Document:

Exhibit 10.71

 

Exhibit 10.71

AMENDMENT NO. 4

TO THE

BROWN & WILLIAMSON TOBACCO CORPORATION

HEALTH CARE PLAN

FOR SALARIED EMPLOYEES

     THIS AMENDMENT NO. 4 to the Brown & Williamson Tobacco Corporation Health Care Plan for
Salaried Employees (the “Plan”), as amended through March 8, 2004, is made and entered into the
20th day of April, 2005. The provisions of this Amendment shall be effective as of
April 20, 2005;

W I T N E S S E T H:

     WHEREAS, Reynolds American Inc. (“RAI”) maintains the Plan for the benefit of former employees
of Brown & Williamson Tobacco Corporation who are employed in “transitional employment” (as such
term is defined in the Plan) by RAI or any of its subsidiaries and affiliates designated as
participating companies; and

     WHEREAS, the RAI Employee Benefits Committee (the “Committee”), by actions taken on April 20,
2005, authorized amendments to the Plan to comply with new security rules under the Health
Insurance Portability and Accountability Act of 1996 (“HIPAA”) pertaining to electronic protected
health information; and

     WHEREAS, such action of the Committee further authorized the members of the Committee to
perform any and all acts and execute any and all documents that they may deem necessary to
effectuate the Committee’s resolutions;

     NOW, THEREFORE, the Plan hereby is amended as follows:

1.

The Table of Contents of the Plan is hereby amended by deleting the phrase “12.08 Privacy
Standards” and replacing it with the phrase “12.08 HIPAA Privacy and Security Rules” where
it appears therein.

2.

     The first paragraph of Section 12.08 of the Plan is hereby amended in its entirety to read as
follows:

			
	“12.08	 	HIPAA Privacy and Security Rules. The provisions of this Section 12.08 are
effective April 14, 2003 with respect to the Privacy Rules (as defined below), and are
effective April 20, 2005 with respect to the Security Rules (as defined below). This Section
12.08 contains the Plan provisions required by the Standards for

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Privacy of Individually Identifiable Health Information contained in 45 CFR §164.102
et. seq. (the “Privacy Rules”) and Security Standards for the Protection of
Electronic Protected Health Information contained in 45 CFR §164.302 et. seq. (the
“Security Rules”), each promulgated pursuant to Title II of the Health Insurance
Portability and Accountability Act of 1996, as amended (“HIPAA”). The Privacy Rules
relate to the permitted use and disclosure of protected health information (“PHI”),
as that term is defined in the Privacy Rules, by the Plan, or by certain health
maintenance organizations or health insurers with respect to the Plan, to the
Company (or any successor in interest thereto). The Security Rules relate to the
security of PHI that is transmitted by electronic media or is maintained in
electronic media (“Electronic PHI”), that is created, received, maintained, or
transmitted on behalf of the Plan. Notwithstanding anything in this Plan to the
contrary, the Plan shall be operated in accordance with HIPAA.”

3.

     Section 12.08(a)(1) of the Plan is hereby amended in its entirety to read as follows:

	 	“(1)	 	 The Plan may disclose to the Company “summary health information,” as that term
is defined in the Privacy Rules, for the purpose of allowing the Company to (i) obtain
bids from insurers for providing health insurance coverage under the Plan; or (ii)
amend or terminate the Plan.”

4.

     Section 12.08(a)(3) of the Plan is hereby amended in its entirety to read as follows:

	 	“(3)	 	The Plan may disclose an individual’s PHI to the Company if authorized by the
individual to make such disclosure in accordance with the Privacy Rules.”

5.

     Section 12.08 of the Plan is hereby amended by adding a new Subsection (f) to the end thereof
to read as follows:

	 	“(f)	 	Security of Electronic PHI. The Plan will disclose PHI to the Company
only if the Company agrees with respect to any Electronic PHI, that the Company will:

	 	(1)	 	implement administrative, physical, and technical safeguards
that reasonably and appropriately protect the confidentiality, integrity, and
availability of the Electronic PHI that it creates, receives, maintains, or
transmits on behalf of the Plan;
	 
	 	(2)	 	ensure that the adequate separation as required by the HIPAA
Privacy Rules and as set forth in 45 CFR §164.504(f)(2)(iii) is supported by
reasonable and appropriate security measures;

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	 	(3)	 	ensure that any agent, including a subcontractor, to whom the
Company may provide this information agrees to implement reasonable and
appropriate security measures to protect the information; and
	 
	 	(4)	 	report to the Plan any security incident of which the Company
becomes aware.”

6.

     Section 12.08 of the Plan is hereby amended by deleting the term “Privacy Rule” and replacing
it with the term “Privacy Rules” each place it appears therein.

     IN WITNESS WHEREOF, the undersigned member of the Committee has executed this Amendment No. 4
as of the day and year first written above.

