Document:

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                                                                    EXHIBIT 10.9

                      AMENDED AND RESTATED PLEDGE AGREEMENT

            PLEDGE AGREEMENT, dated as of July 15, 2003 and amended and restated
as of July 30, 2004 (as so amended and restated and as the same may be further
amended, restated, supplemented and/or otherwise modified from time to time,
this "Agreement"), made by each of the undersigned (together with any other
entity that becomes a party hereto pursuant to Section 23 hereof, each a
"Pledgor" and, collectively, the "Pledgors"), in favor of JPMORGAN CHASE BANK,
as Collateral Agent (including any successor collateral agent, the "Pledgee")
for the benefit of the Secured Creditors (as defined below). Except as otherwise
defined herein, terms used herein and defined in the Credit Agreement referred
to below shall be used herein as therein defined.

                              W I T N E S S E T H:

            WHEREAS, Reynolds American Inc. ("Parent"), R.J. Reynolds Tobacco
Holdings, Inc. (the "Borrower"), the various lending institutions from time to
time party thereto (the "Lenders"), and JPMORGAN CHASE BANK, as Administrative
Agent (the "Administrative Agent") have entered into a Credit Agreement, dated
as of May 7, 1999, as amended and restated as of November 17, 2000, as further
amended and restated as of May 10, 2002 and as further amended and restated as
of July 30, 2004, providing for the making of Loans to the Borrower and the
issuance of, and participation in, Letters of Credit for the account of the
Borrower, all as contemplated therein (with (i) the Lenders, each Letter of
Credit Issuer, the Administrative Agent, the Senior Managing Agents, the Pledgee
and the Collateral Agent being herein called the "Lender Creditors" and (ii) the
term "Credit Agreement" as used herein to mean the Credit Agreement described
above in this paragraph, as the same may be further amended, modified, extended,
renewed, replaced, restated, supplemented and/or refinanced from time to time,
and including any agreement extending the maturity of, or refinancing or
restructuring (including, but not limited to, the inclusion of additional
borrowers or guarantors thereunder or any increase in the amount borrowed) all
or any portion of, the indebtedness under such agreement or any successor
agreement, whether or not with the same agent, trustee, representative, lenders
or holders; provided that, with respect to any agreement providing for the
refinancing or replacement of indebtedness under the Credit Agreement, such
agreement shall only be treated as, or as part of, the Credit Agreement
hereunder if (x) either (A) all obligations under the Credit Agreement being
refinanced or replaced shall be paid in full at the time of such refinancing or
replacement, and all commitments and letters of credit issued pursuant to the
refinanced or replaced Credit Agreement shall have terminated in accordance with
their terms or (B) the Required Lenders shall have consented in writing to the
refinancing or replacement indebtedness being treated as indebtedness pursuant
to the Credit Agreement, and (y) a notice to the effect that the refinancing or
replacement indebtedness shall be treated as issued under the Credit Agreement
shall be delivered by the Borrower to the Collateral Agent);

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                                                                       Exhibit H
                                                                          Page 2

            WHEREAS, Parent and/or one or more of its Subsidiaries has from time
to time entered into, and/or may in the future from time to time enter into, one
or more agreements or arrangements with JPMCB or any of its affiliates (even if
JPMCB ceases to be a Lender under the Credit Agreement for any reason (JPMCB,
any such affiliate and their respective successors and assigns, each, a "Credit
Card Issuer")) providing for credit card loans made available to certain
employees of Parent and/or one or more of its Subsidiaries (each such agreement
or arrangement with a Credit Card Issuer, a "Secured Credit Card Agreement").

            WHEREAS, Parent and/or one or more of its Subsidiaries has from time
to time entered into, and/or may in the future from time to time enter into, one
or more (i) interest rate protection agreements (including, without limitation,
interest rate swaps, caps, floors, collars and similar agreements), (ii) foreign
exchange contracts, currency swap agreements, commodity agreements or other
similar agreements or arrangements designed to protect against the fluctuations
in currency values and/or (iii) other types of hedging agreements from time to
time (each such agreement or arrangement with a Hedging Creditor (as hereinafter
defined), together with the Existing Interest Rate Swap Agreement, a "Secured
Hedging Agreement"), with any Lender, any affiliate thereof or a syndicate of
financial institutions organized by a Lender or an affiliate of a Lender (even
if any such Lender ceases to be a Lender under the Credit Agreement for any
reason) (any such Lender, affiliate or other such financial institution that
participates therein, together with Calyon (as counterparty to the Existing
Interest Rate Swap Agreement), and in each case their subsequent successors and
assigns, collectively, the "Hedging Creditors", and together with the Lender
Creditors and each Credit Card Issuer, the "Lender Secured Creditors");

            WHEREAS, the Borrower and the trustee thereunder (the "Existing
Senior Notes Trustee"), on behalf of the holders of the Existing Senior Notes
(such holders, together with the Existing Senior Notes Trustee, the "Existing
Senior Notes Creditors"), have from time to time entered into, and may in the
future from time to time enter into, one or more Indentures (collectively, as
amended, modified or supplemented from time to time, the "Existing Senior Notes
Indenture" and, together with the Existing Senior Notes, the "Existing Senior
Notes Documents") providing for the issuance of Existing Senior Notes by the
Borrower;

            WHEREAS, the Borrower and the trustee thereunder (the "Refinancing
Senior Notes Trustee"), on behalf of the holders of the Refinancing Senior Notes
(such holders, together with the Refinancing Senior Notes Trustee, the
"Refinancing Senior Notes Creditors", with the Lender Secured Creditors, the
Existing Senior Notes Creditors and the Refinancing Senior Notes Creditors being
herein called the "Secured Creditors"), may from time to time enter into, one or
more Indentures (collectively, as amended, modified or supplemented from time to
time, the "Refinancing Senior Notes Indenture" and, together with the
Refinancing Senior Notes, the "Refinancing Senior Notes Documents") providing
for the issuance of Refinancing Senior Notes by the Borrower;

            WHEREAS, pursuant to the Subsidiary Guaranty, each Pledgor (other
than the Borrower) has jointly and severally guaranteed to the Lender Secured
Creditors the payment when due of the Guaranteed Obligations (as defined in the
Subsidiary Guaranty);

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                                                                       Exhibit H
                                                                          Page 3

            WHEREAS, pursuant to the Credit Agreement Party Guaranty, each
Credit Agreement Party has guaranteed to the Hedging Creditors and each Credit
Card Issuer the payment when due of the Relevant Guaranteed Obligations;

            WHEREAS, each Specified Pledgor (other than the Borrower) has
jointly and severally guaranteed to the Existing Senior Notes Creditors the
payment when due of principal and interest on the Existing Senior Notes;

            WHEREAS, each Specified Pledgor (other than the Borrower) has
jointly and severally guaranteed to the Refinancing Senior Notes Creditors the
payment when due of principal and interest on the Refinancing Senior Notes;

            WHEREAS, certain of the Pledgors have heretofore entered into a
Pledge Agreement, dated as of July 15, 2003 (as amended, modified and/or
supplemented from time to time to, but not including, the date hereof, the
"Original Pledge Agreement");

            WHEREAS, the Pledgors desire to amend and restate the Original
Pledge Agreement in the form of this Agreement;

            WHEREAS, the Credit Agreement requires this Agreement be executed
and delivered to the Pledgee by the Pledgors and the Secured Hedging Agreements,
the Existing Senior Notes Indenture and the Refinancing Senior Notes Indenture
require that this Agreement secure the respective Obligations as provided
herein;

            WHEREAS, each Pledgor desires to execute this Agreement to satisfy
the requirements described in the preceding paragraph;

            NOW, THEREFORE, in consideration of the benefits accruing to each
Pledgor, the receipt and sufficiency of which are hereby acknowledged, each
Pledgor hereby makes the following representations and warranties to the Pledgee
and hereby covenants and agrees with the Pledgee as follows:

            1. SECURITY FOR OBLIGATIONS. This Agreement is made by each Pledgor
for the benefit of the Secured Creditors to secure:

            (i) the full and prompt payment when due (whether at the stated
      maturity, by acceleration or otherwise) of all obligations (including
      obligations which, but for the automatic stay under Section 362(a) of the
      Bankruptcy Code, would become due) and liabilities of such Pledgor, now
      existing or hereafter incurred under, arising out of or in connection with
      each Credit Document to which such Pledgor is a party (including, without
      limitation, indemnities, fees and interest (including all interest that
      accrues after the commencement of any case, proceeding or other action
      relating to the bankruptcy, insolvency, reorganization or similar
      proceeding of the Borrower or any other Credit Party at the rate provided
      for in the respective documentation, whether or not a claim for
      post-petition interest is allowed in any such proceeding)) and the due
      performance of and compliance by such Pledgor with the terms of each such
      Credit Document (all such obligations and liabilities under this clause
      (i), except to the extent consisting of

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                                                                       Exhibit H
                                                                          Page 4

      obligations or liabilities with respect to Secured Credit Card Agreements
      and Secured Hedging Agreements, being herein collectively called the
      "Credit Document Obligations");

            (ii) the full and prompt payment when due (whether at the stated
      maturity, by acceleration or otherwise) of all obligations (including
      obligations which, but for the automatic stay under Section 362(a) of the
      Bankruptcy Code, would become due) and liabilities of such Pledgor, now
      existing or hereafter incurred under, arising out of or in connection with
      each Secured Credit Card Agreement, including, all obligations, if any, of
      such Pledgor under its Guaranty in respect of Secured Credit Card
      Agreements (all such obligations and liabilities under this clause (ii)
      being herein collectively called the "Credit Card Obligations");

            (iii) the full and prompt payment when due (whether at the stated
      maturity, by acceleration or otherwise) of all obligations (including
      obligations which, but for the automatic stay under Section 362(a) of the
      Bankruptcy Code, would become due) and liabilities of such Pledgor, now
      existing or hereafter incurred under, arising out of or in connection with
      each Secured Hedging Agreement, including, all obligations, if any, of
      such Pledgor under its Guaranty in respect of Secured Hedging Agreements
      (all such obligations and liabilities under this clause (iii) being herein
      collectively called the "Hedging Obligations");

            (iv) the full and prompt payment when due (whether at the stated
      maturity, by acceleration or otherwise) of all obligations (including
      obligations which, but for the automatic stay under Section 362(a) of the
      Bankruptcy Code, would become due) and liabilities of such Pledgor
      (including, without limitation, indemnities, fees and interest (including
      all interest that accrues after the commencement of any case, proceeding
      or other action relating to the bankruptcy, insolvency, reorganization or
      similar proceeding of the Borrower or any other Credit Party at the rate
      provided for in the respective documentation, whether or not a claim for
      post-petition interest is allowed in any such proceeding)), now existing
      or hereafter incurred under, arising out of or in connection with each
      Existing Senior Notes Document, including, all obligations, if any, of
      such Pledgor under a guaranty in respect of the Existing Senior Notes (all
      such obligations and liabilities under this clause (iv) being herein
      collectively called the "Existing Senior Notes Obligations");

            (v) the full and prompt payment when due (whether at the stated
      maturity, by acceleration or otherwise) of all obligations (including
      obligations which, but for the automatic stay under Section 362(a) of the
      Bankruptcy Code, would become due) and liabilities of such Pledgor
      (including, without limitation, indemnities, fees and interest (including
      all interest that accrues after the commencement of any case, proceeding
      or other action relating to the bankruptcy, insolvency, reorganization or
      similar proceeding of the Borrower or any other Credit Party at the rate
      provided for in the respective documentation, whether or not a claim for
      post-petition interest is allowed in any such proceeding)), now existing
      or hereafter incurred under, arising out of or in connection with each
      Refinancing Senior Notes Document, including, all obligations, if any, of
      such Pledgor under a guaranty in respect of the Refinancing Senior Notes
      (all such obligations

<PAGE>

                                                                       Exhibit H
                                                                          Page 5

      and liabilities under this clause (v) being herein collectively called the
      "Refinancing Senior Notes Obligations");

            (vi) any and all sums advanced by the Pledgee in order to preserve
      the Collateral and/or its security interest therein;

            (vii) in the event of any proceeding for the collection of the
      Obligations (as defined below) or the enforcement of this Agreement, after
      an Event of Default (such term, as used in this Agreement, shall mean and
      include any Event of Default under the Credit Agreement, any "event of
      default" under the Existing Senior Notes Documents or the Refinancing
      Senior Notes Documents and any payment default by the Borrower under any
      Secured Credit Card Agreement, any Secured Hedging Agreement after the
      expiration of any applicable grace period) shall have occurred and be
      continuing, the reasonable expenses of retaking, holding, preparing for
      sale or lease, selling or otherwise disposing of or realizing on the
      Collateral, or of any exercise by the Pledgee of its rights hereunder,
      together with reasonable attorneys' fees and court costs; and

            (viii) all amounts paid by any Secured Creditor as to which such
      Secured Creditor has the right to reimbursement under Section 11 of this
      Agreement;

all such obligations, liabilities, sums and expenses set forth in clauses (i)
through (vii) of this Section 1 being herein collectively called the
"Obligations".

            2. DEFINITIONS; REPRESENTATIONS. (a) The following capitalized terms
used herein shall have the definitions specified below:

            "Adverse Claim" has the meaning given such term in Section
8-102(a)(1) of the UCC.

            "Agreement" shall have the meaning set forth in the first paragraph
of this Agreement.

            "Applicable Obligations" shall have the meaning provided in Section
3.1 hereof.

            "Borrower" shall have the meaning provided in the recitals to this
Agreement.

            "CA Termination Date" shall have the meaning set forth in Section 18
hereof.

            "Certificated Security" has the meaning given such term in Section
8-102(a)(4) of the UCC.

            "Class" shall have the meaning provided in Section 20 hereof.

            "Clearing Corporation" has the meaning given such term in Section
8-102(a)(5) of the UCC.

            "Collateral" shall have the meaning provided in Section 3.1 hereof.

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                                                                       Exhibit H
                                                                          Page 6

            "Collateral Accounts" means any and all accounts established and
maintained by the Pledgee in the name of any Pledgor to which Collateral may be
credited.

            "Collateral Proceeds" shall have the meaning provided in Section 9
hereof.

            "Credit Agreement" shall have the meaning provided in the recitals
to this Agreement.

            "Credit Card Issuer" shall have the meaning provided in the recitals
to this Agreement.

            "Credit Card Obligations" shall have the meaning provided in Section
3.1 hereof.

            "Credit Document Obligations" shall have the meaning provided in
Section 1 hereof.

            "Designated Collateral" shall have the meaning provided in Section
3.1 hereof.

            "Event of Default" shall have the meaning provided in Section 1
hereof.

            "Excluded Domestic Entities" shall mean and include (i) Northern
Brands International, Inc., a Delaware corporation, (ii) R.J. Reynolds Tobacco
International Inc., a Delaware corporation, (iii) Santa Fe, (iv) CMSI and (v)
Lane.

            "Excluded Foreign Entities" shall mean and include one or more
direct Subsidiaries of any Pledgor that is not a Domestic Subsidiary and is
designated as an "Excluded Foreign Entity" by the Borrower pursuant to a written
notice delivered to the Pledgee; provided that if at the time of the delivery
(or required delivery) of the financial statements of Parent pursuant to Section
7.01(a) or (b) of the Credit Agreement, (i) the net book value of the assets of
any Excluded Foreign Entity as at the last day of the fiscal quarter or fiscal
year, as the case may be, to which such financial statements relate is greater
than $25,000,000, then on the 90th day following the delivery (or required
delivery) of such financial statements, such entity shall cease to be an
"Excluded Foreign Entity" for purposes of this Agreement or (ii) the aggregate
net book value of the assets of all Excluded Foreign Entities as at the last day
of the fiscal quarter or fiscal year, as the case may be, to which such
financial statements relate is greater than $75,000,000, then on the 90th day
following the delivery (or required delivery) of such financial statements, one
or more entities which (I) theretofore constituted "Excluded Foreign Entities",
(II) hold assets with an aggregate net book value as at the last day of the
relevant fiscal quarter or fiscal year, as the case may be, equal to at least
the excess of the aggregate net book value of the assets of all Excluded Foreign
Entities as at the last day of such fiscal quarter or fiscal year, as the case
may be, over $75,000,000 and (III) have been designated in writing by the
Borrower to the Pledgee, shall cease to be "Excluded Foreign Entities" for
purposes of this Agreement; provided, however, that if no such designation is
provided by the Borrower as contemplated by preceding clause (ii), all entities
theretofore constituting "Excluded Foreign Entities" shall cease to be "Excluded
Foreign Entities" for purposes of this Agreement on such 90th day.

            "Excluded Investment Entities" shall mean and include (i) Targacept,
Inc., a Delaware corporation, (ii) Technology Concepts & Design, Inc., a
Virginia corporation, (iii)

<PAGE>

                                                                       Exhibit H
                                                                          Page 7

Intellilink Services, Inc., a Georgia corporation, (iv) an investment in
Mountain Capital CLO II Ltd, a corporation organized under the laws of the
Cayman Islands, so long as the aggregate amount of such investment (determined
without regard to any write-downs or write-offs thereof) does not exceed
$5,000,000, and (v) any other CLO investment owned by a Pledgor, so long as the
aggregate amount of all such CLO investments (determined without regard to any
write-downs or write-offs thereof) do not exceed $25,000,000; provided that the
each of foregoing entities shall cease to be an "Excluded Investment Entity" at
such time as the organizational documents governing the respective such entity
cease to prohibit the assignment of, or granting of a security interest in,
capital stock of such entity, it being understood and agreed that any such
excluded capital stock shall be subject to the security interests created by
this Agreement upon the receipt by the respective Pledgor of any necessary
approvals or waivers permitting the assignment thereof or the granting of a
security interest therein.

            "Existing Senior Notes Creditors" shall have the meaning provided in
the recitals to this Agreement.

            "Existing Senior Notes Documents" shall have the meaning provided in
the recitals to this Agreement.

            "Existing Senior Notes Indenture" shall have the meaning provided in
the recitals to this Agreement.

            "Existing Senior Notes Obligations" shall have the meaning provided
in Section 1 hereof.

            "Existing Senior Notes Trustee" shall have the meaning provided in
the recitals to this Agreement.

            "Financial Asset" has the meaning given such term in Section
8-102(a)(9) of the UCC, provided that the term "Financial Asset" shall not
include (i) any capital stock of any Excluded Domestic Entity or any Excluded
Investment Entity or (ii) any Margin Stock.

            "Hedging Creditors" shall have the meaning provided in the recitals
to this Agreement.

            "Hedging Obligations" shall have the meaning provided in Section 1
hereof.

            "Indemnitees" shall have the meaning set forth in Section 11 hereof.

            "Instrument" has the meaning given such term in Section 9-102(a)(47)
of the UCC.

            "Investment Property" has the meaning given such term in Section
9-102(a)(49) of the UCC, provided that the term "Investment Property" shall not
include (i) any capital stock of any Excluded Domestic Entity or any Excluded
Investment Entity or (ii) any Margin Stock.

            "Lender Creditors" shall have the meaning provided in the recitals
to this Agreement.

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                                                                       Exhibit H
                                                                          Page 8

            "Lender Secured Creditors" shall have the meaning provided in the
recitals to this Agreement.

            "Lenders" shall have the meaning provided in the recitals to this
Agreement.

            "Limited Liability Company Assets" shall mean all assets, whether
tangible or intangible and whether real, personal or mixed (including, without
limitation, all limited liability company capital and interests in other limited
liability companies), at any time owned or represented by any Limited Liability
Company Interest.

            "Limited Liability Company Interest" shall mean the entire limited
liability company interest at any time directly owned by each Pledgor in any
limited liability company (with any limited liability company the equity
interests of which are required to be included as "Limited Liability Company
Interests" hereunder being herein called a "Pledged LLC").

            "LSB Note" shall mean that certain Non-Recourse Secured Promissory
Note, dated May 14, 1997, made by Technology Directors II, LLC to R.J. Reynolds
Tobacco Company (as assignee of Reynolds Technologies, Inc.) as amended from
time to time, in an initial aggregate principal amount of $15,000,000.

            "Notes" shall mean all promissory notes at any time issued to, or
held by, any Pledgor, provided that the term "Note" shall not include the LSB
Note.

            "Noticed Event of Default" shall have the meaning provided in
Section 5 hereof.

            "Notified Non-Credit Agreement Event of Default" means (i) the
acceleration of the maturity of any Existing Senior Notes or Refinancing Senior
Notes or the failure to pay at maturity any Existing Senior Notes or Refinancing
Senior Notes, or the occurrence of any bankruptcy or insolvency Event of Default
under the Existing Senior Notes Indenture or the Refinancing Senior Notes
Indenture, (ii) any Event of Default under a Secured Credit Card Agreement or
(iii) any Event of Default under a Secured Hedging Agreement, in the case of any
event described in clause (i), (ii) or (iii) to the extent the Existing Senior
Notes Trustee, the Refinancing Senior Notes Trustee, the relevant Credit Card
Issuer or the relevant Hedging Creditor, as the case may be, has given written
notice to the Collateral Agent that a "Notified Non-Credit Agreement Event of
Default" exists; provided that such written notice may only be given if such
Event of Default is continuing and, provided further, that any such Notified
Non-Credit Agreement Event of Default shall cease to exist (I) once there is no
longer any Event of Default under the Existing Senior Notes Indenture, the
Refinancing Senior Notes Indenture, the respective Secured Credit Card Agreement
or the respective Secured Hedging Agreement, as the case may be, in existence,
(II) in the case of an Event of Default under the Existing Senior Notes
Indenture or the Refinancing Senior Notes Indenture, after all Existing Senior
Notes Obligations or Refinancing Senior Notes Obligations, as the case may be,
have been repaid in full, (III) in the case of an Event of Default under a
Secured Credit Card Agreement or Secured Hedging Agreement, such Secured Credit
Card Agreement or Secured Hedging Agreement, as the case may be, has been
terminated and all Credit Card Obligations or Hedging Obligations, as the case
may be, thereunder have been repaid in full, (IV) in the case of an Event of
Default under the Existing Senior Notes Indenture or the Refinancing Senior
Notes Indenture, if the Existing

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                                                                       Exhibit H
                                                                          Page 9

Senior Notes Creditors or the Refinancing Senior Notes Creditors, as the case
may be, holding at least a majority of the aggregate principal amount of the
outstanding Existing Senior Notes or the Refinancing Senior Notes, as the case
may be, at such time have rescinded such written notice and (V) in the case of
an Event of Default under a Secured Credit Card Agreement or Secured Hedging
Agreement, the requisite Credit Card Issuers with Credit Card Obligations or
Hedging Creditors with Hedging Obligations, as the case may be, thereunder at
such time have rescinded such written notice.

            "Obligations" shall have the meaning provided in Section 1 hereof.

            "Parent" shall have the meaning provided in the recitals to this
Agreement.

            "Partnership Assets" shall mean all assets, whether tangible or
intangible and whether real, personal or mixed (including, without limitation,
all partnership capital and interests in other partnerships), at any time owned
or represented by any Pledged Partnership or represented by any Partnership
Interest.

            "Partnership Interest" shall mean the entire partnership interests
(whether general and/or limited partnership interests) at any time directly
owned by each Pledgor in any partnership (with any partnership the partnership
interests of which are required to be included as "Partnership Interests"
hereunder being herein called a "Pledged Partnership", and together with any
Pledged LLC, each, a "Pledged Entity").

            "Pledged Entity" shall have the meaning provided in the definition
of "Partnership Interest."

            "Pledged Notes" shall mean all Notes at any time pledged or required
to be pledged hereunder.

