Document:

EX-10.1

 Exhibit 10.1 

SECOND AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT 

THIS SECOND AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT (this “Second Amendment”) is made and entered
into as of May 9, 2014, by and among SUBURBAN PROPANE, L.P., a Delaware limited partnership (the “Borrower”), SUBURBAN PROPANE PARTNERS, L.P., a Delaware limited partnership (the
“Parent”), EACH LENDER SIGNATORY HERETO, and BANK OF AMERICA, N.A., as the administrative agent for the Lenders (in such capacity, the “Administrative Agent”), Swing Line Lender,
L/C Issuer and a Lender. 
 W I T N E S S E T H: 

WHEREAS, the Administrative Agent, the Lenders, the Borrower and the Parent are parties to that certain Amended and Restated Credit
Agreement dated as of January 5, 2012 as amended by the First Amendment dated as of August 1, 2012 (the “Credit Agreement”); 

WHEREAS, the Borrower has requested certain amendments to the Credit Agreement, and subject to the terms and conditions set forth
herein, the Administrative Agent and the Lenders that are signatories hereto are willing to agree to such amendments and waivers; 
 NOW,
THEREFORE, in consideration of the mutual covenants and the fulfillment of the conditions set forth herein, the parties hereby agree as follows: 
 1.
Definitions. 
 (a) Unless otherwise defined in this Second Amendment, each capitalized term used herein but not
otherwise defined herein has the meaning given such term in the Credit Agreement, as amended by this Second Amendment. The interpretive provisions set forth in Section 1.02 of the Credit Agreement shall apply to this Second Amendment.

 (b) The definition of “Exchange Refinancing Notes” is hereby amended as follows: add the word
“and” at the end of clause (c); delete clause (d); and renumber clause (e) as clause (d). 
 2. Amendment to
Section 7.02 (Indebtedness). Section 7.02(b)(ii) is hereby amended in its entirety to read as follows: 

(ii) Indebtedness of the Parent and Suburban Energy Finance Corp. evidenced by the Exchange Notes (including the Exchange Refinancing Notes),
provided that neither the Borrower nor any Subsidiary of the Borrower shall be an issuer of, or Guarantee, any Exchange Notes, and” 
 3.
Representations and Warranties. In order to induce the Administrative Agent and the Required Lenders to execute this Second Amendment, each of the Parent and the Borrower represents and warrants that as of the Second Amendment
Effective Date, both before and after giving effect to this Second Amendment: 
 (a) each of the Second Amendment and the Guarantors’
Consent and Agreement (A) has been duly authorized, executed and delivered by each Loan Party party thereto, (B) constitutes a legal, valid and binding obligation of each such Loan Party, enforceable against each such Loan Party in
accordance with its terms subject to applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and similar laws affecting creditors’ rights and remedies generally, and (C) does not and will not
(1) contravene the terms of any of such Person’s Organization Documents; (2) materially conflict with or result in any material breach or contravention of, or the creation of any Lien under, or require any material payment to be made
under (x) any Contractual Obligation to which such Person is a party or affecting such Person or the properties of such Person or any of its Subsidiaries or (y) any order, injunction, writ or decree of any Governmental Authority or any
arbitral award to which such Person or its property is subject; or (3) violate any Law; and 

 (b) the representations and warranties of the Borrower and each other Loan Party contained
in Article V of the Credit Agreement or in any other Loan Document, shall be true and correct in all material respects (except that such materiality qualifier shall not be applicable to any representations and warranties that already
are qualified or modified by materiality in the text thereof), except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct as of such earlier date, and except that
for purposes hereof, the representations and warranties contained in Sections 5.05(a) and (b) of the Credit Agreement shall be deemed to refer to the most recent statements furnished pursuant to Sections
6.01(a), (b), (c) and (d), respectively. 
 4. Effect of Amendment. 

(a) This Second Amendment (i) except as expressly provided herein, shall not be deemed to be a consent to the modification or waiver of
any other term or condition of the Credit Agreement or of any of the instruments or agreements referred to therein and (ii) shall not prejudice any right or rights which the Administrative Agent or the Lenders may now have under or in
connection with the Credit Agreement, as amended by this Second Amendment. Except as otherwise expressly provided by this Second Amendment, all of the terms, conditions and provisions of the Credit Agreement shall remain the same, and the Credit
Agreement, as amended hereby, shall continue in full force and effect. This Second Amendment and such Credit Agreement shall be read and construed as one instrument. 

(b) From and after the Second Amendment Effective Date, each reference in the Credit Agreement, including the schedules and exhibits thereto
and the other documents delivered in connection therewith, to the “Credit Agreement,” “this Agreement,” “hereunder,” “hereof,” “herein,” or words of like import, shall mean and be a reference to the
Credit Agreement as amended hereby. 
 5. Loan Document. This Second Amendment is a Loan Document, and all provisions in the Credit Agreement
pertaining to Loan Documents apply hereto. 
 6. Miscellaneous. This Second Amendment shall be governed by and construed in accordance with,
the laws of the State of New York applicable to agreements made and to be performed entirely within such state, and applicable federal law. The captions in this Second Amendment are for convenience of reference only and shall not define or limit the
provisions hereof. This Second Amendment may be executed in separate counterparts, each of which when so executed and delivered shall be an original, but all of which together shall constitute one instrument. In proving this Second Amendment, it
shall not be necessary to produce or account for more than one such counterpart. 
 7. Entire Agreement. The Credit Agreement (as amended by
this Second Amendment) and the other Loan Documents represent the final agreement between the parties and may not be contradicted by evidence of prior, contemporaneous or subsequent oral agreements of the parties. There are no unwritten oral
agreements between the parties. 
 8. Effectiveness. This Second Amendment shall be effective upon receipt by the Administrative Agent of
(i) signature pages to this Second Amendment, executed on behalf of the Parent, the Borrower, the Administrative Agent, and the Required Lenders and (ii) signature page to the Guarantors’ Consent and Agreement, executed on behalf of
each Guarantor. 
 [Remainder of Page Intentionally Left Blank. Signature Pages Follow.] 

  
 2 

 IN WITNESS WHEREOF, the parties hereto have caused this Second Amendment to be duly executed by
their duly authorized officers, all as of the day and year first above written. 
  

					
	BORROWER:	 	
		
	SUBURBAN PROPANE, L.P.	 	
		
	By:	 	 /s/ Michael Kuglin

		 	Name: Michael Kuglin	 	
		 	Title:   VP Finance and Chief Accounting Officer
		
	PARENT:	 	
		
	SUBURBAN PROPANE PARTNERS, L.P.	 	
		
	By:	 	 /s/ Michael Kuglin

		 	Name: Michael Kuglin	 	
		 	Title:   VP Finance and Chief Accounting Officer

 SIGNATURE PAGE TO 

SECOND AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT 

 GUARANTORS’ CONSENT AND AGREEMENT 

Each of the undersigned Guarantors hereby (a) consents to the foregoing Second Amendment to Amended and Restated Credit
Agreement (the “Second Amendment”), (b) acknowledges and agrees that its obligations and liabilities in respect of the Guaranty and other Loan Documents to which it is a party are not released, diminished, impaired, or
otherwise adversely affected by the Second Amendment, and that all such obligations and liabilities are, and shall continue to be, in full force and effect, (c) confirms that the Liens held by the Administrative Agent for the benefit of the
Lenders as security for payment of the Obligations (including any increase thereof pursuant to the Second Amendment) remain in full force and effect and are unimpaired by the Second Amendment, and (d) agrees that the Guaranty and other Loan
Documents to which it is a party are hereby ratified in all respects. This consent and agreement shall be binding upon each of the undersigned Guarantors, and the respective successors and assigns of each, and shall be governed by and construed in
accordance with the laws of the State of New York. 
  

