Document:

EQUITY INCENTIVE AWARD PLAN

 Exhibit 10.27 
 EQUITY INCENTIVE AWARD PLAN FOR 
 DIRECTORS OF REYNOLDS AMERICAN INC.

 (Amended and Restated Effective February 2, 2012) 

Reynolds American Inc., a North Carolina corporation, hereby adopts this Equity Incentive Award Plan for Directors of Reynolds American
Inc. (amended and restated effective February 2, 2012). The Plan is an amendment, restatement and continuation of the Amended and Restated Equity Incentive Award Plan for Directors of R.J. Reynolds Tobacco Holdings, Inc. and Subsidiaries. The
purposes of this Plan are as follows: 
 (1) To further the growth, development and financial success of the Company by
providing additional incentives to its Directors by assisting them to become owners of capital stock of the Company and thus to benefit directly from its growth, development and financial success. 

(2) To enable the Company to obtain and retain the services of the type of Directors considered essential to the long-term success of the
Company by providing and offering them an opportunity to become owners of capital stock of the Company. 
 ARTICLE I

 DEFINITIONS 
 Section 1.1 General 
 Whenever the following terms are
used in this Plan they shall have the meaning specified below unless the context clearly indicates to the contrary. 

Section 1.2 Affiliate 
 “Affiliate” of any person shall mean another person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, such first
person. 
 Section 1.3 BAT 
 “BAT” shall mean, collectively, British American Tobacco, p.l.c., a public limited company incorporated under the laws of England and Wales, and its Affiliates. 

Section 1.4 Board 
 “Board” shall mean the Board of Directors of the Company. 
 Section 1.5
Code 
 “Code” shall mean the Internal Revenue Code of 1986, as amended. 

 Section 1.6 Committee 

“Committee” shall mean the Corporate Governance and Nominating Committee of the Board. 

Section 1.7 Common Stock 
 “Common Stock” shall mean the common stock, par value $0.0001 per share, of the Company. 

Section 1.8 Company 
 “Company” shall mean Reynolds American Inc., a North Carolina corporation. 

Section 1.9 Director 
 “Director” shall mean a member of the Board. 
 Section 1.10 Eligible
Director 
 “Eligible Director” shall mean a Director who qualifies as “independent” in accordance
with Rule 303A.02 of the New York Stock Exchange listing standards, as such rule may be amended, supplemented or replaced from time to time; provided, however, that the Non-Executive Chairman shall be an Eligible Director, and provided further, that
no “Investor Director” who is not an “Independent Director,” as such terms are defined in the Governance Agreement (as defined in Section 8.3(c)(i) of this Plan), shall be an “Eligible Director.” 

Section 1.11 Grant 
 “Grant” shall mean an award made to a Participant pursuant to the Plan. 

Section 1.12 Non-Executive Chairman 
 “Non-Executive Chairman” shall mean the Non-Executive Chairman of the Board. 

Section 1.13 Option 
 “Option” shall mean an option granted under the Plan to purchase Common Stock. 

Section 1.14 Option Price 
 “Option Price” shall have the meaning given in Section 4.2. 

Section 1.15 Optionee 
 “Optionee” shall mean a Director to whom an Option is granted under the Plan. 

  

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 Section 1.16 Participant 

“Participant” shall mean a Director to whom a Grant has been made. 
 Section 1.17 Plan 
 “Plan” shall mean the
Equity Incentive Award Plan for Directors of Reynolds American Inc. 
 Section 1.18 Secretary 

“Secretary” shall mean the Secretary of the Company. 
 Section 1.19 Stock Award 
 “Stock Award” shall
mean the annual award, either in the form of deferred stock units or shares of Common Stock, made pursuant to Article VI. 

Section 1.20 Subsidiary 
 “Subsidiary” shall mean any corporation in an unbroken chain of corporations beginning with the Company if each of the corporations, or if each group of commonly controlled corporations, other
than the last corporation in an unbroken chain then owns stock possessing fifty percent (50%) or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. 

ARTICLE II 

SHARES SUBJECT TO PLAN  
 Section 2.1 Shares Subject to Plan 
 The shares of stock
subject to Grant shall be shares of Common Stock. The aggregate number of shares of Common Stock which are available for Grants under the Plan shall not exceed 2,000,000. [Note: the number of shares of Common Stock available for grants increased as
a result of the Company’s two-for-one stock split on August 14, 2006, and its two-for-one stock split on November 15, 2010.] Shares of Common Stock related to Grants that are forfeited, terminated, canceled, expire unexercised,
settled in cash in lieu of stock or in such manner that all or some of the shares of Common Stock covered by a Grant are not issued to a Participant, shall immediately become available for Grants. 

ARTICLE III 

GRANTING OF OPTIONS 

Section 3.1 Eligibility 
 Any Eligible Director shall be eligible to be granted Options as set forth in this Article III. 

  

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 Section 3.2 Granting of Options to Directors 

Options may be granted at any time and solely in the discretion of the Committee to each Eligible Director elected to serve on the Board.
Such Options shall be subject to the terms and conditions set forth in Article IV. 
 ARTICLE IV 

TERMS OF OPTIONS FOR DIRECTORS 
 Section 4.1 Option Agreement 
 A grant of Options to
Eligible Directors shall be evidenced by a Stock Option Agreement, which shall be executed by the Optionee and an authorized officer of the Company and which shall incorporate the terms and conditions of this Article IV and such other terms and
conditions as the Committee shall determine, consistent with the Plan. 
 Section 4.2 Option Price 

The exercise price of each share of Common Stock subject to an Option granted pursuant to Section 3.2 shall be the final closing
price of a share of Common Stock (as reported on the New York Stock Exchange consolidated tape) on the date of grant. 

Section 4.3 Commencement of Exercisability 
 Options granted pursuant to Section 3.2 shall not be exercisable prior to six (6) months after the date of grant, and thereafter shall be exercisable in full, subject to applicable securities
regulations. 
 Section 4.4 Expiration of Option 

The Option shall expire and may not be exercised to any extent after the expiration of ten (10) years from the date the Option was
granted. 
 ARTICLE V 
 EXERCISE OF OPTIONS 
 Section 5.1 Persons Eligible to Exercise

 During the lifetime of the Optionee, only he or his guardian may exercise an Option granted to him, or any portion
thereof. After the death of the Optionee, any exercisable portion of an Option may, prior to the time when such portion becomes unexercisable under Section 4.4, be exercised by his personal representative or by any person empowered to do so
under the deceased Optionee’s will or under the then applicable laws of descent and distribution. 
 Section 5.2 Partial
Exercise 
 At any time and from time to time prior to the time when any exercisable Option or exercisable portion
thereof expires or becomes unexercisable under Section 4.4, such Option or portion thereof may be exercised in whole or in part; provided, however, that the Company shall not be required to issue fractional shares. 