            "Pledged Limited Liability Company Interests" shall mean all Limited
Liability Company Interests at any time pledged or required to be pledged
hereunder.

            "Pledged LLC" shall have the meaning provided in the definition of
"Limited Liability Company Interest".

            "Pledged Partnership" shall have the meaning provided in the
definition of "Partnership Interest".

            "Pledged Partnership Interests" shall mean all Partnership Interests
at any time pledged or required to be pledged hereunder.

            "Pledgee" shall have the meaning provided in the first paragraph of
this Agreement.

            "Pledgor" shall have the meaning provided in the first paragraph of
this Agreement.

<PAGE>

                                                                       Exhibit H
                                                                         Page 10

            "Principal Property" shall have the meaning provided in the Existing
Senior Notes Indenture or the Refinancing Senior Notes Indenture (in each case
as in effect on the date hereof), as the context may require.

            "Proceeds" has the meaning given such term in Section 9-102(a)(64)
of the UCC.

            "Pro Rata Share" shall have the meaning provided in Section 9
hereof.

            "Refinancing Senior Notes Creditors" shall have the meaning provided
in the recitals to this Agreement.

            "Refinancing Senior Notes Documents" shall have the meaning provided
in the recitals to this Agreement.

            "Refinancing Senior Notes Indenture" shall have the meaning provided
in the recitals to this Agreement.

            "Refinancing Senior Notes Obligations" shall have the meaning
provided in Section 1 hereof.

            "Refinancing Senior Notes Trustee" shall have the meaning provided
in the recitals to this Agreement.

            "Requisite Creditors" shall have the meaning provided in Section 20
hereof.

            "Restricted Subsidiary" shall mean each Subsidiary that is a
Restricted Subsidiary, as such term is defined in the Existing Senior Notes
Indenture or the Refinancing Senior Notes Indenture (each, as in effect on the
date hereof), as the context may require.

            "Secured Credit Card Agreements" shall have the meaning set forth in
the recitals to this Agreement.

            "Secured Creditors" shall have the meaning set forth in the recitals
to this Agreement.

            "Secured Debt Agreements" shall have the meaning provided in Section
5 hereof.

            "Secured Hedging Agreement" shall have the meaning provided in the
recitals to this Agreement.

            "Securities Account" has the meaning given such term in Section
8-501(a) of the UCC.

            "Security" and "Securities" has the meaning given such term in
Section 8-102(a)(15) of the UCC and shall in any event also include all Stock
and all Notes, provided that the terms "Security" and "Securities" shall not
include (i) any capital stock of any Excluded Domestic Entity or any Excluded
Investment Entity or (ii) any Margin Stock.

<PAGE>

                                                                       Exhibit H
                                                                         Page 11

            "Security Entitlement" has the meaning given such term in Section
8-102(a)(17) of the UCC.

            "Specified Pledgor" shall have the meaning provided in Section 3.1
hereof.

            "Stock" shall mean (i) all of the issued and outstanding shares of
stock of any corporation (other than a corporation that is not organized under
the laws of the United States or any State or territory thereof (a "Foreign
Corporation")) at any time directly owned by any Pledgor, and (ii) all of the
issued and outstanding shares of capital stock of any Foreign Corporation at any
time directly owned by any Pledgor, provided that such Pledgor shall not be
required to pledge hereunder the capital stock of a Foreign Corporation if more
than 65% of the total combined voting power of all classes of capital stock of
any Foreign Corporation entitled to vote are pledged hereunder (after giving
effect to the pledge of capital stock of such Foreign Corporation by other
Pledgors hereunder), provided further that the term "Stock" shall not include
(i) any capital stock of any Excluded Domestic Entity or any Excluded Investment
Entity, (ii) any Margin Stock and (iii) excess capital stock of a Foreign
Corporation not required to be pledged hereunder as a result of the application
of the preceding proviso.

            "Subsequent Effective Date" shall have the meaning set forth in
Section 18 hereof.

            "Termination Date" shall have the meaning set forth in Section 18
hereof.

            "UCC" means the Uniform Commercial Code as in effect in the State of
New York from time to time; provided that all references herein to specific
sections or sub-sections of the UCC are references to such sections or
subsections, as the case may be, of the Uniform Commercial Code as in effect in
the State of New York on the date hereof.

            "Uncertificated Security" has the meaning given such term in Section
8-102(a)(18) of the UCC.

            (b) Each Pledgor represents and warrants that on the date hereof
(or, if later, the date it first becomes party hereto) and on any Subsequent
Effective Date: (a) each Subsidiary of such Pledgor, and the direct ownership
thereof, is listed on Annex A hereto; (b) the Stock held by such Pledgor
consists of the number and type of shares of the stock of the corporations as
described in Annex B hereto; (c) such Stock constitutes that percentage of the
issued and outstanding capital stock of the issuing corporation as set forth in
Annex B hereto; (d) the Notes held by such Pledgor consist of the promissory
notes described in Annex C hereto; (e) the Limited Liability Company Interests
held by such Pledgor consists of the number and type of interest of the
respective Pledged LLC as described in Annex D hereto; (f) such Limited
Liability Company Interests held by such Pledgor constitute the percentage of
the issued and outstanding equity interests of the respective Pledged LLC as set
forth in Annex D hereto for such Pledgor; (g) except for such immaterial
exceptions set forth on Annexes B and C as may be reasonably acceptable to the
Pledgee, each such Pledgor is the holder of record and sole beneficial owner of
the Stock, the Notes, the Limited Liability Company Interests, the Partnership
Interests and the Securities identified on Annex G hereto; (h) the Partnership
Interests held by such Pledgor consists of the number and type of interest of
the respective Pledged Partnership as described in

<PAGE>

                                                                       Exhibit H
                                                                         Page 12

Annex E hereto; (i) the Partnership Interests held by such Pledgor constitutes
that percentage of the entire Partnership Interest of the respective Pledged
Partnership as is set forth in Annex E hereto for such Pledgor; (j) such Pledgor
owns or possesses no other Securities except as described on Annexes B, C, D, E
and G hereto; and (k) such Pledgor has complied with the respective procedures
set forth in Section 3.2(a) with respect to each item of Collateral described in
Annexes B through E hereto and Annex G hereto that is required by this Agreement
to be pledged to the Pledgee on the date hereof (or the respective subsequent
Effective Date).

            3. PLEDGE OF SECURITIES, ETC.

            3.1 Pledge. To secure the Applicable Obligations for such Pledgor
and for the purposes set forth in Section 1, each Pledgor does hereby grant,
pledge and assign to the Pledgee for the benefit of the relevant Secured
Creditors, and does hereby create a continuing security interest in favor of the
Pledgee for the benefit of the relevant Secured Creditors in, all of the right,
title and interest in and to the following, whether now existing or hereafter
from time to time acquired (collectively, the "Collateral"):

            (i) each of the Collateral Accounts, including any and all assets of
      whatever type or kind deposited by such Pledgor in such Collateral
      Account, whether now owned or hereafter acquired, existing or arising,
      including, without limitation, all Financial Assets, Investment Property,
      moneys, checks, drafts, Instruments, Securities or interests therein of
      any type or nature deposited or required by the Credit Agreement or any
      other Secured Debt Agreement to be deposited in such Collateral Account,
      and all investments and all certificates and other Instruments (including
      depository receipts, if any) from time to time representing or evidencing
      the same, and all dividends, interest, distributions, cash and other
      property from time to time received, receivable or otherwise distributed
      in respect of or in exchange for any or all of the foregoing;

            (ii) all Securities owned by such Pledgor from time to time and all
      options and warrants owned by such Pledgor from time to time to purchase
      Securities;

            (iii) all Limited Liability Company Interests owned by such Pledgor
      from time to time and all of such Pledgor's right, title and interest in
      each limited liability company to which such interests relate, whether now
      existing or hereafter acquired, including, without limitation:

                  (1) all the capital thereof and its interest in all profits,
            income, surpluses, losses, Limited Liability Company Assets,
            distributions and other payments to which such Pledgor shall at any
            time be entitled in respect of such Limited Liability Company
            Interests;

                  (2) all other payments due or to become due to such Pledgor in
            respect of Limited Liability Company Interests, whether under any
            limited liability company agreement or otherwise, whether as
            contractual obligations, damages, insurance proceeds or otherwise;

                  (3) all of its claims, rights, powers, privileges, authority,
            options, security interest, liens and remedies, if any, under any
            limited liability company

<PAGE>

                                                                       Exhibit H
                                                                         Page 13

            agreement or operating agreement, or at law or otherwise in respect
            of such Limited Liability Company Interests;

                  (4) all present and future claims, if any, of any of such
            Pledgor against any such Pledged LLC for moneys loaned or advanced,
            for services rendered or otherwise;

                  (5) all of such Pledgor's rights under any limited liability
            company agreement or operating agreement or at law to exercise and
            enforce every right, power, remedy, authority, option and privilege
            of any of such Pledgor relating to such Limited Liability Company
            Interests, including any power to terminate, cancel or modify any
            limited liability company agreement or operating agreement, to
            execute any instruments and to take any and all other action on
            behalf of and in the name of any of such Pledgor in respect of such
            Limited Liability Company Interest and any such Pledged LLC, to make
            determinations, to exercise any election (including, but not limited
            to, election of remedies) or option or to give or receive any
            notice, consent, amendment, waiver or approval, together with full
            power and authority to demand, receive, enforce, collect or receipt
            for any of the foregoing or for any Limited Liability Company Asset,
            to enforce or execute any checks, or other instruments or orders, to
            file any claims and to take any action in connection with any of the
            foregoing (with all of the foregoing rights to be exercisable only
            upon the occurrence and during the continuation of a Noticed Event
            of Default); and

                  (6) all other property hereafter delivered in substitution for
            or in addition to any of the foregoing, all certificates and
            instruments representing or evidencing such other property and all
            cash, securities, interest, dividends, rights and other property at
            any time and from time to time received, receivable or otherwise
            distributed in respect of or in exchange for any or all thereof;

            (iv) all Partnership Interests owned by such Pledgor from time to
      time and all of such Pledgor's right, title and interest in each
      partnership to which such interests relate, whether now existing or
      hereafter acquired, including, without limitation:

                  (1) all of the capital thereof and its interest in all
            profits, income, surplus, losses, Partnership Assets, distributions
            and other payments to which such Pledgor shall at any time be
            entitled in respect of any such Partnership Interest;

                  (2) all other payments due or to become due to such Pledgor in
            respect of any such Partnership Interest, whether under any
            partnership agreement or otherwise, whether as contractual
            obligations, damages, insurance proceeds or otherwise;

                  (3) all of its claims, rights, powers, privileges, authority,
            options, security interest, liens and remedies, if any, under any
            partnership or other agreement or at law or otherwise in respect of
            any such Partnership Interest;

<PAGE>

                                                                       Exhibit H
                                                                         Page 14

                  (4) all present and future claims, if any, of such Pledgor
            against any Pledged Partnership for moneys loaned or advanced, for
            services rendered or otherwise;

                  (5) all of such Pledgor's rights under any partnership
            agreement or at law to exercise and enforce every right, power,
            remedy, authority, option and privilege of such Pledgor relating to
            any Partnership Interest, including any power, if any, to terminate,
            cancel or modify any general or limited partnership agreement, to
            execute any instruments and to take any and all other action on
            behalf of and in the name of such Pledgor in respect of such
            Partnership Interest and any Pledged Partnership, to make
            determinations, to exercise any election (including, but not limited
            to, election of remedies) or option or to give or receive any
            notice, consent, amendment, waiver or approval, together with full
            power and authority to demand, receive, enforce, collect, or receipt
            for any of the foregoing or for any Partnership Asset, to enforce or
            execute any checks, or other instruments or orders, to file any
            claims and to take any action in connection with any of the
            foregoing (with all of the foregoing rights to be exercisable only
            upon the occurrence and during the continuation of a Noticed Event
            of Default);

                  (6) all other property hereafter delivered in substitution for
            or in addition to any of the foregoing, all certificates and
            instruments representing or evidencing such other property and all
            cash, securities, interest, dividends, rights and other property at
            any time and from time to time received, receivable or otherwise
            distributed in respect of or in exchange for any or all thereof;

            (v) all Financial Assets and Investment Property owned by such
      Pledgor from time to time;

            (vi) all Security Entitlements owned by such Pledgor from time to
      time in any and all of the foregoing; and

            (vii) all Proceeds of any and all of the foregoing.

As used herein, "Applicable Obligations" shall mean (x) for each Pledgor (each,
a "Specified Pledgor") that is Parent, the Borrower or a Restricted Subsidiary,
all the Obligations and (y) for each other Pledgor, all the Obligations other
than the Existing Senior Notes Obligations and the Refinancing Senior Notes
Obligations, provided that (i) the Existing Senior Notes Obligations shall be
excluded from the Applicable Obligations of a Specified Pledgor to the extent
the Existing Senior Notes Documents do not require the Existing Senior Notes
Obligations to be secured pursuant to this Agreement (or, in the case of the
Applicable Obligations of Parent, to the same extent the Existing Senior Notes
Obligations are excluded from the Applicable Obligations of the Borrower as
provided above in this clause (i)) and (ii) the Refinancing Senior Notes
Obligations shall be excluded from the Applicable Obligations of a Specified
Pledgor to the extent the Refinancing Senior Notes Documents do not require the
Refinancing Senior Notes Obligations to be secured pursuant to this Agreement
(or, in the case of the Applicable Obligations of Parent, to the same extent the
Refinancing Senior Notes Obligations are excluded from the Applicable
Obligations of the Borrower as provided above in this clause (ii)).

<PAGE>

                                                                       Exhibit H
                                                                         Page 15

Notwithstanding anything to the contrary contained in this Agreement, the
Collateral that secures the Existing Senior Notes Obligations or the Refinancing
Senior Notes Obligations of a Specified Pledgor shall be limited to Collateral
consisting of any shares of stock, indebtedness or other obligations of a
Subsidiary of Parent or of any Principal Property of any Specified Pledgor (the
"Designated Collateral"), all of which Collateral shall also ratably secure all
other Applicable Obligations of such Specified Pledgor, and the Collateral
Proceeds with respect to any item of Collateral owned by a Specified Pledgor
that are to be applied to the Existing Senior Notes Obligations or to the
Refinancing Senior Notes Obligations shall be limited to Collateral Proceeds
resulting from the sale, other disposition of or other realization upon, and
other moneys received in respect of, the Designated Collateral of such Specified
Pledgor, with such Collateral Proceeds to also be applied ratably to all other
Applicable Obligations of such Specified Pledgor.

            3.2. Procedures. (a) To the extent that any Pledgor at any time or
from time to time owns, acquires or obtains any right, title or interest in any
Collateral, such Collateral shall automatically (and without the taking of any
action by the respective Pledgor) be pledged pursuant to Section 3.1 of this
Agreement and, in addition thereto, such Pledgor shall (to the extent provided
below) take the following actions for the benefit of the Pledgee and the other
relevant Secured Creditors as set forth below as promptly as practicable and, in
any event, within 10 Business Days after it obtains such Collateral, provided
that (i) in the case of Collateral consisting of an Uncertificated Security,
Limited Liability Company Interest or Partnership Interest of a Person which is
not a Subsidiary of such Pledgor and a security interest in which is to be
perfected by taking an action specified in sub-clause (ii) or (iv)(2) below,
such Pledgor shall have 30 days after it obtains such Collateral to take the
respective action required by said sub-clause, (ii) in the case of Collateral a
security interest in which is to be perfected by taking an action specified in
sub-clause (iii) below, such Pledgor shall have 90 days after the Third
Restatement Effective Date (or, if such Collateral is acquired after the Third
Restatement Effective Date, the date it obtains such Collateral) to take the
respective action required by said sub-clause and (iii) in the case of any
Security, Stock, Limited Liability Company Interest or Partnership Interest of
an Excluded Foreign Entity, such Pledgor owning the same shall take the
respective action required below on the date such Excluded Foreign Entity ceases
to qualify as an "Excluded Foreign Entity" in accordance with the definition
thereof:

            (i) with respect to a Certificated Security (other than a
      Certificated Security credited on the books of a Clearing Corporation),
      the respective Pledgor shall deliver such Certificated Security to the
      Pledgee, indorsed to the Pledgee or indorsed in blank;

            (ii) with respect to an Uncertificated Security (other than an
      Uncertificated Security credited on the books of a Clearing Corporation),
      the respective Pledgor shall cause the issuer of such Uncertificated
      Security (or, in the case of an issuer that is not a Subsidiary of such
      Pledgor, will use reasonable efforts to cause such issuer) to duly
      authorize and execute, and deliver to the Pledgee, an agreement for the
      benefit of the Pledgee and the other Secured Creditors substantially in
      the form of Annex F hereto (appropriately completed to the reasonable
      satisfaction of the Pledgee and with such modifications, if any, as shall
      be reasonably satisfactory to the Pledgee) pursuant to which, subject to
      Section 5 hereof, such issuer agrees to comply with any and all
      instructions originated by the Pledgee without further consent by the
      registered owner and not to comply with instructions regarding such
      Uncertificated Security (and any

<PAGE>

                                                                       Exhibit H
                                                                         Page 16

      Partnership Interest and Limited Liability Company Interest issued by such
      issuer) originated by any other Person other than a court of competent
      jurisdiction; provided that in the case of an Uncertificated Security
      issued by a Person that is organized under the laws of a jurisdiction
      other than the United States or any state thereof, such Pledgor shall
      enter into a Foreign Pledge Agreement and comply with the requirements of
      Section 16(d) as if said Person had been (but then ceased to be) an
      Excluded Foreign Entity,

            (iii) with respect to a Certificated Security, Uncertificated
      Security, Partnership Interest or Limited Liability Company Interest
      credited on the books of a Clearing Corporation (including a Federal
      Reserve Bank, Participants Trust Company or The Depository Trust Company),
      the respective Pledgor shall promptly notify the Pledgee thereof and shall
      promptly take (x) all actions required (i) to comply with the applicable
      rules of such Clearing Corporation and (ii) to perfect the security
      interest of the Pledgee under applicable law (including, in any event,
      under Sections 9-314(a) and (b), 9-106 and 8-106(d) of the UCC) and (y)
      such other actions as the Pledgee deems reasonably necessary or desirable
      to effect the foregoing;

            (iv) with respect to a Partnership Interest or a Limited Liability
      Company Interest (other than a Partnership Interest or Limited Liability
      Interest credited on the books of a Clearing Corporation), (1) if such
      Partnership Interest or Limited Liability Company Interest is represented
      by a certificate and is a Security for purposes of the UCC, the procedure
      set forth in Section 3.2(a)(i) hereof, and (2) if such Partnership
      Interest or Limited Liability Company Interest is not represented by a
      certificate or is not a Security for purposes of the UCC, the procedure
      set forth in Section 3.2(a)(ii) hereof;

            (v) with respect to any Note, delivery of such Note to the Pledgee,
      indorsed to the Pledgee or indorsed in blank; and

            (vi) with respect to cash proceeds, (i) establishment by the Pledgee
      of a cash account in the name of such Pledgor over which the Pledgee shall
      have exclusive and absolute control and dominion (and no withdrawals or
      transfers may be made therefrom by any Person except with the prior
      written consent of the Pledgee) and (ii) deposit of such cash in such cash
      account.

            (b) In addition to the actions required to be taken pursuant to
Section 3.2(a) hereof, each Pledgor shall take the following additional actions
with respect to the Collateral:

            (i) with respect to all Collateral of such Pledgor whereby or with
      respect to which the Pledgee may obtain "control" thereof within the
      meaning of Section 8-106 of the UCC (or under any provision of the UCC as
      same may be amended or supplemented from time to time, or under the laws
      of any relevant State other than the State of New York), the respective
      Pledgor shall take all actions as may be reasonably requested from time to
      time by the Pledgee so that "control" of such Collateral is obtained and
      at all times held by the Pledgee; and

            (ii) each Pledgor shall from time to time cause appropriate
      financing statements (on Form UCC-1 or other appropriate form) under the
      Uniform Commercial

<PAGE>

                                                                       Exhibit H
                                                                         Page 17

      Code as in effect in the various relevant States, covering all Collateral
      hereunder (with the form of such financing statements to be satisfactory
      to the Pledgee), to be filed in the relevant filing offices so that at all
      times the Pledgee has a security interest in all Investment Property and
      other Collateral which is perfected by the filing of such financing
      statements (in each case to the maximum extent perfection by filing may be
      obtained under the laws of the relevant States, including, without
      limitation, Section 9-312(a) of the UCC).

            3.3. Subsequently Acquired Collateral. If any Pledgor shall acquire
(by purchase, stock dividend or similar distribution or otherwise) any
additional Collateral at any time or from time to time after the date hereof,
such Collateral shall automatically (and without any further action being
required to be taken) be subject to the pledge and security interests created
pursuant to Section 3.1 hereof and, furthermore, the respective Pledgor will
promptly thereafter take (or cause to be taken) all action with respect to such
Collateral in accordance with the procedures set forth in Section 3.2 hereof,
and will promptly thereafter deliver to the Pledgee (i) a certificate executed
by a principal executive officer of such Pledgor describing such Collateral and
certifying that the same has been duly pledged in favor of the Pledgee (for the
benefit of the relevant Secured Creditors entitled thereto) hereunder and (ii)
supplements to Annexes A through E hereto as are reasonably necessary to cause
such annexes to be complete and accurate at such time, provided that unless
specifically requested by the Collateral Agent, such updated Annexes shall not
be required to include any after-acquired Securities pledged to the Pledgee
pursuant to the procedures set forth in Section 3.2(a)(iii). Notwithstanding the
foregoing, no Pledgor shall be required at any time to pledge hereunder any
Stock which will result in more than 65% of the total combined voting power of
all classes of capital stock of any Foreign Corporation entitled to vote being
pledged hereunder.

            3.4. Transfer Taxes. Each pledge of Collateral under Section 3.1 or
Section 3.3 hereof shall be accompanied by any transfer tax stamps required in
connection with the pledge of such Collateral.

            4. APPOINTMENT OF SUB-AGENTS; ENDORSEMENTS, ETC. The Pledgee shall
have the right to appoint one or more sub-agents for the purpose of retaining
physical possession of the Collateral, which may be held (in the discretion of
the Pledgee) in the name of the relevant Pledgor, endorsed or assigned in blank
or, following a Noticed Event of Default which is continuing, in favor of the
Pledgee or any nominee or nominees of the Pledgee or a sub-agent appointed by
the Pledgee.

            5. VOTING, ETC., WHILE NO EVENT OF DEFAULT. Unless and until a
Noticed Event of Default shall have occurred and be continuing, each Pledgor
shall be entitled to exercise all voting rights attaching to any and all
Collateral owned by it, and to give consents, waivers or ratifications in
respect thereof; provided that no vote shall be cast or any consent, waiver or
ratification given or any action taken which would violate, result in breach of
any covenant contained in, or be inconsistent with, any of the terms of this
Agreement, the Credit Agreement, any other Credit Document, any Existing Senior
Notes Document, any Refinancing Senior Notes Document, any Secured Credit
Agreement or any Secured Hedging Agreement (collectively, the "Secured Debt
Agreements"), or which would have the effect of impairing the value of the
Collateral or any part thereof or the position or interests of the Pledgee or
any other

<PAGE>

                                                                       Exhibit H
                                                                         Page 18

Secured Creditor therein, provided however, each Pledgor shall be permitted to
amend and/or modify intercompany notes constituting Collateral in the ordinary
course of business and consistent with past practices. All such rights of a
Pledgor to vote and to give consents, waivers and ratifications shall cease in
case a Noticed Event of Default shall occur and be continuing and Section 7
hereof shall become applicable. As used herein, a "Noticed Event of Default"
shall mean (i) an Event of Default with respect to a Credit Party under Section
9.05 of the Credit Agreement and (ii) any other Event of Default in respect of
which the Pledgee has given either Credit Agreement Party notice that such Event
of Default constitutes a "Noticed Event of Default".