			
	GUARANTORS:
	
	SUBURBAN LP HOLDING, INC., a Delaware corporation
	SUBURBAN LP HOLDING, LLC, a Delaware limited liability company
	SUBURBAN SALES & SERVICE, INC., a Delaware corporation
	GAS CONNECTION, LLC, an Oregon limited liability company
	SUBURBAN FRANCHISING, LLC, a Nevada limited liability company
	SUBURBAN HEATING OIL PARTNERS, LLC, a Delaware limited liability company
	AGWAY ENERGY SERVICES, LLC, a Delaware limited liability company
	SUBURBAN ENERGY FINANCE CORP., a Delaware corporation
		
	By:	 	 /s/ Michael Kuglin

		 	Name: Michael Kuglin
		 	Title:   Controller
	
	SUBURBAN ENERGY SERVICES GROUP LLC, a Delaware limited liability company
		
	By:	 	 /s/ Michael J. Dunn, Jr.

		 	Name: Michael J. Dunn, Jr.
		 	Title:   Sole Member

  
 SIGNATURE PAGE
TO 
 SECOND AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT 

 
					
	BANK OF AMERICA, N.A., as Administrative Agent
		
	By:	 	 /s/ Bridgett J. Manduk

		 	Name:	 	Bridgett J. Manduk
		 	Title:	 	Vice President
	
	BANK OF AMERICA, N.A., as a Lender, a L/C Issuer and Swing Line Lender
		
	By:	 	 /s/ Bryan Heller

		 	Name:	 	Bryan Heller
		 	Title:	 	Director

  
 SIGNATURE PAGE
TO 
 SECOND AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT 

 
					
	WELLS FARGO BANK, N.A., as a Lender and a L/C Issuer
		
	By:	 	 /s/ Edward Markham

		 	Name:	 	Edward Markham
		 	Title:	 	Assistant Vice President

  
 SIGNATURE PAGE
TO 
 SECOND AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT 

 
					
	JPMORGAN CHASE BANK, N.A., as a Lender
		
	By:	 	 /s/ Helen D. Davis

		 	Name:	 	Helen D. Davis
		 	Title:	 	Vice President

  
 SIGNATURE PAGE
TO 
 SECOND AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT 

 
					
	CITIBANK, N.A., as a Lender
		
	By:	 	 /s/ Craig Heal

		 	Name:	 	Craig Heal
		 	Title:	 	Senior Vice President

  
 SIGNATURE PAGE
TO 
 SECOND AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT 

 
			
	RBS CITIZENS, N.A., as a Lender
		
	By:	 	 /s/ Colin Monaghan

		 	Name: Colin Monaghan
		 	Title:   Vice President

  
 SIGNATURE PAGE
TO 
 SECOND AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT 

 
			
	HSBC BANK USA, N.A., as a Lender
		
	By:	 	 /s/ Robert Moravec

		 	Name: Robert Moravec
		 	Title:   Senior Relationship Manager

  
 SIGNATURE PAGE
TO 
 SECOND AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT 

 
					
	TD BANK, N.A., as a Lender
		
	By:	 	 /s/ Shannon Batchman

		 	Name:	 	Shannon Batchman
		 	Title:	 	Senior Vice President

  
 SIGNATURE PAGE
TO 
 SECOND AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT 

 
					
	CAPITAL ONE, NATIONAL ASSOCIATION, as a Lender
		
	By:	 	 /s/ Allison Sardo

		 	Name:	 	Allison Sardo
		 	Title:	 	Senior Vice President

  
 SIGNATURE PAGE
TO 
 SECOND AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT 

 
					
	DEUTSCHE BANK TRUST COMPANY AMERICAS, as a Lender
		
	By:	 	 /s/ Lisa Wong

		 	Name:	 	Lisa Wong
		 	Title:	 	Vice President
		
	By:	 	 /s/ Marcus M. Tarkington

		 	Name:	 	Marcus M. Tarkington
		 	Title:	 	Director

  
 SIGNATURE PAGE
TO 
 SECOND AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT 

 
					
	 SANTANDER BANK, N.A., as a Lender

		
	By:	 	 /s/ Alma M. Chin

		 	Name:	 	Alma M. Chin
		 	Title:	 	Senior Vice President

  
 SIGNATURE PAGE
TO 
 SECOND AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT 

 
					
	BRANCH BANKING AND TRIST COMPANY, as a Lender
		
	By:	 	 /s/ Max Greer

		 	Name:	 	Max Greer
		 	Title:	 	Vice President

  
 SIGNATURE PAGE
TO 
 SECOND AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT 

 
					
	 GOLDMAN SACHS BANK USA, as a Lender

		
	By:	 	 /s/ Michelle Latzoni

		 	Name:	 	Michelle Latzoni
		 	Title:	 	Authorized Signatory

  
 SIGNATURE PAGE
TO 
 SECOND AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT 

 
					
	MANUFACTURERS AND TRADERS TRUST COMPANY, as a Lender
		
	By:	 	 /s/ Derek Lynch

		 	Name:	 	Derek Lynch
		 	Title:	 	Vice President

  
 SIGNATURE PAGE
TO 
 SECOND AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT 

 
					
	RAYMOND JAMES BANK, N.A., as a Lender
		
	By:	 	 /s/ Scott G. Axelrod

		 	Name:	 	Scott G. Axelrod
		 	Title:	 	Vice President

  
 SIGNATURE PAGE
TO 
 SECOND AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENTEX-10.1

 EXHIBIT 10.1 
 REYNOLDS AMERICAN INC. 
 AMENDED AND RESTATED 2009 OMNIBUS INCENTIVE
COMPENSATION PLAN 
 1.     Purpose.    The purpose of the Reynolds
American Inc. Amended and Restated 2009 Omnibus Incentive Compensation Plan is to attract to RAI and its Subsidiaries, motivate and retain exceptional talent, and to reward employees for performance and the successful execution of RAI’s
business plans and strategies. 
 2.     Definitions.    As used in the
Plan, 
 (a) “Affiliate” of any person means another person that directly or indirectly, through one or more
intermediaries, controls, is controlled by, or is under common control with, such first person. 
 (b) “Aggregate Share
Limit” means the aggregate maximum number of shares available under the Plan pursuant to Section 3(a)(i) of the Plan. 
 (c) “Annual Incentive Award” means a cash award granted pursuant to Section 8 of the Plan, where such award is based on Management Objectives and a Performance Period of one
year or less. 
 (d) “Appreciation Right” means a right granted pursuant to Section 5 of the Plan.

 (e) “Award” means any Annual Incentive Award, Option Right, Restricted Stock, Restricted Stock Unit, Appreciation
Right, Performance Share, Performance Unit or Other Award granted pursuant to the terms of the Plan. 
 (f) “Base
Price” means the price to be used as the basis for determining the Spread upon the exercise of an Appreciation Right. 

(g) “BAT” means, collectively, British American Tobacco p.l.c., a public limited company incorporated under the laws of England
and Wales, and its Affiliates. 
 (h) “Beneficial Owner” or “Beneficial Ownership” has the meaning ascribed
to such term in Rule 13d-3 of the General Rules and Regulations under the Exchange Act. 
 (i) “Board” means the Board of Directors of RAI. 
 (j) “Change of
Control” means the first to occur of the following events: 
  

	 	(i)	an individual, corporation, partnership, group, associate or other entity or Person, other than any employee benefit plans sponsored by RAI, is or becomes the
Beneficial Owner, directly or indirectly, of thirty percent (30%) or more of the combined voting power of RAI’s outstanding securities ordinarily having the right to vote at elections of directors; provided, however, that the
acquisition of RAI securities by BAT pursuant to the Business Combination Agreement, dated as of October 27, 2003, between R.J. Reynolds Tobacco Holdings, Inc. (“RJR”) and Brown & Williamson Tobacco Corporation
(“B&W”), as thereafter amended (the “BCA”), or as expressly permitted by the Governance Agreement, dated as of July 30, 2004, among British American Tobacco p.l.c., B&W and RAI, as thereafter amended (the
“Governance Agreement”), shall not be considered a Change of Control for purposes of this subsection (i); 

  

	 	(ii)	 individuals who constitute the Board (or who have been designated as directors in accordance with Section 1.09 of the BCA) on July 30, 2004
(the “Incumbent Board”) cease for any reason to constitute at least a majority thereof, provided that any person becoming a director subsequent to 

