000 ------- ....... ------- ------- 5159,954 t217,298 t246,500 $246,500