Document:

Supply Agreement

 Exhibit 10.3 
 CERTAIN CONFIDENTIAL MATERIAL APPEARING IN THIS DOCUMENT, MARKED BY 

*****, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND 

EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 PROMULGATED 
 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
 STANDARD SUPPLIER
AGREEMENT 
 BETWEEN 
 R. J. REYNOLDS TOBACCO COMPANY 
 AND 

VORIDIAN COMPANY 

A DIVISION EASTMAN CHEMICAL COMPANY 
 PURCHASING DEPARTMENT 
 AUGUST 1, 2003 

VORIDIAN, A DIVISION OF EASTMAN CHEMICAL COMPANY 

STAN 00010 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page No.	 
	1.	 	 Purpose
	  	 	1	  
			
	2.	 	 Contract Documents
	  	 	1	  
			
	3.	 	 Pricing Method
	  	 	1	  
			
	4.	 	 Invoices
	  	 	1	  
			
	5.	 	 Force Majeure
	  	 	1	  
			
	6.	 	 Labor Disputes
	  	 	1	  
			
	7.	 	 Title and Risk
	  	 	1	  
			
	8.	 	 Indemnity and Insurance
	  	 	2	  
			
	9.	 	 Compliance
	  	 	2	  
			
	10.	 	 Warranty
	  	 	2	  
			
	11.	 	 Governing Law
	  	 	2	  
			
	12.	 	 Relationship of the Parties
	  	 	2	  
			
	13.	 	 Employment Background Investigations
	  	 	2	  
			
	14.	 	 Separate Contracts
	  	 	3	  
			
	15.	 	 Assignment and Binding Effect
	  	 	3	  
			
	16.	 	 Time of the Essence
	  	 	3	  
			
	17.	 	 Proprietary Information
	  	 	3	  
			
	18.	 	 Termination
	  	 	3	  
		
	SIGNATURE PAGE	  	 	5	  

  
 i 

 R. J. REYNOLDS TOBACCO COMPANY STANDARD SUPPLIER AGREEMENT 

VORIDIAN COMPANY, A DIVISION OF EASTMAN CHEMICAL 

 

	1.	Purpose 

 The purpose of
this Agreement is to set forth the terms, conditions, and requirements of the Purchase Agreement between R. J. Reynolds Tobacco Company (hereinafter referred to as “RJRT” and Supplier for goods or services (hereinafter referred to as
‘Work’) described more specifically in an Appendix which shall be attached hereto and incorporated herein by this reference. 
  

	2.	Contract Documents 

 The
Contract between RJRT and Supplier consists of this Agreement, any Addenda which are attached hereto and incorporated herein by this reference, RJRT’s Electronic Data Interchange (EDI) Master Agreement and EDI Transmissions, if applicable, and
RJRT’s Purchase Order (hereafter referred to as the “Purchase Order”). These documents are hereinafter collectively referred to as the “Contract Documents”. If there are any inconsistencies or conflicts between the EDI
Master Agreement conditions, the Purchase Order, and this Agreement, this Agreement shall govern. Provisions printed or otherwise contained in Supplier’s quotation, acknowledgment, shipping documents, or other instrument which are inconsistent
with or in addition to the specifications of the Contract Documents shall be of no force or effect. The Contract Documents contain the entire agreement between RJRT and Supplier and can be modified only by a written instrument signed by both parties
hereto. Wherever the term “Agreement” or “Contract” is used herein, it shall be deemed to include all Contract Documents. Wherever the terms “goods”, “services” or “Work” are used they shall be
deemed to be interchangeable. 
  

	3.	Pricing Method 

 The
pricing shall be as specified in an Appendix, which shall be attached hereto and incorporated herein by this reference. 
  

	4.	Invoices 

 Supplier
shall submit invoices via Electronic Data Interchange (EDI) for Work performed at or delivered to the designated site of RJRT and, if approved in advance by RJRT, for goods suitably stored at some other location. Invoices shall be accompanied by
sufficient documentation to support the payment request. RJRT shall make payment to the Supplier for all approved invoices received in accordance with the RJRT Individual Purchase Order.

	5.	Force Majeure 

 If,
because of any act of force majeure, either RJRT or Supplier is prevented from performing any of its obligations under this Agreement, and the party whose performance is affected by the act of force majeure gives the other party written notice of
the existence of force majeure, then the obligations of both parties shall be suspended or reduced to the extent made necessary by the existence of the force majeure and the notifying party shall not be responsible for any resulting losses of any
nature to the other party hereto. Any party notifying the other of the occurrence of an act of force majeure shall make all reasonable efforts to remove the cause of such force majeure and resume its performance hereunder with all reasonable
dispatch. As used herein, force majeure means any act or cause not within the control of the party whose performance is interfered with and which by the exercise of reasonable diligence, said party is unable to prevent, including, but not limited
to, acts of God, fire, flood, explosions, strikes or labor disputes over which the affected party has no control, sabotage, riots, civil commotion, acts of a civil or military authority or wars. 

 

	6.	Labor Disputes 

 In the
event Supplier has knowledge that any actual or potential labor disputes could delay or threaten to delay the timely execution of the performance of this Agreement, the Supplier shall immediately provide written notice thereof, including all
relevant information to RJRT’s Contract Administrator. 
  