  

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 Section 5.3 Manner of Exercise 

An exercisable Option, or any exercisable portion thereof, may be exercised solely by delivering to the Secretary or his office all of the
following prior to the time when such Option or such portion becomes unexercisable: 
 (a) Notice in writing signed by the
Optionee or other person then entitled to exercise such Option or portion thereof, stating that such Option or portion thereof is exercised; 
 (b) Full payment of the Option Price shall be made in cash, by check or a combination thereof, for the shares of Common Stock with respect to which such Option or portion thereof is thereby exercised,
together with payment of any federal income or other tax required to be withheld by the Company with respect to such shares of Common Stock, in accordance with the terms of the Plan and of any applicable guidelines of the Committee in effect at the
time. The requirement of payment will be deemed satisfied if the Participant has made arrangements satisfactory to the Company with a duly registered broker-dealer that is a member of the National Association of Securities Dealers, Inc. to sell on
the date of exercise a sufficient number of shares of Common Stock being purchased so that the net proceeds of the sale transaction will at least equal the full exercise price and pursuant to which the broker-dealer undertakes to deliver the full
exercise price to the Company not later than the later of (i) the settlement date of the sale transaction and (ii) the date on which the Company delivers to the broker-dealer the shares of Common Stock being purchased pursuant to the
exercise of such Option. This method is known as the “broker-dealer exercise method” and is subject to the terms and conditions set forth herein, in the Option grant agreement and in guidelines established by the Committee; 

(c) Such representations and documents as the Committee reasonably deems necessary or advisable to effect compliance with all applicable
provisions of the Securities Act of 1933, as amended and any other federal, state or foreign securities laws or regulations. The Committee may, in its absolute discretion, also take whatever additional actions it deems appropriate to effect such
compliance, including, without limitation, placing legends on share certificates and issuing stop-transfer orders to transfer agents and registrars; and 
 (d) In the event that the Option or portion thereof shall be exercised pursuant to Section 5.1 by any person or persons other than the Optionee, appropriate proof of the right of such person or
persons to exercise the Option or portion thereof. 
 Section 5.4 Rights as Shareholders 

The holders of Options shall not be, nor have any of the rights or privileges of, shareholders of the Company in respect of any shares of
Common Stock purchasable upon the exercise of any part of an Option unless and until certificates representing such shares of Common Stock have been issued by the Company to such holders. 

  

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 Section 5.5 Transfer Restrictions 

The Committee, in its absolute discretion, may impose such restrictions on the transferability of the shares of Common Stock purchasable
upon the exercise of an Option as it deems appropriate, and any such restriction shall be set forth in the respective Stock Option Agreement and may be referred to on the certificates evidencing such shares of Common Stock. 

ARTICLE VI  
 STOCK AWARDS  
 Section 6.1 Granting of Initial Stock Award to
Directors 
 (a) Each Eligible Director who is elected to serve on the Board shall receive an initial Stock Award as of
the date of such Director’s initial election to serve on the Board (an “Initial Stock Award”). Such Initial Stock Award shall be granted only once to each Eligible Director as soon as practicable following the Director’s initial
election to serve on the Board and shall be subject to the terms and conditions set forth in this Article VI. Notwithstanding this Section 6.1(a), in the event of the appointment of an existing Director who was an employee of the Company to the
position of Non-Executive Chairman and such Director has not yet received an Initial Stock Award, the Non-Executive Chairman shall receive an Initial Stock Award upon his or her appointment to the position of Non-Executive Chairman. 

(b) Except as provided in Section 6.1(c) below, the Initial Stock Award shall be made in the form of deferred stock units, as
described in Section 6.4. Each Eligible Director shall receive an Initial Stock Award of 3,500 deferred stock units. 
 (c)
Notwithstanding the foregoing, an Eligible Director may elect to receive the Initial Stock Award in the form of shares of Common Stock. The election to receive shares of Common Stock must be made in writing no later than the date a Director becomes
a Director (or in the case of a Non-Executive Chairman, the date of his or her appointment). An election to receive shares of Common Stock shall be irrevocable by the Director. 
 Section 6.2 Granting of Annual Stock Awards 
 (a) Each
Eligible Director shall receive an annual Stock Award as of the date of the Company’s annual meeting of shareholders or the one (1) year anniversary of the preceding year’s annual meeting of shareholders, if no meeting has been
scheduled for such subsequent year, provided that the Director serves on the Board immediately following such date (an “Annual Stock Award”). 
 (b) Except as provided in Section 6.2(c) below, the Annual Stock Award shall be made in the form of deferred stock units, as described in Section 6.4. Each Eligible Director shall receive an
Annual Stock Award of 4,000 (or in the case of a Non-Executive Chairman, 8,000) deferred stock units). [Note: the number of shares of Common Stock constituting an Annual Stock Award increased as a result of the Company’s two-for-one stock split
on August 14, 2006, and its stock split on November 15, 2010.] 

  

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 (c) Notwithstanding the foregoing, an Eligible Director or the Non-Executive Chairman may
elect to receive the Annual Stock Award in the form of shares of Common Stock. The election to receive shares of Common Stock must be made in writing by December 31 of the year preceding the year during which the Annual Stock Award would
otherwise be granted or, if later, the date a Director becomes a Director (or in the case of a Non-Executive Chairman, the date of his or her appointment). An election to receive shares of Common Stock shall be irrevocable by the Director and shall
be effective only for the year immediately following the date on which it was filed (or in the case of a new Director or a new Non-Executive Chairman, through December 31 of the year during which the election was made). 

Section 6.3 Grant of Quarterly Stock Awards 
 (a) Each Eligible Director shall receive a quarterly Stock Award on the last day of each calendar quarter, provided that the Director has served on the Board at any time during such calendar quarter (a
“Quarterly Stock Award”). 
 (b) The Quarterly Stock Award shall be made in the form of deferred stock units, as
described in Section 6.4. The number of deferred stock units to be credited to each Eligible Director’s account on the last day of each calendar quarter shall be determined pursuant to the following formula: $10,000 (or in the case of a
Non-Executive Chairman, $20,000) divided by the average of the final closing price of a share of Common Stock (as reported on the New York Stock Exchange consolidated tape) for each business day during the last month of such calendar quarter. In the
event an Eligible Director has served on the Board or in the position of Non-Executive Chairman for less than an entire quarter, the number of deferred stock units to be credited to his or her account on the last day of such quarter shall be
prorated based on the actual number of days of his or her service on the Board during the quarter. 
 Section 6.4 Deferred
Stock Units 
 Each deferred stock unit shall be equal in value to one (1) share of Common Stock. As of the date any
dividend is paid to shareholders of Common Stock, each Participant shall be credited with additional deferred stock units equal to the number of shares of Common Stock (including fractions of a share) that could have been purchased at the closing
price of Common Stock on such date with the dividend paid on the number of shares of Common Stock to which such Participant’s deferred stock units are equivalent on the record date for such dividend. In case of dividends paid in property, the
dividend shall be deemed to be the fair market value of the property at the time of distribution of the dividend, as determined by the Committee. 
 Section 6.5 Distribution of Deferred Stock Units 
 (a)
For all Grants made under this Plan on or prior to December 31, 2004, the distribution of a Participant’s deferred stock units will be made as follows: 

(i) Unless as otherwise elected in Section 6.5(a)(ii), payment of a Participant’s deferred stock units shall be
made in one (1) lump sum as soon as practicable following the end of the year in which the Participant ceases to be a Director. 

  