            6. DIVIDENDS AND OTHER DISTRIBUTIONS. Unless and until a Noticed
Event of Default shall have occurred and be continuing, all cash dividends,
distributions, cash Proceeds or other amounts payable in respect of the
Collateral shall be paid to the respective Pledgor; provided that all dividends
or other amounts payable in respect of the Collateral which are determined by
the Pledgee, to represent in whole or in part an extraordinary, liquidating or
other distribution in return of capital not permitted by the Credit Agreement
shall be paid, to the extent so determined to represent an extraordinary,
liquidating or other distribution in return of capital, to the Pledgee and
retained by it as part of the Collateral (unless such cash dividends are applied
to repay the Obligations pursuant to Section 9 of this Agreement). The Pledgee
shall also be entitled to receive directly, and to retain as part of the
Collateral:

            (i) all other or additional stock, notes, limited liability company
      interests, partnership interests, instruments or other securities or
      property (other than cash) paid or distributed by way of dividend or
      otherwise in respect of the Collateral;

            (ii) all other or additional stock, notes, limited liability company
      interests, partnership interests, instruments or other securities or
      property (including cash) paid or distributed in respect of the Collateral
      by way of stock-split, spin-off, split-up, reclassification, combination
      of shares or similar rearrangement; and

            (iii) all other or additional stock, notes, limited liability
      company interests, partnership interests, instruments or other securities
      or property (including cash) which may be paid in respect of the
      Collateral by reason of any consolidation, merger, exchange of stock,
      conveyance of assets, liquidation or similar corporate, partnership or
      other reorganization.

Nothing contained in this Section 6 shall limit or restrict in any way the
Pledgee's right to receive proceeds of the Collateral in any form in accordance
with Section 3 of this Agreement. All dividends, distributions or other payments
which are received by the respective Pledgor contrary to the provisions of this
Section 6 or Section 7 shall be received in trust for the benefit of the Pledgee
and shall be forthwith paid over to the Pledgee as Collateral in the same form
as so received (with any necessary endorsement).

            7. REMEDIES IN CASE OF AN EVENT OF DEFAULT. In case a Noticed Event
of Default shall have occurred and be continuing, the Pledgee shall be entitled
to exercise all of the rights, powers and remedies (whether vested in it by this
Agreement or by any other Secured Debt Agreement or by law) for the protection
and enforcement of its rights in respect of

<PAGE>

                                                                       Exhibit H
                                                                         Page 19

the Collateral, including, without limitation, all the rights and remedies of a
secured party upon default under the Uniform Commercial Code as in effect in any
relevant jurisdiction, and the Pledgee shall be entitled, without limitation, to
exercise any or all of the following rights, which each Pledgor hereby agrees to
be commercially reasonable:

            (i) to receive all amounts payable in respect of the Collateral
      otherwise payable under Section 6 to such Pledgor;

            (ii) to transfer all or any part of the Collateral into the
      Pledgee's name or the name of its nominee or nominees;

            (iii) to accelerate any Pledged Note which may be accelerated in
      accordance with its terms, and take any other lawful action to collect
      upon any Pledged Note (including, without limitation, to make any demand
      for payment thereon);

            (iv) to vote all or any part of the Collateral (in each case whether
      or not transferred into the name of the Pledgee) and give all consents,
      waivers and ratifications in respect of the Collateral and otherwise act
      with respect thereto as though it were the outright owner thereof (each
      Pledgor hereby irrevocably constituting and appointing the Pledgee the
      proxy and attorney-in-fact of such Pledgor, with full power of
      substitution to do so);

            (v) at any time or from time to time to sell, assign and deliver, or
      grant options to purchase, all or any part of the Collateral, or any
      interest therein, at any public or private sale, without demand of
      performance or advertisement or to redeem or otherwise (all of which are
      hereby waived by each Pledgor), for cash, on credit or for other property,
      for immediate or future delivery without any assumption of credit risk,
      and for such price or prices and on such terms as the Pledgee in its
      reasonable discretion may determine, provided that at least 10 days'
      notice of the time and place of any such sale shall be given to such
      Pledgor. The Pledgee shall not be obligated to make such sale of
      Collateral regardless of whether any such notice of sale has theretofore
      been given. Each purchaser at any such sale shall hold the property so
      sold absolutely free from any claim or right on the part of any Pledgor,
      and each Pledgor hereby waives and releases to the fullest extent
      permitted by law any right or equity of redemption with respect to the
      Collateral, whether before or after sale hereunder, and all rights, if
      any, of marshalling the Collateral and any other security for the
      Obligations or otherwise. At any such sale, unless prohibited by
      applicable law, the Pledgee on behalf of all Secured Creditors (or certain
      of them) may bid for and purchase all or any part of the Collateral so
      sold free from any such right or equity of redemption. Neither the Pledgee
      nor any other Secured Creditor shall be liable for failure to collect or
      realize upon any or all of the Collateral or for any delay in so doing nor
      shall it be under any obligation to take any action whatsoever with regard
      thereto; and

            (vi) to set-off any and all Collateral against any and all
      Obligations, and to withdraw any and all cash or other Collateral from any
      and all Collateral Accounts and to apply such cash and other Collateral to
      the payment of any and all Obligations.

<PAGE>

                                                                       Exhibit H
                                                                         Page 20

            8. REMEDIES, ETC., CUMULATIVE. Each right, power and remedy of the
Pledgee provided for in this Agreement or any other Secured Debt Agreement, or
now or hereafter existing at law or in equity or by statute shall be cumulative
and concurrent and shall be in addition to every other such right, power or
remedy. The exercise or beginning of the exercise by the Pledgee or any other
Secured Creditor of any one or more of the rights, powers or remedies provided
for in this Agreement or any other Secured Debt Agreement or now or hereafter
existing at law or in equity or by statute or otherwise shall not preclude the
simultaneous or later exercise by the Pledgee or any other Secured Creditor of
all such other rights, powers or remedies, and no failure or delay on the part
of the Pledgee or any other Secured Creditor to exercise any such right, power
or remedy shall operate as a waiver thereof. Unless otherwise required by the
Credit Documents, no notice to or demand on any Pledgor in any case shall
entitle it to any other or further notice or demand in similar other
circumstances or constitute a waiver of any of the rights of the Pledgee or any
other Secured Creditor to any other further action in any circumstances without
demand or notice. By accepting the benefits of this Agreement, the Secured
Creditors expressly acknowledge and agree that (x) this Agreement may be
enforced only by the action of the Pledgee acting upon the instructions of the
Required Lenders or, if the CA Termination Date has occurred, the holders of a
majority of the outstanding principal amount of all remaining Obligations,
provided that if prior to the CA Termination Date a payment default with respect
to at least $300,000,000 principal amount in the aggregate of Existing Senior
Notes and/or Refinancing Senior Notes has continued for at least 180 days (and
such defaulted payment has not been received pursuant to a drawing under any
letter of credit), the holders of a majority of the outstanding principal amount
of the Indebtedness subject to such payment default or defaults can direct the
Pledgee to commence and continue enforcement of the Liens created hereunder,
which the Pledgee shall comply with subject to receiving any indemnity which it
reasonably requests, provided further that the Pledgee shall thereafter comply
only with the directions of the Required Lenders as to how to carry out such
enforcement so long as such directions are not adverse to the aforesaid
directions of the holders of Indebtedness subject to such payment default or
defaults and (y) no other Secured Creditor shall have any right individually to
seek to enforce or to enforce this Agreement or to realize upon the security to
be granted hereby, it being understood and agreed that such rights and remedies
shall be exercised exclusively by the Pledgee for the benefit of the Secured
Creditors as their interests may appear upon the terms of this Agreement.

            9. APPLICATION OF PROCEEDS. (a) All moneys collected by the Pledgee
upon any sale, other disposition of or other realization upon any Collateral
pursuant to the terms of this Agreement, together with all other moneys received
by the Pledgee hereunder (collectively, the "Collateral Proceeds"), shall be
applied as follows:

            (i) first, to the payment of all Obligations owing to the Pledgee of
      the type described in clauses (v), (vi) and (vii) of Section 1 herein;

            (ii) second, to the extent proceeds of the sale, other disposition
      of or other realization upon any item of Collateral remain after the
      application pursuant to preceding clause (i), an amount equal to the
      outstanding Applicable Obligations secured by such item of Collateral
      shall be paid to the Secured Creditors in the manner provided below as
      their interests may appear, with each Secured Creditor receiving an amount
      equal to its outstanding Applicable Obligations secured by such item of
      Collateral or, if the proceeds

<PAGE>

                                                                       Exhibit H
                                                                         Page 21

      are insufficient to pay in full all such Applicable Obligations, its Pro
      Rata Share of the amount so remaining to be distributed, with any such
      amount to be applied in the case of the Credit Document Obligations, the
      Existing Senior Notes Obligations and the Refinancing Senior Notes
      Obligations, first to the payment of interest in respect of the unpaid
      principal amount of Loans, Existing Senior Notes or Refinancing Senior
      Notes, as the case may be, second to the payment of principal of Loans,
      Existing Senior Notes or Refinancing Senior Notes, as the case may be, and
      third to the other Credit Document Obligations, Existing Senior Notes
      Obligations or Refinancing Senior Notes Obligations, as the case may be;
      and

            (iii) third, to the extent proceeds remain after the application
      pursuant to the preceding clauses (i) and (ii), to the relevant Pledgor
      or, to the extent directed by such Pledgor or a court of competent
      jurisdiction, to whomever may be lawfully entitled to receive such
      surplus.

            (b) For purposes of this Agreement, "Pro Rata Share" shall mean when
calculating a Secured Creditor's portion of any distribution or amount pursuant
to clause (a) above, the amount (expressed as a percentage) equal to a fraction
the numerator of which is the then outstanding amount of the relevant Applicable
Obligations secured by the relevant item of Collateral owed such Secured
Creditor and the denominator of which is the then outstanding amount of all
Applicable Obligations secured by the relevant item of Collateral.

            (c) All payments required to be made to the (i) Lender Creditors
hereunder shall be made to the Administrative Agent for the account of the
respective Lender Creditors, (ii) Credit Card Issuers hereunder shall be made to
the Credit Card Issuer(s) under the applicable Secured Credit Card Agreement,
(iii) Hedging Creditors hereunder shall be made to the paying agent under the
applicable Secured Hedging Agreement or, in the case of Secured Hedging
Agreements without a paying agent, directly to the applicable Hedging Creditors,
(iv) Existing Senior Notes Creditors hereunder shall be made to the Existing
Senior Notes Trustee for the account of the respective Existing Senior Notes
Creditors and (v) Refinancing Senior Notes Creditors hereunder shall be made to
the Refinancing Senior Notes Trustee for the account of the respective
Refinancing Senior Notes Creditors.

            (d) For purposes of applying payments received in accordance with
this Section 9, the Pledgee shall be entitled to rely upon (i) the
Administrative Agent for a determination of the outstanding Credit Document
Obligations, (ii) any Credit Card Issuer for a determination of the outstanding
Credit Card Obligations owed to such Credit Card Issuer, (iii) any Hedging
Creditor for a determination of the outstanding Hedging Obligations owed to such
Hedging Creditor, (iv) the Existing Senior Notes Trustee for a determination of
the outstanding Existing Senior Notes Obligations, and (v) the Refinancing
Senior Notes Trustee for a determination of the outstanding Refinancing Senior
Notes Obligations. Unless it has actual knowledge (including by way of written
notice from a Secured Creditor) to the contrary, the Administrative Agent under
the Credit Agreement, in furnishing information pursuant to the preceding
sentence, and the Pledgee, in acting hereunder, shall be entitled to assume that
no Credit Document Obligations other than principal, interest and regularly
accruing fees are owing to any Lender Creditor.

<PAGE>
                                                                       Exhibit H
                                                                         Page 22

            (e) It is understood and agreed that each Pledgor shall remain
liable to the extent of any deficiency between (x) the amount of the Obligations
for which it is responsible directly or as a Guarantor that are satisfied with
proceeds of the Collateral and (y) the aggregate outstanding amount of such
Obligations.

            10. PURCHASERS OF COLLATERAL. Upon any sale of the Collateral by the
Pledgee hereunder (whether by virtue of the power of sale herein granted,
pursuant to judicial process or otherwise), the receipt of the Pledgee or the
officer making the sale shall be a sufficient discharge to the purchaser or
purchasers of the Collateral so sold, and such purchaser or purchasers shall not
be obligated to see to the application of any part of the purchase money paid
over to the Pledgee or such officer or be answerable in any way for the
misapplication or nonapplication thereof.

            11. INDEMNITY. Each Pledgor jointly and severally agrees (i) to
indemnify and hold harmless the Pledgee and each other Secured Creditor and
their respective successors, assigns, employees, agents and affiliates
(individually, an "Indemnitee," and collectively the "Indemnitees") from and
against any and all claims, demands, losses, judgments and liabilities
(including liabilities for penalties) of whatsoever kind or nature, and (ii) to
reimburse each Indemnitee for all reasonable costs and expenses, including
reasonable attorneys' fees, in each case growing out of or resulting from this
Agreement or the exercise by any Indemnitee of any right or remedy granted to it
hereunder or under any other Secured Debt Agreement (but excluding any claims,
demands, losses, judgments and liabilities or expenses to the extent incurred by
reason of gross negligence or willful misconduct of such Indemnitee (as
determined by a court of competent jurisdiction in a final and non-appealable
decision)). In no event shall the Pledgee be liable, in the absence of gross
negligence or willful misconduct on its part, for any matter or thing in
connection with this Agreement other than to account for moneys or other
property actually received by it in accordance with the terms hereof. If and to
the extent that the obligations of any Pledgor under this Section 11 are
unenforceable for any reason, such Pledgor hereby agrees to make the maximum
contribution to the payment and satisfaction of such obligations which is
permissible under applicable law.

            12. PLEDGEE NOT BOUND. (a) Nothing herein shall be construed to make
the Pledgee or any other Secured Creditor liable as a general partner or limited
partner of any Pledged Partnership or a member of any Pledged LLC and the
Pledgee or any other Secured Creditor by virtue of this Agreement or otherwise
(except as referred to in the following sentence) shall not have any of the
duties, obligations or liabilities of a general partner or limited partner of
any Pledged Partnership or a member of any Pledged LLC. The parties hereto
expressly agree that, unless the Pledgee shall become the absolute owner of the
respective Pledged Partnership Interest, Pledged Limited Liability Company
Interest or Security pursuant hereto, this Agreement shall not be construed as
creating a partnership or joint venture among the Pledgee, any other Secured
Creditor and/or any Pledgor.

            (b) Except as provided in the last sentence of paragraph (a) of this
Section, the Pledgee, by accepting this Agreement, did not intend to become a
general partner or limited partner of any Pledged Partnership or a member of any
Pledged LLC or otherwise be deemed to be a co-venturer with respect to any
Pledgor, any Pledged Partnership or any Pledged LLC., either before or after an
Event of Default shall have occurred. The Pledgee shall have only those

<PAGE>
                                                                       Exhibit H
                                                                         Page 23

powers set forth herein and shall assume none of the duties, obligations or
liabilities of a general partner or limited partner of any Pledged Partnership
or a member of any Pledged LLC or of any Pledgor.

            (c) Neither the Pledgee nor any other Secured Creditor shall be
obligated to perform or discharge any obligation of any Pledgor as a result of
the collateral assignment hereby effected.

            (d) The acceptance by the Pledgee of this Agreement, with all the
rights, powers, privileges and authority so created, shall not at any time or in
any event obligate the Pledgee to appear in or defend any action or proceeding
relating to the Collateral to which it is not a party, or to take any action
hereunder or thereunder, or to expend any money or incur any expenses or perform
or discharge any obligation, duty or liability under the Collateral.

            13. FURTHER ASSURANCES. (a) Each Pledgor agrees that it will join
with the Pledgee in executing and, at such Pledgor's own expense, file and
refile under the Uniform Commercial Code such financing statements, continuation
statements and other documents in such offices as the Pledgee may reasonably
deem necessary or appropriate and wherever required or permitted by law in order
to perfect and preserve the Pledgee's security interest in the Collateral
hereunder and hereby authorizes the Pledgee to file financing statements and
amendments thereto relative to all or any part of the Collateral without the
signature of such Pledgor where permitted by law, and agrees to do such further
acts and things and to execute and deliver to the Pledgee such additional
conveyances, assignments, agreements and instruments as the Pledgee may
reasonably require or reasonably deem advisable to carry into effect the
purposes of this Agreement or to further assure and confirm unto the Pledgee its
rights, powers and remedies hereunder or thereunder.

            (b) Each Pledgor hereby appoints the Pledgee, such Pledgor's
attorney-in-fact, with full authority in the place and stead of such Pledgor and
in the name of such Pledgor or otherwise, from time to time after the occurrence
and during the continuance of an Event of Default, in the Pledgee's reasonable
discretion to take any action and to execute any instrument which the Pledgee
may reasonably deem necessary or advisable to accomplish the purposes of this
Agreement.

            14. THE PLEDGEE AS COLLATERAL AGENT. The Pledgee will hold in
accordance with this Agreement all items of the Collateral at any time received
under this Agreement. It is expressly understood and agreed that the obligations
of the Pledgee as holder of the Collateral and interests therein and with
respect to the disposition thereof, and otherwise under this Agreement, are only
those expressly set forth in this Agreement. The Pledgee shall act hereunder on
the terms and conditions set forth herein and in Annex M to the Security
Agreement, the terms of which shall be deemed incorporated herein by reference
as fully as if same were set forth herein in their entirety (for such purpose,
treating each reference to the "Security Agreement" as a reference to this
Agreement, each reference to the "Collateral Agent" as a reference to the
Pledgee and each reference to an "Assignor" as a reference to a "Pledgor").

            15. TRANSFER BY THE PLEDGORS. No Pledgor will sell or otherwise
dispose of, grant any option with respect to, or mortgage, pledge or otherwise
encumber any of

<PAGE>
                                                                       Exhibit H
                                                                         Page 24

the Collateral or any interest therein if prohibited by the terms of this
Agreement or any other Secured Debt Agreement.

            16. REPRESENTATIONS, WARRANTIES AND UNDERTAKINGS. (a) Each Pledgor
represents, warrants and covenants that:

            (i) it is the legal, record and beneficial owner of, and has good
      and marketable title to, all Collateral consisting of one or more
      Securities pledged by it hereunder, subject to no pledge, lien, mortgage,
      hypothecation, security interest, charge, option or other encumbrance
      whatsoever, except the liens and security interests created by this
      Agreement and Permitted Liens;

            (ii) it has full power, authority and legal right to pledge all the
      Collateral pledged by it pursuant to this Agreement without the consent of
      any other Person;

            (iii) this Agreement has been duly authorized, executed and
      delivered by such Pledgor and constitutes a legal, valid and binding
      obligation of such Pledgor enforceable in accordance with its terms,
      except to the extent that the enforceability hereof may be limited by
      applicable bankruptcy, insolvency, reorganization, moratorium or similar
      laws generally affecting creditors' rights and by equitable principles
      (regardless of whether enforcement is sought in equity or law);

            (iv) except to the extent already made or obtained, no consent of
      any other party (including, without limitation, any stockholder, member,
      limited or general partner or creditor of such Pledgor or any of its
      Subsidiaries) and no consent, license, permit, approval or authorization
      of, exemption by, notice or report to, or registration, filing or
      declaration with, any governmental authority is required to be obtained by
      such Pledgor in connection with (a) the execution, delivery or performance
      of this Agreement, (b) the validity or enforceability of this Agreement,
      (c) the perfection or enforceability of the Pledgee's security interest in
      the Collateral (other than with respect to the Stock of an Excluded
      Foreign Entity) or (d) except for compliance with or as may be required by
      applicable securities laws, the exercise by the Pledgee of any of its
      rights or remedies provided herein;

            (v) neither the execution, delivery or performance of this Agreement
      or any other Secured Debt Agreement to which it is a party violates (a)
      any material provision of any applicable law or regulation or of any
      order, judgment, writ, award or decree of any court, arbitrator or
      domestic or foreign governmental authority, (b) the certificate of
      incorporation, certificate of formation, certificate of partnership,
      partnership agreement, limited liability company agreement (or equivalent
      organizational documents) or by-laws, as the case may be, of such Pledgor
      or of any securities issued by such Pledgor or any of its Subsidiaries, or
      (c) any indenture, mortgage, lease, deed of trust, credit agreement, loan
      agreement, agreement or other instrument to which such Pledgor or any of
      its Subsidiaries is a party or which purports to be binding upon such
      Pledgor or any of its Subsidiaries or upon any of their respective assets
      and will not result in the creation or imposition of any lien or
      encumbrance on any of the assets of such Pledgor or any of its
      Subsidiaries except as contemplated by this Agreement;

<PAGE>
                                                                       Exhibit H
                                                                         Page 25

            (vi) all the Collateral consisting of Securities, Pledged Limited
      Liability Company Interests and Pledged Partnership Interests have been
      duly and validly issued, are fully paid and non-assessable and are subject
      to no options to purchase or similar rights;

            (vii) to Pledgor's knowledge, each of the Pledged Notes constitute,
      or, when executed by the obligor thereof, will constitute, the legal,
      valid and binding obligation of such obligor, enforceable in accordance
      with its terms except to the extent that the enforceability thereof may be
      limited by applicable bankruptcy, insolvency, reorganization, moratorium
      or similar laws generally affecting creditors' rights and by equitable
      principles (regardless of whether enforcement is sought in equity or law);

            (viii) the pledge, assignment and delivery to the Pledgee of the
      Collateral consisting of Certificated Securities (other than the
      Certificated Securities (x) of the Excluded Foreign Entities and (y)
      required to be pledged pursuant to the procedures set forth in Section
      3.2(a)(iii)) and Pledged Notes pursuant to this Agreement, creates a valid
      and perfected first security interest in such Collateral and the proceeds
      thereof, subject to no prior Lien or encumbrance or to any agreement
      purporting to grant to any third party a Lien or encumbrance on the
      property or assets of such Pledgor which would include the Securities;

            (ix) it is not in default in the payment of any portion of any
      mandatory capital contribution, if any, required to be made under any
      partnership agreement or limited liability company agreement to which such
      Pledgor is a party, and such Pledgor is not in violation of any other
      material provisions of any partnership agreement or limited liability
      company agreement to which such Pledgor is a party, or otherwise in
      default or violation thereunder; no Partnership Interest or Limited
      Liability Company Interest is subject to any defense, offset or
      counterclaim, nor have any of the foregoing been asserted or alleged
      against such Pledgor by any Person with respect thereto;

            (x) it shall not withdraw as a partner of any Pledged Partnership or
      member of any Pledged LLC, or file or pursue or take any action which may,
      directly or indirectly, cause a dissolution or liquidation of or with
      respect to any Pledged Entity or seek a partition of any property of any
      Pledged Entity, except as permitted by the Credit Agreement;

            (xi) the Pledged Partnership Interests or Pledged Limited Liability
      Company Interests of such Pledgor, as the case may be, constitute, and
      will at all times hereafter continue to constitute, in the aggregate, all
      of the partnership interests or membership interests, as the case may be,
      of each Pledged Entity of such Pledgor and no Pledged Entity shall create
      any options or rights or other agreements to sell or otherwise transfer,
      or sell or otherwise transfer, any Partnership Interests or Limited
      Liability Company Interests;

            (xii) each partnership agreement and limited liability company
      agreement is the legal, valid and binding obligation of the parties
      thereto, enforceable in accordance with

<PAGE>
                                                                       Exhibit H
                                                                         Page 26

      its terms and, together with this Agreement, contains the entire agreement
      between the parties thereto relating to the subject matter thereof; and

            (xiii) "control" (as defined in Section 8-106 of the UCC) has been
      obtained by the Pledgee over all Collateral consisting of Securities
      (including Notes which are Securities) with respect to which such
      "control" may be obtained pursuant to Section 8-106 of the UCC, in each
      such case to the extent required by the terms of this Agreement.