	7.	Title and Risk 

 After
RJRT has paid the Supplier for goods, whether at the premises of the Supplier or its suppliers, these shall be and remain the property of RJRT, free and clear of any liens, claims, security interest or encumbrances. None of the goods shall be
acquired by the Supplier or its suppliers subject to an agreement pursuant to which the supplier of goods or components thereof shall retain an interest therein or encumbrance thereon or upon which the Supplier or any other person may impose an
encumbrance or interest. Submission of an invoice is a representation and warranty that the goods covered by such invoice are free and clear of any liens, claims, security interest or encumbrances. Risk of loss or damage for all goods rests with the
Supplier until delivery to RJRT. Buyer must promptly inspect the materials upon their delivery and must notify Eastman in writing of any claims within one year of their date of delivery.

 

	8.	Indemnity and Insurance 

Subject to the maximum liability limit as set out in amended Section 11, Supplier shall indemnify and hold harmless RJRT, its
parent, affiliates, subsidiaries and their respective officers, directors, employees and agents from all claims, (whether direct, indirect or consequential), causes of action, suits and liabilities of every kind (including reasonable attorneys’
fees and expenses incurred in the investigation, defense or settlement of any claim or suit or for the payment of any judgment) for injuries to or death of any person, and all damages to and destruction of property by whomsoever owned, including
loss of use thereof, resulting directly or indirectly, in whole or in part, to the extent arising from the negligent prosecution, or improper or defective work or obligation undertaken by Supplier, its subcontractors, suppliers and agents, or the
omission of any work or obligation required of Supplier by this Agreement, however claims for defective goods shall be exclusively handled as a warranty claim as set out in amended Section 11. Supplier shall also indemnify and hold RJRT
harmless from any claims, losses, damages or expenses to the extent arising from any action for infringement of patent rights in any goods or material furnished to RJRT hereunder, but supplier does not indemnify for infringement by reason of
RJRT’s use of such goods in combination with other goods or in any process. The above indemnities are conditioned upon: 1) RJRT timely tendering any claim for indemnity; 2) RJRT tendering complete control of all aspects of the defense,
including any decision to settle; 3) RJRT’s reasonable cooperation in the defense of any claim. 
 ***** 

 

	9.	Compliance 

 In the
performance of its obligation hereunder, Supplier agrees to comply with all applicable federal, state and local laws, statutes, ordinances and regulations pertaining to this Agreement. 

 

	10.	Warranty 

 The Supplier
warrants to RJRT that all goods furnished under this Agreement will meet the specifications set forth herein. Any measures taken to remedy non-conformance of this Warranty will be at the Supplier’s sole cost and expense. Eastman makes no other
warranties, express or implied, including those of merchantability or fitness for any particular purpose. Eastman’s maximum liability and Buyer’s remedies in the event of delivery of materials that fail to comply with the terms of this
agreement, or for any other breach by Eastman under this agreement, is limited to an amount not to exceed $1,000,000. In no event shall either Eastman or RJRT be liable for any consequential or other incidental damages under

 
this agreement whether or not caused by such party’s negligence. 
  

	11.	Governing Law 

 All
questions and disputes relating to this Agreement shall be determined in accordance with the laws of the State of North Carolina. 
  

	12.	Relationship of the Parties 

 12.01. Nothing contained herein shall be construed to create a partnership or joint venture between the parties to this Agreement. Neither Supplier nor its agents or employees shall have any authority to
bind RJRT contractually nor shall they, for any purpose, be deemed to be agents or employees of RJRT or be entitled to any benefits afforded by RJRT to its employees. 
 12.02. Supplier acknowledges that in performing the work hereunder it shall be and remain an independent contractor free of control and supervision by RJRT as to the means or manner of performing the
Work. RJRT has contracted solely for the results of the Work. 
  

	13.	Employment Background Investigations 

 13.01. Contractor shall be responsible for conducting a background investigation of all Contractors employees and all sub-contractors employees working on RJRT’s premises hired after October 26,
2001. Such investigation shall include: Criminal record investigation. Investigation of local, state & federal records in all jurisdictions in which the employee has resided for a period of at least seven (7) years and a tracker report
to verify social security number, previous address, prior employment, alias and education. Background investigations shall be conducted in accordance with all applicable laws. 

13.01.01. Contractor shall exercise reasonable care and diligence to ensure that it does not assign employees to RJRT premises who,
based on the results of their background investigation, are likely to present a threat to the safety or security of persons or property on RJRT premises. 
 13.01.02. Contractor shall maintain documentation evidencing that background investigations have been completed for employees assigned to RJRT premises. Contractor shall grant RJRT access to review such
documentation upon request in order to determine compliance with the contractual provisions regarding background investigations as outlined above. 
 13.01.03. Contractor shall be responsible for all costs associated with the aforementioned background investigations.

 

  
 -2-

	14.	Separate Contracts 

RJRT has the right to let other contracts in connection with the furnishing of the Work described herein. 

 

	15.	Assignment and Binding Effect 

 RJRT and Supplier each binds itself, its partners, successors, and assigns to the other party hereto and to the partners, successors, and assigns of such other party in respect to all covenants agreements
and obligations contained in the Contract Documents. Neither party hereto shall assign these Contract Documents without the prior written consent of the other. Provided, however, RJRT reserves the right to assign these Contract Documents to any of
its subsidiary, affiliated or parent companies without the written consent of Supplier but shall give notice to Supplier of such assignment. 
  