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 (ii) At the election of the Participant made in writing and delivered to the
Committee at any time on or before December 1 of the year of termination of the Participant’s service as a Director, distribution of all of his or her deferred stock units, commencing as soon as practicable following the end of the year in
which the Participant ceases to be a Director, shall be made in any number of annual installments not exceeding ten (10). Any such election, unless made irrevocable by its terms, may be changed by written notice to the Committee at any time prior to
December 1 of the year of a Participant’s termination of his or her service as a Director. 
 (b) For all Grants made
under this Plan after December 31, 2004 and on or prior to December 31, 2007, the distribution of a Participant’s deferred stock units will be made in the following manner. According to the election made by each Participant on an
annual election form provided by the Company to the Participant prior to December 31 of the year preceding the grant of any award under this Plan in the next Plan year or, if later, within thirty (30) days after the date a Director becomes
a Director (or in the case of a Non-Executive Chairman, within thirty (30) days after his or her appointment), payment of a Participant’s deferred stock units will be made either in a lump sum or in any number of annual installments not
exceeding ten (10), on (or commencing on) January 2 following the termination of his or her service as a Director. 
 (c)
For all Grants made under this Plan after December 31, 2007, the distribution of a Participant’s deferred stock units will be made in the following manner. Each Participant shall elect annually to have payment of his or her deferred stock
units with respect to a grant (i) be made either in a lump sum or in any number of annual installments not exceeding ten (10), and (ii) be paid either (A) on (or commencing on) January 2 following the termination of his or her
service as a Director, or (B) on (or commencing on) the later of January 2 of the year specified and January 2 following the termination of his or her service as a Director. Such election by each Participant shall be made on an annual
election form provided by the Company prior to December 31 of the year preceding the grant of any award under this Plan in the next Plan year or, if later, no later than the date a Director becomes a Director (or in the case of a Non-Executive
Chairman, the date of his or her appointment). If a Participant fails to make an election with respect to a grant of deferred stock units in any Plan year, payment of such deferred stock units shall be made in a lump sum on January 2 following
the termination of his or her service as a Director. 
 (d) Elections made pursuant to Section 6.5(b) and (c) are not
irrevocable; provided, however, (A) any subsequent election may not be effective until twelve (12) months after the date the election is made, (B) any subsequent election relating to payments scheduled for a particular date or dates
must be made at least twelve (12) months prior to the date of the first scheduled payment, and (C) any subsequent election for distributions, other than those triggered by disability, death or an unforeseeable emergency, must delay
distribution by at least five (5) years from the original distribution date. 
 (e) Distribution of a Participant’s
deferred stock units received in connection with such Participant’s Quarterly Stock Awards shall be made only in cash. Subject to 8.3(b) hereof, distribution of a Participant’s deferred stock units received in connection with such
Participant’s Initial Stock Award and Annual Stock Awards shall be made in cash or stock, at the election of the Participant made in writing and delivered to the Committee at any time on or before

  

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December 1 of the year of termination of the Participant’s service as a Director. Subject to 8.3(b) hereof, if distribution is made in cash, the amount of distribution shall be
determined by multiplying the number of deferred stock units attributable to the installment by the average of the final closing price of a share of Common Stock (as reported on the New York Stock Exchange consolidated tape) on each business day in
the month of December immediately prior to the year in which the installment is to be paid. If distribution is made in stock, any fractional shares of stock shall be paid in cash equal to the value of the fractional share multiplied by the final
closing price of a share of Common Stock (as reported on the New York Stock Exchange consolidated tape) on the last business day immediately preceding the date of distribution. 

(f) For purposes of Section 6.5(b) and Section 6.5(c), termination of service as a Director shall be the Director’s
separation from service with the Company within the meaning of Section 409A of the Code. 
 (g) Notwithstanding the
foregoing provisions of this Section 6.5, with respect to grants made under this Plan after December 31, 2004, in the event that a Participant is a “specified employee,” determined pursuant to procedures adopted by the Company in
compliance with Section 409A of the Code, at the time of termination of service as a Director, as provided in Section 6.5(f), the distribution of deferred units to be made following the termination of service as a Director shall be paid no
earlier than the first day of the seventh month following the date such termination of service as a Director occurs (or if earlier, on the date of death). 
 Section 6.6 Installment Amount 
 In the event a
Participant has elected to receive distribution of his or her deferred stock units in more than one (1) installment, the amount of each installment shall be determined by multiplying the current number of deferred stock units by a fraction, the
numerator of which is one (1), and the denominator of which is the number of installments yet to be paid. 
 Section 6.7
Distribution upon Death 
 In the event of the death of a Participant, whether before or after ceasing to serve as a
Director, any deferred stock units to which he or she was entitled, shall be converted to cash and distributed in a lump sum to such person or persons or the survivors thereof, including corporations, unincorporated associations or trusts, as the
Participant may have designated. All such designations shall be made in writing signed by the Participant and delivered to the Committee. A Participant may from time to time revoke or change any such designation by written notice to the Committee.
If there is no unrevoked designation on file with the Committee at the time of the Participant’s death, or if the person or persons designated therein shall have all predeceased the Participant or otherwise ceased to exist, such distributions
shall be made in accordance with the Participant’s will or in the absence of a will, to the administrator of the Participant’s estate. The person entitled to receive payment pursuant to this Section 6.7 shall be responsible for
notifying the Committee of the Participant’s death. Any distribution under this Section 6.7 shall be made as soon as reasonably practicable following the end of the fiscal quarter in which the Participant’s death occurs. In this case,
a Participant’s deferred stock units shall be converted to cash by multiplying the number of whole and fractional shares of Common Stock to which the Participant’s deferred stock units are equivalent by the average of the final closing
price of a share of Common Stock (as reported on the New York Stock Exchange consolidated tape) on each business day during the last month of the calendar quarter prior to the date of death. 

  

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 Section 6.8 Withholding Taxes 

The Company shall deduct from all distributions under the Plan any taxes required to be withheld by federal, state, or local governments.

 Section 6.9 Terms and Conditions 
 All Stock Awards shall be subject to the terms and conditions of this Article VI and such other terms and conditions as the Committee shall determine, consistent with the Plan. 

ARTICLE VII  
 ADMINISTRATION 
 Section 7.1 Plan Administrator

 The Plan shall be administered by the Committee. 
 Section 7.2 Duties and Powers of Committee 
 It shall be
the duty of the Committee to conduct the general administration of the Plan in accordance with its provisions. The Committee shall have the power to interpret the Plan and the Grants and to adopt such rules for the administration, interpretation,
and application of the Plan as are consistent therewith and to interpret, amend or revoke any such rules. Any such interpretations and rules shall be consistent with the basic purpose of the Plan to make Grants. In its absolute discretion, the Board
may at any time and from time to time exercise any and all rights and duties of the Committee under the Plan. The Committee may act either by vote at a telephonic or other meeting or by unanimous written consent in lieu of a meeting. 

Section 7.3 Compensation; Professional Assistance; Good Faith Actions 

Members of the Committee shall not receive compensation for their services as members in connection with the administration of the Plan,
but all expenses and liabilities they incur in connection with the administration of the Plan shall be borne by the Company. The Committee may employ attorneys, consultants, accountants, appraisers, brokers or other persons. The Committee, the
Company, the Directors and the officers of the Company shall be entitled to rely upon the advice, opinions or valuations of any such persons. All actions taken and all interpretations and determinations made by the Committee in good faith shall be
final and binding upon all Participants, the Company and all other interested persons. No member of the Committee shall be personally liable for any action, determination or interpretation made in good faith with respect to the Plan or the Grants,
and all members of the Committee shall be fully protected by the Company with respect to any such action, determination or interpretation. 

  

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 ARTICLE VIII 
 MISCELLANEOUS PROVISIONS 
 Section 8.1 Amendment, Suspension or
Termination of the Plan 
 The Plan may be wholly or partially amended or otherwise modified, suspended or terminated at
any time or from time to time by the Board. Except as expressly permitted by the terms of the Plan, neither the amendment, suspension nor termination of the Plan shall, without the consent of the Participant alter or impair any rights or obligations
under any Grant theretofore granted. No Grant may be made during any period of suspension nor after termination of the Plan. 

Section 8.2 Effect of Plan Upon Other Options and Compensation Plans 

Nothing in this Plan shall be construed to limit the right of the Company or any of its Subsidiaries (a) to establish any other forms
of incentives or compensation for Directors of the Company or any of its Subsidiaries or (b) to grant or assume options other than under this Plan in connection with any proper corporate purpose, including, but not by way of limitation, the
grant or assumption of options in connection with the acquisition by purchase, lease, merger, consolidation or otherwise, of the business, stock or assets of any corporation, firm, association or other entity. 