            (b) Each Pledgor covenants and agrees that it will defend the
Pledgee's right, title and security interest in and to the Securities and the
proceeds thereof against the claims and demands of all persons whomsoever; and
each Pledgor covenants and agrees that it will have like title to and right to
pledge any other property at any time hereafter pledged to the Pledgee as
Collateral hereunder and will likewise defend the right thereto and security
interest therein of the Pledgee and the other Secured Creditors.

            (c) Each Pledgor covenants and agrees that it will take no action
which would violate or be inconsistent with any of the terms of any Secured Debt
Agreement, or which would have the effect of impairing the position or interests
of the Pledgee or any other Secured Creditor under any Secured Debt Agreement
except as permitted by the Credit Agreement.

            (d) Any Pledgor which owns an equity interest in an Excluded Foreign
Entity covenants and agrees that on the date on which such entity ceases to
qualify as an "Excluded Foreign Entity" in accordance with the definition
thereof, (i) such Pledgor shall have duly authorized, executed and delivered to
the Pledgee a pledge agreement, in form and substance satisfactory to the
Pledgee, governed by the laws of the jurisdiction of organization of such
Excluded Foreign Entity and covering (subject to the pledge limitations in
subclause (ii) of the definition of the term "Stock") the equity interests of
such Excluded Foreign Entity owned by such Pledgor (as amended, restated,
modified and/or supplemented from time to time in accordance with the terms
thereof and of the Credit Agreement, each such pledge agreement, a "Foreign
Pledge Agreement"), (ii) such Foreign Pledge Agreement shall be in full force
and effect and shall have been duly recorded or filed in such manner and in such
places as required by the law of the jurisdiction governing such Foreign Pledge
Agreement to establish, perfect, preserve and protect the pledge in favor of the
Collateral Agent, (iii) all taxes, fees and other charges payable in connection
with the such Foreign Pledge Agreement (including the recordation thereof) shall
have been paid in full and (iv) the Pledgee shall have received such other
evidence that all actions necessary or, in the opinion of the Pledgee,
desirable, to perfect and/or render enforceable the security interest purported
to be created by such Foreign Pledge Agreement have been taken (including,
without limitation, the delivery of an opinion from local counsel acceptable to
the Pledgee in form, scope and substance reasonably satisfactory to the
Pledgee).

            (e) Each Pledgor represents and warrants as of the date of each
Credit Event under the Credit Agreement, that the fair market value of the
Margin Stock held by the Pledgors as of the date of such Credit Event does not
exceed $50,000,000.

            17. PLEDGORS' OBLIGATIONS ABSOLUTE, ETC. The obligations of each
Pledgor under this Agreement shall be absolute and unconditional and shall
remain in full force

<PAGE>
                                                                       Exhibit H
                                                                         Page 27

and effect without regard to, and shall not be released, suspended, discharged,
terminated or otherwise affected by, any circumstance or occurrence whatsoever,
including, without limitation:

            (i) any renewal, extension, amendment or modification of, or
      addition or supplement to or deletion from any of the Secured Debt
      Agreements, or any other instrument or agreement referred to therein, or
      any assignment or transfer of any thereof;

            (ii) any waiver, consent, extension, indulgence or other action or
      inaction under or in respect of any such agreement or instrument or this
      Agreement;

            (iii) any furnishing of any additional security to the Pledgee or
      its assignee or any acceptance thereof or any release of any security by
      the Pledgee or its assignee;

            (iv) any limitation on any party's liability or obligations under
      any such instrument or agreement or any invalidity or unenforceability, in
      whole or in part, of any such instrument or agreement or any term thereof;
      or

            (v) any bankruptcy, insolvency, reorganization, composition,
      adjustment, dissolution, liquidation or other like proceeding relating to
      such Pledgor or any Subsidiary of such Pledgor, or any action taken with
      respect to this Agreement by any trustee or receiver, or by any court, in
      any such proceeding, whether or not such Pledgor shall have notice or
      knowledge of any of the foregoing.

            18. TERMINATION; RELEASE. (a) After the Termination Date (as defined
below), this Agreement shall terminate (provided that all indemnities set forth
herein including, without limitation, in Section 11 hereof shall survive any
such termination) and the Pledgee, at the request and expense of the respective
Pledgor, will execute and deliver to such Pledgor a proper instrument or
instruments acknowledging the satisfaction and termination of this Agreement as
provided above, and will duly assign, transfer and deliver to such Pledgor
(without recourse and without any representation or warranty) such of the
Collateral as may be in the possession of the Pledgee and as has not theretofore
been sold or otherwise applied or released pursuant to this Agreement, together
with any moneys at the time held by the Pledgee hereunder. As used in this
Agreement, (i) "CA Termination Date" shall mean the date upon which the Total
Commitment has been terminated, no Letter of Credit or Note under the Credit
Agreement is outstanding and all other Credit Document Obligations have been
paid in full in cash (other than arising from indemnities for which no request
for payment has been made) and (ii) "Termination Date" shall mean the date upon
which (x) the CA Termination Date shall have occurred and (y) if (but only if) a
Notified Non-Credit Agreement Event of Default shall have occurred and be
continuing on the CA Termination Date (and after giving effect thereto), either
(I) such Notified Non-Credit Agreement Event of Default shall have been cured or
waived by the requisite holders of the relevant Obligations subject to such
Notified Non-Credit Agreement Event of Default or (II) all Secured Credit Card
Agreements and Secured Hedging Agreements (if any) giving rise to a Notified
Non-Credit Agreement Event of Default shall have been terminated and all
Obligations subject to such Notified Non-Credit Agreement Event of Default shall
have been paid in full (other than arising from indemnities for which no request
for payment has been made).

<PAGE>
                                                                       Exhibit H
                                                                         Page 28

            (b) So long as no Notified Non-Credit Agreement Event of Default has
occurred and is continuing, in the event that (x) prior to the CA Termination
Date (i) any part of the Collateral is sold or otherwise disposed of in
connection with a sale or other disposition permitted by Section 8.02 of the
Credit Agreement (it being agreed for such purposes that a release will be
deemed "permitted by Section 8.02 of the Credit Agreement" if the proposed
transaction constitutes an exception to Section 8.02 of the Credit Agreement) or
(ii) all or any part of the Collateral is released at the direction of the
Required Lenders (or all the Lenders if required by Section 12.12 of the Credit
Agreement), and the proceeds of such sale or disposition or from such release
(if any) are applied in accordance with the terms of the Credit Agreement to the
extent required to be so applied or (y) on and after the CA Termination Date,
any part of the Collateral is sold or otherwise disposed of without violating
the Existing Senior Notes Documents, the Refinancing Senior Notes Documents, the
Secured Credit Card Agreements and the Secured Hedging Agreements, the Pledgee,
at the request and expense of the respective Pledgor will release such
Collateral from this Agreement, duly assign, transfer and deliver to such
Pledgor (without recourse and without any representation or warranty) such of
the Collateral as is then being (or has been) so sold or released and as may be
in possession of the Pledgee and has not theretofore been released pursuant to
this Agreement (it being understood and agreed that upon the release of all or
any portion of the Collateral by the Collateral Agent at the direction of the
Lenders as provided above, the Lien on the Collateral in favor of the Credit
Card Issuer, the Hedging Creditors, the Existing Senior Notes Creditors and the
Refinancing Senior Notes Creditors shall automatically be released).

            (c) In addition to the foregoing, all Collateral shall be
automatically released (subject to reinstatement upon the occurrence of a new
Trigger Event, with each date of such reinstatement, a "Subsequent Effective
Date") in accordance with the provisions of the last sentence of Section 7.10(b)
of the Credit Agreement.

            (d) At any time that the relevant Pledgor desires that the Pledgee
take any action to give effect to any release of Collateral pursuant to the
foregoing Section 18(a), (b) or (c), it shall deliver to the Pledgee a
certificate signed by an authorized officer describing the Collateral to be
released and certifying its entitlement to a release pursuant to the applicable
provisions of Sections 18(a), (b) or (c) and in such case the Pledgee, at the
request and expense of such Pledgor, will execute such documents as required to
duly release such Collateral and to assign, transfer and deliver to such Pledgor
or its designee (without recourse and without any representation or warranty)
such of the Collateral as is then being released and as may be in the possession
of the Pledgee. The Pledgee shall have no liability whatsoever to any other
Secured Creditor as the result of any release of Collateral by it in accordance
with (or which the Pledgee in good faith believes to be in accordance with) this
Section 18. Upon any release of Collateral pursuant to Section 18(a), (b) or
(c), so long as no Noticed Event of Default is then in existence, none of the
Secured Creditors shall have any continuing right or interest in such
Collateral, or the proceeds thereof (subject to reinstatement rights upon the
occurrence of a new Trigger Event in the case of a release pursuant to Section
18(c)).

            19. NOTICES, ETC. All notices and other communications provided for
hereunder shall be in writing (including telegraphic, telex, facsimile
transmission or cable communication) and mailed, telegraphed, telexed,
telecopied, cabled or delivered (including by way of overnight courier):

<PAGE>
                                                                       Exhibit H
                                                                         Page 29

            (i) if to any Pledgor, at its address set forth opposite its
      signature below;

            (ii) if to the Pledgee, at:

                  JPMorgan Chase Bank
                  270 Park Avenue
                  New York, New York  10017
                  Attention:  Raju Nanoo
                  Tel:  212-270-2272
                  Fax:  212-270-5120

            (iii) if to any Lender (other than the Pledgee), at such address as
      such Lender shall have specified in the Credit Agreement;

            (iv) if to any Credit Card Issuer, at such address as such Credit
      Card Issuer shall have specified in writing to the Pledgors and the
      Pledgee;

            (v) if to any Hedging Creditor, at such address as such Hedging
      Creditor shall have specified in writing to the Pledgors and the Pledgee;

            (vi) if to any Existing Senior Notes Creditor, at such address of
      the Existing Senior Notes Trustee as the Existing Senior Notes Trustee
      shall have specified in writing to the Pledgors and the Pledgee;

            (vii) if to any Refinancing Senior Notes Creditor, at such address
      of the Refinancing Senior Notes Trustee as the Refinancing Senior Notes
      Trustee shall have specified in writing to the Pledgors and the Pledgee;

or at such other address as shall have been furnished in writing by any Person
described above to the party required to give notice hereunder. Except as
otherwise expressly provided herein, all such notices and communications shall
be deemed to have been duly given or made when received.

            20. WAIVER; AMENDMENT. None of the terms and conditions of this
Agreement may be changed, waived, modified or varied in any manner whatsoever
unless in writing duly signed by the Pledgee (with the consent of (x) if prior
to the CA Termination Date, the Required Lenders or, to the extent required by
Section 12.12 of the Credit Agreement, all of the Lenders and (y) if on and
after the CA Termination Date, the holders of at least a majority of the
outstanding principal amount of the Obligations remaining outstanding), and each
Pledgor affected thereby (it being understood that the addition or release of
any Pledgor hereunder shall not constitute a change, waiver, discharge or
variance affecting any Pledgor other than the Borrower and the Pledgor so added
or released), provided that any change, waiver, modification or variance
affecting the rights and benefits of a single Class of Secured Creditors (and
not all Secured Creditors in a like or similar manner) shall require the written
consent of the Requisite Creditors of such Class of Secured Creditors. For the
purpose of this Agreement, the term "Class" shall mean each class of Secured
Creditors, i.e., whether (v) the Lender Creditors as holders of the Credit
Document Obligations, (w) the Credit Card Issuers as holders of the Credit Card
Obligations, (x) the Hedging Creditors as holders of the Hedging Obligations,
(y) the

<PAGE>
                                                                       Exhibit H
                                                                         Page 30

Existing Senior Notes Creditors as holders of the Existing Senior Notes
Obligations, or (z) the Refinancing Senior Notes Creditors as holders of the
Refinancing Senior Notes Obligations. For the purpose of this Agreement, the
term "Requisite Creditors" of any Class shall mean each of (v) with respect to
each of the Credit Document Obligations, the Required Lenders, (w) with respect
to the Credit Card Obligations, the holders of at least a majority of all Credit
Card Obligations outstanding from time to time, (x) with respect to the Hedging
Obligations, the holders of at least a majority of all Secured Hedging
Obligations outstanding from time to time, (y) with respect to the Existing
Senior Notes Obligations, the holders of at least a majority of the outstanding
principal amount of the Existing Senior Notes, and (z) with respect to the
Refinancing Senior Notes Obligations, the holders of at least a majority of the
outstanding principal amount of the Refinancing Senior Notes.

            21. MISCELLANEOUS. This Agreement shall create a continuing security
interest in the Collateral and shall (i) remain in full force and effect,
subject to release and/or termination as set forth in Section 18, (ii) be
binding upon each Pledgor, its successors and assigns, and (iii) inure, together
with the rights and remedies of the Pledgee hereunder, to the benefit of the
Pledgee, the other Secured Creditors and their respective successors,
transferees and assigns. This Agreement shall be construed and enforced in
accordance with and governed by the law of the State of New York. The headings
of the several sections and subsections in this Agreement are for purposes of
reference only and shall not limit or define the meaning hereof. This Agreement
may be executed in any number of counterparts, each of which shall be an
original, but all of which together shall constitute one instrument. In the
event that any provision of this Agreement shall prove to be invalid or
unenforceable, such provision shall be deemed to be severable from the other
provisions of this Agreement which shall remain binding on all parties hereto.

            22. WAIVER OF JURY TRIAL. Each party hereto irrevocably waives all
right to a trial by jury in any action, proceeding or counterclaim arising out
of or relating to this Agreement or the transactions contemplated hereby.

            23. ADDITIONAL PLEDGORS. It is understood and agreed that any
Subsidiary of Parent that is required to become a party to this Agreement after
the date hereof pursuant to the requirements of the Credit Agreement shall
become a Pledgor hereunder by (x) executing a counterpart hereof and/or an
assumption agreement in form and substance satisfactory to the Collateral Agent,
(y) delivering supplements to Annexes A through E hereto, as are necessary to
cause such Annexes to be complete and accurate with respect to such additional
Pledgor on such date and (z) taking all actions as specified in this Agreement,
in each case with all documents required above to be delivered to the Collateral
Agent and with all documents and action required above to be taken to the
reasonable satisfaction of the Collateral Agent.

            24. NO THIRD PARTY BENEFICIARIES. This Agreement is entered into
solely for the benefit of the parties hereto and their respective successors and
assigns and for the benefit of the Secured Creditors from time to time and their
respective successors and assigns and, except for the Secured Creditors and
their successors and assigns, there shall be no third party beneficiaries
hereof, nor shall any Person other than the parties hereto and their respective
successors and assigns, and the Secured Creditors and their respective
successors and assigns, be

<PAGE>
                                                                       Exhibit H
                                                                         Page 31

entitled to enforce the provisions hereof or have any claims against any party
hereto (or any Secured Creditor) or their successors and assigns arising from,
or under, this Agreement.

                                      * * *

<PAGE>

            IN WITNESS WHEREOF, each Pledgor and the Pledgee have caused this
Agreement to be executed and delivered by their duly authorized officers as of
the date first above written.

                                    REYNOLDS AMERICAN INC.,
                                        as a Pledgor

                                    By: /s/ Lynn L. Lane
                                       -----------------------------------------
                                        Title: Senior Vice President & Treasurer

                                     R.J. REYNOLDS TOBACCO HOLDINGS,
                                        INC., as a Pledgor

                                    By:  /s/ Lynn L. Lane
                                       -----------------------------------------
                                        Title: Senior Vice President & Treasurer

                                     R.J. REYNOLDS TOBACCO COMPANY,
                                        as a Pledgor

                                    By:  /s/ Lynn L. Lane
                                       -----------------------------------------
                                        Title: Senior Vice President & Treasurer

                                     RJR ACQUISITION CORP.,
                                        as a Pledgor

                                    By:  /s/ Lynn L. Lane
                                       -----------------------------------------
                                        Title: Vice President & Treasurer

                                     GMB, INC.,
                                        as a Pledgor

                                    By:  /s/ Daniel A. Fawley
                                       -----------------------------------------
                                        Title: Treasurer

                                     FHS, INC.,
                                        as a Pledgor

                                    By:  /s/ Caroline M. Price
                                       -----------------------------------------
                                        Title: President

<PAGE>

                                     R.  J. REYNOLDS TOBACCO CO.,
                                        as a Pledgor

                                    By:  /s/ Lynn L. Lane
                                       -----------------------------------------
                                        Title: Treasurer

                                     RJR PACKAGING, LLC,
                                        as a Pledgor

                                    By:  /s/ Lynn L. Lane
                                       -----------------------------------------
                                        Title: Treasurer

                                     BWT BRANDS, INC.,
                                        as a Pledgor

                                    By:  /s/ Daniel A. Fawley
                                       -----------------------------------------
                                        Title: Treasurer

Acknowledged And Agreed:

JPMORGAN CHASE BANK,
    as Collateral Agent and Pledgee

By /s/ Robert T. Sacks
   ---------------------------------
   Title: Managing Director<PAGE>

                                                                   EXHIBIT 10.10

This Mortgage was prepared by,                         This document is intended
and when recorded should be returned to:                       to be recorded in
                                                 Cherokee County, South Carolina

Jeffrey J. Temple, Esq.
White & Case LLP
1155 Avenue of the Americas
New York, New York 10036
(212) 819-8729
1107993-0083

MORTGAGE, SECURITY AGREEMENT, ASSIGNMENT OF LEASES, RENTS AND PROFITS, FINANCING
                          STATEMENT AND FIXTURE FILING

                                    made by

                         R. J. REYNOLDS TOBACCO COMPANY,

                                as the Mortgagor,

                                       to

                              JPMorgan Chase Bank,
 as Administrative Agent and Collateral Agent for Various Lending Institutions,
                                as the Mortgagee

THIS MORTGAGE CONSTITUTES A FIXTURE FINANCING STATEMENT FILING PURSUANT TO
SECTION 36-9-402 OF THE SOUTH CAROLINA CODE OF LAWS

<PAGE>

MORTGAGE, SECURITY AGREEMENT, ASSIGNMENT OF LEASES, RENTS AND PROFITS, FINANCING
                          STATEMENT AND FIXTURE FILING

                  THIS MORTGAGE, SECURITY AGREEMENT, ASSIGNMENT OF LEASES, RENTS
AND PROFITS, FINANCING STATEMENT AND FIXTURE FILING dated as of July 30, 2004
(as amended, modified or supplemented from time to time, this "Mortgage") made
by R. J. Reynolds Tobacco Company, a North Carolina Corporation (the
"Mortgagor"), having an address at 401 North Main Street, Winston-Salem, North
Carolina 27102 as the Mortgagor to JPMorgan Chase Bank, (together with any
successor Mortgagee, the "Mortgagee"), having an address at 270 Park Avenue, New
York, NY 10017, as Administrative Agent and Collateral Agent for the benefit of
the Secured Creditors (as defined below).

                  All capitalized terms used but not otherwise defined herein
shall have the same meanings ascribed to such terms in the Credit Agreement
described below.

                                   WITNESSETH:

                  WHEREAS, Reynolds American Inc. (the "Parent"). R.J. Reynolds
Tobacco Holdings, Inc. (the "Borrower"), the various lending institutions from
time to time party thereto (the "Lenders") and the Mortgagee, as Administrative
Agent, have entered into a Credit Agreement, dated as of May 7, 1999, as amended
and restated as of November 17, 2000, as further amended and restated as of May
10, 2002, and further amended and restated as of July 30, 2004, providing for
the making of Loans to the Borrower and the issuance of, and participation in,
Letters of Credit for the account of the Borrower, in the aggregate principal
amount of up to $486,250,000, all as contemplated therein (with the Lenders,
each Letter of Credit Issuer, the Administrative Agent, the Senior Managing
Agents, and the Collateral Agent being herein collectively called the "Lender
Creditors")(as the same may be further amended, modified, extended, renewed,
replaced, restated, supplemented and/or refinanced from time to time, and
including any agreement extending the maturity of, or refinancing or
restructuring (including, but not limited to, the inclusion of additional
borrowers or guarantors thereunder or any increase in the amount borrowed) all
or any portion of, the indebtedness under such agreement or any successor
agreement, whether or not with the same agent, trustee, representative, lender
or holders, the "Credit Agreement"; provided that, with respect to any agreement
providing for the refinancing or replacement of indebtedness under the Credit
Agreement, such agreement shall only be treated as, or as part of, the Credit
Agreement hereunder if (x) either (A) all obligations under the Credit Agreement
being refinanced or replaced shall be paid in full at the time of such
refinancing or replacement, and all commitments and letters of credit issued
pursuant to the refinanced or replaced Credit Agreement shall have terminated in
accordance with their terms or (B) the Required Lenders shall have consented in
writing to the refinancing or replacement indebtedness being treated as
indebtedness pursuant to the Credit Agreement, and (y) a notice to the effect
that the refinancing or replacement indebtedness shall be treated as issued
under the Credit Agreement shall be delivered by the Borrower to the Collateral
Agent);

                  WHEREAS, the Parent and/or one or more of its Subsidiaries has
from time to time entered into, and/or may in the future from time to time enter
into, one or more (i) interest

<PAGE>

rate protection agreements (including, without limitation, interest rate swaps,
caps, floors, collars and similar agreements), (ii) foreign exchange contracts,
currency swap agreements, commodity agreements or other similar agreements or
arrangements designed to protect against the fluctuations in currency values
and/or (iii) other types of hedging agreements from time to time (each such
agreement or arrangement with a Hedging Creditor (as hereinafter defined),
together with the Existing Interest Rate Swap Agreement, a "Secured Hedging
Agreement"), with any Lender or any affiliate thereof or a syndicate of
financial institutions organized by a Lender or an affiliate of a Lender (even
if any such Lender ceases to be a Lender under the Credit Agreement for any
reason) (any such Lender, affiliate or other financial institution that
participates therein, together with Calyon (as counterparty to the Existing
Interest Rate swap Agreement), and in each case their subsequent successors and
assigns collectively, the "Hedging Creditors", and together with the Lender
Creditors, the "Lender Secured Creditors");

                  WHEREAS, the Borrower and the trustee thereunder (the
"Existing Senior Notes Trustee"), on behalf of the holders of the Existing
Senior Notes (such holders, together with the Existing Senior Notes Trustee, the
"Existing Senior Notes Creditors"), have from time to time entered into, and may
in the future from time to time enter into, one or more Indentures
(collectively, as amended, modified or supplemented from time to time, the
"Existing Senior Notes Indenture" and, together with the Existing Senior Notes,
the "Existing Senior Notes Documents") providing for the issuance of Existing
Senior Notes by the Borrower in the original principal amount of $700,000,000;