	16.	Time of the Essence 

Supplier acknowledges that the Work to be provided hereunder is acutely critical to RJRT’s business and will have a significant
impact on its profits, manufacturing capabilities, and its competitive position in the tobacco industry. Timely provision by the Supplier of all requested Work is mandatory. All completion or delivery dates must be strictly complied with and are of
the essence of this Agreement. 
  

	17.	Proprietary Information 

17.01. In order to enable Supplier to provide the Work requested under this Agreement, it may be necessary to give Supplier access to
parts of RJRT’s offices or plants and/or to make available to Supplier, drawings, specifications, parts lists, and other types of information or data relating to RJRT’s business. All such information and data, whether oral, written, or
observed while on RJRT’s premises are considered by RJRT to be Proprietary Information. The Supplier agrees that it will comply with the following conditions: 
 17.02. Supplier, its agents, employees, and subcontractors will treat as confidential all Proprietary Information which has been or may hereafter be made available to Supplier, directly or indirectly, by
RJRT or any person, firm, or corporation acting on its behalf. Supplier will limit access to Proprietary Information to those of its employees having reasonable need for access. Supplier will not disclose any Proprietary Information to any third
party without RJRT’s express prior written consent and Supplier will not use any Proprietary Information except for or on behalf of RJRT. 
 17.03. Nothing contained herein shall in any way restrict or impair Supplier’s right to use,

 
disclose, or otherwise deal with any information or data which: 

17.03.01. At the time of disclosure to Supplier, is generally available to the public or thereafter becomes available to the public by
publication or otherwise through no act of Supplier; 
 17.03.02. Supplier can demonstrate was in its possession prior to the
time of disclosure and was not acquired directly or indirectly from RJRT or any person, firm, or corporation acting on its behalf; 
 17.03.03. Is independently made available as a matter of right to Supplier by a third party who is under no confidentiality obligation to RJRT. 

17.03.04. Supplier can demonstrate that such data or information was developed independently by Supplier without the use of RJRT’s
claimed information. 
 17.04. For the purposes of the provisions of paragraphs 18.03.01 and 18.03.02 above, Proprietary
Information which is specific to RJRT’s tobacco product processing or manufacturing processes, process conditions or features, or to any combination of the foregoing shall not be deemed to be generally available to the public or in
Supplier’s possession because it may be contained within broad disclosures, or derived from a combination of disclosures generally available to the public, or in Suppliers possession. 

17.05. In the event that Supplier subcontracts any of its obligations under this Agreement, it shall require each subcontractor to sign
an agreement, in form and substance, identical to this Section 18 prior to disclosing any Proprietary Information to such subcontractor. 
 17.06. Supplier will not, without RJRT’s prior written consent, make, or cause to be made known to any third party any correlation or identity which may exist between (a) Proprietary Information
and, (b) any other information or data developed by Supplier or available to it from any other source. 
 17.07. Nothing
herein shall be construed to grant any right or license to any of RJRT’s patents or trade secrets. 
  

	18.	Termination 

 18.01.
Default—RJRT may terminate this Agreement or any part thereof by written notice (1) if Supplier fails to provide the Work as requested by RJRT in accordance with the

 

  
 -3-

 
Contract Documents and does not commence to cure such failure within a period of ten (10) days after written notice thereof and proceed diligently with such cure or (2) if Supplier
makes an assignment for the benefit of creditors, becomes insolvent, or subject to proceedings under any law relating to bankruptcy, insolvency, or the relief of debtors.

 18.02. Convenience—Either party may terminate this Agreement for its convenience, in
whole or in part, upon thirty (30) days’ prior written notice to the other party. 
 18.03. Counterfeiting Supplier
has an anticounterfeiting policy and reserves the right to discontinue the sale of goods to a Buyer adjudicated of counterfeiting trademarked goods.

 

  
 -4-

 In witness whereof, the parties hereto have caused this Agreement to be executed by their duly authorized
officer or representative, effective the date first written herein. 
  

			
	R. J. REYNOLDS TOBACCO COMPANY
		
	BY:	 	 /s/ H. Freeman Jr.

	NAME: Harvey W. Freeman, Jr.
	TITLE: VP, Supply Chain Management
	DATE: 8/21/03

 WITNESS: /s/ Crieta Douthet 

 

			
	THE VORIDIAN COMPANY
		
	BY:	 	 /s/ Richard L. Johnson

	NAME: Richard L. Johnson
	TITLE: Group Vice President     , Fibers            
	DATE: 8/29/03

 WITNESS: /s/ Larry Beth 

  
 -5-

			
	Voridian Company	  	08/01/03
	A Division of Eastman Chemical Company	  	

 APPENDIX A 
 as amended August 1, 2003 
 to the Supplier Agreement between Voridian Company,
A Division Eastman Chemical and 
 R. J. Reynolds Tobacco Company 

 

	I.	SCOPE OF SERVICES 

 The Production Materials to
be provided and Services to be rendered under this Specification shall include, but not be limited to the following: 
  

	A.	Procurement and Inventory Management 

  

	1.	Stock-Supplier agrees to provide or have the necessary arrangements in place to provide the items as specified per production schedule. The Supplier shall maintain a
service level acceptable to RJRT’s Contract Manager on all items. The service level shall be mutually agreed upon between the Supplier’s Account Manager and RJRT’s Contract Manager. 