Section 8.3 Adjustments 
 (a) In the event of any change in the outstanding Common Stock by reason of a stock split, spin-off, stock dividend, stock combination or reclassification, recapitalization or merger, change of control,
or similar event, the Committee shall (i) adjust appropriately the number of shares of Common Stock subject to the Plan and available for or covered by Grants, the number of deferred stock units or shares of Common Stock constituting Initial
Stock Awards and Annual Stock Awards in Sections 6.1 and 6.2 hereof and share prices related to outstanding Grants and (ii) make such other revisions to outstanding Grants as it deems are equitably required. Any such adjustment made by the
Committee shall be final and binding upon all Participants, the Company and all other interested persons. 
 (b) In the event of
a Change of Control (as defined in Section 8.3(c) hereof): 
 (i) Options granted pursuant to Article III
hereof shall become fully vested and exercisable; provided, however, that 
 (A) for each Option with an exercise price less
than the value of the consideration for a share of Common Stock in the Change of Control transaction (the “Transaction Consideration”), the Committee may, in its sole discretion, elect to make a cash payment to Participants in cancellation
of such Options in an amount equal to the product of (1) and (2), where (1) is the excess of Transaction Consideration over the exercise price, and (2) is the number of shares of Common Stock subject to the Options being cancelled,
which amount shall be paid at the same time as the Transaction Consideration is paid to holders of Common Stock, and in any case no later than March 15 of the year succeeding the year in which such event of a Change of Control occurred; and

  

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 (B) for each Option with an exercise price greater than the Transaction Consideration, the
Committee may, in its sole discretion, elect to cancel such Options without any payment to Participants holding such Options. 
 (ii) (A) Deferred stock units granted pursuant to Article VI hereof and described in Section 6.5(a) shall be distributed to Participants in a single lump sum as soon as practicable following the
event of a Change of Control. 
 (B) Deferred stock units granted pursuant to Article VI hereof and described in
Section 6.5(b) and Section 6.5(c) shall be distributed to Participants: 
 (1) in a single lump sum on the date of a
Change of Control that is also a “change in the ownership or effective control” of the Company for purposes of Section 409A of the Code; or 
 (2) in the event a Change of Control is not a “change in the ownership or effective control” of the Company for purposes of Section 409A of the Code, at the time provided in Article VI
hereof. 
 (C) Notwithstanding the foregoing provisions of this Section 8.3(b)(ii), in the event of a Change of Control,
the Committee may, in its sole discretion, elect to make the distribution with respect to deferred stock units in cash in lieu of shares of Common Stock with respect to Initial Stock Awards and Annual Stock Awards. With respect to any distribution
made in cash, the amount of the distribution shall be determined by multiplying the number of deferred stock units by the Transaction Consideration. 
 (c) For purposes of the Plan, a “Change of Control” shall mean the first to occur of the following events: 

(i) an individual, corporation, partnership, group, associate or other entity or “person”, as such term is
defined in Section 14(d) of the Securities Exchange Act of 1934 (the “Exchange Act”), other than the Company or any employee benefit plans sponsored by the Company, is or becomes the “beneficial owner” (as defined in Rule
13d-3 under the Exchange Act), directly or indirectly, of thirty percent (30%) or more of the combined voting power of the Company’s outstanding securities ordinarily having the right to vote at elections of directors; provided, however,
that the acquisition of Company 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 the Company (the “Governance
Agreement”), shall not be considered a Change of Control for purposes of this subsection (i); 

  

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 (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 such date
whose election, or nomination for election by the Company’s shareholders, was (A) approved by a vote of at least three-quarters of the directors comprising the Incumbent Board (either by a specific vote or by approval of the proxy
statement of the Company in which such person is named as a nominee of the Company 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 (as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act) 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; or 
 (iii) the approval by the shareholders of the Company of a plan or agreement providing (A) for
a merger or consolidation of the Company other than with a wholly-owned Subsidiary and other than a merger or consolidation that would result in the voting securities of the Company 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 the Company or such surviving entity outstanding
immediately after such merger or consolidation, or (B) for a sale, exchange or other disposition of all or substantially all of the assets of the Company, other than any such transaction where the transferee of all or substantially all of the
assets of the Company 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 the Company outstanding immediately prior to the
transaction (either remaining outstanding or by being converted into voting securities of the transferee entity). If any of the events enumerated in this paragraph (iii) occur, the Board shall determine the effective date of the Change of
Control resulting therefrom for purposes of the Plan or the Grants hereunder. 
 Section 8.4 Compliance with Section 409A
of the Code 
 The Plan is intended to comply with Section 409A of the Code and shall be construed and interpreted
in accordance with such intent. Each payment pursuant to this Plan shall be considered a separate payment and not one of a series of payments for purposes of Section 409A of the Code. 

  

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 Section 8.5 Titles 

Titles are provided herein for convenience only and are not to serve as a basis for interpretation or construction of the Plan.

 Section 8.6 Pronouns 
 The masculine pronoun shall include the feminine and neutral and the singular shall include the plural, where the context so indicates. 
 Section 8.7 Governing Law 
 All questions arising in
respect of the Plan, including those pertaining to its validity, interpretation and administration, shall be governed, controlled and determined in accordance with the applicable provisions of federal law and, to the extent not preempted by federal
law, the laws of the State of North Carolina. 

  

- 14 -SUPPLEMENTAL PENSION PLAN

 Exhibit 10.48 

 
  

 
  
 SUPPLEMENTAL PENSION PLAN 
 FOR EXECUTIVES OF 

BROWN & WILLIAMSON TOBACCO CORPORATION 
  

(Restated as of January 1, 2012) 
  

 
  

 

 SUPPLEMENTAL PENSION PLAN 

FOR EXECUTIVES OF 
 BROWN & WILLIAMSON TOBACCO CORPORATION 
 (RESTATED AS OF JANUARY
1, 2012) 
 TABLE OF CONTENTS 
  

							
	 	  	 	  	Page	 
	ARTICLE 1.	  	      DEFINITIONS	  	 	1	  
			
	             1.01	  	Actuarial Basis	  	 	1	  
	             1.02	  	Basic Plan	  	 	2	  
	             1.03	  	Company	  	 	2	  
	             1.04	  	PIP; PIP Award	  	 	2	  
	             1.05	  	Employer	  	 	2	  
	             1.06	  	ERISA Excess Plan	  	 	3	  
	             1.07	  	Interest	  	 	3	  
	             1.08	  	Participant	  	 	3	  
	             1.09	  	Plan	  	 	3	  
	             1.10	  	Supplemental Benefit	  	 	3	  
	             1.11	  	Supplemental Salary	  	 	3	  
			
	ARTICLE 2.	  	      PARTICIPATION	  	 	5	  
			
	             2.01	  	Participation	  	 	5	  
	             2.02	  	SERP Trust Individuals	  	 	6	  
			
	ARTICLE 3.	  	      BENEFITS	  	 	6	  
			
	             3.01	  	Eligibility	  	 	6	  
	             3.02	  	Amount of Supplemental Benefit	  	 	7	  
	             3.03	  	Dependents’ Benefits	  	 	9	  
			
	ARTICLE 4.	  	      METHOD OF PAYMENT	  	 	10	  
			
	             4.01	  	Payments On or After July 1, 1990	  	 	10	  
	             4.02	  	Plan Unfunded	  	 	10	  
	             4.03	  	Delay in Payment	  	 	10	  
	             4.04	  	Withholding	  	 	11	  
			
	ARTICLE 5.	  	      AMENDMENT AND TERMINATION	  	 	11	  
			
	             5.01	  	Right to Amend or Terminate Reserved	  	 	11	  
	             5.02	  	Action to Bind Employers	  	 	11	  
	             5.03	  	Change in Basic Plan	  	 	11	  
			
	ARTICLE 6.	  	      ADMINISTRATION	  	 	11	  
			
	             6.01	  	Administration	  	 	11	  

  
 -i-

 TABLE OF CONTENTS 

(continued) 
  