	 	 	 	 	 	 	 
	 	 	RAI Employee Benefits Committee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ McDara P. Folan, III	 	 
	 

	 	 	 	 

McDara P. Folan, III
	 	 
	 
	 	 	 	 	 	 
	Secretary
	 	 	 	 	 	 

Page 3 of 3Exhibit 10.72

 

Exhibit 10.72

AMENDMENT NO. 5

TO THE

BROWN & WILLIAMSON TOBACCO CORPORATION

HEALTH CARE PLAN

FOR SALARIED EMPLOYEES

     THIS AMENDMENT NO. 5 to the Brown & Williamson Tobacco Corporation Health Care Plan for
Salaried Employees (the “Plan”), as amended through July 29, 2004, is made and entered into the 29
day of December 2006. Unless otherwise indicated below, the provisions of this Amendment shall be
effective as of January 1, 2006;

W I T N E S S E T H:

     WHEREAS, Reynolds American Inc. (“RAI”) maintains the Plan for the benefit of former employees
of Brown & Williamson Tobacco Corporation who are retired or employed in “transitional employment”
(as such term is defined in the Plan) by RAI or any of its subsidiaries and affiliates designated
as participating companies; and

     WHEREAS, the RAI Employee Benefits Committee (the “Committee”), by actions taken on December
29, 2006, authorized amendments to the Plan to (i) revise the definition of a dependent to permit
(A) the children of retired participants to recommence coverage under the Plan if they regain
full-time student status and (B) certain children who withdraw from school for personal medical
reasons to continue coverage under the Plan, (ii) clarify the Plan’s provisions relating to the
offset for Medicare coverage and (iii) update the Plan’s provisions based on the Aetna networks,
among other things; and

     WHEREAS, such action of the Committee further authorized the members of the Committee to
perform any and all acts and execute any and all documents that they may deem necessary to
effectuate the Committee’s resolutions;

     NOW, THEREFORE, the Plan hereby is amended as follows:

1.

     Section 1.05 of the Plan is hereby amended by adding the following new sentence to the end
thereof, to read as follows:

“Notwithstanding the foregoing, Aon Corporation, or any such other outsourced retiree
services administrator, shall be a “Claims Administrator” only for purposes of determining
whether the Dependent of a Retired Participant is a full-time student pursuant to Section
1.18(d) of the Plan.”

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2.

     Section 1.18(d) of the Plan is hereby amended in its entirety to read as follows:

	 	“(d)	 	The Claims Administrator shall determine whether a child is a full-time
student. The determination of a child’s status as a full-time student shall be based
on such verification from the child’s school as the Claims Administrator may, in its
sole discretion, deem appropriate, subject to the following guidelines:
	 
	 	 	 	Verification shall be provided to the Claims Administrator with respect to each
regular grading period. For this purpose, “regular grading period” means two
regular terms in an academic year, a fall semester (generally, August – December)
and a spring semester (generally, January – May), or any comparable period as
determined by the Claims Administrator.
	 
	 	 	 	Verification will be satisfactory only if the student is enrolled as a full-time
student as defined by the school (generally, 12+ credit hours) during a regular
grading period, except as follows:

	 	(1)	 	if a student qualifies as a junior or a senior (as defined by
the school) and is enrolled for fewer than 12 credit hours during a regular
grading period, the Claims Administrator will take into account special
circumstances that account for such occurrence (e.g., the
unavailability of required courses; fewer than 12 credit hours required for
graduation); or
	 
	 	(2)	 	in the event a student withdraws from school for personal
medical reasons (based on a medical leave verification from the school and if
they meet certain requirements determined by the medical program
administrator), coverage as a Dependent will continue until the beginning of
the next following regular grading period; provided that if such Dependent is
not able to re-enroll as a full-time student at the beginning of the next
following regular grading period due to a medical reason (based on the written
verification of a qualified physician and meeting certain requirements
determined by the medical program administrator), such coverage shall be
continued until the end of such next following regular grading period.”

3.

     Section 1.42 of the Plan is hereby amended in its entirety to read as follows:

     “1.42 Network.

	 	(a)	 	The term “Network” means certain Providers who have entered into agreements
through which their fees and expenses for Covered Services are established, as
follows:

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	 	(1)	 	Immediately prior to January 1, 2006, the Networks are: Secure
Health Plan of Georgia (only for Participants employed at or retirees of the
Company’s Macon, Georgia, facility); CIGNA (for Participants in Georgia,
Tennessee, South Carolina and North Carolina, and, effective May 1, 2001, for
Participants in Utah); Private Health Care System (for Participants in all
states except Georgia, Tennessee, South Carolina, North Carolina and, prior to
May 1, 2001, Utah); and the LifeSource Program for organ and tissue
transplants.

	 	(2)	 	Effective January 1, 2006, the Networks are: (1) Secure Health
Plan of Georgia only for Participants employed at or retirees of the Company’s
Macon, Georgia facility; (2) Aetna for all Participants in all other
facilities, and (3) the applicable Network’s transplant program for organ and
tissue transplants.”

4.

     Section 1.45(a) of the Plan is hereby amended by adding a new sentence to the end thereof,
immediately following paragraph (2), to read as follows:

“Medical Claims experience for purposes of this subsection (a) shall mean the claims paid
and related administrative expenses for an applicable period and applicable group of
participants (e.g. active Employee-Participants or Retired Participants age 65 and above),
net of any rebates, refunds, forfeitures or other reimbursements related to such claims,
including but not limited to prescription drug rebates, Medicare Part D reimbursements and
forfeiture of unclaimed benefit payments.”