 

	2.	Substitutions - The Supplier is encouraged to offer cost effective substitution alternatives, of equal or better quality, as an ongoing feature of this Specification.
However, Supplier is required to have prior written approval from RJRT’s Contract Manager before any or all substitutions are implemented. RJRT’s Contract Manager is responsible for the evaluation of any and all recommendations.

  

	3.	Standardization - The Supplier and RJRT will meet on a regular basis to review proposed standardizations and substitutions. RJRT’s Contract Administrator is
responsible for coordinating this meeting. ***** 

  

	4.	Delivery - All delivery points will be mutually agreed upon between RJRT and Supplier and adjusted as necessary. The Supplier is responsible for ensuring all deliveries
are clearly marked with RJRT’s purchase order number and delivery point. All deliveries must include accurate and complete packing slip information, such as RJRT’s purchase order number, item description, and RJRT’s Item
Identification number. 

  

	5.	Material Returns - In the event items are delivered to RJRT in error or defective, shall not be required to pay Supplier any Compensation, including any freight and
Supplier’s handling costs. RJRT may return to the Supplier the items following a return procedure agreeable to all parties. 

  

	6.	***** The Supplier shall on ***** develop ***** parties. 

 

	7.	Partial Shipments - Partial shipments are permitted; however, Supplier shall diligently seek ways to minimize the need for partial shipments. This will be accomplished
through proper planning, mutual establishment of delivery cycles, and consolidation of order where possible. RJRT’s Contract Administrator and Supplier’s Account Manager will work toward identifying the root cause of partial shipments and
track this process to insure continuous improvement. 

  
 1 

	8.	Canceled Orders - In the event an order is canceled, RJRT’s Contract Administrator and Supplier shall agree on a settlement. 

 

	9.	Order Entry - All orders shall be placed through the EDI system. In the event it is deemed necessary, the order may be placed by telephone or fax and confirmed by EDI.

  

	10.	Quality - Materials must meet the quality and service requirements set forth in R. J. Reynolds Tobacco Company supplier cellulose acetate filter tow
certification specifications and performance evaluation process. Failure to adhere to these requirements can result in loss of business or termination of contract agreement. 

 

	B.	System Requirements 

 EDI
Capabilities - The Supplier agrees to the EDI capabilities necessary to meet all requirements set forth in this Specification. Those capabilities shall include as a minimum, but are not limited to: 

 

	 	a.	Purchase Orders 

  

	 	b.	Purchase Order Acknowledgments 

  

	 	c.	Change Orders 

  

	 	d.	Change Order Acknowledgments 

  

	 	e.	Advance Ship Notices 

  

	 	f.	Invoices 

  

	C.	Supplier’s Report 

RJRT’s Contract Manager and Supplier’s Account Manager shall mutually agree in writing from time to time on the frequency and
level of detail of the following report. 
 Minority/Women Owned - Supplier shall provide a quarterly report reporting on the
names, locations, and classification dollar volumes of such transactions. 
  

	II.	AGREEMENT TERM 

 January 1,
2003 through ***** 
  

	III.	VOLUME 

 During the agreement
period, RJRT agrees to purchase ***** Cellulose Acetate Filter Tow ***** from Voridian Company – to include *****. 
  

	IV.	ALTERNATE MATERIAL 

 During the
term of this agreement, RJRT may, at its sole discretion, decide to utilize a filter material medium other than cellulose acetate for its cigarette filters. 

  
 2 

	V.	PRICING METHOD 

 The Supplier and
RJRT agree that the pricing methodology shall include, but not be limited to the following: 
  

	 	1.	Pricing 

 Suppliers pricing
reflects ***** containing ESTRON Acetate Tow Prices for 2003. Prices are firm for contract period 1/1/2003 through 12/31/2003 
  

			
	                Price List	  	 FOB: Delivered

Terms: *****

 Material Group: Cellulose Acetate Filter Tow 
 Pricing Agreement — For The Calendar Year 2003 
 Estimated 2003 RJRT Volume: *****

 Supplier: Voridian Company 
  

					
	 Tow Item
	  	 Item 1.D.
	  	 2003 Price *****

	*****	  	*****	  	$*****
	*****	  	*****	  	$*****
	*****	  	*****	  	$*****
	*****	  	*****	  	$*****
	*****	  	*****	  	$*****
	*****	  	*****	  	$*****
	*****	  	*****	  	$*****

  

	 	2.	TAXES 

 All sales taxes
will be paid by RJRT under RJRT’s sales Tax Exempt Certificate Number 20. 
  

	VI.	CONTACTS FOR NOTICES 

 As to R.
J. Reynolds Tobacco Company: 
 R.J. Reynolds Tobacco Company 

Purchasing Department 
 Winston Salem, North Carolina 27102 
 Attention: Ms. Crista W. Douthit

 As to Supplier: 
 Voridian Company 
 P. O. Box 431 

Kingsport, TN 37662-5081 
 Attention: Mr. John D. Lunsford 

  
 3 

 In witness whereof, the parties hereto have caused this Agreement to be executed by their duly authorized
officer or representative, effective the last date written hereafter. 
  