							
	 	  	 	  	Page	 
			
	ARTICLE 7.	  	      MISCELLANEOUS	  	 	11	  
			
	             7.01	  	Payment to Incompetent	  	 	11	  
	             7.02	  	Spendthrift Clause	  	 	12	  
	             7.03	  	Usage	  	 	12	  
	             7.04	  	Data	  	 	12	  
	             7.05	  	Separability	  	 	12	  
	             7.06	  	Captions	  	 	12	  
	             7.07	  	Right of Discharge Reserved	  	 	12	  
	             7.08	  	Other Benefits Unaffected	  	 	12	  
			
	ARTICLE 8.	  	      EFFECTIVE DATE, ETC	  	 	12	  
			
	             8.01	  	Effective Date	  	 	12	  

  
 -ii-

 SUPPLEMENTAL PENSION PLAN 

FOR EXECUTIVES OF 
 BROWN & WILLIAMSON TOBACCO CORPORATION 
 (Restated as of
January 1, 2012) 
 PREAMBLE 
 Effective January 1, 1991, Brown & Williamson Tobacco Corporation assumed all liabilities for the Supplemental Pension Plan for Executives of Brown & Williamson Tobacco Corporation
(formerly the Supplemental Pension Plan for Executives of BATUS Inc. and Brown & Williamson Tobacco Corporation), and simultaneously restated the Plan to incorporate certain amendments approved by the Company. 

Effective generally as of January 1, 2012, the Plan is restated in its entirety as set forth herein to incorporate the changes made
by the prior Amendments to the Plan. 
 Notwithstanding the foregoing, the right to and amount of any pension payable to a
Participant or beneficiary shall in all events be determined in accordance with the terms of the Plan as in effect at the time of termination of employment. 
 ARTICLE 1.  
 DEFINITIONS 

The following terms when used in this Plan shall have the designated meaning unless a different meaning is clearly required by the
context. Defined terms in the Basic Plan which are used in this Plan (including, without limitation, spouse and child) shall have the meanings given to them in the Basic Plan unless a different meaning is given below or is clearly required by the
context. 
  

	1.01	Actuarial Basis. 

  

	(a)	The term “Actuarial Basis” means a benefit computed on the basis of the actuarial principles adopted by the Company, subject to subsection (b) below.

  

	(b)	For purposes of determining the present value of the amount payable under Section 3.02, the following assumptions shall be used effective October 1, 1995:

  

	 	(1)	Interest: 

  

	 	(2)	with respect to any portion (or all) of the accrued amount for which the Company has not provided an external source of payment prior to the time actual payment becomes
due under Article 3, the lower of (i) the average of the monthly interest rates used to determine the commuted value of pensions under the Basic Plan for the 36 month period immediately preceding the Participant’s termination of
employment, or (ii) the interest rate used to determine the commuted value of pensions under the Basic Plan for the month immediately preceding the Participant’s termination of employment. 

	 	(3)	with respect to any portion (or all) of the accrued amount for which the Company has provided an alternate source of payment (whether in trust or otherwise) prior to
the time actual payment becomes due under Article 3, the monthly interest rate used shall be determined pursuant to paragraph (A) above (but assuming the Participant had terminated employment as of the date of determination). A separate
calculation shall be made for each such payment, and the interest rate applicable to each such calculation shall be established at the time of payment, and shall not be subject to change in the future as it relates to that payment.

  

	 	(4)	Mortality: the mortality table used under the Basic Plan to determine the commuted value of pensions at the time present value is determined. 

 

	1.02	Basic Plan. The term “Basic Plan” means the Retirement Plan for Salaried Employees of Brown & Williamson Tobacco Corporation and Certain
Affiliates, and, as applicable, its predecessor plan. 

  

	1.03	Company. The word “Company” means, effective the date of closing (the “Closing”) of the transactions contemplated by the Business Combination
Agreement dated October 27, 2003, between Brown & Williamson Tobacco Corporation and R.J. Reynolds Tobacco Holdings, Inc. (the “Business Combination”), Reynolds American Inc., and any successor thereto (“RAI”).
Prior to Closing the word “Company” means Brown & Williamson Tobacco Corporation, and any successor thereto (“B&W”). Effective immediately prior to Closing, B&W shall be deemed to have withdrawn from and shall no
longer maintain the Plan for its employees. 

  

	1.04	PIP; PIP Award. 

  

	(a)	Except as provided in subsection (b) below, effective January 1, 2002, the Performance Incentive Plan (“PIP”) replaces and supersedes the Executive
Incentive Plan (“E1P”), the Management Incentive Plan (“MIP”) and the Competitive Annual Bonus (“CAB”). A “PIP Award” is an award of incentive compensation applicable to a Participant for a calendar year and
may include a pension-eligible component. Prior to the year 2002, the CAB award was not pension eligible; consequently the CAB component of a PIP Award for and after 2002 is not pension-eligible. By way of example, but not exclusion, for calendar
years commencing on and after January 1, 2002, the sole annual incentive compensation plan that may include a pension-eligible component is the PIP, and for calendar years prior to 2002, plans that may include a pension-eligible component
include the EIP and MIP. 

  

	(b)	The Performance Incentive Plan, described in subsection (a) above, does not apply to Plan Participants seconded to an affiliate of the Company as of May 1,
2002. For such Participants, the Management Incentive Plan (“MIP”), as in effect on December 31, 2001, shall continue to apply for purposes of calculating Supplemental Salary. 

 

	1.05	Employer. The word “Employer” means Reynolds American Inc., and any subsidiary or affiliate of the Employer which is approved for inclusion in the Plan
by the Company. 

  
 2 

	1.06	ERISA Excess Plan. The term “ERISA Excess Plan” means the portion of this Plan established by the Employer solely for the purpose of paying benefits
based on the provisions of the Basic Plan (or other applicable plan) for certain employees in excess of the limitations on benefits imposed by Section 415 of the Internal Revenue Code of 1986, as amended. That portion of the Plan maintained for
such purpose shall be treated as a separate plan which is an excess benefit plan, as defined by ERISA Section (3)(36). 

  

	1.07	Interest. The word “Interest” means the rate of interest established from time to time by the Company, in its discretion, for deferred PIP account
balances. 

  

	1.08	Participant. The word “Participant” means a participant in the Basic Plan who satisfies the requirements for participation set out in Article 2 of the
Plan. 

  

	1.09	Plan. The word “Plan” means the Supplemental Pension Plan for Executives of Brown & Williamson Tobacco Corporation, as in effect from time to
time. 

  

	1.10	Supplemental Benefit. The term “Supplemental Benefit” means the benefit described in Section 3.02 hereof. 

 

	1.11	Supplemental Salary. 

  

	(a)	The term “Supplemental Salary” shall mean the sum of Paragraphs (1) through and including (5) as follows: 

 

	 	(1)	Average PIP Award. Subject to subsections (b) through (e) below, a Participant’s Average PIP Award shall be the greater of:

  

	 	(A)	a Participant’s Average PIP Award (whether or not deferred) for the three performance years immediately preceding the calendar year in which a Supplemental Benefit
becomes payable to the Participant (or if applicable his spouse or dependents); provided that if any such Participant has not received a PIP Award for one or more of such three years, his award for such year shall be treated as zero dollars; or

  

	 	(B)	the amount obtained by multiplying the Participant’s annual rate of salary at the time a Supplemental Benefit becomes payable to the Participant (or if applicable
his spouse or dependents) by the EIP/MIP percentage that was, or would have been, applicable to such Participant’s current position or level (i.e. the Participant’s employment position or level at the time the Supplemental Benefit becomes
payable) at the “Commendable” level for the 2001 performance year. 

 Notwithstanding the foregoing,
with respect to a Participant who enters into regular employment (as defined in Section 2.01(b)(2)) with RAI after Closing (as defined in Section 1.03), a Participant’s Average PIP Award shall be the greater of (i) the amount
calculated under paragraph (B) above, or (ii) an amount equal to the Participant’s base annual compensation rate at the time of employment termination with RAI (or an affiliate), multiplied by B&W’s average performance rating
percentage for 2001, 2002 and 2003 applicable to such Participant. 

