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"X- 5OO-O9-OO1296-912 X.; • .":" 500-09-001297- 910 .:.:. "::.: :" (gout h' pp l " • .?.- .v. .v. ";+ • .'..'. x.: • .'-.'. Montr6al .v.'V" ".'-"BAKER NI.IPLEWAN I LAWONTAGNE We. 3AWES ~IABBUTT, e.~. "::.: ~.:.: t .v. ::::: P~.oe.u.~.e..u~.& d~ ~['Appe.J[~nt Tour Est .?.'. 1155, boul. Ren4-L4vesque ouest 140, rue O'Connor X:: Bureau 2720 17e ~tage .v. • :':"Montr6al (Qu6bec) Ottawa (Ontario) ::::: ':': H3B 2K8 KIA 0G5 :':': .:.... :.'. :':-: T41. : (514) 866-6674 T~I. : (613) 996-4425 :=. :::'.-_ .:.? -X" :.'. "" PA(JL EVRAIRE, Eaq. We. CLA~IPE JOYAL :...:" .v. P~oeu~e.u~ de. £'Appe.£en,t P~oe_u~e.u~ de. .t.'Appe.£an,t :...:.'. ..... :!:!: • X- 2, First Canadian Place Ministate de la Justice ... ::~i: Bureau 3400 du Canada .v.'V"Exchange Tower, Box 36 Complexe Guy-Favreau v..':':" :.'. Toronto (Ontario) 200, boul. Ren6-L4vesque ouest • X- M5X IK6 Tour est, 9e ~tage ...:.. .v. T41 : (416) 973-0927 Montr4al (Quebec) :v .v. - X.: .v. H2Z lX4 .v. • X" "?:" :.:.: T61. : (514) 283-4040 :.:.: -X. :.:.: .v. ":':" (lie. Col, in K I~uing) {We Ea,~£ A. Che,~n,i_ah e.,~.} :::::..... :':': RJR-WaaDonag.d Ina RJR-WaeVona.f-d Ine .'.'. .v. 630, boul. Ren~-L4vesque ouest Scotia Plaza v.. • X. ':':" :.:.: Bureau 700 40, rue King ouest :.:-: .v... Montreal (Qu4bec) 19e 6tage, Box 210 .v. • ::': H3B 4H7 Toronto (Ontario) .v. .v.'V" T~I. : (514) 954-3147 M5H 3Y2 "X.v.. v.- Tdl. : (416) 867-3076 .:.:. v.. ..-+ .:.:. ::::: :.:.: ..'..'. • ::............ ~. ~,o~ ,~o ~o.~_o~_ ~oo ~' ~h emi~ ~ht Iti fa d:um...: ,~. ,o,o.o,~,: ,0,0o~o.: ,~, ,~,~, ~o~.~,, ,0o_~ ..... ... ,... ,... .v. Mo~Hrbal. Oc H2Y IB7 .v. ;:::X.?X.:':.? X. X-Z-:.X-:-:-X.;-Z.X-:-Z.:';-?:'X+:..'-:.?:.X-X.Z.?Z.X.X'??X' X. :-:-Z.Z+.'-:-:-Z'X. X.X.:.Z.I.Z-?:.X-:" X. :-:" :.: .X. ;. X.:' X.;-Z.-:.X-;-X'Z.Z.X-:.:-Z-:.:-:, :-:.:-:-;.