  
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such date whose election, or nomination for election by RAI’s shareholders, was (A) approved by a vote of at least three-quarters (3/4) of the directors comprising the Incumbent
Board (either by a specific vote or by approval of the proxy statement of RAI in which such person is named as a nominee of RAI for director) or (B) made in accordance with Section 2.01 of the Governance Agreement, but excluding for this
purpose any such individual whose initial assumption of office occurs as a result of either an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or
consents by or on behalf of an individual, corporation, partnership, group, associate or other entity or Person other than the Board, shall be, for purposes of this paragraph (ii), considered as though such person were a member of the Incumbent
Board; and 

  

	 	(iii)	the consummation of (A) a merger or consolidation of RAI other than with a wholly owned Subsidiary and other than a merger or consolidation that would result in
the voting securities of RAI outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than fifty percent (50%) of the combined
voting power of the voting securities of RAI or such surviving entity outstanding immediately after such merger or consolidation, or (B) a sale, exchange or other disposition of all or substantially all of the assets of RAI, other than any such
transaction where the transferee of all or substantially all of the assets of RAI is a wholly owned Subsidiary or an entity more than fifty percent (50%) of the combined voting power of the voting securities of which is represented by voting
securities of RAI outstanding immediately prior to the transaction (either remaining outstanding or by being converted into voting securities of the transferee entity). 

(k) “Code” means the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder, as such law and
regulations may be amended from time to time. 
 (l) “Committee” means the Compensation and Leadership Development
Committee of the Board (or its successor(s)), or any other committee of the Board designated by the Board to administer the Plan. 
 (m) “Company” means, collectively, RAI and its Subsidiaries. 
 (n)
“Covered Employee” means a Participant who is, or is determined by the Board to be likely to become, a “covered employee” within the meaning of Section 162(m) of the Code (or any successor provision). 

(o) “Date of Grant” means the date specified by the Board on which a grant of an Award will become effective (which date will
not be earlier than the date on which the Board takes action with respect thereto). 
 (p) “Director” means a member
of the Board. 
 (q) “EBIT” means earnings before interest and taxes. 

(r) “EBITDA” means earnings before interest, taxes, depreciation and amortization. 

(s) “EBT” means earnings before taxes. 
 (t) “Effective Date” means the date that the Plan is approved by the shareholders of RAI. 
 (u) “Evidence of Award” means an agreement, certificate, resolution, notification or other type or form of writing or other evidence approved by the Board that sets forth the terms and
conditions of the Awards granted under the Plan. An Evidence of Award may be in an electronic medium, may be limited to notation on the books and records of RAI and, unless otherwise determined by the Board, need not be signed by a representative of
RAI or a Participant. 
 (v) “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and
regulations thereunder, as such law, rules and regulations may be amended from time to time. 
 (w) “Existing Plan”
means the Reynolds American Inc. Long-Term Incentive Plan, as amended. 

  
 2 

 (x) “GAAP” means generally accepted accounting principles in the United States of
America as in effect from time to time. 
 (y) “Incentive Stock Options” means Option Rights that are intended to
qualify as “incentive stock options” under Section 422 of the Code or any successor provision. 
 (z)
“Management Objectives” means the measurable performance objective or objectives established pursuant to the Plan for Participants who have received grants of Annual Incentive Awards, Performance Shares or Performance Units or, when so
determined by the Board, Option Rights, Appreciation Rights, Restricted Stock, Restricted Stock Units, dividend equivalents or Other Awards pursuant to the Plan. Management Objectives may be described in terms of RAI-wide objectives or objectives
that are related to the performance of the individual Participant or of one or more of the Subsidiaries, divisions, departments, regions, functions or other organizational units within RAI or any Subsidiary. The Management Objectives may be made
relative to the performance of other companies or subsidiaries, divisions, departments, regions, functions or other organizational units within such other companies, and may be made relative to an index or one or more of the performance objectives
themselves. The Board may grant awards subject to Management Objectives that are either Qualified Performance-Based Awards or are not Qualified Performance-Based Awards. The Management Objectives applicable to any Qualified Performance-Based Award
to a Covered Employee will be based on one or more, or a combination, of the following criteria: 
  

	 	(i)	Profits: (e.g., operating income, EBIT, EBT, net income, cash net income, earnings per share, residual or economic earnings or economic profit);

  

	 	(ii)	Cash Flow: (e.g., EBITDA, free cash flow, free cash flow with or without specific capital expenditure targets or ranges, including or excluding divestments
and/or acquisitions, total cash flow, cash flow in excess of cost of capital or residual cash flow or cash flow return on investment); 

  

	 	(iii)	Returns: (e.g., economic value added (EVA) or profits or cash flow returns on: sales, assets, invested capital, net capital employed or equity);

  

	 	(iv)	Working Capital: (e.g., working capital divided by sales, days’ sales outstanding, days’ sales inventory or days’ sales in payables);

  

	 	(v)	Profit Margins: (e.g., Profits divided by revenues or sales, gross margins divided by revenues or sales, or operating margin divided by revenues or sales);

  

	 	(vi)	Liquidity Measures: (e.g., debt-to-capital ratios, debt-to-EBITDA ratios or total debt); 

 

	 	(vii)	Sales Growth, Margin Growth, Unit Growth, Cost Initiative and Stock Price Metrics: (e.g., revenues, revenue growth, sales, sales growth, gross margin,
operating margin, shipment volume, unit growth, stock price appreciation, total return to shareholders, expense targets, productivity targets or ratios, sales and administrative expenses divided by sales, or sales and administrative expenses divided
by profits); and 

  

	 	(viii)	Strategic Initiative Key Deliverable Metrics consisting of one or more of the following: product development or launch, strategic partnering, research and
development, regulatory compliance or submissions, vitality or sustainability index, market share or penetration, geographic business expansion goals, customer satisfaction, employee satisfaction, management of employment practices and employee
benefits, supervision of litigation and information technology, or goals relating to acquisitions or divestitures of subsidiaries, affiliates or joint ventures. 

 In the case of a Qualified Performance-Based Award, each Management Objective will be objectively determinable to the extent required under Section 162(m) of the Code, and, unless otherwise
determined by the Committee and to the extent consistent with Code Section 162(m), at the Committee’s discretion, any Management Objective may be measured before special items, and may or may not be determined in accordance

  
 3 

 
with GAAP. The Committee shall have the authority to make equitable adjustments to the Management Objectives (and to the related minimum, target and maximum levels of achievement or performance)
as follows: in recognition of unusual or non-recurring events affecting RAI or any Subsidiary or Affiliate or the financial statements of RAI or any Subsidiary or Affiliate; in response to changes in applicable laws or regulations; to account for
items of gain, loss or expense determined to be extraordinary or unusual in nature or infrequent in occurrence or related to the disposal of a segment of a business or related to a change in accounting principles; or in recognition of any events or
circumstances (including, without limitation, changes in the business, operations, corporate or capital structure of the Company or the manner in which it conducts its business) that render the Management Objectives unsuitable; provided,
however, that no such adjustments will be made in the case of a Qualified Performance-Based Award (other than in connection with a Change of Control) where such action would result in the loss of the otherwise available exemption of the award
under Section 162(m) of the Code, unless the Committee determines that the satisfaction of such requirements is neither necessary or appropriate. 
 (aa) “Market Value per Share” means, as of any particular date, the closing price of a Share as reported on The New York Stock Exchange or, if not listed on such exchange, on any other national
securities exchange on which the Shares are listed. If the Shares are not traded as of any given date, the Market Value per Share means the closing price for the Shares on the principal exchange on which the Shares are traded for the immediately
preceding date on which the Shares were traded. If there is no regular public trading market for the Shares, the Market Value per Share of the Shares shall be the fair market value of the Shares as determined in good faith by the Board. The Board is
authorized to adopt another fair market value pricing method, provided such method is stated in the Evidence of Award and is in compliance with the fair market value pricing rules set forth in Section 409A of the Code. 