                  WHEREAS, the Borrower and the trustee or trustees thereunder
(collectively, the "Refinancing Senior Notes Trustee"), on behalf of the holders
of the Refinancing Senior Notes (such holders, together with the Refinancing
Senior Notes Trustee, the "Refinancing Senior Notes Creditors", and together
with the Lender Secured Creditors and the Existing Senior Notes Creditors, the
"Secured Creditors"), may from time to time enter into one or more Indentures
(collectively, as amended, modified or supplemented from time to time, the
"Refinancing Senior Notes Indenture" and, together with the Refinancing Senior
Notes, the "Refinancing Senior Notes Documents") providing for the issuance of
Refinancing Senior Notes by the Borrower, in the original principal amount of
$750,000,000;

                  WHEREAS, pursuant to the Subsidiary Guaranty, the Mortgagor
has (together with the other Subsidiaries of the Borrower party thereto) jointly
and severally guaranteed to the Lender Secured Creditors the payment when due of
the Guaranteed Obligations (as and to the extent defined in the Subsidiary
Guaranty);

                  WHEREAS, the Mortgagor has guaranteed to the Existing Senior
Notes Creditors the payment when due of principal, premium (if any) and interest
on the Existing Senior Notes;

                  WHEREAS, the Mortgagor has guaranteed to the Refinancing
Senior Notes Creditors the payment when due of principal, premium (if any) and
interest on the Refinancing Senior Notes;

                  WHEREAS, the Mortgagor is owner of the fee simple title to the
Property (as hereinafter defined), subject to Permitted Liens;

                                      -2-

<PAGE>

                  WHEREAS, the Credit Agreement requires this Mortgage be
executed and delivered to the Mortgagee by the Mortgagor and the Secured Hedging
Agreements, the Existing Senior Notes Indenture and the Refinancing Senior Notes
Indenture, require that this Mortgage secure the respective Obligations as
provided herein; and

                  WHEREAS, the Mortgagor desires to enter into this Mortgage to
satisfy the condition in the preceding paragraph and to secure (and this
Mortgage shall secure) the following:

                  (i)      the full and prompt payment when due (whether at the
         stated maturity, by acceleration or otherwise) of all obligations
         (including obligations which, but for the automatic stay under Section
         362(a) of the Bankruptcy Code, would become due) and liabilities of the
         Mortgagor, now existing or hereafter incurred under, arising out of or
         in connection with any Credit Document to which the Mortgagor is a
         party (including, without limitation, indemnities, fees and interest
         (including all interest that accrues after the commencement of any
         case, proceeding or other action relating to the bankruptcy,
         insolvency, reorganization or similar proceeding of the Borrower or any
         other Credit Party at the rate provided for in the respective
         documentation, whether or not a claim for post-petition interest is
         allowed in any such proceeding)), as described in Schedule I hereto and
         the due performance of and compliance by the Mortgagor with the terms
         of each such Credit Document (all such obligations and liabilities
         under this clause (i), except to the extent consisting of obligations
         or liabilities with respect to Secured Hedging Agreements, being herein
         collectively called the "Credit Document Obligations");

                  (ii)     in accordance with Section 29-3-50 of the South
         Carolina Code of Laws (1976), as amended, all future advances and
         re-advances that may subsequently be made to the Mortgagor under the
         Credit Agreement and evidenced by the Notes, Loans, commitments or
         other notes or instruments, and all modifications, renewals, or
         extensions thereof, the maximum amount of all Credit Document
         Obligations outstanding at one time secured by this Mortgage not to
         exceed $486,250,000, plus interest thereon, attorneys' fees and court
         costs;

                  (iii)    the full and prompt payment when due (whether at the
         stated maturity, by acceleration or otherwise) of all obligations
         (including obligations which, but for the automatic stay under Section
         362(a) of the Bankruptcy Code, would become due) and liabilities of the
         Mortgagor, now existing or hereafter incurred under, arising out of or
         in connection with any Secured Hedging Agreement (including, all
         obligations, if any, of the Mortgagor under the Subsidiary Guaranty in
         respect of Secured Hedging Agreements), and all interest that accrues
         after the commencement of any case, proceeding or other action relating
         to the bankruptcy, insolvency, reorganization or similar proceeding of
         the Borrower or any other Credit Party at the rate provided for in the
         respective documentation, whether or not a claim for post-petition
         interest is allowed in any such proceeding, and the due performance and
         compliance by the Mortgagor with all of the terms, conditions and
         agreements contained therein (all such obligations and liabilities
         under this clause (ii) being herein collectively called the "Hedging
         Obligations");

                                      -3-

<PAGE>

                  (iv)     the full and prompt payment when due (whether at the
         stated maturity, by acceleration or otherwise) of all obligations
         (including obligations which, but for the automatic stay under Section
         362(a) of the Bankruptcy Code, would become due) and liabilities of the
         Mortgagor owing to the Existing Senior Notes Creditors (including,
         without limitation, indemnities, fees and interest (including all
         interest that accrues after the commencement of any case, proceeding or
         other action relating to the bankruptcy, insolvency, reorganization or
         similar proceeding of the Borrower or any other Credit Party at the
         rate provided for in the respective documentation, whether or not a
         claim for post-petition interest is allowed in any such proceeding)),
         now existing or hereafter incurred under, arising out of or in
         connection with any Existing Senior Notes Document, including, all
         obligations, if any, of the Mortgagor under any guaranty in respect of
         the Existing Senior Notes and the due performance and compliance by the
         Mortagor with the terms of each such Existing Senior Notes Document
         (all such obligations and liabilities under this clause (iii) being
         herein collectively called the "Existing Senior Notes Obligations");

                  (v)      the full and prompt payment when due (whether at the
         stated maturity, by acceleration or otherwise) of all obligations
         (including obligations which, but for the automatic stay under Section
         362(a) of the Bankruptcy Code, would become due) and liabilities of the
         Mortgagor owing to the Refinancing Senior Notes Creditors (including,
         without limitation, indemnities, fees and interest (including all
         interest that accrues after the commencement of any case, proceeding or
         other action relating to the bankruptcy, insolvency, reorganization or
         similar proceeding of the Borrower or any other Credit Party at the
         rate provided for in the respective documentation, whether or not a
         claim for post-petition interest is allowed in any such proceeding)),
         now existing or hereafter incurred under, arising out of or in
         connection with any Refinancing Senior Notes Document, including, all
         obligations, if any, of the Mortgagor under a guaranty in respect of
         the Refinancing Senior Notes and the due performance and compliance by
         the Mortgagor with the terms of each such Refinancing Senior Notes
         Document (all such obligations and liabilities under this clause (iv)
         being herein collectively called the "Refinancing Senior Notes
         Obligations");

                  (vi)     any and all sums advanced by the Mortgagee in order
         to preserve or protect its lien and security interest in the Property;

                  (vii)    in the event of any proceeding for the collection or
         enforcement of any indebtedness, obligations, or liabilities of the
         Mortgagor and/or the Borrower referred to above after an Event of
         Default (as hereinafter defined) shall have occurred and be continuing,
         all expenses of re-taking, holding, preparing for sale or lease,
         selling or otherwise disposing of or realizing on the Property, or of
         any exercise by the Mortgagee of its rights hereunder, together with
         reasonable attorneys' fees and disbursements (as set forth in Section
         4.09 hereof) and court costs;

                  (viii)   any and all other indebtedness now owing or which may
         hereafter be owing by the Mortgagor to the Mortgagee, however and
         whenever incurred or evidenced, whether express or implied, direct or
         indirect, absolute or contingent, or due or to become due; and

                                      -4-

<PAGE>

                  (ix)     any and all renewals, extensions and modifications of
         any of the obligations and liabilities referred to in clauses (i)
         through (vii) above;

all such obligations, liabilities, sums and expenses set forth in clauses (i)
through (viii) above being herein collectively called the "Obligations",
provided that notwithstanding the foregoing, (i) the Existing Senior Notes
Obligations shall be excluded from the Obligations to the extent the Existing
Senior Notes Documents do not require the Existing Senior Notes Obligations to
be secured pursuant to this Mortgage, and (ii) the Refinancing Senior Notes
Obligations shall be excluded from the Obligations to the extent the Refinancing
Senior Notes Documents do not require the Refinancing Senior Notes Obligations
to be secured pursuant to this Mortgage. The maximum amount of all Obligations
outstanding at one time secured by this Mortgage shall not exceed
$1,936,250,000, plus interest thereon, attorneys' fees and court costs. The
stated last maturity date of the Obligations, if not sooner paid or hereafter
extended, is no later than February 13, 2006 (or, if the Existing Senior Notes
due on May 15, 2006 have been refinanced in full with the proceeds of a new
issuance or issuances of Refinancing Senior Notes in an aggregate principal
amount equal to at least the aggregate principal amount of such Existing Senior
Notes so refinanced on or prior to February 13, 2006, January 30, 2007), as such
date may be extended for such Lender pursuant to Section 1.13 of the Credit
Agreement.

                  NOW, THEREFORE, as security for the Obligations and in
consideration of the sum of ten dollars ($10.00) and the other benefits accruing
to the Mortgagor, the receipt and sufficiency of which are hereby acknowledged,
THE MORTGAGOR HEREBY MORTGAGES, GIVES, GRANTS, BARGAINS, SELLS, ASSIGNS,
TRANSFERS, CONVEYS AND CONFIRMS TO THE MORTGAGEE AND ITS SUCCESSORS AND ASSIGNS
FOREVER FOR THE BENEFIT OF THE SECURED CREDITORS, TOGETHER WITH POWER OF SALE
(subject to applicable law) all of the Mortgagor's estate, right, title and
interest, whether now owned or hereafter acquired, whether as lessor or lessee
and whether vested or contingent, in and to all of the following:

                  A.       The land described in Exhibit A hereto, together with
all rights, privileges, franchises and powers related thereto which are
appurtenant to said land or its ownership, including all minerals, oil and gas
and other hydrocarbon substances thereon or therein; waters, water courses,
water stock, water rights (whether riparian, appropriative, or otherwise, and
whether or not appurtenant), sewer rights, shrubs, crops, trees, timber and
other emblements now or hereafter on, under or above the same or any part or
parcel thereof (the "Land");

                  B.       All buildings, structures, tenant improvements and
other improvements of every kind and description now or hereafter located in or
on the Land, including, but not limited to all machine shops, structures,
improvements, rail spurs, dams, reservoirs, water, sanitary and storm sewers,
drainage, electricity, steam, gas, telephone and other utility facilities,
parking areas, roads, driveways, walks and other site improvements of every kind
and description now or hereafter erected or placed on the Land; and all
additions and betterments thereto and all renewals, alterations, substitutions
and replacements thereof (collectively, the "Improvements");

                  C.       All fixtures, attachments, appliances, equipment,
machinery, building materials and supplies, and other tangible personal
property, now or hereafter attached to said Improvements or now or at any time
hereafter located on the Land and/or Improvements includ-

                                      -5-
<PAGE>

ing, but not limited to, artwork, decorations, draperies, furnaces, boilers, oil
burners, piping, plumbing, refrigeration, air conditioning, lighting,
ventilation, disposal and sprinkler systems, elevators, motors, dynamos and all
other equipment and machinery, appliances, fittings and fixtures of every kind
located in or used in the operation of the Improvements, together with any and
all replacements or substitutions thereof and additions thereto, including the
proceeds of any sale or transfer of the foregoing (hereinafter sometimes
collectively referred to as the "Equipment");

                  D.       All surface rights, appurtenant rights and easements,
rights of way, and other rights appurtenant to the use and enjoyment of or used
in connection with the Land and/or the Improvements;

                  E.       All streets, roads and public places (whether open or
proposed) now or hereafter adjoining or otherwise providing access to the Land,
the land lying in the bed of such streets, roads and public places, and all
other sidewalks, alleys, ways, passages, vaults, water courses, strips and gores
of land now or hereafter adjoining or used or intended to be used in connection
with all or any part of the Land and/or the Improvements;

                  F.       Any leases, lease guaranties and any other
agreements, relating to the use and occupancy of the Land and/or the
Improvements or any portion thereof, including but not limited to any use or
occupancy arrangements created pursuant to Section 365(h) of he Bankruptcy Code
or otherwise in connection with the commencement or continuance of any
bankruptcy, reorganization, arrangement, insolvency, dissolution, receivership
or similar proceedings, or any assignment for the benefit of creditors, in
respect of any tenant or occupant of any portion of the Land and/or the
Improvements (collectively, "Leases");

                  G.       All revenues, rents, receipts, income, accounts
receivable, issues and profits of the Property (collectively, "Rents");

                  H.       To the extent assignable, all permits, licenses and
rights relating to the use, occupation and operation of the Land and the
Improvements, any business conducted thereon or therein and any part thereof;

                  I.       All real estate tax refunds payable to the Mortgagor
with respect to the Land and/or the Improvements, and refunds, credits or
reimbursements payable with respect to bonds, escrow accounts or other sums
payable in connection with the use, development, or ownership of the Land or
Improvements;

                  J.       Any claims or demands with respect to any proceeds of
insurance in effect with respect to the Land and/or the Improvements, including
interest thereon, which the Mortgagor now has or may hereafter acquire and any
and all awards made for the taking by eminent domain, condemnation or by any
proceedings, transfer or purchase in lieu or in anticipation of the exercise of
said rights, or for a change of grade, or for any other injury to or decrease in
the value of the whole or any part of the Property;

                                      -6-

<PAGE>

                  K.       Any zoning lot agreements and air rights and
development rights which may be vested in the Mortgagor together with any
additional air rights or development rights which have been or may hereafter be
conveyed to or become vested in the Mortgagor; and

                  L.       All proceeds and products of the conversion,
voluntary or involuntary, including, without limitation, those from sale,
exchange, transfer, collection, loss, damage, disposition, substitution or
replacement of any of the foregoing; whether into cash, liquidated claims or
otherwise.

                  All of the foregoing estates, right, properties and interests
hereby conveyed to the Mortgagee may be referred to herein as the "Property".
Notwithstanding the foregoing, the Property that secures the Existing Senior
Notes Obligations and the Refinancing Senior Notes Obligations shall be limited
to Property consisting of any shares of stock, indebtedness or other obligations
of a Subsidiary of Parent or any Principal Property (as defined in the Existing
Senior Notes Indenture and the Refinancing Senior Notes Indenture (in each case
as in effect on the date hereof)) of the Mortgagor (the "Designated Trust
Property"), all of which Collateral shall also ratably secure all other
Obligations, and the Trust Property Proceeds (as defined in Section 4.04(a))
that are to be applied to the Existing Senior Notes Obligations and the
Refinancing Senior Notes Obligations shall be limited to Trust Property Proceeds
resulting from the sale of, and Rents and other amounts generated by the
holding, leasing, management, operation or other use pursuant to this Mortgage
of, the Designated Trust Property, with such Trust Property Proceeds to also be
applied ratably to all other Obligations.

                  TO HAVE AND TO HOLD the above granted and described Property
unto the Mortgagee and to its successors and assigns forever, and the Mortgagor
hereby covenants and agrees on behalf of itself and its successors and assigns
to warrant and defend the Property unto the Mortgagee; its successors and
assigns against the claim or claims of all persons and parties whatsoever.

                  PROVIDED, HOWEVER, that if Obligations shall have been paid in
cash at the time and in the manner stipulated therein and all other sums payable
hereunder and all other indebtedness secured hereby shall have been paid and all
other covenants contained in the Credit Documents shall have been performed,
then, in such case the Mortgagee shall, subject to the provisions of Section
6.19 of this Mortgage, at the request and expense of the Mortgagor, satisfy this
Mortgage (without recourse and without any representation or warranty) and the
estate, right, title and interest of the Mortgagee in the Property shall cease,
and upon payment to the Mortgagee of all reasonable costs and expenses incurred
for the preparation of the release hereinafter referenced and all recording
costs if allowed by law, the Mortgagee shall cancel and surrender the estate and
interest created by this Mortgage.

                                    ARTICLE I

                     REPRESENTATIONS, WARRANTIES, COVENANTS

                  1.01 Title to this Property. The Mortgagor represents and
warrants: (a) it has good and marketable fee title to the Property, free and
clear of any liens and encumbrances, other

                                      -7-

<PAGE>

than Liens permitted under Section 8.03 of the Credit Agreement and any other
easements, rights and claims of record (collectively "Permitted Liens"), and is
lawfully seized and possessed of the Property; (b) this Mortgage is a valid
first priority security interest and lien upon the Property subject to the
Permitted Liens; (c) it has full power and authority to encumber the Property in
the manner set forth herein; and (d) there are no defenses or offsets to this
Mortgage or to the Obligations which it secures. The Mortgagor shall preserve
such title and the validity and priority of this Mortgage and shall forever
warrant and defend the same to the Mortgagee and the Mortgagee's successors and
assigns against the claims of all persons and parties whatsoever. The Mortgagor
shall take no action nor shall it fail to take any action which could result in
an impairment of the lien of this Mortgage or which could form the basis for any
Person(s) to claim an interest in the Property (including, without limitation,
any claim for adverse use or possession or any implied dedication or easement by
prescription other than leases permitted under the Credit Agreement). If any
Lien (other than Permitted Liens) is asserted against the Property, the
Mortgagor shall promptly, at its expense: (a) provide the Mortgagee with written
notice of such Lien, including information relating to the amount of the Lien
asserted; and (b) pay the Lien in full or take such other action to cause the
Lien to be released, or, so long as the lien of this Mortgage is not
compromised, contest the same pursuant to the provisions of the Credit
Agreement. From and after the occurrence of an Event of Default, the Mortgagee
may, but shall not be obligated, to pay any such asserted Lien if not timely
paid by the Mortgagor.

                  1.02 Compliance with Law. The Mortgagor represents and
warrants that it possesses all material certificates, licenses, authorizations,
registrations, permits and/or approvals necessary for the ownership, operation,
leasing and management of the Property, including, without limitation, all
material environmental permits, all of which are in full force and effect and
not the subject of any revocation proceeding, undisclosed amendment, release,
suspension, forfeiture or the like. The present and contemplated use and
occupancy of the Property does not conflict with or violate any such
certificate, license, authorization, registration, permit or approval,
including, without limitation, any certificate of occupancy which may have been
issued for the Property. The Mortgagor will not take any action, or fail to take
any required action, so as to compromise or adversely affect the zoning
classification of the Property.

                  1.03 Payment and Performance of Obligations. Subject to the
terms of the Credit Agreement, the Mortgagor shall pay all of the Obligations
when due and payable without offset or counterclaim, and shall observe and
comply in all material respects with all of the terms, provisions, conditions,
covenants and agreements to be observed and performed by it under this Mortgage,
the other Credit Documents to which it is a party, the Secured Hedging
Agreements, the Existing Senior Notes Documents and the Refinancing Senior Notes
Documents (collectively, the "Secured Debt Agreements").

                  1.04 Maintenance, Repair, Alterations, Etc. The Mortgagor
will: (i) keep and maintain the Property, to the extent used in the Mortgagor's
day to day business, in good condition and repair (normal wear and tear
excepted); (ii) make or cause to be made, as and when necessary, all material
repairs, renewals and replacements, structural and nonstructural, exterior and
interior, ordinary and extraordinary, foreseen and unforeseen which are
necessary to so maintain the Property in the Mortgagor's reasonable business
judgment; (iii) restore any Improvement, to the extent used in Mortgagor's day
to day business, which may be damaged or destroyed so that the same shall be at
least substantially equal to its value, condition and

                                      -8-

<PAGE>

character immediately prior to the damage or destruction; (iv) not commit or
permit any waste or deterioration (normal wear and tear excepted) of the
Property, to the extent used in the Mortgagor's day to day business; (v) not
permit any material Improvements, to the extent used in the Mortgagor's day to
day business, to be demolished or substantially altered in any manner that
substantially decreases the value thereof; (vi) promptly pay when due all claims
for labor performed and materials furnished therefor or contest such claim and;
(vii) comply with all applicable statutes, regulations and orders of, and all
applicable restrictions imposed by, all governmental authorities having
jurisdiction over the Property, as well as comply with the provisions of any
lease, easement or other agreement affecting all or any part of the Property.

                  1.05 Required Insurance; Use of Proceeds. The Mortgagor will,
at its expense, at all times provide, maintain and keep in force policies of
property, hazard and liability insurance in accordance with Section 7.03 of the
Credit Agreement with respect to the Property, together with statutory workers'
compensation insurance with respect to any work to be performed on or about the
Property. To the extent required under the Credit Agreement, the Mortgagor shall
give prompt written notice to the Mortgagee of the occurrence of any material
damage to or material destruction of the Improvements or the Equipment. In the
event of any damage to or destruction of the Property or any part thereof, so
long as a Noticed Event of Default has not occurred and is not continuing the
Mortgagee will release any interest they have in the proceeds of any insurance
to the Mortgagor on account of such damage or destruction and the Mortgagor may
use such proceeds for repair restoration replacement or other business purposes
as the Mortgagor may reasonably determine. In the event of foreclosure of the
lien and interest of this Mortgage or other transfer of title or assignment of
the Property in extinguishment, in whole or in part, of the Obligations, all
right, title and interest of the Mortgagor in and to all proceeds then payable
under any policy of insurance required by this Mortgage shall inure to the
benefit of and pass to the successor in interest of the Mortgagor, or the
purchaser or mortgagor of the Property. After the occurrence of an Event of
Default, the Mortgagee shall be afforded the right to participate in and approve
the settlement of any claim made by the Mortgagor against the insurance company.

                  1.06 Preservation of Property. The Mortgagor agrees to pay for
any and all reasonable and actual fees, costs and expenses of whatever kind or
nature incurred in connection with the creation, preservation or protection of
the Mortgagee's liens on, and security interest in, the Property, including,
without limitation, all fees and taxes in connection with the recording or
filing of instruments and documents in public offices (including stamp and
mortgage or intangible recording taxes or other taxes imposed on the Mortgagee
by virtue of its ownership of this Mortgage), which are imposed upon the
recording of this Mortgage or thereafter, all reasonable attorneys' fees,
payment or discharge of any taxes or Liens upon or in respect of the Property,
premiums for insurance with respect to the Property and all other reasonable
fees, costs and expenses in connection with protecting, maintaining or
preserving the Property and the Mortgagee's interest therein, whether through
judicial proceedings or otherwise, or in defending or prosecuting any actions,
suits or proceedings arising out of or relating to the Property.

                  1.07 Condemnation. Should the Mortgagor receive any notice
that a material portion of the Property or interest therein may be taken or
damaged by reason of any public improvements or condemnation proceeding or in
any other similar manner (a "Condemnation"), the Mortgagor, to the extent
required under the Credit Agreement, shall give prompt written notice thereof to
the Mortgagee. In the event of any Condemnation, after the occurrence and

                                      -9-

<PAGE>

during the continuation of any Event of Default, the Mortgagee shall have the
right to participate in any negotiations or litigation and shall have the right
to approve any settlement. So long as no Noticed Event of Default has occurred
and is continuing, the Mortgagee will release any interest they have in any and
all compensation, awards, damages and proceeds paid to the Mortgagor or the
Borrower on account of such Condemnation and the Mortgagor may use such
compensation awards, damages and proceeds for repair, restoration, replacement
or other business purposes as the Mortgagor may reasonably determine.

                  1.08 Inspections. The Mortgagor hereby authorizes the
Mortgagee, its agents, employees and representatives, upon reasonable prior
written notice to the Mortgagor (except in an emergency or following the
occurrence and during the continuance of any Event of Default, in which case
notice shall not be required) to visit and inspect the Property or any
portion(s) thereof, all at such reasonable times and as often as the Mortgagee
may reasonably request.