:.:.: 500-09-001296-912 ::. • .:. 500-09-001297-910 ".'+ :... ::..:......:."::-"-" (g ur i '. Vpd .....:::""::..... ::. :" Montreal .v. • :,:. :.,. • X" ":<" • ".": IIacKENZ IE, GER~AIS ':::: :.'. ~ :" (lie Geo~e,s R. Thibaadeaul .'.'. ::i:: -.v .'.'. RJR-NacOona~d Inc. :-:.: .v. 770, rue Sherbrooke ouest :':': ..... ~..:: .v. Bureau 1300 .v. "':" "X. :':': Montrdal (Qudbec) :.:.: ::::: ...:!:i: H3A IGI :... ::::: .:.:. !i!i! 1514) 84 -98 1 .v. :.'.: :.'. ::1:: .v. .::'2" ::. ::.':: OGILIlY RE~IALILT OSLER, HOSKI~I ~ HARCOLIRT .:.:. :[:i:(lie Simon V. Potte~) ILyndon A.3. Ba~ne~, E~q.) -.v:":: .v.:':': Ilie F,/_e,'t,te Bienuenu) P~oca~ea~ de £'£ntZmge ::::: :::::P~ocu~eu~ de l'intimge Impe~£a£ Tobacco L~d :.:.: :{:{:Impe~Za£ Tobacco L£d i, First Canadian Place .v.":"" v..V"1981, avenue McGill College Box 50 .v. :.:.:Buceau ii00 Toronto (Ontacio) ..:. -.'+ Montr4al (Qu@bec) M5X IB8 ...'::: • ...- ::..:: :':.: H3A 3CI Tdl. : 1416) 362-2111 .v. .v.:" T41 . : ( 514 ) 847-4747 .::"+ J.Oo ::1:: ..,:.'::: .'.:.: ,v. ":':" BERICAI~P, I~OY ~t ASSOCI~S ... • ....':':" (lie ]ean-Yue~ Be~na~dl .'.::i: X< ,'.i.2 .:.:. P~tocu~teul6 du li],.& err cau6e :.'. • .:- Palais de Justice ,v. v.. i, rue Notre-Dame est :'."." X,: ";':" .'.,. Bureau 8.00 .'.:.." .',:.: Montr6al (Qudbec) :::,'." .:+ ..'.:. .-.:.: H 2 Y i B 6 ......: .v.'V" T61 . : (514) 393-2336 ::.'" °°:° 2:-. .v. 4, hlotre-Dame Street East "'" : Blluitifa :tttm '" .:-~- Suite 100 Phone: 1514) 866-3565 ";".- v.. INC. Fax: (514) 866-4861 "'" ".v Montreal, Oc H2Y 187 .v. :"

500-09-001296-912 C.a.M. - 500-05-009755-883 C.s.M. LE PROCUREUR G~N~RAL DU CANADA APPELANT-Intim6 RJR-MacDONALD INC. INTIM~E-Requ4rante LE PROCUREUR G~N~RAL DU QUEBEC MIS EN CAUSE-Mis en cause 500-05-009760-883 C.s.M. LE PROCUREUR G~N~RAL DU CANADA APPELANT-Intim4 IMPERIAL TOBACCO LTD INTIM~E-Requ4rante LE PROCUREUR G~N~RAL DU QUEBEC MIS EN CAUSE-Mis en cause o.o • "[::: D O S S I E R C O N J O I N T :~:~" Volume IX: pages 1305 a 1537 :.<i: • X- ( D4posit ions ) :v:V :.[.~ Bureau tOO INC. le~0copieur: (51,41 866-4861 ~-~.:

:':': 500-09-001296-912 :.'. ::" 500-O9-O01297-910 ::" .'.:-: .:.:. v.- :.X :.:-: : ... • :.:. "X- :.:-: • :':- Montr6al :':': ::..:: .:.:. :.:.: ":':" :i:!: "::.:BAKER, NLI'/)LEII4AN l LAI~ONTAGNE Me JA~ES ~ABBUTT, e.~ .... '" {~e Roge,t E Bake,t c.~ } P,~oe,,~eur de £'AppeZa.t "" ::::: - , . ..... .v... Procu~tea~a d~ L'Appe.Lant Tour Est .v.'V" • ::':1155, boul Ren4-L4vesque ouest 140, rue O'Connor .v. Bureau 2720 17e dtage ::.::" .:.. .:.:. :i:i: Montrdal (Qu4bec) Ottawa (Ontario) ::::: .'-'- H3B 2K8 KIA OG5 X': ::::: T61. : (514) 866-6674 T~I. : (613) 996-4425 :...'v" PAUL EI/RAIRE, ~aq_ ll4e C/AUPE .lOYAL :...'" .v. P,~ocu,~eu~ de L'AppeLant P~ocu,te.~t de. L'AppeLant :.'. .v. 2, First Canadian Place Ministate de la Justice :.'. ::.::"Bureau 3400 du Canada +:'::. ::.'.': Exchange Tower, Box 36 Complexe Guy-Favreau ':':" .v. Toronto (Ontario) 200, boul Ren4-L4vesque ouest :+ .%°° %°°° $..'..N5X 1K6 Tour est, 9e 6rage ...:"':-. ::::: T61.: (416) 973-0927 Nontrdal (Quebec) ::::: .v.':': H2Z iX4 .':::: T41. : (514) 283-4040 v.. :i:i: -.'.:.:" :!:i: ":':" • v.'..~e~ASTE~, ~4EIGItEU LERUER f. ASSOCI~S ..v ii::i (Me CoLZn K. I~tuing) {l~e ~a~t£ A. Che~nZah, e.~t.} ::::: ":':" P~oea~teu~ta de l'£ntimge P~oeu~eu~a de l'intimge :!:i: • ..::::: RJR-~acVonald Inc. RJR-~acVona£d Inc. :':': .v. 630, boul Rend-gdvesque ouest Scotia Plaza '.':' :v Bureau 700 40, rue King ouest ::" :i:i: Montreal (Qu6bec) 19e dtage, Box 210 :... X-: v.. :.'[:: H3B 4H7 Toronto (Ontario) v.. "::.: ":':"T61. : (514) 954-3147 HSH 3¥2 ":':" .'::..: :..::: :.:.: T41.: (416) 867-3076 v.. .:.:. ::::: .':::: :::..: :i:i: :!:!: :-.- ~.X.~.~~~.X.~.~.~.~.~.~.~.~.~.~.~.~.~.~.~.~.~.~.~.~.~°~.~.~.~.~.~.~.~~~+~.~.~.~.~.~.~.~.~.~.~.~.~.~ .~.~.~.~.~.~.~.~.~.~.~.~.~.?~.~.~+~.~.~.~.X~~.~.~.~.~.~::~.~.~.~.~.~.~.~.~.~.~.~~~.~<.~.~.~.~.~.~.~. ~~~.~.:.~.~.~.~.~.~.~.~.~.~.~.~..~X.~.X.~° :::'.: :.:.: • "; 4. rde Notre-Dame Es( -.'.:. .v. INC. lel4'copieur (514) 866-4861 ..:. ,%; Mo~)lreal, Qc H2Y 1B7 ,,,; ~~.~v~v~v.v~v.v~~~v~v~v~v~v~.~:v~v~v~v~v~v~v~v~v~v.v~v~v~v~~~v:..~..~~..~~v.v:~v.~~.~~~~~.~v:..~~~~~ v~~~~.~~.~~~~~~.:~..~~~~.~~~~~~.~~~~~~~~~v:~:.:~~~~~~~.~.~:~~~~~~v~~~~~v.~~~~v~~.~~~~v::°%.::::..~. ~°

500-09-001296-912 500-09-001297-910 ..:."" II~e Geo,~ge~ ~. Thibaudeaul .'.'...... • ".'. P~oc~¢~ de ~'intim4¢ .....':':" :.'. :~:~: RJR-~aeOona~d Inc. :... .k~: 770, rue Sherbrooke ouest • ;':" Bureau 1300 ... H 3A i GI ::::: 'k:: ~l.: (514) 842-9831 ... :~::~ OGILVY RENAULT OSL~R, HOSKI~ ::::: (~e Simon ~. Po~e~) (L~ado, A 3. 8a~ae~, E~.)v..V" :':': lmpe~a~ Tobacco t~d i, First Canadian Place ::::: 1981, avenue McGill College Box 50 X-: Buceau Ii00 Toronto (Ontario) • X. Montreal (Quebec) M5X 1B8 ::::: H3A 3CI T41. : (416) 362-2111 :.:.: ~l.: (5t4) 847-4747 ROY ~ ASSOC/~S Palais de Justice i, rue Notre-Dame est Bureau 8.00 Montr6al (Qu6bec) H2Y IB6 T@I.: (514) 393-2336 ..'+ <+ ."X ::...': ..:::: .'-X ..'<. 4, Notre-Dame Street Eas', " hrmi ultifm:tum " -'.-:. Suite 100 Phone: (514) 866-3565 "2:.: :<'; Montreal, Oc H2Y 1B7 INC. Fax: (514) 866-4861 .'.'.'.';

TABLE DES MATI~RES Vol. Page Le 2 octobre 1989 (Suite) PREUVE DE LA REQU~RANTE IMPERIAL TOBACCO LIMITED ~ L'ENQU~TE (SUITE) ROY DONALD BROWN Vol. 6 - pp. 771 ~ 780 Vol. 6 - pp. 780 ~ 844 Vol. 6 - pp. 845 ~ 855 En chef par Me Potter IX 1305 Contre-int. par Me Baker IX 1314 Argumentation IX 1379 Le 3 octobre 1989 DISCUSSION ~/oi. 7 - pp. 862 ~ 867 IX 1391 PREUVE DE LA REQU~RANTE IMPERIAL TOBACCO LIMITED ~ L'ENQU~TE (SUITE) ROY DONALD BROWN (Suite) Vol. 7 - pp. 868 ~ 870 Vol. 7 - pp. 871-872 Vol. 7 - pp. 873 ~ 879 Vol. 7 - pp. 880 ~ 894 Vol. 7 - pp. 894 ~ 999 Vol. 7 - pp. 999 ~ 1002 Discussion IX 1402 Contre-int. par Me Baker IX 1405 Discussion IX 1407 Argumentation IX 1414 Contre-int. par Me Baker IX 1428 Discussion IX 1533