  
 3 

	 	(2)	Excess Pensionable Salary. The excess of the amount that would have been the Participant’s pensionable salary under the Basic Plan, but for the limitations
of Section 401(a)(17) of the Internal Revenue Code of 1986 or any similar provision of subsequent law, over the Participant’s actual pensionable salary under the Basic Plan. 

 

	 	(3)	Deferred Compensation. All amounts that would have constituted pensionable salary under the Basic Plan but for the fact that the receipt of these amounts was
deferred, including without limitation, amounts deferred under the Deferred Compensation Plan for Executives of Brown & Williamson Tobacco Corporation, as amended from time to time. 

 

	 	(4)	Special Contractual Arrangements. Effective for special contractual arrangements entered into on or after January 1, 1993, and to the extent provided in or
required by any such arrangement, all amounts that would have constituted pensionable salary under the Basic Plan, but for the limits of Section 401(a)(17) of the Internal Revenue Code of 1986, or any similar provision of subsequent law, over
the sum of the Participant’s pensionable salary determined under paragraphs (1), (2) and (3) above. 

  

	 	(5)	Deemed Separation Pay. With respect to a Participant’s period of separation pay under the Reynolds American Salary and Benefit Continuation Plan, the period
of severance benefits under the Reynolds American Inc. Executive Severance Plan or the period of severance under any individualized agreement providing for severance (collectively the “Severance Period”), full compensation (defined as the
Participant’s base salary in effect at the time of the Participant’s Separation from Service, as defined in Section 3.01) during the Severance Period; provided, however, except for a Participant listed on Schedule A (a “Scheduled
Participant”), effective for Participants who receive a notice of termination on or after January 1, 2010, this Section l.ll(a)(5) will no longer apply and with respect to Scheduled Participants, beginning January 1, 2010, the period
for which full compensation will be taken into account will be three years following the Scheduled Participants Separation from Service, as defined in Section 3.01. 

 

	(b)	For purposes of subsection (a)(l) above, disability shall be deemed to occur on the date the Participant first commences a period of absence that leads to a
determination of disability under the Basic Plan. 

  

	(c)	Except as specifically provided by written agreement between the Company and a Participant, Supplemental Salary shall include an Average PIP Award only for Participants
who were Participants in the Plan on December 31, 1990, and who continue to be employed in an PIP-eligible position thereafter (or, in the event the Company terminates or modifies the PIP or similar annual incentive or bonus program in a manner
described in subsection (e) below, were in eligible PIP positions at the time of such termination or modification). Subject to any such agreement, Supplemental Salary shall not include an Average PIP Award for a Participant who:

  

	 	(1)	was not a Participant in the Plan on December 31,1990; or 

  
 4 

	 	(2)	becomes a Participant on or after January 1, 1991, whether as a result of initial employment, reemployment following a termination of employment (voluntary,
involuntary, disability or otherwise), promotion, transfer or otherwise. 

  

	(d)	The Average PIP Award for a Participant who becomes ineligible to participate in PIP for any reason prior to termination of employment, disability or death (other than
by reason of the termination of the Plan or modification of the PIP or similar annual incentive or bonus program in a manner described in subsection (e) below) shall be calculated pursuant to subsection (a) above, by assuming the
Supplemental Benefit of such Participant is or becomes payable in the year in which such Participant first becomes ineligible to so participate. 

  

	(e)	If the EIP/MIP percentages in effect for the 2001 performance year are amended, terminated or replaced by a plan or program that has lower payout targets or
opportunities than the EIP/MIP in effect as of January 1, 2001, e.g. if, with respect to a performance year subsequent to 2001, the percentage award applicable to the “Commendable” level for a Participant is lowered by the Company
below the percentage award applicable to such Participant at the “Commendable” level for 2001, such Participant’s Average PIP Award (or, if applicable, Average EIP/MIP Award), shall be determined and paid out at the time of such
amendment, termination or replacement, and shall be the greater of (i) the amount determined under subsection (a)(l)(A) above, or (ii) the amount obtained by multiplying the Participant’s rate of salary at the time of such amendment,
termination or replacement by the EIP/MIP percentage applicable to such Participant at the “Commendable” level for the 2001 performance year. 

 ARTICLE 2.  
 PARTICIPATION 

 

	2.01	Participation. 

  

	(a)	Any participant in the Basic Plan who (1) is eligible to participate in the PIP (prior to January 1, 1991), (2) is eligible to and elects to defer
pensionable salary under the Deferred Compensation Plan for Executives of Brown & Williamson Tobacco Corporation, (3) receives compensation that would be included in the Participant’s pensionable salary under the Basic Plan but for the
limitations of Section 401(a)(17) of the Internal Revenue Code of 1986 or any similar provision of subsequent law, or (4) would be eligible for an additional benefit under the Basic Plan but for the limitations of Section 415 of the
Internal Revenue Code of 1986 or any similar provision of subsequent law, shall automatically become a Participant in this Plan. 

  

	(b)	Effective as of Closing (as defined in Section 1.03), the following classes of employees shall be excluded from eligibility to participate in the Plan:

  

	 	(1)	any individual who was not an employee of the Company (as defined in Section 1.03) immediately prior to Closing; and 

  
 5 

	 	(2)	any individual who was not a participant in (or an Eligible Employee with respect to and as defined in) the Basic Plan at the time he or she entered into “regular
employment” with RAI at and after Closing. For this purpose, the term “regular employment” means full- or part-time ongoing employment with RAI that is not classified by RAI as transitional employment. An employee is considered to be
in “transitional employment” if his or her employment is transferred to RAI in connection with the Business Combination and the employee is employed within the B&W Division of RAI for a limited period of time (a “transition
period”). 

  

	2.02	SERP Trust Individuals. 

  

	(a)	Pursuant to the Business Combination Agreement dated October 27, 2003, between Brown & Williamson Tobacco Corporation and R.J. Reynolds Tobacco Holdings,
Inc. (the “BCA”), (i) Liabilities (as defined in the formation agreement under the BCA (the “Formation Agreement”)) under the Plan were retained by B&W (or an affiliate) to the extent they pertain or relate to the
service and/or accrued benefits of the SERP Trust Individuals (as defined in Section 1.01 of the Formation Agreement and listed on Schedule 1.01(b) thereto as R. Baker, C.D. Brown, W. Carpenter, C. Dawson, M. DiCio, J. Eckmann, H. Frick, J.
Graas, S. Ivey, M. Kovatch, R. Lewis, M. McGraw, R. Miller, C. Schoenbachler, D. Snyder, R. Stowe, R. Van Hess, and P. Wessel) prior to the Employment Transfer Time (as defined in the Formation Agreement), calculated on the assumption that each
SERP’ Trust Individual’s employment terminated immediately prior to the Employment Transfer Time, and (ii) rights in the assets of the trusts established pursuant to the Secular Trust Agreements with the SERP Trust Individuals (as
defined in Section 1.01 of the Formation Agreement and listed on Schedule 1.01(b) thereto) were retained by B&W to the extent such assets were held in an account thereunder for the purpose of providing a fund to pay benefits under the Plan
(defined in the Secular Trust Agreement as the “SERP Account”). 

  

	(b)	Notwithstanding any provision of the Plan to the contrary, effective as of the Employment Transfer Time the Plan (and the Company) shall have no liability for any
Liability described above (nor shall the Company or the Plan have a claim to any Assets related thereto). To the extent a benefit is payable under the Plan to any SERP Trust Individual for periods of service performed for the Company after the
Employment Transfer Time, such benefit shall take into account and be reduced by the liability retained by B&W referred to in subsection (a) above to the extent necessary to prevent a duplication of benefit payments.