(bb) “Optionee” means the optionee named in an Evidence of Award evidencing an outstanding Option Right. 

(cc) “Option Price” means the purchase price payable on exercise of an Option Right. 

(dd) “Option Right” means the right to purchase Shares upon exercise of an option granted pursuant to
Section 4 of the Plan. 
 (ee) “Other Award” means an Award granted pursuant to
Section 9 of the Plan. 
 (ff) “Participant” means a person who is selected by the Board to receive
Awards under the Plan and who is at the time an employee of RAI or any one or more of its Subsidiaries. The term “Participant” shall also include any person selected by the Board who provides services to RAI or a Subsidiary, including any
person providing services to any entity in which RAI or any of its Subsidiaries has an ownership interest of at least twenty (20) percent (provided that such person satisfies the Form S-8 definition of an “employee”). 

(gg) “Performance Period” means, in respect of an Award, a period of time within which the Management Objectives relating to
such Award are to be achieved. 
 (hh) “Performance Share” means an Award under the Plan equivalent to the right to
receive one Share awarded pursuant to Section 8 of the Plan. 
 (ii) “Performance Unit” means a
unit awarded pursuant to Section 8 of the Plan that is equivalent to $1.00 or such other value as is determined by the Board. 
 (jj) “Person” shall have the meaning set forth in Section 3(a)(9) of the Exchange Act, as modified and used in Sections      13(d) and 14(d) thereof and the rules
thereunder, except that such term shall not include (i) RAI or any Subsidiary, (ii) a trustee or other fiduciary holding securities under an employee benefit plan of RAI or any Subsidiary, (iii) an underwriter temporarily holding
securities pursuant to an offering of such securities, or (iv) an entity owned, directly or indirectly, by the shareholders of RAI in substantially the same proportions as their ownership of stock of RAI. 

  
 4 

 (kk) “Plan” means this Reynolds American Inc. Amended and Restated 2009 Omnibus
Incentive Compensation Plan. 
 (ll) “Qualified Performance-Based Award” means any Award or portion of an Award to a
Covered Employee that is intended to satisfy the requirements for “qualified performance-based compensation” under Section 162(m) of the Code. 
 (mm) “RAI” means Reynolds American Inc., a North Carolina corporation, and any successors thereto. 
 (nn) “Restricted Stock” means Shares granted pursuant to Section 6 of the Plan as to which neither the substantial risk of forfeiture nor the prohibition on transfers has
expired. 
 (oo) “Restriction Period” means the period of time during which Restricted Stock or Restricted Stock Units
may be subject to restrictions, as provided in Section 6 and Section 7 of the Plan. 

(pp) “Restricted Stock Unit” means an Award made pursuant to Section 7 of the Plan. 

(qq) “Secondary Committee” means one or more senior officers of RAI (who need not be members of the Board), acting as a
committee established by the Board pursuant to Section 12(b) of the Plan, subject to such conditions and limitations as the Board shall prescribe. 
 (rr) “Shares” means the shares of common stock, par value $0.0001 per share, of RAI or any security into which such Shares may be changed by reason of any transaction or event of the type
referred to in Section 11 of the Plan. 
 (ss) “Spread” means the excess of the Market Value per
Share on the date when an Appreciation Right is exercised, or on the date when Option Rights are surrendered in payment of the Option Price of other Option Rights, over the Option Price or Base Price provided for in the related Option Right or
Appreciation Right, respectively. 
 (tt) “Subsidiary” means a corporation, company or other entity (i) more than
50 percent of whose outstanding shares or securities (representing the right to vote for the election of directors or other managing authority) are, or (ii) which does not have outstanding shares or securities (as may be the case in a
partnership, joint venture or unincorporated association), but more than 50 percent of whose ownership interest representing the right generally to make decisions for such other entity is, now or hereafter, owned or controlled, directly or
indirectly, by RAI; except that, for purposes of determining whether any person may be a Participant for purposes of any grant of Incentive Stock Options, “Subsidiary” means any corporation in which at the time RAI owns or controls,
directly or indirectly, more than 50 percent of the total combined voting power represented by all classes of stock issued by such corporation. 
 3.     Shares Available Under the Plan. 
  

					
		 	(a)	 	Maximum Shares Available Under Plan.
			
		 	(i)	 	Subject to adjustment as provided in Section 11 of the Plan, the maximum number of Shares that may be issued (A) upon the exercise of Option Rights or
Appreciation Rights, (B) in payment or settlement of Restricted Stock and released from substantial risks of forfeiture thereof, (C) in payment or settlement of Restricted Stock Units, (D) in payment or settlement of Performance
Shares or Performance Units that have been earned, (E) in payment or settlement of Other Awards, or (F) in payment of dividend equivalents paid with respect to Awards made under the Plan, in the aggregate, will not exceed 38,000,000 Shares
(the “Aggregate Share Limit”) (19,000,000 of which were approved by shareholders of RAI in 2009 and then subjected to a two-for-one stock split in 2010).

  
 5 

	 	(ii)	Shares covered by an Award granted under the Plan shall not be counted against the Aggregate Share Limit unless and until they are actually issued and delivered to a
Participant and, therefore, the total number of Shares available under the Plan as of a given date shall not be reduced by any Shares relating to prior Awards that have expired or have been forfeited or cancelled, and to the extent of payment in
cash of the benefit provided by any Award granted under the Plan, any Shares that were covered by that Award will be available for issue or transfer hereunder. If, under the Plan, a Participant has elected to give up the right to receive
compensation in exchange for Shares based on fair market value, such Shares will not count against the Aggregate Share Limit. In addition, upon the full or partial payment of any Option Price by the transfer to the Company of Shares or upon
satisfaction of tax withholding provisions in connection with any such exercise or any other payment made or benefit realized under this Plan by the transfer or relinquishment of Shares, there shall be deemed to have been issued under this Plan only
the net number of Shares actually issued by the Company. 

  

	 	(iii)	Subject to adjustment as provided in Section 11 of the Plan, the aggregate number of Shares actually issued by the Company upon the exercise of
Incentive Stock Options will not exceed 6,000,000 Shares (3,000,000 of which were approved by shareholders of RAI in 2009 and then subjected to a two-for-one stock split in 2010). 

(b)   Individual Participant Limits.    Notwithstanding anything in this
Section 3, or elsewhere in the Plan, to the contrary, and subject to adjustment as provided in Section 11 of the Plan: 
  

	 	(i)	No Participant will be granted Option Rights or Appreciation Rights, in the aggregate, for more than 6,000,000 Shares during any calendar year (3,000,000 of which were
approved by shareholders of RAI in 2009 and then subjected to a two-for-one stock split in 2010); 

  

	 	(ii)	No Participant will be awarded Qualified Performance-Based Awards of Restricted Stock, Restricted Stock Units, Performance Shares or Other Awards, in the aggregate, for
more than 3,000,000 Shares during any calendar year (1,500,000 of which were approved by shareholders of RAI in 2009 and then subjected to a two-for-one stock split in 2010); 

 

	 	(iii)	In no event will any Participant in any calendar year receive a Qualified Performance-Based Award of Performance Units having an aggregate maximum value in excess of
$20,000,000; 

  

	 	(iv)	In no event will any Participant in any calendar year receive a Qualified Performance-Based Award that is an Annual Incentive Award having an aggregate maximum value in
excess of $20,000,000; and 

  

	 	(v)	In no event will any Participant in any calendar year receive a Qualified Performance-Based Award in the form of Other Awards of cash under
Section 9(b) having an aggregate maximum value in excess of $20,000,000. 