1305 771 i0 15 20 25 Le 2 octobre 1989 (Suite) In the year of Our Lord nineteen hundred and eighty-nine (1989), on this second (2nd) day of the month of October, PERSONALLY CAME AND APPEARED: ROY DONALD BROWN, WHO, being under the same oath, doth depose and say as follows: EXAMINATION BY Me SIMON V. POTTER, On Behalf of Petitioner, Imperial Tobacco Limited: Q- Well, Mr. Brown, we've done People Magazine and we've done Life -- and did you also buy US Magazine? A- I did. Q- Did you buy this on the same occasion? A- I did. Q- And at the same store? A-. Yes, sir. Q- And I draw your attention to the first indicated page and we see another ad, a different ad from the last one for Vantage. A- Yes. Q- And is that -- this is the Vantage which is offered in Canada by RJR, is that right? A- That same brand name is offered in Canada by RJR... AUDIOTR,4NSCRIPT, Oivl,io. de Pi.rre Wl,:ir. & A,,o~i~, Lt~e

1306 772 i0 15 20 25 Q- Yes. A- ... in a Canadian format. Q- And if we go to the back page of US Magazine, we see an ad for Benson & Hedges. A- That's correct. Q- And you've already spoken to the Judge about Benson & Hedges. Well, let's file this issue of US Magazine, October sixteen (16) nineteen eighty-nine (1989), as exhibit ITL-16. Did you also buy on that occasion, Mr. Brown, Home Magazine? A- Yes, I did. Q- And is this the magazine you bought, the October eighty-nine ('89) issue of Home Magazine? A- That is correct. Q- With a -- a scintillating article on the inside, "Dirt on potting areas"? Is this the one? A- That's what on the front of the magazine, yes, sir. Q- Yes. And the first page that we've marked with a yellow marker is for a Carlton ad. Me POTTER: This magazine, My Lord, has made the same mistake that I have made with other exhibits. They do not number their pages, or at least all of them, but we've tried to indicate which pages we're looking at. AUDIOTR,4NSCRIPT, oivi,ion de Pierre Viloire &

773 1307 i0 15 20 25 THE COURT: Hm, hm. Me POTTER: You know my numbering on these pages, do you, Mr. Baker? Me BAKER: It's already been done. Me POTTER: Yes. Q- And we've already talked about Carlton, haven't we, Mr. Brown? A- We have. Q- And if we go to the next indicated page, we have an ad for Now cigarettes. Who makes Now? A- I believe it's R.J. Reynolds. Yes, it is. Q- And is Now available in Canada? A- I don't think so. I'm not familiar that it is. Q- On the other hand, is there a market for low tar cigarettes in Canada? A- Yes, there is very definitely. Q- And if we go to the next indicated page, which is the very back page, we have an ad for Virginia Slims. Who makes Virginia Slims? A- It's Philip Morris, United States. Q- Philip Morris, the same people who make Marlboro? A- Yes, that's correct.

1308 774 i0 15 20 25 Me BAKER: It's getting better, My Lord. Sorry, Mr. Brown. Me POTTER: Q- And are Virginia Slims available in Canada? A- Yes, I believe they are. Q- Thank you. Well, can we file this magazine, please, as exhibit ITL-17? On the same occasion, Mr. Brown, did you buy an issue of Newsweek? R- I did. Q- And did you buy the September twenty-five (25) nineteen eighty-nine (1989) issue of Newsweek? A- Yes, I did. Q- Can I draw your attention to the very back page of the Newsweek and we see an ad for Carlton, and you've already told us what you have to say about Carlton. A- Yes, that's correct. Q- Now, in this ad, we see a picture of a man in black and. white, smoking, apparently saying: "And the taste is right for me". Does that mean anything to you as a marketing man, Mr. Brown? A- Well, it does. The previous advertisement we saw in, I believe it was Home Magazine, had a picture, in an identical ad, of a woman. So it just indicates that -- the direction of the ad and the choice of the medium. Q- Thank you. And let's file this particular medium, the