 ARTICLE 3.  
 BENEFITS 
  

	3.01	 Eligibility. A Participant shall be entitled to receive a Supplemental Benefit under this Plan only upon (a) Separation from Service with a
vested benefit under the Basic Plan, or (b) death. A “Separation from Service” shall be deemed to have occurred on the date on 

  
 6 

	 	
which the level of bona fide services reasonably anticipated to be performed by the Participant for the Company and all affiliated companies is forty-five percent or less of the average level of
bona fide services performed by the Participant during the immediately preceding thirty-six month period (or full period of service if the Participant has been providing services for less than thirty-six months). 

 

	3.02	Amount of Supplemental Benefit. 

  

	(a)	The amount of a Participant’s Supplemental Benefit shall be equal to the actuarial value of the benefit to which the Participant would be entitled under the Basic
Plan (without regard to Section 3.03 thereof) and the ERISA Excess Plan in the aggregate (determined after applying Section 3.03 of the Basic Plan), with the following adjustments: 

 

	 	(1)	the Participant’s Supplemental Salary were included in his or her pensionable salary under the Basic Plan; 

 

	 	(2)	any additional pensionable and qualifying service granted under any special contractual arrangement entered into on or after January 1, 1993, were included in his
or her pensionable and qualifying service under the Basic Plan; 

  

	 	(3)	any incremental benefit granted pursuant to subsection (e) of this Section 3.02; 

 

	 	(4)	the Participant’s Basic Plan Qualifying Service will be deemed to include service during the Severance Period, provided, however, except for a Scheduled
Participant, effective for Participants who receive a notice of termination on or after January 1, 2010, this Section 3.02(a)(4) will no longer apply and with respect to Scheduled Participants, beginning January 1, 2010, the Severance
Period will be deemed to be three years following the Scheduled Participant’s Separation from Service, as defined in Section 3.01; and 

  

	 	(5)	for purposes of determining any early retirement reductions and actuarial values, a Participant’s age will be deemed to be no less than his age at the end of the
Severance Period, 

 offset by the actuarial value of the benefit payable under the Basic Plan, and subject to
Section 2.02(b). 
  

	(b)	Notwithstanding subsection (a) above, if a Participant becomes ineligible to participate in PIP for any reason after having become a Participant hereunder, that
portion of such a Participant’s Supplemental Benefit which is based on an Average PIP Award (if any) shall be calculated by disregarding pensionable service (as defined in the Basic Plan) earned during and after the year such Participant first
became ineligible to participate in PIP. 

  

	(c)	 If the Company provides an alternate source of payment for all or any portion of a Participant’s accrued or projected Supplemental Benefit at any
time before or on (or as of) the date the Participant becomes entitled thereto under Section 3.01, and payment to such alternate source results in the immediate taxation thereof, such accrued or projected

  
 7 

	 	
Supplemental Benefit shall be reduced by the estimated tax liability attributable thereto (the tax rate to be used for this calculation shall be an assumed retiree tax rate for the Participant,
as determined by the Company in its sole discretion) (the “after-tax benefit”), and such estimated after-tax benefit shall be increased by the tax paid with respect thereto; provided that in no event shall such prior payment or payments be
deemed to be a discharge of the Company’s obligation for all or any part of the Supplemental Benefit due under this Article 3 prior to the time the Participant becomes entitled to the payment thereof under Section 3.01. The amount of
Supplemental Benefit due under this subsection (c) shall be paid as provided in Section 4.01(b). 

  

	(d)	A Participant who (i) is a corporate Vice President on, or as of, July 15, 1997, (ii) is or becomes entitled to payment of a Supplemental Benefit under
Section 3.01, and (iii) whose benefit is provided (in part or entirely) through an alternate source of payment as described in subsection (c) above, shall, at the time such Supplemental Benefit first becomes payable under the Plan, be
entitled to an additional cash amount calculated as follows: the ratio of the “Projected Installment Sum” over the “Projected Employee Grantor Trust Sum”, expressed as a percentage, minus one (1), with the resulting percentage
multiplied by the Supplemental Benefit (after adjustment to an after-tax value at the time the benefit first becomes payable). Such additional cash amount shall, at the time of payment, be increased by an amount sufficient to pay income taxes
thereon (inclusive of taxes on the increase). For purposes of this subsection (d), the following terms have the following meanings: 

  

	 	(1)	“Projected Installment Sum” means the sum of the after-tax present value of each projected installment payment of the Supplemental Benefit, assuming that the
Supplemental Benefit is paid in 10 annual installments, the first being paid on the first anniversary of the Participant’s termination of employment. The amount of each projected annual installment shall be determined by multiplying the Account
balance (including principal and accumulated notional earnings) as of the date the installment payment is due by a fraction, the numerator of which is one (1) and the denominator of which is the number of annual payments (including the payment
then due) remaining to be paid; and by then reducing such amount by the projected tax effect related to such payment (State and local tax rates shall be taken into account only to the extent the State or locality of the Participant’s residence,
at the time the Participant first becomes entitled to payment under Section 3.01, imposes taxes on such payments). Notional earnings shall apply monthly to the unpaid Account balance as follows: the monthly rate of return shall be the greater
of (i) the monthly equivalent of the annual yield on 10 year Treasury constant maturities as quoted in the Federal Reserve Statistical Release, as of the date of Supplemental Benefit entitlement (as set forth in Section 3.01) or
(ii) the average of such monthly rates for the 36 month period ending with the month immediately preceding the month of such Supplemental Benefit entitlement. 

  
 8 

	 	(2)	“Projected Employee Grantor Trust Sum” means the sum of the present value of each projected installment payment of the Supplemental Benefit (after adjustment
of the said Supplemental Benefit to an after-tax value at the time the benefit first becomes payable), assuming that the said adjusted Supplemental Benefit is paid in 10 annual installments in the manner described in paragraph (1) above (except
that notional earnings on the unpaid balance shall be applied after adjustment for taxes). 

 Such amount shall be
paid as provided in Section 4.01(b) as soon as after the Participant becomes entitled a Supplemental Benefit under Section 3.01 above. 
  

	(e)	A Participant who is eligible to participate in the Plan by virtue of his or her eligibility to participate in the PIP prior to January 1, 1991, or whose
employment classification is at the AVP (or equivalent) level or above, shall, unless otherwise specifically excluded from eligibility for the benefit described in this subsection (e) through a separate written agreement between the Company and
the Participant, be entitled to elect to receive an incremental Supplemental Benefit equal to the incremental benefit provided under Section 4.04 of the Basic Plan and adjusted using the same methodology described in subsection (c) (except
that the Participant’s current tax rate shall be used to calculate the amount of after-tax benefit attributable to such incremental benefit), subject in all events to the same terms, conditions and exclusions of said Basic Plan
Section 4.04 that apply to participants therein (including without limitation age and service requirements and the exclusions listed in items (1) through (5) of subsection (a) thereof). The incremental Supplemental Benefit
payable under this subsection (e) shall be paid as provided in Section 4.01(b). 

  

	(f)	This subsection (f) shall apply only to Participants who are entitled to a Supplemental Benefit by virtue of participation in SERIB (as such acronym is defined in
Section 2.01(b)) and whose Release Date thereunder is August 1, 2001 or later. The cash value of a Supplemental Benefit to which any such Participant is entitled shall be calculated as of February 1, 2001, and at the
Participant’s employment termination date on or after August 1, 2001. The Participant shall be entitled to the greater of the two calculations. Such amount shall be paid as follows: 

 

	 	(1)	Payments to Participants whose benefit is paid to an alternate source of payment (as described in Section 3.02(c)) shall be made directly to such alternate source
of payment. An initial deposit of the benefit due shall be made concurrent with other payments to such alternate source in January, 2001, based on the Participant’s projected Release Date on or after August 1, 2001. If required, any
additional amounts due will be paid upon actual termination of employment. 