4.     Option Rights.    The Board may, from time to time, authorize the granting to
Participants of Option Rights upon such terms and conditions consistent with the following provisions as it may determine: 

(a) Each grant will specify the number of Shares to which it pertains subject to the limitations set forth in
Section 3 of the Plan. 
 (b) Each grant will specify an Option Price per share, which (except with respect
to awards under Section 20 of this Plan) may not be less than the Market Value per Share on the Date of Grant. 
 (c) Each grant will specify whether the Option Price will be payable (i) in cash or by check acceptable to RAI or by wire transfer of immediately available funds, (ii) by the actual or
constructive transfer to RAI of Shares owned by the Optionee (or other consideration authorized pursuant to Section 4(d)) having a value at the time of exercise equal to the total Option Price, (iii) by withholding by RAI
from the Shares otherwise deliverable to the Optionee upon the exercise of such Option, a number of Shares having a value at the time of exercise equal to the total Option Price, (iv) by a combination of such methods of payment, or (v) by
such other methods as may be approved by the Board. 

  
 6 

 (d) To the extent permitted by law, any grant may provide for deferred payment of the Option
Price from the proceeds of sale through a bank or broker on a date satisfactory to RAI of some or all of the shares to which such exercise relates. 
 (e) Successive grants may be made to the same Participant whether or not any Option Rights previously granted to such Participant remain unexercised. 

(f) Each grant will specify the period or periods of continuous service by the Optionee with RAI or any Subsidiary that is necessary
before the Option Rights or installments thereof will become exercisable. 
 (g) Any grant of Option Rights may specify
Management Objectives that must be achieved as a condition to the exercise of such rights. 
 (h) Option Rights granted under
the Plan may be (i) options, including, without limitation, Incentive Stock Options, (ii) options that are not intended to qualify as Incentive Stock Options, or (iii) combinations of the foregoing. Incentive Stock Options may only be
granted to Participants who meet the definition of “employees” under Section 3401(c) of the Code. 
 (i) The
Board may substitute, without receiving Participant permission, Appreciation Rights payable only in Shares (or Appreciation Rights payable in Shares or cash, or a combination of both, at the Board’s discretion) for outstanding Option Rights;
provided, however, that the terms of the substituted Appreciation Rights are substantially the same as the terms for the Option Rights at the date of substitution and the difference between the Market Value per Share of the underlying
Shares and the Base Price of the Appreciation Rights is equivalent to the difference between the Market Value per Share of the underlying Shares and the Option Price of the Option Rights. If, in the opinion of RAI’s auditors, this provision
creates adverse accounting consequences for RAI, it shall be considered null and void. 
 (j) Option Rights granted under this
Plan may not provide for any dividends or dividend equivalents thereon. 
 (k) No Option Right will be exercisable more than 10
years from the Date of Grant. 
 5.     Appreciation Rights.    The Board
may, from time to time, authorize the granting to any Participant of Appreciation Rights upon such terms and conditions consistent with the following provisions as it may determine: 

(a) An Appreciation Right will be a right of the Participant to receive from RAI an amount determined by the Board, which will be
expressed as a percentage of the Spread (not exceeding 100 percent) at the time of exercise. 
 (b) Each grant will specify the
Base Price, which (except with respect to awards under Section 20 of this Plan) may not be less than the Market Value per Share on the Date of Grant. 
 (c) Any grant may specify that the amount payable on exercise of an Appreciation Right may be paid by RAI in cash, in Shares or in any combination thereof and may either grant to the Participant or retain
in the Board the right to elect among those alternatives. 
 (d) Any grant may specify that the amount payable on exercise of an
Appreciation Right may not exceed a maximum specified by the Board at the Date of Grant. 
 (e) Any grant may specify waiting
periods before exercise and permissible exercise dates or periods. 
 (f) Each grant will specify the period or periods of
continuous service by the Participant with RAI or any Subsidiary that is necessary before such Appreciation Right or installments thereof will become exercisable. 

  
 7 

 (g) Any grant of Appreciation Rights may specify Management Objectives that must be achieved
as a condition of the exercise of such Appreciation Rights. 
 (h) Successive grants may be made to the same Participant
regardless of whether any Appreciation Rights previously granted to the Participant remain unexercised. 
 (i) Appreciation
Rights granted under this Plan may not provide for any dividends or dividend equivalents thereon. 
 (j) No Appreciation Right
granted under the Plan may be exercised more than 10 years from the Date of Grant. 

6.     Restricted Stock.    The Board may, from time to time authorize the granting
of Restricted Stock to Participants upon such terms and conditions consistent with the following provisions as it may determine: 
 (a) Each such grant will constitute an immediate transfer of the ownership of Shares to the Participant in consideration of the performance of services, entitling such Participant to voting, dividend and
other ownership rights, but such rights shall be subject to such restrictions and the fulfillment of such conditions (which may include the achievement of Management Objectives) during the Restriction Period as the Board may determine. 

(b) Each such grant may be made without additional consideration or in consideration of a payment by such Participant that is less than
the Market Value per Share at the Date of Grant. 
 (c) Each such grant will provide that the Restricted Stock covered by such
grant that vests upon the passage of time will be subject to a “substantial risk of forfeiture” within the meaning of Section 83 of the Code for a period to be determined by the Board at the Date of Grant or until achievement of
Management Objectives referred to in subparagraph (e) below. 
 (d) Each such grant will provide that during, and may
provide that after, the period for which such substantial risk of forfeiture is to continue, the transferability of the Restricted Stock will be prohibited or restricted in the manner and to the extent prescribed by the Board at the Date of Grant
(which restrictions may include, without limitation, rights of repurchase or first refusal in RAI or provisions subjecting the Restricted Stock to a continuing substantial risk of forfeiture in the hands of any transferee). 

(e) Any grant of Restricted Stock may specify Management Objectives that, if achieved, will result in termination or early termination of
the restrictions applicable to such Restricted Stock. 
 (f) Notwithstanding anything to the contrary contained in the Plan, any
grant of Restricted Stock may provide for the earlier termination of restrictions on such Restricted Stock in the event of the retirement, death or disability, or other termination of employment of a Participant, or a Change of Control;
provided, however, that no such adjustment will be made in the case of a Qualified Performance-Based Award (other than in connection with the death or disability of the Participant or a Change of Control) where such action would result
in the loss of the otherwise available exemption of the Award under Section 162(m) of the Code. 
 (g) Any such grant of
Restricted Stock may require that any or all dividends or other distributions paid thereon during the period of such restrictions be automatically deferred and reinvested in additional shares of Restricted Stock or paid in cash, which may be subject
to the same restrictions as the underlying Award; provided, however, that dividends or other distributions on Restricted Stock with restrictions that lapse as a result of the achievement of Management Objectives will be deferred until
and paid contingent upon the achievement of the applicable Management Objectives. 
 (h) Unless otherwise directed by the Board,
(i) all certificates representing shares of Restricted Stock will be held in custody by RAI until all restrictions thereon will have lapsed, together with a stock power or 

  
 8 

 
powers executed by the Participant in whose name such certificates are registered, endorsed in blank and covering such Shares, or (ii) all shares of Restricted Stock will be held at
RAI’s transfer agent in book entry form with appropriate restrictions relating to the transfer of such shares of Restricted Stock. 
 7.     Restricted Stock Units.    The Board may, from time to time authorize the granting of Restricted Stock Units to Participants upon such terms and
conditions consistent with the following provisions as it may determine: 
 (a) Each such grant will constitute the agreement by
RAI to deliver Shares, cash or a combination thereof to the Participant in the future in consideration of the performance of services, but subject to such restrictions and the fulfillment of such conditions (which may include the achievement of
Management Objectives) during the Restriction Period as the Board may specify. 
 (b) Each such grant may be made without
additional consideration or in consideration of a payment by such Participant that is less than the Market Value per Share at the Date of Grant. 
 (c) Notwithstanding anything to the contrary contained in the Plan, any grant of Restricted Stock Units may provide for the earlier lapse or modification of the Restriction Period in the event of the
retirement, death or disability, or other termination of employment of a Participant, or a Change of Control; provided, however, that no such adjustment will be made in the case of a Qualified Performance-Based Award (other than in
connection with the death or disability of the Participant or a Change of Control) where such action would result in the loss of the otherwise available exemption of the Award under Section 162(m) of the Code. 