                  1.09 Transfers. Except as otherwise permitted in accordance
with the terms of the Credit Agreement, no part of the Property or of any legal
or beneficial interest in the Property shall be sold, assigned, conveyed,
transferred or otherwise disposed of (whether voluntarily or involuntarily,
directly or indirectly, by sale of stock or any interest in the Mortgagor, or by
operation of law or otherwise).

                  1.10 After Acquired Property Interests. Subject to applicable
law, all right, title and interest of the Mortgagor in and to all extensions,
improvements, betterments, renewals, substitutes and replacements of, and all
additions and appurtenances to, the Property, hereafter acquired by, or released
to, the Mortgagor or constructed, assembled or placed by the Mortgagor on the
Land, and all conversions of the security constituted thereby (collectively,
"After Acquired Property Interests"), immediately upon such acquisition,
release, construction, assembling, placement or conversion, as the case may be,
and in each such case, without any further mortgage, conveyance, assignment or
other act by the Mortgagor, shall become subject to the lien of this Mortgage as
fully and completely, and with the same effect, as though now owned by the
Mortgagor and specifically described in the granting clauses hereof. The
Mortgagor shall execute and deliver to the Mortgagee all such other assurances,
mortgages, conveyances or assignments thereof as the Mortgagee may reasonably
require for the purpose of expressly and specifically subjecting such After
Acquired Property Interests to the lien of this Mortgage. The Mortgagor hereby
irrevocably authorizes and appoints the Mortgagee as the agent and
attorney-in-fact of the Mortgagor to execute all such documents and instruments
on behalf of the Mortgagor, which appointment shall be irrevocable and coupled
with an interest, if the Mortgagor fails or refuses to do so within ten (10)
days after a request therefor by the Mortgagee.

                                   ARTICLE II

                               SECURITY AGREEMENT

                  2.01 Grant of Security; Incorporation by Reference. This
Mortgage shall, in addition to constituting a mortgage lien on and security
interest in those portions of the Property classified as real property
(including fixtures to the extent they are real property), constitute a security
agreement within the meaning of the Uniform Commercial Code or within the
meaning

                                      -10-

<PAGE>

of the common law with respect to those parts of the Property classified as
personal property (including fixtures to the extent they are personal property)
to the extent a security interest therein can be created by this Mortgage. The
Mortgagor hereby grants to the Mortgagee a security interest in and to the
following property whether now owned or hereafter acquired (collectively, the
"Secured Property") for the benefit of the Mortgagee to further secure the
payment and performance of the Obligations:

                  (a)      Those parts of the Property classified as personal
         property (including (i) fixtures to the extent they are personal
         property and (ii) personal property and fixtures that are leased, but
         only to the extent the Mortgagor can grant to the Mortgagee a security
         interest therein without breaching the terms of such lease);

                  (b)      All general intangibles, contract rights, accounts
         and proceeds arising from all insurance policies required to be
         maintained by the Mortgagor and related to the Property hereunder;

                  (c)      All proceeds of any judgment, award or settlement in
         any condemnation or eminent domain proceeding in connection with the
         Property, together with all general intangibles, contract rights and
         accounts arising therefrom;

                  (d)      All permits, consents and other governmental
         approvals in connection with the construction of the Improvements or
         the operation of the Property, to the extent any of the same may be
         assigned, transferred, pledged or subjected to a security interest;

                  (e)      All plans and specifications, studies, tests or
         design materials relating to the design, construction, repair,
         alteration or leasing of the Property, to the extent any of the same
         may be assigned, transferred, pledged or subjected to a security
         interest; and

                  (f)      All cash and non-cash proceeds of the above-mentioned
         items.

                  The provisions contained in the Security Agreement are hereby
incorporated by reference into this Mortgage with the same effect as if set
forth in full herein. In the event of a conflict between the provisions of this
Article II and the Security Agreement, the Security Agreement shall control and
govern and the Mortgagor shall comply therewith.

                  2.02 Fixture Filing and Financing Statements. This Mortgage
constitutes a security agreement, fixture filing and financing statement as
those terms are used in the Uniform Commercial Code. For purposes of this
Section, this Mortgage is to be filed and recorded in, among other places, the
real estate records of the County in which the Land is located and the following
information is included: (1) the Mortgagor shall be deemed the "Debtor" with the
address set forth for the Mortgagor on the first page of this Deed of Trust
which the Mortgagor certifies is accurate; (2) the Mortgagee shall be deemed to
be the "Secured Party" with the address set forth for the Mortgagee on the first
page of this Mortgage and shall have all of the rights of a secured party under
the Uniform Commercial Code; (3) this Mortgage covers goods which are or are to
become fixtures on the real property described in Exhibit A attached hereto; (4)
the name of the record owner of the land is the Debtor; (5) the organizational
identification number of the Debtor is NC0711678 (6) the Debtor is a
corporation, organized under the laws of the State of North Carolina; and (7)
the legal name of the Debtor is R. J. Reynolds Tobacco

                                      -11-

<PAGE>

Company. The Debtor hereby authorizes the Mortgagee to file any financing
statements and terminations thereof or amendments or modifications thereto
without the signature of the Debtor where permitted by law.

                                   ARTICLE III

                    ASSIGNMENT OF LEASES, RENTS AND PROFITS

                  3.01 Assignment. The Mortgagor hereby absolutely, irrevocably
and unconditionally sells, assigns, transfers and conveys to the Mortgagee all
of the Mortgagor's right, title and interest in and to all current and future
Leases and Rents, including those now due, past due, or to become due by virtue
of any Lease or other agreement for the occupancy or use of all or any part of
the Property regardless of to whom the Rents are payable. The Mortgagor intends
that this assignment of Leases and Rents constitutes a present and absolute
assignment and not an assignment for additional security only. Such assignment
to the Mortgagee shall not be construed to bind the Mortgagee to the performance
of any of the covenants, conditions or provisions contained in any such Lease or
otherwise impose any obligation upon the Mortgagee. The Mortgagor covenants that
the Mortgagor will not hereafter collect or accept payment of any Rents more
than one month prior to the due dates of such Rents, and that no payment of any
of the Rents to accrue for any portion of the Property (other than a de minimis
amount) will be waived, released, reduced, discounted or otherwise discharged or
compromised by the Mortgagor, except as may be approved in writing by the
Mortgagee. The Mortgagor agrees that it will not assign any of the Leases or
Rents to any other Person. The Mortgagee shall have no liability for any loss
which may arise from a failure or inability to collect Rents, proceeds or other
payments. The Mortgagor shall maintain all security deposits in accordance with
applicable law.

                  3.02 Revocable License; Agent. Notwithstanding the foregoing,
subject to the terms of this Article III, the Mortgagee grants to the Mortgagor
a revocable license to operate and manage the Property and to collect the Rents
and hereby directs each tenant under a Lease to pay such Rents to, or at the
direction of, the Mortgagor, until such time as the Mortgagee provides notice to
the contrary to such tenants. The Mortgagor shall hold the Rents, or a portion
thereof sufficient to discharge all current sums due in respect of the
Obligations, in trust for the benefit of the Mortgagee for use in the payment of
such sums.

                  3.03 Rents. (a) Upon the occurrence and during the continuance
of a Noticed Event of Default, without the need for notice or demand, the
license granted pursuant to this Article III shall immediately and automatically
be revoked and the Mortgagee shall immediately be entitled to possession of all
Rents, whether or not the Mortgagee enters upon or takes control of the
Property. Upon the revocation of such license, the Mortgagor grants to the
Mortgagee the right, at its option, to exercise all the rights granted in
Section 4.02(a). Nothing herein contained shall be construed as constituting the
Mortgagee a lender in possession in the absence of the taking of actual
possession of the Property by the Mortgagee pursuant to Section 4.02(a). As used
herein, a "Noticed Event of Default" shall mean (i) an Event of Default with
respect to the Borrower under Section 9.05 of the Credit Agreement and (ii) any
other Event of Default in

                                      -12-

<PAGE>

respect of which the Mortgagee has given the Borrower notice that such Event of
Default constitutes a "Noticed Event of Default".

                  (b)      From and after the termination of such license, the
Mortgagor may, at the Mortgagee's direction, be the agent for the Mortgagee in
collection of the Rents and all of the Rents so collected by the Mortgagor shall
be held in trust by the Mortgagor for the sole and exclusive benefit of the
Mortgagee and the Mortgagor shall, within one (1) business day after receipt of
any Rents, pay the same to the Mortgagee to be applied by the Mortgagee as
provided for herein. All Rents collected shall be applied against all expenses
of collection, including, without limitation, attorneys' fees, against costs of
operation and management of the Property and against the Obligations, in
whatever order or priority as to any of the items so mentioned as the Mortgagee
directs in its sole and absolute discretion and without regard to the adequacy
of its security. Neither the demand for or collection of Rents by the Mortgagee
shall constitute any assumption by the Mortgagee of any obligations under any
Lease or agreement relating thereto.

                  (c)      Any reasonable funds expended by the Mortgagee to
take control of and manage the Property and collect the Rents shall become part
of the Obligations secured hereby. Such amounts shall be payable from the
Mortgagor to the Mortgagee upon the Mortgagee's demand therefor and shall bear
interest from the date of disbursement at the interest rate set forth in Section
1.08(c) of the Credit Agreement unless payment of interest at such rate would be
contrary to applicable law, in which event such amounts shall bear interest at
the highest rate which may be collected from the Mortgagor under applicable law.

                  3.04 Sale of Property. (a) Upon any sale of any portion of the
Property by or for the benefit of the Mortgagee pursuant to this Mortgage, the
Rents attributable to the part of the Property so sold shall be included in such
sale and shall pass to the purchaser free and clear of any rights granted herein
to the Mortgagor.

                  (b)      The Mortgagor acknowledges and agrees that, upon
recordation of this Mortgage, the Mortgagee's interest in the Rents shall be
deemed to be fully perfected, "choate" and enforceable against the Mortgagor and
all third parties, including, without limitation, any debtor in possession or
trustee in any case under title 11 of the United States Code, without the
necessity of (i) commencing a foreclosure action with respect to this Mortgage,
(ii) furnishing notice to the Mortgagor or tenants under the Leases, (iii)
making formal demand for the Rents, (iv) taking possession of the Property as a
lender-in-possession, (v) obtaining the appointment of a receiver of the Rents,
(vi) sequestering or impounding the Rents or (vii) taking any other affirmative
action.

                  3.05 Bankruptcy Provisions. Without limiting the provisions of
Article III hereof or the absolute nature of the assignment of the Rents
hereunder, the Mortgagor and the Mortgagee agree that, to the extent that the
assignment of the Rents hereunder is deemed to be other than an absolute
assignment, (a) this Mortgage shall constitute a "security agreement" for
purposes of Section 552(b) of the Bankruptcy Code, (b) the security interest
created by this Mortgage extends to property of the Mortgagor acquired before
the commencement of a bankruptcy case and to all amounts paid as Rents and (c)
such security interest shall extend to all Rents acquired by the estate after
the commencement of any bankruptcy case. Without limitation of the absolute
nature of the assignment of the Rents hereunder, to the extent the

                                      -13-

<PAGE>

Mortgagor (or the Mortgagor's bankruptcy estate) shall be deemed to hold any
interest in the Rents after the commencement of a voluntary or involuntary
bankruptcy case, the Mortgagor hereby acknowledges and agrees that such Rents
are and shall be deemed to be "cash collateral" under Section 363 of the
Bankruptcy Code.

                                   ARTICLE IV

                         EVENTS OF DEFAULT AND REMEDIES

                  4.01 Events of Default. The occurrence of (i) an "Event of
Default" under and as defined in any of the Credit Documents, (ii) any "event of
default" under the Existing Senior Notes Documents or the Refinancing Senior
Notes Documents and (iii) any payment default, after any applicable grace
period, under any Secured Hedging Agreement shall constitute an Event of Default
(each, an "Event of Default") hereunder.

                  4.02 Remedies Upon Default. Upon the occurrence of a Noticed
Event of Default, the Mortgagee may, in the Mortgagee's sole discretion, either
itself or by or through one or more trustees, agents, nominees, assignees or
otherwise, to the fullest extent permitted by law, exercise any or all of the
following rights and remedies individually, collectively or cumulatively:

                  (a)      either in person or by its agent, with or without
         bringing any action or proceeding, or by a receiver appointed by a
         court and without regard to the adequacy of its security, (i) enter
         upon and take possession of the Property or any part thereof and of all
         books, records and accounts relating thereto or located thereon, in its
         own name or in the name of the Mortgagor, and do or cause to be done
         any acts which it deems necessary or desirable to preserve the value of
         the Property or any part thereof or interest therein, collect the
         income therefrom or protect the security hereof; (ii) with or without
         taking possession of the Property make such repairs, alterations,
         additions and improvements as the Mortgagee deems necessary or
         desirable and do any and all acts and perform any and all work which
         the Mortgagee deems necessary or desirable to complete any unfinished
         construction on the Property; (iii) make, cancel or modify Leases and
         sue for or otherwise collect the Rents thereof, including those past
         due and unpaid; (iv) make any payment or perform any act which the
         Mortgagor has failed to make or perform hereunder; (v) appear in and
         defend any action or proceeding purporting to affect the security
         hereof or the rights or powers of the Mortgagee; (vi) pay, purchase,
         contest or compromise any encumbrance, charge or Lien on the Property;
         and (vii) take such other actions as the Mortgagee deems necessary or
         desirable;

                  (b)      commence and maintain one or more actions at law or
         in equity or by any other appropriate remedy (i) to protect and enforce
         the rights of the Mortgagee hereunder, including for the specific
         performance of any covenant or agreement herein contained (which
         covenants and agreements the Mortgagor agrees shall be specifically
         enforceable by injunctive or other appropriate equitable remedy), (ii)
         to collect any sum then due hereunder, (iii) to aid in the execution of
         any power herein granted, or (iv) to foreclose this Mortgage in
         accordance with Section 4.03 hereof;

                                      -14-

<PAGE>

                  (c)      exercise any or all of the remedies available to a
         secured party under the Uniform Commercial Code;

                  (d)      by notice to the Mortgagor (to the extent such notice
         is required to be given under the Credit Documents), but without formal
         demand, presentment, notice of intention to accelerate or of
         acceleration, protest or notice of protest, all of which are hereby
         waived by the Mortgagor, declare all of the indebtedness secured hereby
         to be immediately due and payable, and upon such declaration all of
         such indebtedness shall become and be immediately due and payable,
         anything in this Mortgage or the other Credit Documents to the contrary
         notwithstanding; and

                  (e)      exercise any other right or remedy available to the
         Mortgagee under the Secured Debt Agreements.

                  4.03 Right of Foreclosure. (a) Upon the occurrence of a
Noticed Event of Default, the Mortgagee shall have the right, in its sole
discretion, to proceed at law or in equity to foreclose this Mortgage with
respect to all or any portion of the Property by judicial sale under the
judgment of a Court of competent jurisdiction, in accordance with the applicable
laws of jurisdiction in which the Property is located. If the Property consists
of several lots, parcels or items of Property, the Mortgagee may, in its sole
discretion: (i) designate the order in which such lots, parcels or items shall
be offered for sale or sold, or (ii) elect to sell such lots, parcels or items
through a single sale, or through two or more successive sales, or in any other
manner the Mortgagee deems in its best interest. Should the Mortgagee desire
that more than one sale or other disposition of the Property be conducted, the
Mortgagee may, at its option, cause the same to be conducted simultaneously, or
successively, on the same day, or at such different days or times and in such
order as the Mortgagee may deem to be in its best interests, and no such sale
shall terminate or otherwise affect the lien of this Mortgage on any part of the
Property not sold until all Obligations have been fully paid and performed. The
Mortgagee may elect to sell the Property for cash or credit. The Mortgagee may,
to the extent permitted by law, adjourn from time to time any sale by it to be
made under or by virtue of this Mortgage by announcement at the time and place
appointed for such sale or for such adjourned sale or sales; and, except as
otherwise provided by an applicable provision of law, the Mortgagee may make
such sale at the time and place to which the same shall be so adjourned. With
respect to all components of the Property and to the extent allowable by
applicable law, the Mortgagee is hereby irrevocably appointed the true and
lawful attorney-in-fact of the Mortgagor (coupled with an interest), in its name
and stead, to make all necessary conveyances, assignments, transfers and
deliveries of the Property in connection with any foreclosure of this Mortgage,
and for that purpose the Mortgagee may execute all necessary instruments of
conveyance, assignment, transfer and delivery, and may substitute one or more
persons with such power, the Mortgagor hereby ratifying and confirming all that
its said attorney-in-fact or such substitute or substitutes shall lawfully do by
virtue hereof. Notwithstanding the foregoing, the Mortgagor, if so requested by
the Mortgagee, shall ratify and confirm any such sale or sales by executing and
delivering to the Mortgagee or to such purchaser or purchasers all such
instruments as may be advisable, in the judgment of the Mortgagee, for such
purpose, and as may be designated in such request. To the extent permitted by
law, any such sale or sales made under or by virtue of this Article IV shall
operate to divest all the estate, right, title, interest, claim and demand
whatsoever, whether at law or in equity, of the Mortgagor in and to the
properties and rights so sold, and shall be a perpetual

                                      -15-

<PAGE>

bar both at law and in equity against the Mortgagor and against any and all
persons claiming or who may claim the same, or any part thereof, from, through
or under the Mortgagor. Upon any sale made under or by virtue of this Article
IV, the Mortgagee may, to the extent permitted by law, bid for and acquire the
Property or any part thereof and in lieu of paying cash therefor may make
settlement for the purchase price by crediting upon the Obligations secured
hereby the net sales price after deducting therefrom the expenses of the sale
and the cost of the action and any other sums which the Mortgagee is authorized
to deduct by law or under this Mortgage.

                  (b)      Any foreclosure of this Mortgage and any other
transfer of all or any part of the Property in extinguishment of all or any part
of the Obligations may, at the Mortgagee's option, be subject to any or all
Leases of all or any part of the Property and the rights of tenants under such
Leases. No failure to make any such tenant a defendant in any foreclosure
proceedings or to foreclose or otherwise terminate any such Lease and the rights
of any such tenant in connection with any such foreclosure or transfer shall be,
or be asserted to be, a defense or hindrance to any such foreclosure or transfer
or to any proceedings seeking collection of all or any part of the Obligations
(including, without limitation, any deficiency remaining unpaid after completion
of any such foreclosure or transfer).

                  (c)      If the Mortgagor retains possession of the Property
or any part thereof subsequent to a sale, the Mortgagor will be considered a
tenant at sufferance of the purchaser, and will, if the Mortgagor remains in
possession after demand to remove, be guilty of forcible detainer and will be
subject to eviction and removal, forcible or otherwise, with or without process
of law, and all damages to the Mortgagor by reason thereof are hereby expressly
waived by the Mortgagor.

                  (d)      It is agreed and understood that (x) this Mortgage
may be enforced only by the action of the Mortgagee acting upon the instructions
of the Required Lenders or, if the CA Termination Date (as defined below) has
occurred, the holders of a majority of the outstanding principal amount of all
remaining Obligations, provided that if prior to the CA Termination Date a
payment default with respect to at least $300,000,000 principal amount in the
aggregate of Existing Senior Notes and/or Refinancing Senior Notes has continued
for at least 180 days (and such defaulted payment has not been received pursuant
to a drawing under any letter of credit), the holders of a majority of the
outstanding principal amount of the Indebtedness subject to such payment default
or defaults can direct the Mortgagee to commence and continue enforcement of the
Liens created hereunder, which the Mortgagee shall comply with subject to
receiving any indemnity which it reasonably requests, provided further, that the
Mortgagee shall thereafter comply only with the directions of the Required
Lenders as to carrying out such enforcement so long as such directions are not
adverse to the aforesaid directions of the holders of Indebtedness subject to
such payment default or defaults, and (y) no other Secured Creditor shall have
any right individually to seek to enforce or to enforce this Mortgage or to
realize upon the security to be granted hereby, it being understood and agreed
that such rights and remedies shall be exercised exclusively by the Mortgagee
for the benefit of the Secured Creditors as their interest may appear upon the
terms of this Mortgage.

                  4.04 Application of Proceeds. (a) To the fullest extent
permitted by law, the proceeds of any sale of, and the Rents and other amounts
generated by the holding, leasing, management, operation or other use of, each
item of the Property pursuant to this Mortgage (the

                                      -16-

<PAGE>

"Trust Property Proceeds") shall be applied by the Mortgagee (or the receiver,
if one is appointed) as follows:

                           (i) first, to the payment of all Obligations owing to
         the Mortgagee of the type described in clauses (v), (vi) and (vii) of
         the definition of Obligations herein;

                           (ii) second, to the extent Trust Property Proceeds of
         Property remain after the application pursuant to preceding clause (i),
         an amount equal to the outstanding Obligations secured by such item of
         Property shall be paid to the Secured Creditors in the manner provided
         below as their interests may appear, with each Secured Creditor
         receiving an amount equal to its outstanding Obligations secured by
         such item of Property or, if the proceeds are insufficient to pay in
         full all such Obligations, its Pro Rate Share of the amount so
         remaining to be distributed, with any such amount to be applied in the
         case of the Credit Document Obligations, the Existing Senior Notes
         Obligations and the Refinancing Senior Notes Obligations, first to the
         payment of interest in respect of the unpaid principal amount of Loans,
         Existing Senior Notes or Refinancing Senior Notes, as the case may be,
         second to the payment of principal of Loans, Existing Senior Notes or
         Refinancing Senior Notes, as the case may be, and finally to the other
         Credit Document Obligations, Existing Senior Notes Obligations or
         Refinancing Senior Notes Obligations, as the case may be; and

                           (iii) third, to the extent proceeds remain after the
         application pursuant to the preceding clauses (i) and (ii) to the
         Mortgagor or, to the extent directed by the Mortgagor or a court of
         competent jurisdiction, to whomever may be lawfully entitled to receive
         such surplus.

                  (b)      For purposes of this Agreement, "Pro Rate Share"
shall mean when calculating a Secured Creditor's portion of any distribution or
amount pursuant to clause (a) above, the amount (expressed as a percentage)
equal to a fraction the numerator of which is the then outstanding amount of the
relevant Obligations secured by the relevant item of Property owed such Secured
Creditor and the denominator of which is the then outstanding amount of all
relevant Obligations secured by the relevant item of Property.

                  (c)      All payments required to be made to the (i) Lender
Creditors hereunder shall be made to the Administrative Agent for the account of
the respective Lender Creditors, (ii) Hedging Creditors hereunder shall be made
to the paying agent under the applicable Secured Hedging Agreement or, in the
case of Secured Hedging Agreements without a paying agent, directly to the
applicable Hedging Creditors, (iii) Existing Senior Notes Creditors hereunder
shall be made to the Existing Senior Notes Trustee for the account of the
respective Existing Senior Notes Creditors, and (iv) Refinancing Senior Notes
Creditors hereunder shall be made to the Refinancing Senior Notes Trustee for
the account of the respective Refinancing Senior Notes Creditors.

                  (d)      For purposes of applying payments received in
accordance with this Section, the Mortgagee shall be entitled to rely upon (i)
the Administrative Agent for a determination of the outstanding Credit Document
Obligations, (ii) upon any Hedging Creditor for a determination of the
outstanding Hedging Obligations owed to such Hedging Creditor, (iii) the

                                      -17-

<PAGE>

Existing Senior Notes Trustee for a determination of the outstanding Existing
Senior Notes Obligations, and (iv) the Refinancing Senior Notes Trustee for a
determination of the outstanding Refinancing Senior Notes Obligations. Unless it
has actual knowledge (including by way of written notice from a Secured
Creditor) to the contrary, the Administrative Agent under the Credit Agreement,
in furnishing information pursuant to the preceding sentence, and the Mortgagee,
in acting hereunder, shall be entitled to assume that no Credit Document
Obligations other than principal, interest and regularly accruing fees are owing
to any Lender Creditor.