  

	 	(2)	Payments to all other Participants may be made as soon as practicable after July 1, 2001, based on the value of the Supplemental Benefit as of February 1,
2001, irrespective of whether the Participant has actually terminated employment (subject to any election by a Participant to defer payment). If required, any additional amounts due will be paid upon actual termination of employment.

  

	3.03	Dependents’ Benefits. 

  

	(a)	 If dependents’ benefits are payable under Article 8 of the Basic Plan to the surviving spouse or child of a retired Participant who had not yet
received payment of benefits 

  
 9 

	 	
under Section 4.01, or of a Participant who died during employment (but not a Participant who terminated employment prior to retirement with vested rights, whether or not payment of such
Participant’s pension had begun), such spouse or child shall be entitled to a Supplemental Benefit equal to the additional benefit to which he would be entitled under the Basic Plan and the ERISA Excess Plan in the aggregate if the
Participant’s Supplemental Salary were included in his pensionable salary as defined in the Basic Plan (subject to the restrictions on pensionable service set forth in Section 3.02(b) hereof, if applicable to the Participant).

  

	(b)	A Supplemental Benefit payable under subsection (a) above shall be paid in a single cash payment, determined on an Actuarial Basis, commencing on the first day of
the month following the Participant’s death. 

 ARTICLE 4. 

METHOD OF PAYMENT 
  

	4.01	Payments On or After July 1, 1990. 

  

	(a)	Subject to Section 4.01(b), the aggregate benefits to which a Participant is entitled under this Plan shall be paid in a single cash payment, determined on an
Actuarial Basis, and such payment shall be made on the first day of the month following the Participant’s Separation from Service. 

  

	(b)	Notwithstanding anything in this Plan to the contrary, in the event that the Participant is deemed to be a “specified employee,” determined pursuant to
procedures adopted by the Company in compliance with Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), on the date of the Participant’s Separation from Service, then to the extent necessary to comply
with Code Section 409A, the amount that would otherwise be payable pursuant to this Plan during the six-month period immediately following the date of the Participant’s Separation from Service (the “Delay Period”) will instead be
paid or made available on the earlier of (i) the last business day of the seventh month after the date of the Participant’s Separation from Service, or (ii) the Participant’s death (the “Initial Payment Date”). Any
payment that, but for the requirements of this Section 4.01(b), would be paid during the Delay Period shall be paid on the Initial Payment Date, together with interest thereon calculated at the applicable rate specified in the Basic Plan for
calculating lump sum benefits. 

  

	4.02	Plan Unfunded. All benefit payments under the Plan shall be made directly by the Employer out of its general assets. 

 

	4.03	Delay in Payment. If payment of benefits under the Basic Plan in respect of a Participant or his spouse or child begins prior to determination of the PIP award
for the previous calendar year, payment of his Supplemental Benefit (if any) shall be delayed until the amount of such prior year’s PIP award is determined. Upon such a determination, the Supplemental Benefit shall be paid in an amount
retroactive to the date that payment of benefits under the Basic Plan began. Interest shall not accrue, nor be or become payable, with respect to such retroactive payments. 

  
 10 

	4.04	Withholding. All payments under the Plan shall be subject to any applicable withholding requirements imposed by any tax or other law. 

ARTICLE 5. 

AMENDMENT AND TERMINATION 
  

	5.01	Right to Amend or Terminate Reserved. The Company may at any time amend the Plan in any respect or terminate the Plan. However, no such amendment or termination
shall deprive any Participant of any accrued benefit to which such Participant has a nonforfeitable right (determined in accordance with the rules of the Plan in effect immediately prior to the date of such amendment or termination), other than for
the purpose of providing an offset for additional governmental benefits or for additional benefits provided by an Employer. 

  

	5.02	Action to Bind Employers. By adoption of the Plan, each corporation included with the Employer designates the Company as its agent to administer the Plan in
accordance with Article 6 hereof. The Company shall have the further right to amend or terminate the Plan and furnish written notice of such action and a copy of any such amendment to any such corporation, whereupon such amendment or termination
shall become binding upon such corporation. 

  

	5.03	Change in Basic Plan. If the Basic Plan and ERISA Excess Plan shall be amended to change in any way the benefits applicable to any Participant, spouse, or child,
or shall be replaced in whole or in part by any successor plan, the provisions of the Plan shall apply based on the provisions of the Basic Plan and/or ERISA Excess Plan as so amended, or such successor plan, which are applicable to such
Participant, spouse or child unless otherwise provided by the Company. 

 ARTICLE 6.  

ADMINISTRATION 
  

	6.01	Administration. The Company, through its duly designated agents, shall make all determinations required of it by the terms of the Plan, and its constructions and
interpretations of the Plan, as well as its determinations as to rights and obligations under the Plan, shall be final and binding upon all persons. 

 ARTICLE 7. 
 MISCELLANEOUS 

 

	7.01	Payment to Incompetent. If any person entitled to benefits under this Plan shall be a child or shall be either physically or mentally incompetent in the judgment
of the Company, such benefits may be paid to the person to whom the corresponding benefits under the Basic Plan are paid under Section 8.06(d) or 14.06 thereof, whichever is applicable. 

  
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	7.02	Spendthrift Clause. No benefit, distribution or payment under the Plan may be anticipated, assigned (either at law or in equity), alienated or subject to
attachment, garnishment, levy, execution or other legal or equitable process. 

  

	7.03	Usage. Whenever applicable, the masculine gender, when used in the Plan, will include the feminine gender, and the singular will include the plural.

  

	7.04	Data. Any Participant entitled to benefits under the Plan must furnish to the Company such documents, evidence or information as the Company considers necessary
or desirable for the purpose of administering the Plan, or to protect the Company; and it is a condition of the Plan that each such Participant must furnish promptly true and complete data, evidence or information and sign such documents as the
Company may require before any benefits become payable under the Plan. 

  

	7.05	Separability. If any provision of the Plan is held invalid or unenforceable, its invalidity or unenforceability will not affect any other provisions of the Plan,
and the Plan will be construed and enforced as if such provision had not been included therein. 

  

	7.06	Captions. The captions contained herein and the table of contents prefixed hereto are inserted only as a matter of convenience and for reference and in no way
define, limit, enlarge or describe the scope or intent of the Plan nor shall, in any way, affect the Plan or the construction of any provision thereof. 

  

	7.07	Right of Discharge Reserved. The establishment of the Plan shall not be construed to confer upon an employee or Participant any legal right to be retained in the
employ of the Employer or give any employee or any other person any right to benefits, except to the extent expressly provided for hereunder. All employees will remain subject to discharge to the same extent as if the Plan had never been adopted,
and may be treated without regard to the effect such treatment might have upon them under the Plan. 

  

	7.08	Other Benefits Unaffected. Nothing in this Plan shall be construed to require that a Participant’s Supplemental Salary or PIP awards be taken into account
in determining his benefits under the Employer’s life insurance plan, profit-sharing plans, death-in-service payments (including payments under Section 9 of the Basic Plan), or any other benefit program. 

ARTICLE 8. 

EFFECTIVE DATE, ETC. 
  

	8.01	Effective Date. This Restatement shall be effective as of January 1, 2012, except as otherwise specifically provided herein. The original effective date of
the Plan was January 1, 1981. No benefits shall be payable under the Plan in respect of employees who retired, terminated employment or died prior to such date, or to their spouses or children. 

  
 12 

 IN WITNESS WHEREOF, the Company has caused this restatement to be executed as of the day and
year first above written. 
  

			
	 REYNOLDS AMERICAN INC.

		
	 By:
	 	 

		
	 Title:
	 	 Senior vice President, Deputy General

		 	 Counsel and Secretary

  
 13

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