(d) During the Restriction Period, the Participant will have no right to transfer any rights under his or her Award and will have no
rights of ownership in the Shares deliverable upon payment of the Restricted Stock Units and will have no right to vote them, but the Board may at the Date of Grant, authorize the payment of dividend equivalents on such Restricted Stock Units on a
current, deferred or contingent basis, either in cash, additional Restricted Stock Units or in additional Shares; provided, however, that dividend equivalents or other distributions on Shares underlying Restricted Stock Units with
restrictions that lapse as a result of the achievement of Management Objectives will be deferred until and paid contingent upon the achievement of the applicable Management Objectives. 

(e) Each grant of Restricted Stock Units will specify the time and manner of payment of the Restricted Stock Units that have been earned.

 8.     Annual Incentive Awards, Performance Shares and Performance
Units.    The Board may, from time to time, authorize the granting of Annual Incentive Awards, Performance Shares and Performance Units that will become payable to a Participant upon achievement of specified Management
Objectives during the Performance Period, upon such terms and conditions consistent with the following provisions as it may determine: 
 (a) Each grant will specify either the number of, or amount payable with respect to, Annual Incentive Awards, Performance Shares or Performance Units to which it pertains, which number or amount payable
may be subject to adjustment to reflect changes in compensation or other factors; provided, however, that no such adjustment will be made in the case of a Qualified Performance-Based Award (other than in connection with the death or
disability of the Participant or a Change of Control) where such action would result in the loss of the otherwise available exemption of the Award under Section 162(m) of the Code. 

(b) The Performance Period with respect to each Annual Incentive Award, Performance Share or Performance Unit will be such period of time
(not less than one year in the case of each Performance Share and Performance Unit), as will be determined by the Board, which may be subject to earlier lapse or other modification in the event of the retirement, death or disability, or other
termination of employment of a Participant, or a Change of Control; provided, however, that no such adjustment will be made in the case of a Qualified Performance-Based Award (other than in connection with the death or disability of
the Participant or a Change of Control) where such action would result in the loss of the otherwise available exemption of the Award under Section 162(m) of the Code. In such event, the Evidence of Award will specify the time and terms of
delivery. 

  
 9 

 (c) Any grant of Annual Incentive Awards, Performance Shares or Performance Units will
specify Management Objectives which, if achieved, will result in payment or early payment of the Award and may set forth a formula for determining the number of, or amount payable with respect to, Annual Incentive Awards, Performance Shares or
Performance Units that will be earned if performance is at or above the minimum or threshold level or levels. 
 (d) Each grant
will specify the time and manner of payment of Annual Incentive Awards, Performance Shares or Performance Units that have been earned. Any grant of Performance Shares or Performance Units may specify that the amount payable with respect thereto may
be paid by RAI in cash, in Shares or in any combination thereof and may either grant to the Participant or retain in the Board the right to elect among those alternatives. 
 (e) Any grant of Annual Incentive Awards, Performance Shares or Performance Units may specify that the amount payable or the number of Shares issued with respect thereto may not exceed maximums specified
by the Board at the Date of Grant. 
 (f) The Board may at the Date of Grant of Performance Shares, provide for the payment of
dividend equivalents to the holder thereof either in cash or in additional Shares, subject in all cases to deferral and payment on a contingent basis based on the Participant’s earning of the Performance Shares with respect to which such
dividend equivalents are paid. 
 9.     Other Awards. 

(a) The Board may, subject to limitations under applicable law, grant to any Participant such other Awards that may be denominated or
payable in, valued in whole or in part by reference to, or otherwise based on, or related to, Shares or factors that may influence the value of such Shares, including, without limitation, awards consisting of securities or other rights convertible
or exchangeable into Shares, purchase rights for Shares, Awards with value and payment contingent upon performance of the Company or specified Subsidiaries, affiliates or other business units thereof or any other factors designated by the Board, and
Awards valued by reference to the book value of Shares or the value of securities of, or the performance of specified Subsidiaries or affiliates or other business units of RAI. The Board shall determine the terms and conditions of such Awards.
Shares delivered pursuant to an Award in the nature of a purchase right granted under this Section 9 shall be purchased for such consideration, paid for at such time, by such methods, and in such forms, including, without
limitation, cash, Shares, Other Awards, notes or other property, as the Board shall determine. 
 (b) Except as otherwise
provided in Section 15(b), cash awards, as independent Awards or as an element of or supplement to any other Award granted under the Plan, may also be granted pursuant to this Section 9. 

(c) The Board may grant Shares as a bonus, or may grant other Awards in lieu of obligations of RAI or a Subsidiary to pay cash or deliver
other property under the Plan or under other plans or compensatory arrangements, subject to such terms as shall be determined by the Board in a manner that complies with Section 409A of the Code. 

10.   Transferability. 
 (a) Except as otherwise determined by the Board, no Awards granted under the Plan shall be transferable by the Participant except by will or the laws of descent and distribution, and in no event shall any
such Award granted under the Plan be transferred for value. Except as otherwise determined by the Board, Option Rights and Appreciation Rights will be exercisable during the Participant’s lifetime only by him or her or, in the event of the
Participant’s legal incapacity to do so, by his or her guardian or legal representative acting on behalf of the Participant in a fiduciary capacity under state law and/or court supervision. 

(b) The Board may specify at the Date of Grant that part or all of the Shares that are to be issued by the Company upon the exercise of
Option Rights or Appreciation Rights, upon the termination of the Restriction Period applicable to Restricted Stock or Restricted Stock Units or upon payment under any grant of Performance Shares, Performance Units or Other Awards will be subject to
further restrictions on transfer. 

  
 10 

 11.   Adjustments.    The Board shall make or provide
for such adjustments in the numbers of Shares covered by outstanding Option Rights, Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance Shares and Performance Units granted hereunder and, if applicable, in the number of Shares
covered by Other Awards, in the Option Price and Base Price provided in outstanding Option Rights or Appreciation Rights, and in the kind of Shares covered thereby, as the Board, in its sole discretion, exercised in good faith, may determine is
equitably required to prevent dilution or enlargement of the rights of Participants or Optionees that otherwise would result from (a) any stock dividend, stock split, combination of shares, recapitalization or other change in the capital
structure of the Company, (b) any merger, consolidation, spin-off, split-off, spin-out, split-up, reorganization, partial or complete liquidation or other distribution of assets, issuance of rights or warrants to purchase securities, or
(c) any other corporate transaction or event having an effect similar to any of the foregoing. Moreover, in the event of any such transaction or event or in the event of a Change of Control, the Board, in its discretion, may provide in
substitution for any or all outstanding Awards under the Plan such alternative consideration (including cash), if any, as it, in good faith, may determine to be equitable in the circumstances and may require in connection therewith the surrender of
all Awards so replaced in a manner that complies with Section 409A of the Code. In addition, for each Option Right or Appreciation Right with an Option Price or Base Price greater than the consideration offered in connection with any such
transaction or event or Change of Control, the Board may in its sole discretion elect to cancel such Option Right or Appreciation Right without any payment to the person holding such Option Right or Appreciation Right. The Board shall also make or
provide for such adjustments in the numbers of shares specified in Section 3 of the Plan as the Board in its sole discretion, exercised in good faith, may determine is appropriate to reflect any transaction or event described in
this Section 11; provided, however, that any such adjustment to the number specified in Section 3(a)(iii) will be made only if and to the extent that such adjustment would not cause any Option
Right intended to qualify as an Incentive Stock Option to fail to so qualify. 
 12.   Administration of the
Plan. 
 (a) The Plan will be administered by the Board, which may from time to time delegate all or any part of its
authority under the Plan to the Committee. To the extent of any such delegation, references in the Plan to the Board will be deemed to be references to such Committee. A majority of the Committee will constitute a quorum, and the action of the
members of the Committee present at any meeting at which a quorum is present, or acts unanimously approved in writing, will be the acts of the Committee. 
 (b) To the extent permitted by applicable law, including any rule of the New York Stock Exchange, the Board or Committee may delegate its duties under the Plan to a Secondary Committee, subject to such
conditions and limitations as the Board or Committee shall prescribe; provided, however, that: (i) no Secondary Committee may grant an Award to a Participant who is subject to Section 16 of the Exchange Act; (ii) no
Secondary Committee may grant an Award designed to be a Qualified Performance-Based Award; (iii) no Secondary Committee may grant an Award to a member of such Secondary Committee; (iv) the resolution providing for such delegation sets
forth the total number of Shares and/or the pool dollar value of the Awards such Secondary Committee may grant; and (v) the Secondary Committee shall report periodically to the Board or the Committee, as the case may be, regarding the nature
and scope of the Awards granted pursuant to the authority delegated. To the extent of any such delegation, references or deemed references in the Plan to the Committee will be deemed to be references to such Secondary Committee. A majority of the
Secondary Committee will constitute a quorum, and the action of the members of the Secondary Committee present at any meeting at which a quorum is present, or acts unanimously approved in writing, will be the acts of the Secondary Committee.