                  (e)      It is understood and agreed that the Mortgagor shall
remain liable to the extent of any deficiency between (x) the amount of the
Obligations for which it is responsible directly or as a guarantor that are
satisfied with proceeds of the Property and (y) the aggregate outstanding amount
of such Obligations.

                  4.05 Appointment of Receiver. Upon the occurrence and during
the continuance of a Noticed Event of Default, the Mortgagee as a matter of
strict right and without notice to the Mortgagor or anyone claiming under the
Mortgagor, and without regard to the adequacy or the then value of the Property
or the interest of the Mortgagor therein or the solvency of any party bound for
payment of the Obligations, shall have the right to apply to any court having
jurisdiction to appoint a receiver or receivers of the Property, and the
Mortgagor hereby irrevocably consents to such appointment and waives notice of
any application therefor. Any such receiver or receivers shall have all the
usual rights, powers and duties of receivers in like or similar cases and all
the rights, powers and duties of the Mortgagee in case of entry as provided in
Section 4.02 hereof, including but not limited to the full power to rent,
maintain and otherwise operate the Property upon such terms as are approved by
the court and shall continue as such and exercise all such powers until the date
of confirmation of sale of the Property unless such receivership is sooner
terminated.

                  4.06 Exercise of Rights and Remedies. The entering upon and
taking possession of the Property, the collection of any Rents and the exercise
of any of the rights contained in this Article IV, shall not, alone, cure or
waive any Event of Default or notice of default hereunder or invalidate any act
done in response to such Event of Default or pursuant to such notice of default
and, notwithstanding the continuance in possession of the Property or the
collection, receipt and application of Rents, the Mortgagee shall be entitled to
exercise every right provided for herein or in the Credit Documents, the
Existing Senior Notes Documents or the Refinancing Senior Notes Documents, or at
law or in equity upon the occurrence of any Event of Default.

                  4.07 Remedies Not Exclusive. The Mortgagee shall be entitled
to enforce payment and performance of the Obligations and to exercise all
rights and powers under this Mortgage or other agreement or any laws now or
hereafter in force, notwithstanding that some or all of the Obligations may now
or hereafter be otherwise secured, whether by mortgage, deed of trust, security
deed, pledge, lien, assignment or otherwise. Neither the acceptance of this
Mortgage nor its enforcement, whether by court action or pursuant to the powers
herein contained, shall prejudice or in any manner affect the Mortgagee's right
to realize upon or enforce any other security now or hereafter held by the
Mortgagee, it being agreed that the Mortgagee shall be entitled to enforce this
Mortgage and any other security now or hereafter held by the Mortgagee in such
order and manner as it may in its absolute and sole discretion and election
determine. No remedy herein conferred upon or reserved to the Mortgagee is
intended

                                      -18-

<PAGE>

to be exclusive of any other remedy herein or in any of the other Secured Debt
Agreements or by law provided or permitted, but each shall be cumulative and
shall be in addition to every other remedy given hereunder or now or hereafter
existing at law or in equity or by statute. Every power or remedy to which the
Mortgagee is entitled may be exercised, concurrently or independently, from time
to time and as often as may be deemed expedient by the Mortgagee, and the
Mortgagee may pursue inconsistent remedies. No delay or omission of the
Mortgagee to, exercise any right or power accruing upon any Event of Default
shall impair any right or power or shall be construed as a waiver of any Event
of Default or any acquiescence therein. If the Mortgagee shall have proceeded to
invoke any right or remedy hereunder or under any other Secured Debt Agreement,
and shall thereafter elect to discontinue or abandon it for any reason, the
Mortgagee shall have the unqualified right to do so and, in such an event, the
rights and remedies of the Mortgagee shall continue as if such right or remedy
had never been invoked, but no such discontinuance or abandonment shall waive
any Event of Default which may then exist or the right of the Mortgagee
thereafter to exercise any right or remedy under the Secured Debt Agreements for
such Event of Default.

                  4.08 WAIVER OF REDEMPTION. NOTICE. MARSHALLING, ETC.
NOTWITHSTANDING ANYTHING HEREIN CONTAINED TO THE CONTRARY, TO THE EXTENT
PERMITTED BY LAW, THE MORTGAGOR ACKNOWLEDGING THAT IT IS AWARE OF AND HAS HAD
THE ADVICE OF COUNSEL OF ITS CHOICE WITH RESPECT TO ITS RIGHTS HEREUNDER; (A)
WILL NOT (I) AT ANY TIME INSIST UPON, OR PLEAD, OR IN ANY MANNER WHATSOEVER,
CLAIM OR TAKE ANY BENEFIT OR ADVANTAGE OF ANY STAY OR EXTENSION OR MORATORIUM
LAW, PRESENT OR FUTURE STATUTE OF LIMITATIONS, ANY LAW RELATING TO THE
ADMINISTRATION OF ESTATES OF DECEDENTS, APPRAISEMENT, VALUATION, REDEMPTION,
STATUTORY RIGHT OF REDEMPTION, OR THE MATURING OR DECLARING DUE OF THE WHOLE OR
ANY PART OF THE OBLIGATIONS, NOTICE OF INTENTION OF SUCH MATURING OR DECLARING
DUE, OTHER NOTICE (WHETHER OF DEFAULTS, ADVANCES, THE CREATION, EXISTENCE,
EXTENSION OR RENEWAL OF ANY OF THE OBLIGATIONS OR OTHERWISE, EXCEPT FOR RIGHTS
TO NOTICES EXPRESSLY GRANTED HEREIN OR IN THE CREDIT DOCUMENTS), SUBROGATION,
ANY SET-OFF RIGHTS, HOMESTEAD OR ANY OTHER EXEMPTIONS FROM EXECUTION OR SALE OF
THE PROPERTY OR ANY PART THEREOF, WHEREVER ENACTED, NOW OR AT ANY TIME HEREAFTER
IN FORCE, WHICH MAY AFFECT THE COVENANTS AND TERMS OF PERFORMANCE OF THIS
MORTGAGE, OR (II) CLAIM, TAKE OR INSIST UPON ANY BENEFIT OR ADVANTAGE OR ANY LAW
NOW OR HEREAFTER IN FORCE PROVIDING FOR THE VALUATION OR APPRAISAL OF THE
PROPERTY OR ANY PART THEREOF, PRIOR TO ANY SALE OR SALES THEREOF WHICH MAY BE
MADE PURSUANT TO ANY PROVISION HEREOF, OR PURSUANT TO THE DECREE, JUDGMENT OR
ORDER OF ANY COURT OF COMPETENT JURISDICTION; OR (III) AFTER ANY SUCH SALE OR
SALES, CLAIM OR EXERCISE ANY RIGHT UNDER ANY STATUTE HERETOFORE OR HEREAFTER
ENACTED TO REDEEM THE PROPERTY SO SOLD OR ANY PART THEREOF; AND (B) COVENANTS
NOT TO HINDER, DELAY OR IMPEDE THE EXECUTION OF ANY POWER HEREIN GRANTED OR
DELEGATED TO THE MORTGAGEE, BUT TO SUFFER AND PERMIT THE EXECUTION OF EVERY
POWER AS THOUGH NO SUCH LAW OR LAWS HAD BEEN MADE OR ENACTED. THE MORTGAGOR, FOR
ITSELF AND ALL

                                      -19-

<PAGE>

WHO MAY CLAIM UNDER IT, WAIVES, TO THE EXTENT THAT IT LAWFULLY MAY, ALL RIGHT TO
HAVE THE PROPERTY MARSHALLED UPON ANY FORECLOSURE HEREOF.

                  4.09 Expenses of Enforcement. In connection with any action to
enforce any remedy of the Mortgagee under this Mortgage, the Mortgagor agrees to
pay all costs and expenses which may be paid or incurred by or on behalf of the
Mortgagee, including, without limitation, reasonable attorneys' fees, receiver's
fees, appraiser's fees, outlays for documentary and expert evidence,
stenographer's charges, publication costs, and costs (which may be estimated as
to items to be expended after entry of the decree) of procuring all such
abstracts of title, title searches and examinations, title insurance policies
and similar data and assurances with respect to title and value as the Mortgagee
may deem necessary or desirable, and neither the Mortgagee nor any other Person
shall be required to accept tender of any portion of the Obligations unless the
same be accompanied by a tender of all such expenses, costs and commissions. All
of the costs and expenses described in this Section 4.09, and such expenses and
fees as may be incurred in the protection of the Property and the maintenance of
the Lien of this Mortgage, including the reasonable fees of any attorney
employed by the Mortgagee in any litigation or proceeding, including appellate
proceedings, affecting this Mortgage or the Property (including, without
limitation, the occupancy thereof or any construction work performed thereon),
including probate and bankruptcy proceedings, or in preparation for the
commencement or defense of any proceeding or threatened suit or proceeding
whether or not an action is actually commenced, shall be immediately due and
payable by the Mortgagor, with interest thereon at the rate of interest set
forth in the Credit Documents and shall be part of the Obligations secured by
this Mortgage.

                                    ARTICLE V

                             ADDITIONAL COLLATERAL

                  5.01 Additional Collateral. (a) The Mortgagor acknowledges and
agrees that the Obligations are secured by the Property and various other
collateral including, without limitation, at the time of execution of this
Mortgage certain personal property of the Mortgagor described in the Credit
Documents. The Mortgagor specifically acknowledges and agrees that the Property,
in and of itself, if foreclosed or realized upon would not be sufficient to
satisfy the outstanding amount of the Obligations. Accordingly, the Mortgagor
acknowledges that it is in the Mortgagor's contemplation that the other
collateral pledged to secure the Obligations may be pursued by the Mortgagee in
separate proceedings in the various States, counties and other countries where
such collateral may be located and additionally that the Mortgagor liable for
payment of the Obligations will remain liable for any deficiency judgments in
addition to any amounts the Mortgagee may realize on sales of other property or
any other collateral given as security for the Obligations. Specifically, and
without limitation of the foregoing, it is agreed that it is the intent of the
parties hereto that in the event of a foreclosure of this Mortgage, the
Indebtedness evidencing the Obligations shall not be deemed merged into any
judgment of foreclosure, but rather shall remain outstanding. It is the further
intent and understanding of the parties that the Mortgagee, following a Noticed
Event of Default, may pursue all of its collateral

                                      -20-

<PAGE>

with the Obligations remaining outstanding and in full force and effect
notwithstanding any judgment of foreclosure or any other judgment which the
Mortgagee may obtain.

                  (b)      The Mortgagor acknowledges and agrees that the
Property and the property which may from time to time be encumbered by the other
Credit Documents may be located in more than one State or country and therefore
the Mortgagor waives and relinquishes any and all rights it may have, whether at
law or equity, to require the Mortgagee to proceed to enforce or exercise any
rights, powers and remedies it may have under the Credit Documents in any
particular manner, in any particular order, or in any particular State or other
jurisdiction. Furthermore, the Mortgagor acknowledges and agrees that the
Mortgagee shall be allowed to enforce payment and performance of the Obligations
and to exercise all rights and powers provided under this Mortgage, or the other
Credit Documents or under any provision of law, by one or more proceedings,
whether contemporaneous, consecutive or both in any one or more States in which
the security is located. Neither the acceptance of this Mortgage, or any Credit
Document nor its enforcement in one State, whether by court action, power of
sale, or otherwise, shall prejudice or in any way limit or preclude enforcement
of the Credit Documents through one or more additional proceedings, in that
State or in any other State or country.

                  (c)      The Mortgagor further agrees that any particular
remedy or proceeding, including, without limitation, foreclosure through court
action (in a state or federal court) or power of sale, may be brought and
prosecuted in the local or federal courts of any one or more States as to all or
any part of the Property or the property encumbered by the Credit Documents,
wherever located, without regard to the fact that any one or more prior or
contemporaneous proceedings have been situated elsewhere with respect to the
same or any other part of the Property and the property encumbered by the Credit
Documents.

                  (d)      The Mortgagee may resort to any other security held
by the Mortgagee for the payment of the Obligations in such order and manner as
the Mortgagee may elect.

                  (e)      Notwithstanding anything contained herein to the
contrary, the Mortgagee shall be under no duty to the Mortgagor or others,
including, without limitation, the holder of any junior, senior or subordinate
mortgage on the Property or any part thereof or on any other security held by
the Mortgagee, to exercise or exhaust all or any of the rights, powers and
remedies available to the Mortgagee.

                                   ARTICLE VI

                                  MISCELLANEOUS

                  6.01 Governing Law. The provisions of this Mortgage regarding
the creation, perfection and enforcement of the liens, security title and
security interests herein granted shall be governed by and construed under the
laws of the state in which the Property is located. All other provisions of this
Mortgage shall be governed by the laws of the State of New York (including,
without limitation, Section 5-1401 of the General Obligations Law of the State
of New York), without regard to choice of laws provisions.

                                      -21-

<PAGE>

                  6.02 Limitation on Interest. It is the intent of the Mortgagor
and the Mortgagee in the execution of this Mortgage and all other instruments
evidencing or securing the Obligations to contract in strict compliance with
applicable usury laws. In furtherance thereof, the Mortgagee and the Mortgagor
stipulate and agree that none of the terms and provisions contained in this
Mortgage shall ever be construed to create a contract for the use, forbearance
or retention of money requiring payment of interest at a rate in excess of the
maximum interest rate permitted to be charged by relevant law. If this Mortgage
or any other instrument evidencing or securing the Obligations violates any
applicable usury law, then the interest rate payable in respect of the Loans
shall be the highest rate permissible by law.

                  6.03 Notices. All notices and other communications provided
for hereunder shall be in writing (including telegraphic, telex, facsimile
transmission or cable communications) and mailed, telegraphed, telexed,
telecopied, cabled or delivered (including by way of overnight courier):

                  (i)      if to the Mortgagor, at;

                           R J. Reynolds Tobacco Company
                           401 North Main Street,
                           Winston-Salem, North Carolina 27102

                  (ii)     if to the Mortgagee, at:

                           JPMorgan Chase Bank
                           270 Park Avenue
                           New York, New York 10017
                           Attn.: Raju Nanoo
                           Tel. No.: 212-270-2272
                           Fax. No.: 212-270-5120

                  (iii)    if to any Lender (other than the Mortgagee), at such
         address as such Lender shall have specified in the Credit Agreement;

                  (iv)     if to any Hedging Creditor, at such address as such
         Hedging Creditor shall have specified in writing to the Mortgagor and
         the Mortgagee;

                  (v)      if to any Existing Senior Notes Creditor, at such
         address of the Existing Senior Notes Trustee as the Existing Senior
         Notes Trustee shall have specified in writing to the Mortgagor and the
         Mortgagee;

                  (vi)     if to any Refinancing Senior Notes Creditor, at such
         address of the Refinancing Senior Notes Trustee as the Refinancing
         Senior Notes Trustee shall have specified in writing to the Mortgagor
         and the Mortgagee;

or at such other address as shall have been furnished in writing by any Person
described above to the party required to give notice hereunder. Except as
otherwise expressly provided herein, all such notices and communications shall
be deemed to have been duly given or made (i) in the

                                      -22-

<PAGE>

case of any Secured Creditor, when received and (ii) in the case of the
Mortgagor, when delivered to the Mortgagor in any manner required or permitted
hereunder.

                  6.04 Captions. The captions or headings at the beginning of
each Article and Section hereof are for the convenience of the parties and are
not a part of this Mortgage.

                  6.05 Amendment. None of the terms and conditions of this
Mortgage may be changed, waived, modified or varied in any manner whatsoever
unless in writing duly signed by the Mortgagor and the Mortgagee (with the
consent of (x) if prior to the CA Termination Date, the Required Lenders or, to
the extent required by Section 12.12 of the Credit Agreement, all of the Lenders
and (y) if on and after the CA Termination Date, the holders of at least a
majority of the outstanding principal amount of the Obligations remaining
outstanding), provided that (i) no such change, waiver, modification or variance
shall be made to Section 4.04 hereof or this Section 6.05 without the consent of
each Secured Creditor adversely affected thereby and (ii) that any change,
waiver, modification or variance affecting the rights and benefits of a single
Class of Secured Creditors (and not all Secured Creditors in a like or similar
manner) shall require the written consent of the Requisite Creditors of such
Class of Secured Creditors. For the purpose of this Agreement, the term "Class"
shall mean each class of Secured Creditors, i.e., whether (w) the Lender
Creditors as holders of the Credit Document Obligations, (x) the Hedging
Creditors as holders of the Hedging Obligations, (y) the Existing Senior Notes
Creditors as holders of the Existing Senior Notes Obligations, and (z) the
Refinancing Senior Notes Creditors as holders of the Refinancing Senior Notes
Obligations. For the purpose of this Agreement, the term "Requisite Creditors"
of any Class shall mean each of (w) with respect to each of the Credit Document
Obligations, the Required Lenders, (x) with respect to the Hedging Obligations,
the holders of at least a majority of all Secured Hedging Obligations
outstanding from time to time, (y) with respect to the Existing Senior Notes
Obligations, the holders of at least a majority of the outstanding principal
amount of the Existing Senior Notes, (z) with respect to the Refinancing Senior
Notes Obligations, the holders of at least a majority of the outstanding
principal amount of the Refinancing Senior Notes.

                  6.06 Obligations Absolute. The Obligations of the Mortgagor
hereunder shall remain in full force and effect without regard to, and shall not
be impaired by, (a) any bankruptcy, insolvency, reorganization, arrangement,
readjustment, composition, liquidation or the like of the Mortgagor; (b) any
exercise or non-exercise, or any waiver of, any right, remedy, power or
privilege under or in respect of this Mortgage, any other Credit Document, any
Secured Hedging Agreement, any Existing Senior Notes Document or any Refinancing
Senior Notes Document; or (c) any amendment to or modification of any Credit
Document, any Secured Hedging Agreement, any Existing Senior Notes Document or
any Refinancing Senior Notes Document or any security for any of the
Obligations; whether or not the Mortgagor shall have notice or knowledge of any
of the foregoing.

                  6.07 Further Assurances. The Mortgagor shall, upon the request
of the Mortgagee and at the expense of the Mortgagor: (a) promptly correct any
defect, error or omission which may be discovered in the contents of this
Mortgage or any UCC financing statements filed in connection herewith; (b)
promptly execute, acknowledge, deliver and record or file such further
instruments (including, without limitation, further mortgages, deeds to secure
debt, security deeds, security agreements, financing statements, continuation
statements and

                                      -23-

<PAGE>

assignments of rents or leases) and promptly do such further acts as may be
necessary, desirable or proper to carry out more effectively the purposes of
this Mortgage and to subject to the liens and security interests hereof any
property intended by the terms hereof to be covered hereby, including
specifically, but without limitation, any renewals, additions, substitutions,
replacements or appurtenances to the Property; and (c) promptly execute,
acknowledge, deliver, procure and record or file any document or instrument
(including specifically any financing statement) deemed advisable by the
Mortgagee to protect, continue or perfect the liens or security interests
hereunder against the rights or interests of third persons.

                  6.08 Partial Invalidity. If any of the provisions of this
Mortgage or the application thereof to any person, party or circumstances shall
to any extent be invalid or unenforceable, the remainder of this Mortgage, or
the application of such provision or provisions to persons, parties or
circumstances other than those as to whom or which it is held invalid or
unenforceable, shall not be affected thereby, and every provision of this
Mortgage shall be valid and enforceable to the fullest extent permitted by law.

                  6.09 Partial Releases. No release from the Lien of this
Mortgage of any part of the Property by the Mortgagee shall in any way alter,
vary or diminish the force or effect of this Mortgage on the balance of the
Property or the priority of the Lien of this Mortgage on the balance of the
Property.

                  6.10 Priority. This Mortgage is intended to and shall be valid
and have priority over all subsequent liens and encumbrances, including
statutory liens, excepting solely taxes and assessments levied on the real
estate, to the extent of the maximum amount secured hereby.

                  6.11 Covenants Running with the Land. All Obligations are
intended by the Mortgagor and the Mortgagee to be, and shall be construed as,
covenants running with the Property. As used herein, the "Mortgagor" shall refer
to the party named in the first paragraph of this Mortgage and to any subsequent
owner of all or any portion of the Property. All persons who may have or acquire
an interest in the Property shall be deemed to have notice of, and be bound by,
the terms of the Credit Agreement and the other Credit Documents; provided,
however, that no such party shall be entitled to any rights thereunder without
prior written consent of the Mortgagee.

                  6.12 Successors and Assigns. This Mortgage shall be binding
upon and inure to the benefit of the Mortgagee and the Mortgagor and their
respective successors and assigns. Except as otherwise permitted by Credit
Agreement, the Mortgagor shall not, without the prior written consent of the
Mortgagee, assign any rights, duties, or obligations hereunder.

                  6.13 Purpose of Loans. The Mortgagor hereby represents and
agrees that the Loans, Existing Senior Notes and Refinancing Senior Notes are
being obtained or issued for business or commercial purposes, and the proceeds
thereof will not be used for personal, family, residential, household or
agricultural purposes.

                  6.14 No Joint Venture or Partnership. The relationship created
hereunder and under the other Credit Documents, the Secured Hedging Agreements,
the Existing Senior Notes Documents and the Refinancing Senior Notes Documents
is that of creditor/debtor. The

                                      -24-

<PAGE>

Mortgagee does not owe any fiduciary or special obligation to the Mortgagor
and/or any of the Mortgagor's, officers, partners, agents, or representatives.
Nothing herein or in any other Credit Document, any Secured Hedging Agreement,
any Existing Senior Notes Document or any Refinancing Senior Notes Document is
intended to create a joint venture, partnership, tenancy-in-common or joint
tenancy relationship between the Mortgagor and the Mortgagee.

                  6.15 The Mortgagee as Collateral Agent for Secured Creditors.
It is expressly understood and agreed that the rights and obligations of the
Mortgagee as holder of this Mortgage and as Collateral Agent for the Secured
Creditors and otherwise under this Mortgage are only those expressly set forth
in this Mortgage and in the Credit Agreement. The Mortgagee shall act hereunder
pursuant to the terms and conditions set forth herein and in Annex M to the
Security Agreement, the terms of which shall be deemed incorporated herein by
reference as fully as if same were set forth herein in their entirety (for such
purpose, treating each reference to the "Security Agreement" as a reference to
this Agreement, each reference to the "Collateral Agent" as a reference to the
Mortgagee and each reference to an "Assignor" as a reference to a "Mortgagor").

                  6.16 Full Recourse. This Mortgage is made with full recourse
to the Mortgagor (including as to all assets of the Mortgagor, including the
Property and the Secured Property).

                  6.17 Reduction of Secured Amount. In the event the amount
secured by this Mortgage is less than the aggregate Obligations, then the amount
secured hereby shall be reduced only by the last and final sums that the
Mortgagor or the Borrower repays with respect to the Obligations and shall not
be reduced by any intervening repayments of the Obligations. So long as the
balance of the Obligations exceeds the amount secured hereby, any payments of
the Obligations shall not be deemed to be applied against, or to reduce, the
portion of the Obligations secured by this Mortgage. Such payments shall instead
be deemed to reduce only such portions of the Obligations as are secured by
other collateral located outside of the state in which the Property is located
or are unsecured.