			
	R. J. REYNOLDS TOBACCO COMPANY
		
	BY:	 	/s/ H. Freeman Jr.
	NAME:	 	Harvey W. Freeman, Jr.
	TITLE:	 	VP, Supply Chain Management
	DATE:	 	8/21/03

 WITNESS: /s/ Crieta Douthet 

 

			
	VORIDIAN COMPANY, INC.
		
	BY:	 	/s/ Richard L. Johnson
	NAME:	 	Richard L. Johnson
	TITLE:	 	Group Vice President                     , Fibers
	DATE:	 	8/29/03

 WITNESS: /s/ Larry Beth 

  
 4 

 

 
 

 
 RJRT & Eastman Tow Contract Amendment 
 January 8, 2010 
 Amendment to APPENDIX A - CELLULOSE ACETATE FILTER TOW 

As amended January 8 2010 to the Supplier Agreement (RJRT CLM Contract 4053) between Eastman Chemical Company and R.J. Reynolds Tobacco Company dated
August 1, 2003. 
 This amendment incorporates adjustments to ***** effective January 1, 2010 *****. This amendment to
Appendix A supersedes all previously executed Appendix A amendments. 
  

	I.	SCOPE OF SERVICES 

 The Production Materials to
be provided and Services to be rendered under this Specification shall include, but not be limited to the following: 
  

	A.	Procurement and Inventory Management 

  

	1.	Stock-Supplier agrees to provide or have the necessary arrangements in place to provide the items as specified per production schedule. The Supplier shall maintain a
service level acceptable to RJRT’s Contract Manager on all items. The service level shall be mutually agreed upon between the Supplier’s Account Manager and RJRT’s Contract Manager. 

 

	2.	Substitutions - The Supplier is encouraged to offer cost effective substitution alternatives, of equal or better quality, as an ongoing feature of this Specification.
However, Supplier is required to have prior written approval from RJRT’s Contract Manager before any or all substitutions are implemented. RJRT’s Contract Manager is responsible for the evaluation of any and all recommendations.

  

	3.	Standardization - The Supplier and RJRT will meet on a regular basis to review proposed standardizations and substitutions. RJRT’s Contract Administrator is
responsible for coordinating this meeting. *****. 

  

	4.	Delivery - All delivery points will be mutually agreed upon between RJRT and Supplier and adjusted as necessary. The Supplier is responsible for ensuring all deliveries
are clearly marked with RJRT’s purchase order number and delivery point. All deliveries must include accurate and complete packing slip information, such as RJRT’s purchase order number, item description, and RJRT’s Item
Identification number. 

  

	5.	Material Returns - In the event items are delivered to RJRT in error or defective, RJRT shall not be required to pay Supplier for the invoiced amounts attributable to
the erroneous or defective tow, including any freight and Supplier’s handling costs. RJRT shall return to the Supplier the defective or erroneous tow items following a return procedure agreeable to all parties. 

  
 1 

	6.	***** The Supplier and RJRT shall ***** develop ***** parties. 

 

	7.	Partial Shipments - Partial shipments are permitted in Supplier’s sole discretion in managing inventory. Partial shipments are permitted as requested by RJRT,
however, RJRT shall bear all transportation expenses. Supplier is permitted at its discretion to fill a partial container with tow items of differing denier specifications from different RJRT orders. Supplier and RJRT shall diligently seek ways to
minimize the need for partial shipments. This will be accomplished through proper planning, mutual establishment of delivery cycles, and consolidation of order where possible. RJRT’s Contract Administrator and Supplier’s Account Manager
will work toward identifying the root cause of partial shipments and track this process to insure continuous improvement. 

  

	8.	Canceled Orders - In the event an order is canceled, RJRT’s Contract Administrator and Supplier shall agree on a settlement. 

 

	9.	Order Entry - All orders shall be placed through the EDI system. In the event it is deemed necessary, the order may be placed by telephone or fax and confirmed by EDI.

  

	10.	Quality - Materials shall meet the initial quality, specification, and service requirements as mutually agreed between the Supplier and RJRT. Either party may propose
changes subsequent to the initial mutual agreement of quality, specification, and service requirements, but any change will require mutual written agreement. 

 

	B.	System Requirements 

 EDI
Capabilities - The Supplier agrees to the EDI capabilities necessary to meet all requirements set forth in this Specification. Those capabilities shall include as a minimum, but are not limited to: 

 

	 	(a)	Purchase Orders 

  

	 	(b)	Purchase Order Acknowledgments 

  

	 	(c)	Change Orders 

  

	 	(d)	Change Order Acknowledgments 

  

	 	(e)	Advance Ship Notices 

  

	 	(f)	Invoices 

  

	C.	Supplier’s Report 

RJRT’s Contract Manager and Supplier’s Account Manager shall mutually agree in writing from time to time on the frequency and
level of detail of the following report. 
 Minority/Women Owned - Supplier shall provide a quarterly report reporting on the
names, locations, and classification dollar volumes of such transactions. 
  

	II.	AGREEMENT TERM 

 Original term of
***** through ***** is renewed for *****. The renewal is from ***** through *****. 