 (c) The Board shall have full and exclusive discretionary power to interpret the terms and the intent of this Plan and any
Evidence of Award or other agreement or document ancillary to or in connection with this Plan, to determine eligibility for Awards and to adopt such rules, regulations, forms, instruments, and guidelines for administering this Plan as the Board may
deem necessary or proper. Such authority shall include, but not be limited to, selecting Award recipients, establishing all Award terms and conditions, including the terms and conditions set forth in an Evidence of Award, granting Awards as an
alternative to or as the form of payment for grants or rights earned or due under compensation plans or arrangements of the Company, construing any 

  
 11 

 
ambiguous provision of the Plan or any Evidence of Award, and, subject to Sections 15 and 18, adopting modifications and amendments to this Plan or any Evidence of
Award, including without limitation, any that are necessary to comply with the laws of the countries and other jurisdictions in which RAI, its Affiliates, and/or its Subsidiaries operate. The grant of any Award that specifies Management Objectives
that must be achieved before such Award can be earned or paid will specify that, before such Award will be earned and paid, the Committee must certify that the Management Objectives have been satisfied. 

(d) The interpretation and construction by the Board of any provision of this Plan or of any Evidence of Award or other agreement or
document ancillary to or in connection with this Plan and any determination by the Board pursuant to any provision of the Plan or of any such Evidence of Award or other agreement or document ancillary to or in connection with this Plan will be final
and conclusive. No member of the Board will be liable for any such action or determination made in good faith. 

13.   Non U.S. Participants.    In order to facilitate the making of any grant or combination of
grants under the Plan, the Board may provide for such special terms for Awards to Participants who are foreign nationals or who are employed by RAI or any Subsidiary outside of the United States of America, as the Board may consider necessary or
appropriate to accommodate differences in local law, tax policy or custom. Moreover, the Board may approve such supplements to or amendments, restatements or alternative versions of the Plan (including without limitation, sub-plans) as it may
consider necessary or appropriate for such purposes, without thereby affecting the terms of the Plan as in effect for any other purpose, and the Secretary or other appropriate officer of RAI may certify any such document as having been approved and
adopted in the same manner as the Plan. No such special terms, supplements, amendments or restatements, however, will include any provisions that are inconsistent with the terms of the Plan as then in effect unless the Plan could have been amended
to eliminate such inconsistency without further approval by the shareholders of RAI. 
 14.   Withholding
Taxes.    To the extent that the Company is required to withhold federal, state, local or foreign taxes in connection with any payment made or benefit realized by a Participant or other person under the Plan, and the amounts
available to the Company for such withholding are insufficient, it will be a condition to the receipt of such payment or the realization of such benefit that the Participant or such other person make arrangements satisfactory to the Company for
payment of the balance of such taxes required to be withheld, which arrangements (in the discretion of the Board) may include relinquishment of a portion of such benefit. If a Participant’s benefit is to be received in the form of Shares, and
such Participant fails to make arrangements for the payment of tax, then, unless otherwise determined by the Board, the Company shall withhold such Shares having a value that shall not exceed the statutory minimum amount required to be withheld.
Notwithstanding the foregoing, when a Participant is required to pay the Company an amount required to be withheld under applicable income and employment tax laws, the Participant may elect, unless otherwise determined by the Board, or the Company
may require the Participant, to satisfy the obligation, in whole or in part, by electing to have withheld, from the Shares required to be delivered to the Participant, Shares having a value equal to the amount required to be withheld, or by
delivering to the Company other Shares held by such Participant. The Shares used for tax withholding will be valued at an amount equal to the fair market value of such Shares on the date the benefit is to be included in Participant’s income. In
no event will the market value of the Shares to be withheld and delivered pursuant to this Section 14 to satisfy applicable withholding taxes in connection with the benefit exceed the minimum amount of taxes required to be
withheld. Participants shall also make such arrangements as the Company may require for the payment of any withholding tax obligation that may arise in connection with the disposition of Shares acquired upon the exercise of Option Rights.

 15.   Amendments, Etc. 
 (a) The Board may at any time and from time to time amend the Plan in whole or in part; provided, however, that if an amendment to the Plan must be approved by the shareholders of RAI in
order to comply with applicable law or the rules of the New York Stock Exchange or, if the Shares are not traded on the New York Stock Exchange, the principal national securities exchange upon which the Shares are traded or quoted, then, such
amendment will be subject to shareholder approval and will not be effective unless and until such approval has been obtained. 

  
 12 

 (b) Except in connection with a corporate transaction or event described in
Section 11 of the Plan, the terms of outstanding Awards may not be amended to reduce the Option Price of outstanding Option Rights or the Base Price of outstanding Appreciation Rights, or cancel outstanding Option Rights or
Appreciation Rights in exchange for cash, other Awards, or Option Rights or Appreciation Rights with an Option Price or Base Price, as applicable, that is less than the Option Price of the original Option Rights or Base Price of the original
Appreciation Rights, as applicable, without shareholder approval. 
 (c) If permitted by Section 409A of the Code and
Section 162(m) in the case of a Qualified Performance-Based Award, but subject to Section 15(d), in case of termination of employment by reason of death, disability or normal or early retirement, or in the case of
unforeseeable emergency or other special circumstances, of a Participant who holds an Option Right or Appreciation Right not immediately exercisable in full, or any Shares of Restricted Stock or any Restricted Stock Units as to which the Restriction
Period has not been completed, or any Annual Incentive Awards, Performance Shares or Performance Units which have not been fully earned, or any Other Awards subject to any vesting schedule or transfer restriction, or who holds Shares subject to any
transfer restriction imposed pursuant to Section 10(b) of the Plan, or in the event of a Change of Control, the Board may, in its sole discretion, accelerate the time at which such Option Right, Appreciation Right or Other Award
may be exercised or the time when such Restriction Period will end or the time at which such Annual Incentive Awards, Performance Shares or Performance Units will be deemed to have been fully earned or the time when such transfer restriction will
terminate or may waive any other limitation or requirement under any such Award. 
 (d) Subject to
Section 15(b) of the Plan, the Board may amend the terms of any award theretofore granted under the Plan prospectively or retroactively, except in the case of a Qualified Performance-Based Award (other than in connection with the
Participant’s death or disability, or a Change of Control) where such action would result in the loss of the otherwise available exemption of the award under Section 162(m) of the Code. Subject to Section 11 of the Plan,
no such amendment shall impair the rights of any Participant without his or her consent, except as necessary to comply with changes in law or accounting rules applicable to RAI. The Board may, in its discretion, terminate the Plan at any time.
Termination of the Plan will not affect the rights of Participants or their successors under any Awards outstanding hereunder on the date of termination. 
 16.   Compliance with Section 409A of the Code. 
 (a) To the
extent applicable, it is intended that the Plan and any grants made hereunder comply with the provisions of Section 409A of the Code, so that the income inclusion provisions of Section 409A(a)(1) of the Code do not apply to the
Participants. The Plan and any grants made hereunder shall be administered in a manner consistent with this intent. Any reference in the Plan to Section 409A of the Code will also include any regulations or any other formal guidance promulgated
with respect to such Section by the U.S. Department of the Treasury or the Internal Revenue Service. 
 (b) Neither a
Participant nor any of a Participant’s creditors or beneficiaries shall have the right to subject any deferred compensation (within the meaning of Section 409A of the Code) payable under the Plan and grants hereunder to any anticipation,
alienation, sale, transfer, assignment, pledge, encumbrance, attachment or garnishment. Except as permitted under Section 409A of the Code, any deferred compensation (within the meaning of Section 409A of the Code) payable to a Participant
or for a Participant’s benefit under the Plan and grants hereunder may not be reduced by, or offset against, any amount owing by a Participant to the Company or any of its Subsidiaries. 