                  6.18 Acknowledgment of Receipt. The Mortgagor hereby
acknowledges receipt of a true copy of this Mortgage.

                  6.19 Release Payment. (a) After the Termination Date (as
defined below), this Mortgage shall terminate (provided that all indemnities set
forth herein shall survive any such termination) and the Mortgagee, at the
request and expense of the Mortgagor, will execute and deliver to the Mortgagor
a proper instrument or instruments acknowledging the satisfaction and
termination of this Mortgage. As used in this Mortgage, (i) "CA Termination
Date" shall mean the date upon which the Total Commitment has been terminated,
no Letter of Credit or Note under the Credit Agreement is outstanding and all
other Credit Document Obligations have been paid in full in cash (other than
arising from indemnities for which no request for payment has been made) and
(ii) "Termination Date" shall mean the date upon which (x) the CA Termination
Date shall have occurred and (y) if (but only if) a Notified Non-Credit
Agreement Event of Default (as defined below) shall have occurred and be
continuing on the CA Termination Date (and after giving effect thereto), either
(I) such Notified Non-Credit Agreement Event of Default shall have been cured or
waived by the requisite holders of the relevant Obligations subject to such
Notified Non-Credit Agreement Event of Default or (II) all Secured Hedging
Agreements

                                      -25-

<PAGE>

(if any) giving rise to a Notified Non-Credit Agreement Event of Default shall
have been terminated and all Obligations subject to such Notified Non-Credit
Agreement Event of Default shall have been paid in full (other than arising from
indemnities for which no request for payment has been made). As used herein
"Notified Non-Credit Agreement Event of Default" means (i) the acceleration of
the maturity of any Existing Senior Notes or Refinancing Senior Notes or the
failure to pay at maturity any Existing Senior Notes or Refinancing Senior
Notes, or the occurrence of any bankruptcy or insolvency Event of Default under
the Existing Senior Notes Indenture or the Refinancing Senior Notes Indenture,
or (ii) any Event of Default under a Secured Hedging Agreement, in the case of
any event described in clause (i) or (ii) to the extent the Existing Senior
Notes Trustee, the Refinancing Senior Notes Trustee or the relevant Hedging
Creditor, as the case may be, has given written notice to the Mortgagee that a
"Notified Non-Credit Agreement Event of Default" exists; provided that such
written notice may only be given if such Event of Default is continuing and,
provided further, that any such Notified Non-Credit Agreement Event of Default
shall cease to exist (I) once there is no longer any Event of Default under the
Existing Senior Notes Indenture, the Refinancing Senior Notes Indenture or the
respective Secured Hedging Agreement, as the case may be, in existence, (II) in
the case of an Event of Default under the Existing Senior Notes Indenture or the
Refinancing Senior Notes Indenture, after all Existing Senior Notes Obligations
or Refinancing Senior Notes Obligations, as the case may be, have been repaid in
full, (III) in the case of an Event of Default under a Secured Hedging
Agreement, such Secured Hedging Agreement has been terminated and all Hedging
Obligations thereunder repaid in full, (IV) in the case of an Event of Default
under the Existing Senior Notes Indenture or the Refinancing Senior Notes
Indenture, if the Existing Senior Notes Creditors or the Refinancing Senior
Notes Creditors, as the case may be, holding at least a majority of the
aggregate principal amount of the outstanding Existing Senior Notes or the
Refinancing Senior Notes, as the case may be, at such time have rescinded such
written notice and (V) in the case of an Event of Default under a Secured
Hedging Agreement, the requisite Hedging Creditors with Hedging Obligations
thereunder at such time have rescinded such written notice.

                  (b)      So long as no Notified Non-Credit Agreement Event of
Default has occurred and is continuing, in the event that (x) prior to the CA
Termination Date, (i) any part of the Property is sold or otherwise disposed of
in connection with a sale or other disposition permitted by Section 8.02 of the
Credit Agreement (it being agreed for such purposes that a release will be
deemed "permitted by Section 8.02 of the Credit Agreement" if the proposed
transaction is not prohibited by the Credit Agreement) or (ii) all or any part
of the Property is otherwise released at the direction of the Required Lenders
(or all the Lenders if required by Section 12.12 of the Credit Agreement), and
the proceeds of such sale or disposition or from such release are applied in
accordance with the terms of the Credit Agreement to the extent required to be
so applied (it being understood and agreed by the Mortgagor and the Mortgagee
that so long as no Noticed Event of Default has occurred and is continuing, the
Mortgagor may use such proceeds as the Mortgagor may reasonably determine) or
(y) on and after the CA Termination Date, any part of the Property is sold or
otherwise disposed of without violating the Existing Senior Notes Documents, the
Refinancing Senior Notes Documents and the Secured Hedging Agreements, the
Mortgagee, at the request and expense of the Mortgagor, will release such
Property from this Mortgage in the manner provided in clause (a) above (it being
understood and agreed that upon the release of all or any portion of the
Property by the Mortgagee at the direction of the Lenders as provided above, the
Lien on the Property in favor of

                                      -26-

<PAGE>

the Hedging Creditors, the Existing Senior Notes Creditors and the Refinancing
Senior Notes Creditors shall automatically be released).

                  (c)      In addition to the foregoing, all Property shall be
automatically released (subject to reinstatement upon the occurrence of a new
Trigger Event) in accordance with the provisions of the last sentence of Section
7.10(b) of the Credit Agreement.

                  (d)      At any time that the Mortgagor desires that the
Mortgagee take any action to give effect to any release of Property pursuant to
the foregoing Section 6.19(a), (b) or (c), it shall deliver to the Mortgagee a
certificate signed by an authorized officer describing the Property to be
released and certifying its entitlement to a release pursuant to the applicable
provisions of Sections 6.19(a), (b) or (c) and in such case the Mortgagee, at
the request and expense of the Mortgagor, will execute such documents (without
recourse and without any representation or warranty) as required to duly release
such Property. The Mortgagee shall have no liability whatsoever to any Secured
Creditor as the result of any release of Property by it as permitted by (or
which the Mortgagee in good faith believes to be permitted by) this Section
6.19. Upon any release of Property pursuant to Section 6.19(a), (b) or (c), so
long as no Noticed Event of Default is then in existence, none of the Secured
Creditors shall have any continuing right or interest in such Property, or the
proceeds thereof (subject to reinstatement rights upon the occurrence of a new
Trigger Event in the case of a release pursuant to Section 6.19(c)(i)).

                  6.20 Time of the Essence. Time is of the essence of this
Mortgage.

                  6.21 The Mortgagee's Powers. Without affecting the liability
of any other Person liable for the payment and performance of the Obligations
and without affecting the Lien of this Mortgage in any way, the Mortgagee
(acting at the direction of the requisite holders of the relevant Obligations
affected thereby) may, from time to time, regardless of consideration and
without notice to or consent by the holder of any subordinate Lien, right, title
or interest in or to the Property, (a) release any Persons liable for the
Obligations, (b) extend the maturity of, increase or otherwise alter any of the
terms of the Obligations, (c) modify the interest rate payable on the principal
balance of the Obligations, (d) release or reconvey, or cause to be released or
reconveyed, all or any portion of the Property, or (e) take or release any other
or additional security for the Obligations.

                  6.22 Rules of Usage. The following rules of usage shall apply
to this Mortgage unless otherwise required by the context:

                  (a)      Singular words shall connote the plural as well as
         the singular, and vice versa, as may be appropriate.

                  (b)      The words "herein", "hereof and "hereunder" and words
         of similar import appearing in each such document shall be construed to
         refer to such document as a whole and not to any particular section,
         paragraph or other subpart thereof unless expressly so stated.

                  (c)      References to any Person shall include such Person
         and its successors and permitted assigns.

                                      -27-

<PAGE>

                  (d)      Each of the parties hereto and their counsel have
         reviewed and revised, or requested revisions to, such documents, and
         the usual rule of construction that any ambiguities are to be resolved
         against the drafting party shall be inapplicable in the construction
         and interpretation of such documents and any amendments or exhibits
         thereto.

                  (e)      Unless an express provision requires otherwise, each
         reference to "the Property" shall be deemed a reference to "the
         Property or any part thereof", and each reference to "Secured Property"
         shall be deemed a reference to "the Secured Property or any part
         thereof".

                  6.23 No Off-Set. All sums payable by the Mortgagor shall be
paid without counterclaim, other compulsory counterclaims, set-off, or deduction
and without abatement, suspension, deferment, diminution or reduction, and the
Obligations shall in no way be released, discharged or otherwise affected
(except as expressly provided herein or in the Credit Agreement) by reason of:
(i) any damage or any condemnation of the Property or any part thereof; (ii) any
title defect or encumbrance or any eviction from the Property or any part
thereof by title paramount or otherwise; or (iii) any bankruptcy, insolvency,
reorganization, composition, adjustment, dissolution, liquidation or other like
proceeding relating to the Mortgagee or the Mortgagor, or any action taken with
respect to this Mortgage by any agent or receiver of the Mortgagee. The
Mortgagor waives, to the extent permitted by law, all rights now or hereafter
conferred by statute or otherwise to any abatement, suspension, deferment,
diminution or reduction of any of the Obligations.

                  6.24 Consent to Jurisdiction and Service of Process; Waiver of
Jury Trial. (a) ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS MORTGAGE OR
ANY OTHER CREDIT DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK
OR OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW YORK, AND, BY EXECUTION
AND DELIVERY OF THIS AGREEMENT, THE MORTGAGOR HEREBY IRREVOCABLY ACCEPTS FOR
ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE
JURISDICTION OF THE AFORESAID COURTS. THE MORTGAGOR HEREBY IRREVOCABLY
DESIGNATES, APPOINTS AND EMPOWERS PRENTICE-HALL CORPORATION SYSTEM, INC., WITH
OFFICES ON THE DATE HEREOF AT 80 STATE STREET, ALBANY, NEW YORK 12207-2543 AS
ITS DESIGNEE, APPOINTEE AND AGENT TO RECEIVE, ACCEPT AND ACKNOWLEDGE FOR AND ON
ITS BEHALF, AND IN RESPECT OF ITS PROPERTY, SERVICE OF ANY AND ALL LEGAL
PROCESS, SUMMONS, NOTICES AND DOCUMENTS WHICH MAY BE SERVED IN ANY SUCH ACTION
OR PROCEEDING. IF FOR ANY REASON SUCH DESIGNEE, APPOINTEE AND AGENT SHALL CEASE
TO BE AVAILABLE TO ACT AS SUCH, THE MORTGAGOR SHALL DESIGNATE A NEW DESIGNEE,
APPOINTEE AND AGENT IN THE STATE OF NEW YORK ON THE TERMS AND FOR THE PURPOSES
OF THIS PROVISION SATISFACTORY TO THIS MORTGAGE. THE MORTGAGOR FURTHER
IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF THE AFOREMENTIONED
COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY
REGISTERED OR CERTIFIED MAIL, POSTAGE

                                      -28-

<PAGE>

PREPAID, TO THE MORTGAGOR AT ITS ADDRESS FOR NOTICES PURSUANT TO SECTION 6.03
HEREOF, SUCH SERVICE TO BECOME EFFECTIVE 30 DAYS AFTER SUCH MAILING. THE
MORTGAGOR HEREBY IRREVOCABLY WAIVES ANY OBJECTION TO SUCH SERVICE OF PROCESS AND
FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY ACTION OR
PROCEEDING COMMENCED HEREUNDER OR ANY OTHER CREDIT DOCUMENT THAT SERVICE OF
PROCESS WAS IN ANY WAY INVALID OR INEFFECTIVE. NOTHING HEREIN SHALL AFFECT THE
RIGHT OF THE ADMINISTRATIVE AGENT UNDER THE CREDIT AGREEMENT, ANY LENDER OR THE
HOLDER OF ANY NOTE TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO
COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST ANY CREDIT PARTY IN ANY
OTHER JURISDICTION INCLUDING, BUT NOT LIMITED TO THE JURISDICTION WHERE THE
PROPERTY IS LOCATED WITH RESPECT TO THE CREATION, PERFECTION AND ENFORCEMENT OF
THE LIEN AND SECURITY INTEREST GRANTED BY THIS MORTGAGE.

                  (b)      THE MORTGAGOR HEREBY IRREVOCABLY WAIVES ANY OBJECTION
WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY OF THE
AFORESAID ACTIONS OR PROCEEDINGS ARISING OUT OF OR IN CONNECTION WITH THIS
MORTGAGE OR ANY OTHER CREDIT DOCUMENT BROUGHT IN THE COURTS REFERRED TO IN
CLAUSE (a) ABOVE AND HEREBY FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD
OR CLAIM IN ANY SUCH COURT THAT ANY SUCH ACTION OR PROCEEDING BROUGHT IN ANY
SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

                  (c)      EACH OF THE PARTIES TO THIS MORTGAGE HEREBY
IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR
COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS MORTGAGE, THE OTHER CREDIT
DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

                  6.25 Future Advances. This Mortgage is given to secure the
Mortgagor's obligations under, or in respect of, the Credit Documents, the
Existing Senior Notes Documents and the Refinancing Senior Notes Documents to
which the Mortgagor is "party" and shall secure not only obligations with
respect to presently existing indebtedness under the foregoing documents and
agreements but also any and all other indebtedness now owing or which may
hereafter be owing by the Mortgagor or the Borrower, as the case may be, to the
Secured Creditors, however incurred, whether interest, discount or otherwise,
and whether the same shall be deferred, accrued or capitalized, including future
advances and re-advances, pursuant to the Credit Agreement, whether such
advances are obligatory or to be made at the option of the Lenders, or
otherwise, to the same extent as if such future advances were made on the date
of the execution of this Mortgage. The lien of this Mortgage shall be valid as
to all indebtedness secured hereby, including future advances, from the time of
its filing for record in the recorder's office of the county in which the
Property is located. This Mortgage is intended to and shall be valid and have
priority over all subsequent liens and encumbrances, including statutory liens,
excepting

                                      -29-

<PAGE>

solely taxes and assessments levied on the real estate, to the extent of the
maximum amount secured hereby, and Permitted Encumbrances. Although this
Mortgage is given wholly or partly to secure all future obligations which may be
incurred hereunder and under the other Secured Debt Agreements, whether
obligatory or optional, the Mortgagor and the Mortgagee hereby acknowledge and
agree that the Mortgagee and the other Secured Creditors are obligated by the
terms of the Secured Debt Agreements to make certain future advances, including
advances of a revolving nature, subject to the fulfillment of the relevant
conditions set forth in the Secured Debt Agreements.

                                      -30-

<PAGE>

                  The laws of South Carolina provide that in any real estate
foreclosure proceeding a defendant against whom a personal judgment may be taken
or asked may within thirty days after the sale of the mortgaged property apply
to the court for an order of appraisal. The statutory appraisal value as
approved by the court would be substituted for the high bid and may decrease the
amount of any deficiency owing in connection with the transaction. THE
UNDERSIGNED HEREBY WAIVES AND RELINQUISHES THE STATUTORY APPRAISAL RIGHTS WHICH
MEANS THE HIGH BID AT THE JUDICIAL FORECLOSURE SALE WILL BE APPLIED TO THE DEBT
REGARDLESS OF ANY APPRAISED VALUE OF THE PROPERTY.

                  IN WITNESS WHEREOF, this Mortgage, Security Agreement,
Assignment of Leases, Rents and Profits, Financing Statement and Fixture Filing
has been duly executed by the Mortgagor as of the date first written above.

    Signed, sealed, and delivered in        R. J. REYNOLDS TOBACCO COMPANY,
    presence of                             North Carolina corporation

    /s/ Mr. Dara Folan
    --------------------
    Mr. Dara Folan, III                     By: /s/ Lynn L. Lane
                                                -------------------
    /s/ Alexandre Brodbeck                  Its: SVP and Treasurer
    -----------------------
    Alexandre Brodbeck

                                      -31-

<PAGE>

STATE OF NEW YORK      )
                       )                ACKNOWLEDGMENT
COUNTY OF NEW YORK     )

I, Jonathan J. Katz a Notary Public in and for the County and State aforesaid,
certify that Lynn L. Lane, the Senior Vice President and Treasurer of R. J.
Reynolds Tobacco Company, a North Carolina corporation, the Mortgagor,
personally appeared before me this day and acknowledged the execution of the
foregoing instrument by her on behalf of the Mortgagor.

WITNESS my hand and official stamp or seal this 30th day of July, 2004.

                                                /s/ JONATHAN J KATZ
                                                --------------------------------
                                                Notary Public for New York
                                                My Commission Expires: 8/11/2007

         Jonathan J. Katz
 Notary Public, State of New York
    Commission # 0 1 KA6096856
    Qualified In New York County
 Commission Expires August 11, 2007

                                      -32-

<PAGE>

                                                                       EXHIBIT A

                               DESCRIPTION OF LAND

ALL that piece, parcel or tract of land with improvements thereon lying, situate
and being in the County of Cherokee, State of South Carolina, shown and
designated as Tracts No. 1, 2, 3, 4, 5, 6, 7, 8 and 10 on plat of property of
Daniel Construction Company prepared by Davis and Floyd Engrs., Inc., dated 27
September, 1962, recorded in the office of the Clerk of Court for Cherokee
County in Book 4X at page 244, and being more particularly described with
reference to said plat as follows:

BEGINNING at the northwestern corner of said tract at a point on the
southeasterly side of Frontage Road of Interstate Highway 85 and running thence
along the southeasterly side of said Frontage Road, N. 54-02 E. 784.81 feet to a
point; thence N. 54-02 E. 291.70 feet to a concrete monument; thence N. 54-12 E.
437.50 feet to a point; thence N. 54-12 E. 242.26 feet to a point; thence N.
54-12 E. 18.70 feet to a concrete monument; thence N. 48-07 E. 49.52 feet to a
point; thence N. 48-07 E. 47.10 feet to a concrete monument; thence N. 54-10 E.
602.86 feet to a concrete monument; thence S. 37-00 E. 10.21 feet to a concrete
monument; thence N. 54-29 E. 408.05 feet to a concrete monument; thence along
said Frontage Road in a curve the following courses and distances, to-wit: N.
61-47 E. 100.00 feet; N. 84-31 E. 100.00 feet; S. 81-14 E. 100.00 feet; and S.
78-54 E. 236.85 feet to a point; thence continuing along said road, S. 78-54 E.
22.20 feet to a concrete monument; thence N. 78-50 E. 61-58 feet to a point;
thence turning and running S. 58-44 E. 73.75 feet to a point on the westerly
side of South Carolina Highway 99; thence along the westerly side of said
highway, S. 16-16 E. 553.84 feet to a point; thence S. 15-38 E. 135.50 feet to a
point; thence S. 15-38 E. 31.71 feet to a point; thence S.13-42 E. 117.21 feet
to a point; thence S. 12-37 E. 125.75 feet to a point at the intersection of
said South Carolina Highway 99 and property of the Southern Railway System;
thence turning and running along the northwesterly side of said railway
property, S. 41-55 W. 275.02 feet to a point; thence S. 41-55 W. 400.21 feet to
a point; thence S. 41-39 W. 166.49 feet to a point; thence S. 41-39 W. 288.64
feet to a point; thence continuing along a curve in said railway property, the
chords of which are as follows: S. 34-25 W. 235.69 feet; S. 27-46 W. 300.00
feet; S. 16-55 W. 425.71 feet to a point; thence S. 4-56 W. 17.39 feet to a
point; thence S. 4-56 W. 116.09 feet to a point; thence turning and running S.
26-25 W. 493.00 feet to a point; thence turning and running S. 72-42 W. 538.43
feet to a point; thence N. 40-34 W. 1642.78 feet to a point; thence N. 56-09 W.
298.90 feet to a point; thence N. 15-51 E. 115.50 feet to a point; thence N.
21-10 W. 209.01 feet to the beginning corner, containing 133.26 acres, more or
less.

ALSO, ALL that piece, parcel or tract of land with improvements thereon lying,
situate and being in the County of Cherokee, State of South Carolina, shown and
designated as Tract No. 9 on plat above referred to, less two portions of said
tract heretofore conveyed by the grantor herein to Arail A. Thomas and Horace W.
Burgess, which portions conveyed out are shown and designated as Tracts A and C,
and the remaining portion conveyed herein is shown and designated as Tract B on
separate plat of property of Daniel Construction Company prepared by Davis and
Floyd Engrs., Inc., dated 29 September 1962, recorded in the office of the Clerk
of Court for Cherokee County in Book 4X at page 261, and being more particularly
described with reference to said latter plat as follows:

BEGINNING at an iron pin on the easterly side of the South Carolina Highway 99,
joint front corner of Tracts C and B, and running thence along the easterly side
of said highway, N. 16-18 W. 284.00 feet to an iron pin, joint front corner of
Tracts A and B; thence along the common line of said tracts, N. 73-42 E. 478.24
feet to iron pin in property line of Frank and Edwina D. Neal; thence S. 19-34
E. 284.44 feet to an iron pin joint rear corner of Tracts B and C; thence along
the common line of said tracts, S. 73-42 W. 494.45 feet to an iron pin, the
point of beginning, containing 3.17 acres, more or less.

TOGETHER with all the right, title and interest of the grantor in and to the
following properties: that property lying between the center line of Interstate
Highway 85 and the northwesterly boundary of property hereinabove described;
also that property lying between the center line of the Southern Railway System
and the southeasterly boundary of property herein-above described; and also that
property lying within the right of way of South Carolina Highway 99 adjoining
Tracts 7 and 8 on the east and Tract 9 on the west, less the right, title and
interest to portions of same granted to Arail A. Thomas and Horace W. Burgess in
deeds above referred to.

                                    Continued

<PAGE>

                              EXHIBIT "A" CONTINUED

TOGETHER with all right, title and interest in and to that certain lease of
water rights, and all other rights leased therein, executed by Arail A. Thomas
to C. C. Moorhead, Jr., dated March 27, 1961, recorded in the office of the
Clerk of Court for Cherokee County in Volume 4X at page 174 and later assigned
by deed of Columbus C. and Margaret O. Moorhead, Jr. dated September 28, 1962,
and recorded in Volume 5N at page 101.

This being the same property conveyed to the Brown & Williamson U.S.A., Inc. by
deed of Brown & Williamson Tobacco Corporation recorded
on___________________________, 2004 in the Office of the Register of Deeds for
Cherokee County in Deed Book____________at Page________. Brown & Williamson USA,
Inc., by merger and name change, is now known as R. J. Reynolds Tobacco Company,
the Mortgagor herein.

Tax Map Number 191-00-00-027.00

<PAGE>

                                                                      SCHEDULE 1

                             CREDIT AGREEMENT LOANS

The Credit Document Obligations secured by this Mortgage are evidenced by the
Credit Agreement (including the Mortgagor's obligations under the Subsidiary
Guaranty), which provides that the Mortgagor is obligated for the payment and
performance of, without limitation, the following: (i) Revolving Loans in the
original aggregate principal amount of up to $486,250,000 and having final
maturity dates no later than February 13, 2006 (or, if the Existing Senior Notes
due on May 15, 2006 have been refinanced in full with the proceeds of a new
issuance or issuances of Refinancing Senior Notes in an aggregate principal
amount equal to at least the aggregate principal amount of such Existing Senior
Notes so refinanced on or prior to February 13, 2006, January 30, 2007), as such
date may be extended for such Lender pursuant to Section 1.13 of the Credit
Agreement (the "Revolving Loan Maturity Date"); (ii) Swingline Loans in the
original aggregate principal amount of up to $60,000,000, and having a final
maturity date no later than five business days prior to the Revolving Loan
Maturity Date. The Parent and/or one or more of its Subsidiaries may enter into
Interest Rate Protection Agreements and Other Hedging Agreements (together with
the Existing Interest Rate Swap Agreement), and the Borrower may also request
Letters of Credit in accordance Section 2 of the Credit Agreement.

                                       ii

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