  
 2 

	III.	VOLUME 

 During the renewal term
period, RJRT agrees to purchase ***** from Supplier ***** 
 ***** 

 

	IV.	PRICING METHOD 

 Eastman
and RJRT agree that the pricing methodology shall include, but not be limited to the following: 
  

	1.	Pricing 

 ***** 

2010 prices are set out in the 2010 Price List named table. The 2010 prices are effective January 1, 2010. 

Summary ***** 

***** 
  

	2.	***** 

 ***** 

 

	3.	Other 

 Payment terms will be
*****. If the ***** day falls on a weekend or holiday, Eastman will ***** when RJRT pays ***** business day. 
 ***** 
 Below are the current cellulose acetate filter tow specifications and
***** price: 
 Price List                 Terms:
***** 
 Material Group: Cellulose Acetate Filter Tow 
 Pricing Agreement — For The Calendar Year 2010 
 Supplier: Eastman Chemical Company

  
 3 

					
	 Tow Item
	  	 Item ID
	  	 2010 Price *****

	*****	  	*****	  	*****
	*****	  	*****	  	*****
	*****	  	*****	  	*****
	*****	  	*****	  	*****
	*****	  	*****	  	*****
	*****	  	*****	  	*****
	*****	  	*****	  	*****
	*****	  	*****	  	*****
	*****	  	*****	  	*****
	*****	  	*****	  	*****
	*****	  	*****	  	*****

 RJRT reserves the right to request modification to existing tow items, or new items provided *****.

  

	4.	TAXES 

 All sales taxes
will be paid by RJRT under RJRT’s sales Tax Exempt Certificate Number 20. Any VAT or other ***** taxes for ***** manufacturing rods in ***** on behalf of RJRT shall be paid by RJRT or the third party manufacturing filter
rods on behalf of RJRT. 
  

	5.	***** 

 ***** 

 

	V.	CONTACTS FOR NOTICES 

 As to
R. J. Reynolds Tobacco Company: 
 R.J. Reynolds Tobacco Company 

Purchasing Department 
 401 North Main Street 
 Winston Salem, North Carolina 27102 

Attention: Mr. Yucel Yalvac 
 As to Supplier: 
 Eastman, a Division of Eastman Chemical Company

 P.O. Box 431 
 Kingsport, TN 37662-5081 
 Attention: Mr. John Lunsford 

  
 4 

 In witness whereof, the parties hereto have caused this Agreement to be executed by their duly authorized
officer or representative, effective the last date written hereafter. 
  

			
	R. J. REYNOLDS TOBACCO COMPANY
		
	BY:	 	 /s/ Daan Delen

	NAME:	 	Daan Delen
	TITLE:	 	Chairman, President & CEO
	DATE:	 	  

 WITNESS:
                                         
            
  

			
	EASTMAN CHEMICAL CO.
		
	BY:	 	 /s/ Richard L. Johnson

	NAME:	 	Richard L. Johnson
	TITLE:	 	 SR. Vice President Fibers, & Global Supply
             Chain

	DATE:	 	3/29/10

 WITNESS:
                                         
            

  
 5 

  
 

 
 Amendment # 
 Date: June 1, 2010 
 Addendum for CLM Contract No. 4681 – 8.01 

This Addendum update is made as of the 1st day of June, 2010 and is executed pursuant to and in accordance with the previously executed Contract Number
4681 between R. J. REYNOLDS TOBACCO COMPANY and EASTMAN CHEMICAL COMPANY dated July 10, 2007. The provisions thereof are incorporated herein for the purpose of ***** for the life of the contract that ends *****. The *****
is amended to *****. 
 In witness whereof, the parties hereto have caused this Agreement to be executed by their duly authorized
officer or representative, effective the last date written hereafter. 
  

			
	R.J. REYNOLDS TOBACCO
	
	Name: Craig Demarest
	Title: Sr. Director Procurement
	By:	 	 /s/ Craig Demarest

	Date: 5/27/11
	
	EASTMAN CHEMICAL COMPANY
	
	Name: Jennifer Stewart
	Title: Fibers Business Unit Director
	By:	 	 /s/ Jennifer Stewart

	Date: 5/16/11

 Amendment # RAI000050-2012 
 Date: January 1, 2012 
 Addendum for Contract No. RAI000214-DEC2010 

For sake of clarity, the contract for calendar year 2012 constitutes the following documents: 1) Standard Supplier Agreement between R. J. Reynolds
Tobacco Company (RJRT) and Voridian Company A Division of Eastman Chemical Company dated August 1, 2003 (Document Number: RJRT Contract CLM 4053); and 2) Amendment to APPENDIX A – CELLULOSE ACETATE FILTER TOW as amended January 8,
2010 (RJRT Contract ADM 7564); and this amendment dated January 1, 2012 (RAI000050-2012) partially amending APPENDIX A above (RJRT Contract ADM 7564). *****. 
 Section IV.3 Other of Appendix A dated January 8, 2010 (RJRT Contract AMD 7564) is hereby amended to replace entirely the price list for 2012 calendar year purchases *****. 