(c) If, at the time of a Participant’s separation from service (within the meaning of Section 409A of the Code), (i) the
Participant shall be a specified employee (within the meaning of Section 409A of the Code and using the identification methodology selected by RAI from time to time) and (ii) RAI makes a good faith determination that an amount payable
hereunder constitutes deferred compensation (within the meaning of Section 409A of the Code) the payment of which is required to be delayed pursuant to the six-month delay rule 

  
 13 

 
set forth in Section 409A of the Code in order to avoid taxes or penalties under Section 409A of the Code, then RAI shall not pay such amount on the otherwise scheduled payment date but
shall instead pay it, without interest, on the tenth business day of the seventh month after such separation from service. 

(d) Notwithstanding any provision of the Plan and grants hereunder to the contrary, in light of the uncertainty with respect to the
proper application of Section 409A of the Code, RAI reserves the right to make amendments to the Plan and grants hereunder as RAI deems necessary or desirable to avoid the imposition of taxes or penalties under Section 409A of the Code. In
any case, a Participant shall be solely responsible and liable for the satisfaction of all taxes and penalties that may be imposed on a Participant or for a Participant’s account in connection with the Plan and grants hereunder (including any
taxes and penalties under Section 409A of the Code), and neither the Company nor any of its affiliates shall have any obligation to indemnify or otherwise hold a Participant harmless from any or all of such taxes or penalties. 

17.   Governing Law.    The Plan and all grants and Awards and actions taken thereunder shall be
governed by and construed in accordance with the internal substantive laws of the State of North Carolina, without regard to principles of conflicts of laws. 
 18.   Effective Date/Termination.    The Reynolds American Inc. 2009 Omnibus Incentive Compensation Plan first became effective on May 6, 2009, the date it was
approved by RAI’s shareholders. This Plan will be effective as of the Effective Date. No grants will be made on or after May 6, 2009 under the Existing Plan, except that outstanding Awards granted under the Existing Plan will continue
unaffected, in accordance with the terms of the Existing Plan as in effect on May 6, 2009, following May 6, 2009. No grant will be made under the Plan more than 10 years after May 6, 2009, but all grants made on or prior to such date
will continue in effect thereafter subject to the terms of the Evidence of Award conveying such grants and of the Plan. 

19.   Miscellaneous. 
 (a) Each grant of an Award will be evidenced by an Evidence of Award and will contain such terms and provisions, consistent with the Plan, as the Board may approve. 

(b) RAI will not be required to issue any fractional Shares pursuant to the Plan. The Board may provide for the elimination of fractional
Shares or for the settlement of fractional Shares in cash. 
 (c) The Plan will not confer upon any Participant any right with
respect to continuance of employment or other service with RAI or any Subsidiary, nor will it interfere in any way with any right RAI or any Subsidiary would otherwise have to terminate such Participant’s employment or other service at any
time. 
 (d) No person shall have any claim to be granted any Award under the Plan. Without limiting the generality of the
foregoing, the fact that a target Award is established for the job value or level for an employee shall not entitle any employee to an Award hereunder. Except as provided specifically herein, a Participant or a transferee of an Award shall have no
rights as a shareholder with respect to any Shares covered by any Award until the date as of which he or she is actually recorded as the holder of such Shares upon the stock records of the Company. 

(e) Determinations by the Board or the Committee under the Plan relating to the form, amount and terms and conditions of grants and
Awards need not be uniform, and may be made selectively among persons who receive or are eligible to receive grants and Awards under the Plan, whether or not such persons are similarly situated. 

(f) Except with respect to Section 19(h), to the extent that any provision of the Plan would prevent any Option Right
that was intended to qualify as an Incentive Stock Option from qualifying as such, that provision will be null and void with respect to such Option Right. Such provision, however, will remain in effect for other Option Rights and there will be no
further effect on any provision of the Plan. 
 (g) No Award under the Plan may be exercised by the holder thereof if such
exercise, and the receipt of cash or stock thereunder, would be, in the opinion of counsel selected by the Board, contrary to law or the regulations of any duly constituted authority having jurisdiction over the Plan. 

  
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 (h) Absence or leave approved by a duly constituted officer of RAI or any of its
Subsidiaries shall not be considered interruption or termination of service of any employee for any purposes of the Plan or Awards granted hereunder. 
 (i) The Board may condition the grant of any Award or combination of Awards authorized under the Plan on the surrender or deferral by the Participant of his or her right to receive a cash bonus or other
compensation otherwise payable by RAI or a Subsidiary to the Participant. 
 (j) If any provision of the Plan is or becomes
invalid, illegal or unenforceable in any jurisdiction, or would disqualify the Plan or any Award under any law deemed applicable by the Board, such provision shall be construed or deemed amended or limited in scope to conform to applicable laws or,
in the discretion of the Board, it shall be stricken and the remainder of the Plan shall remain in full force and effect. 
 (k)
Any Evidence of Award may: (i) provide for recoupment by the Company of all or any portion of an Award upon such terms and conditions as the Board or Committee may specify in such Evidence of Award; or (ii) include restrictive covenants,
including, without limitation, non-competition, non-disparagement and confidentiality conditions or restrictions, that the Participant must comply with during employment by the Company and/or within a specified period after termination as a
condition to the Participant’s receipt or retention of all or any portion of an Award. This Section 19(k) shall not be the Company’s exclusive remedy with respect to such matters. This Section 19(k)
shall not apply after a Change of Control, unless otherwise specifically provided in the Evidence of Award. 
 20.  
Stock-Based Awards in Substitution for Option Rights or Awards Granted by Other Company. Notwithstanding anything in this Plan to the contrary: 
 (a) Awards may be granted under this Plan in substitution for or in conversion of, or in connection with an assumption of, stock options, stock appreciation rights, restricted stock, restricted stock
units or other stock or stock-based awards held by grantees of an entity engaging in a corporate acquisition or merger transaction with RAI or any Subsidiary. Any conversion, substitution or assumption will be effective as of the close of the merger
or acquisition, and, to the extent applicable, will be conducted in a manner that complies with Section 409A of the Code. 

(b) In the event that a company acquired by RAI or any Subsidiary or with which RAI or any Subsidiary merges has shares available under a
pre-existing plan previously approved by stockholders and not adopted in contemplation of such acquisition or merger, the shares available for grant pursuant to the terms of such plan (as adjusted, to the extent appropriate, to reflect such
acquisition or merger) may be used for Awards made after such acquisition or merger under the Plan; provided, however, that Awards using such available shares may not be made after the date awards or grants could have been made under
the terms of the pre-existing plan absent the acquisition or merger, and may only be made to individuals who were not employees or directors of RAI or any Subsidiary prior to such acquisition or merger. The Awards so granted may reflect the original
terms of the awards being assumed or substituted or converted for and need not comply with other specific terms of this Plan, and may account for Shares substituted for the securities covered by the original awards and the number of shares subject
to the original awards, as well as any exercise or purchase prices applicable to the original awards, adjusted to account for differences in stock prices in connection with the transaction. 

(c) Any Shares that are issued or transferred by, or that are subject to any Awards that are granted by, or become obligations of, RAI
under Sections 20(a) or 20(b) above will not reduce the Aggregate Share Limit available for issuance or transfer under this Plan or otherwise count against the limits contained in Section 3 of this
Plan. In addition, no Shares that are issued or transferred by, or that are subject to any Awards that are granted by, or become obligations of, RAI under Sections 20(a) or 20(b) above will be added to the Aggregate Share
Limit contained in Section 3 of this Plan. 

  
 15

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