 

									
	 Material
	  	 Description
	  	 2012 Price
	  	 *****
	  	 *****

	 *****
	  	*****	  	$ *****	  	*****	  	*****
	 *****
	  	*****	  	$ *****	  	*****	  	*****
	 *****
	  	*****	  	$ *****	  	*****	  	*****
	 *****
	  	*****	  	$ *****	  	*****	  	*****
	 *****
	  	*****	  	$ *****	  	*****	  	*****
	 *****
	  	*****	  	$ *****	  	*****	  	*****
	 *****
	  	*****	  	$ *****	  	*****	  	*****
	 *****
	  	*****	  	$ *****	  	*****	  	*****
	 *****
	  	*****	  	$ *****	  	*****	  	*****
	 *****
	  	*****	  	$ *****	  	*****	  	*****
		  		  	TOTAL	  	*****	  	*****

 ***** 

This amendment (RAI000050-2012) amends the January 8, 2010 Appendix A by replacing entirely the price list of Section IV.3 *****. 

In witness whereof, the parties hereto have caused this Agreement to be executed by their duly authorized officer or representative, effective the last
date written hereafter. 
  

			
	R. J. REYNOLDS TOBACCO COMPANY
	
	Name: Andrew D. Gilchrist
	Title: President and Chief Commercial Officer
	By:	 	 /s/ Andrew D Gilchrist

	Date: 1-20-12
	
	EASTMAN CHEMICAL COMPANY
	
	Name: Linda Hensley
	Title: Vice President and General Manager, Fibers
	By:	 	 /s/ LH Hensley

	Date: 30 Jan 2012

 Amendment #RAI000189-FEB2012. 

 
 Date: January 1, 2012 
 Addendum for Contract No. RAI000214-DEC2010 
 For sake of clarity, the contract for calendar year
2012 constitutes the following documents: 1) Standard Supplier Agreement between R. J. Reynolds Tobacco Company and Voridian Company A Division of Eastman Chemical Company dated August 1, 2003 (Document Number: RJRT Contract CLM 4053); and
2) Amendment to APPENDIX A – CELLULOSE ACETATE FILTER TOW as amended January 8, 2010 (RJRT Contract ADM 7564); amendment to APPENDIX A dated January 1, 2012 (RAI000050-2012); and this amendment dated March 1, 2012 (#
RAI000189- FEB2012) partially amending APPENDIX A above (RJRT Contract ADM 7564). *****. 
 Section VI. OTHER is hereby added to Appendix
A: 
 VII. In performing this agreement and in manufacturing and using the Cellulose Acetate Filter Tow (Product), both parties shall comply with
applicable laws and regulations, which may include without limitations United States of America regulation of tobacco products by the US FDA pursuant to 111 P.L. 31; 123 Stat. 1776; 2009 Enacted H.R. 1256; 111 Enacted H.R. 1256 (the so-called
“Family Smoking Prevention and Tobacco Control Act”) and regulations promulgated thereunder. Supplier shall cooperate to provide information about Product as may allow RJRT to comply with RJRT’s regulatory obligations associated with
the manufacture of Tobacco Products (as that term it defined in the “Family Smoking Prevention and Tobacco Control Act”). 
 VIII.
Eastman agrees to continue the Eastman Know Your Customer (KYC) Initiative with the goal that Eastman intends to act lawfully to supply legitimate customers with their legitimate needs and to lawfully minimize the potential for Eastman products to
be diverted into illegal or counterfeit tobacco products. Eastman shall provide an annual update regarding the Eastman KYC Initiative. 

  
 Page 1 of 2

 In witness whereof, the parties hereto have caused this Agreement to be executed by their duly authorized
officer or representative, effective the last date written hereafter. 
  

			
	R. J. REYNOLDS TOBACCO COMPANY
	
	Name: Susan Wynn
	Title: Sr. Buyer.
	By:	 	 /s/ Susan B. Wynn

	Date: May 17, 2012
	
	EASTMAN CHEMICAL COMPANY
	
	Name: Jennifer L. Stewart
	Title: Business Unit Director
	By:	 	 /s/ Jennifer L. Stewart

	Date: May 1, 2012

  
 Page 2 of 2Retention Agreement, Dated October 17, 2012

 Exhibit 10.1 
 Execution Version 
 RETENTION AGREEMENT 

THIS RETENTION AGREEMENT (this “Agreement”), dated October 17, 2012, is by and between Coventry Health, Inc., a
Delaware corporation (the “Company”), and Michael D. Bahr (“Employee”). 
 RECITALS 

WHEREAS, the Company has entered into a Merger Agreement (the “Merger Agreement”) dated as of August 19, 2012, as
amended, by and among the Company, Aetna, Inc., a Pennsylvania corporation (“Aetna”) and Jaguar Merger Subsidiary, Inc., a Delaware corporation and a wholly owned subsidiary of Aetna (“Merger Sub”), pursuant to
which Merger Sub will be merged with and into the Company, with the Company being the surviving corporation (the “Merger”) effective as of the Effective Time, as defined in the Merger Agreement (the “Effective
Time”); and 
 WHEREAS, the Company and Employee desire, for good and valuable consideration, to enter into this
Agreement whereby the Company promises a retention award in exchange for Employee’s fulfillment of certain obligations hereunder. 
 NOW, THEREFORE, in consideration of the promises, covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties agree as follows: 
 Section 1. Retention Award. Subject to the conditions set forth below, the Company shall
pay to Employee (or, in the event of Employee’s death, to Employee’s estate), in consideration of the cancellation of the Employee’s Underwater Options (as defined in the Merger Agreement) and the release set forth in Section 2
below, the amount computed pursuant to Appendix A (the “Retention Payment”) as of the earlier of the 12-month anniversary of the Effective Date, or a date within 14 days after the termination of Employee’s employment if
Employee’s employment is terminated due to death, disability, Termination Without Cause or Constructive Termination (within the meanings of such terms set forth in Employee’s Employment Agreement with the Company dated May 18, 2010)
(a “Qualifying Termination”); provided, however, that Employee shall forfeit any and all entitlement to receive such payment if Employee’s employment terminates prior to the 12-month anniversary of the Effective
Date for any reason other than a Qualifying Termination. 
 Section 2. Release. In consideration of the Retention Payment
set forth in Section 1 above and Appendix A hereto, Employee hereby releases the Company and each of its respective past and present shareholders, past and present subsidiaries, affiliates and related companies, their successors and assigns and
all past and present directors, officers, employees, attorneys and agents of these entities, personally, and as directors, officers, employees, attorneys and agents, from any and all liabilities, claims or losses in respect of the Employee’s
Company Stock Options (as such term is defined in the Merger Agreement), other than liabilities, claims or losses relating to Employee’s rights under this Agreement. Employee agrees that Employee shall not bring or participate in any claim or
action contrary to the foregoing release. 

 Section 3. Miscellaneous. 
 3.1. Withholding. All amounts paid hereunder will be subject to the Company’s withholding of applicable taxes. All payments hereunder are intended to qualify for the short-term deferral
exception to Section 409A of the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder. 

3.2. Entire Agreement; Amendments. This Agreement constitutes the entire agreement of the parties with regard to the subject
matter hereof and supersedes any and all prior understandings, agreements or correspondence between the parties. This Agreement may be amended only by a written instrument duly executed by all parties or their respective heirs, successors, assigns
or legal personal representatives. 
 3.3. Counterparts. This Agreement may be executed in two or more counterparts, all
of which taken together shall be deemed one original. 
 3.4. One-Time Bonus. The Retention Payment is a one-time
retention bonus and creates no obligation by the Company or its affiliates to make further similar bonus payments; provided that, subject to Section 3 hereof, the Retention Payment shall not preclude, reduce or be offset against any payments or
benefits to which the Employee may be entitled under any other agreement, plan or arrangement of the Company, Aetna, or their respective affiliates. 
 3.5. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, excluding any conflict-of-laws rules or principles that might refer the
governance or the construction of this Agreement to the law of another jurisdiction. 
 3.6. Third Party Beneficiary.
This Agreement has been made and is solely for the benefit of the parties hereto and their respective successors and permitted assigns. Nothing in this Agreement, expressed or implied, is intended to confer on any person other than the other than
the parties to it, and their respective heirs, successors, legal representatives and permitted assigns, any rights, remedies, obligations or liabilities under or by reason of this Agreement. Notwithstanding the foregoing, following the Effective
Time, Aetna shall receive the same benefits and have the same rights of enforcement as the Company under this Agreement. 
 3.7.
Effectiveness. The operative effect of this Agreement is conditioned upon the occurrence under the Merger Agreement of the Closing (as defined in the Merger Agreement). 
 [Signature page follows] 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by
themselves or their duly authorized representative as of the date first written above. 
  

			
	 EMPLOYEE

	
	/s/ Michael D. Bahr
	 Michael D. Bahr

	
	 COVENTRY HEALTH CARE, INC.

		
	 By:
	 	/s/ Thomas C. Zielinski

 [Signature Page to Underwater Option Holder Retention Agreement] 

 APPENDIX A 
 The Retention Payment shall be a cash payment equal to the sum of the Applicable Amount with respect to each Underwater Option held by Employee which is canceled pursuant to Section 2.05(b) of the
Merger Agreement. The “Applicable Amount” with respect to each such Underwater Option shall be the Per Share Amount indicated below for such Underwater Option times the number of shares of Company Common Stock subject such
Underwater Option as of the Effective Time. 
  

			
	Applicable Payment Amount
	Exercise Price of Underwater Option	  	Per Share Amount
	 Below $45.00
	  	$4.00
	 $45.00 - $49.99
	  	$3.00
	 $50.00 - $52.49
	  	$2.25
	 $52.50 - $54.99
	  	$1.75
	 $55.00 -$ 58.99
	  	$1.25
	 $59.00 - $61.00
	  	$1.00

 Notwithstanding the foregoing, if the aggregate amount of the Retention Payment and all other payments that would be
payable under amended Section 2.05(b) of the Merger Agreement (assuming payment to all eligible option holders) exceeds $8,000,000, the Per Share Amounts above and the per share amounts that would be payable to all others under amended
Section 2.05(b) of the Merger Agreement (assuming payment to all eligible option holders) shall be reduced pro rata so that the aggregate amount that would be payable under amended Section 2.05(b) of the Merger Agreement (assuming payment
to all eligible option holders) shall be equal to $8,000,000 and the Retention Payment shall be adjusted accordingly. 
 For the avoidance of
doubt, the Retention Payment shall be based solely on the Company Stock Options (if any) with a per share exercise price equal to or greater than the Equity Award Cash Consideration (the “Underwater Options”) (in each case, as defined in
the Merger Agreement) which are held by Employee as of the Effective Time and are canceled pursuant to Section 2.05(b) of the Merger Agreement.

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