5.

     Section 1.60(a) of the Plan is hereby amended in its entirety to read as follows:

	 	“(a)	 	The term “Retired Participant” means an Employee-Participant whose employment
with the Company has terminated pursuant to the normal, disability or early retirement
provisions of the Retirement Plan applicable to the Participant (except retirements
under the “Rule of 60” or the “Rule of 65” as defined therein), or who is deemed to be
a Retired Participant pursuant to Sections 2.08(c), 2.08(d), 2.12, 2.13, 2.14, 2.15 or
2.16 of this Plan; provided that such person is an eligible Employee-Participant in
this Plan at the time of employment termination (except as provided in Sections
2.08(c)(2), 2.15 and 2.16).”

6.

     Section 1.60(d) of the Plan is hereby amended in its entirety to read as follows:

	 	“(d)	 	Except as provided in Section 2.08(c), 2.15 or 2.16, effective as of the
Closing, the term “Retired Participant” shall exclude former employees of Brown &
Williamson Tobacco Corporation (or a Related Company) who had not met the eligibility

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	 	 	 	requirements of subsection (a) above as of the first to occur of: (1) termination of
employment for any reason after Closing, or (2) commencement of regular employment
with RAI (as defined in Section 2.01(b)(3)).”

7.

     The last sentence of Section 2.02 of the Plan is hereby amended in its entirety to read as
follows:

“Except as provided in Section 2.08(h)(2), if a Dependent ceases to be a Participant for any
reason after the Dependent’s Employee-Participant has become a Retired Employee, that former
Dependent-Participant shall not again be eligible to become a Dependent-Participant.”

8.

     Section 2.03(a)(12) of the Plan is hereby amended in its entirety to read as follows:

“Except as provided in Section 2.08(h)(2), if a Dependent ceases to be a Participant for any
reason after the Dependent’s Employee-Participant has become a Retired Employee, that former
Dependent-Participant shall not again be eligible to become a Dependent-Participant.”

9.

     The last sentence of Section 2.08(b)(6) of the Plan is hereby amended in its entirety to read
as follows:

“Such payment shall be paid by funds held in the Trust Agreement (or in accordance
with any cost-sharing arrangement between the Grantor and the Company, if applicable);
provided that if the balance of the Trust Agreement at any time is or becomes
insufficient to pay the Normal Cost, the cost of continuing such coverage shall be paid
by the Company from general assets (and in no event from the additional reserve for
post-retirement medical benefits under Code Section 419A(c)(2) referred to above), or
if the Company and its successors (or any other entity holding reserves for the payment
of claims against the Company and its successors) do not exist, then such cost shall be
paid by the Grantor (and Dependents, as applicable). Notwithstanding the foregoing, if
the Grantor is required to contribute towards the Normal Cost under a cost-sharing
arrangment between the Grantor and the Company, the Company shall not be required to
pay the Grantor’s portion of the Normal Cost out of its general assets if the balance
of the Trust Agreement at any time is or becomes insufficient to pay its portion of the
Normal Cost.”

10.

     Effective January 1, 2005, Section 2.08(b)(8) of the Plan is hereby amended by deleting the
phrase “rehired by the Company” and replacing it with the phrase “rehired by the Company or any
Related Company” where it appears therein.

Page 4 of 8

 

11.

     Section 2.08(c)(3)(A)of the Plan is hereby amended in its entirety to read as follows:

	 	“(A)	 	If the Petersburg Retiree is less than age 65, the Company shall pay the total
Normal Cost of his or her coverage, and the Company shall pay 50% of the total Normal
Cost of coverage for each of his or her Dependents-Participants. If the Petersburg
Retiree is age 65 or older, he or she shall pay 100% of the total Normal Cost of his or
her coverage and 100% of the total Normal Cost of coverage for each of his or her
Dependent-Participants.”

12.

     Effective July 30, 2004, Section 2.08(d) of the Plan is hereby amended by adding a new
Subsection (6) to the end thereof to read as follows:

“(6) Notwithstanding anything in this Section 2.08(d) to the contrary, any amendment made to
the Retirement Plan for Salaried Employees of Brown & Williamson Tobacco Corporation after
December 31, 1994 that expands the employees eligible for a “Rule of 60” retirement under
such plan, shall not serve to expand the eligibility requirements for purposes of retiree
coverage under Section 2.08 of this Plan.”

13.

     The first sentence of Section 2.08(e)(1) of the Plan is hereby amended in its entirety to read
as follows:

“The rights and entitlement of an Employee-Participant (and eligible Dependents) to coverage
as a Retired Participant (or Dependent) under subsections (a), (c) and (d) of this Section
2.08 or Sections 2.12, 2.13, 2.14, 2.15 or 2.16 shall become fully vested and nonforfeitable
as of the date the Employee-Participant first satisfies the conditions set forth in the
applicable provisions of Sections 2.08, 2.12, 2.13, 2.14, 2.15 or 2.16 for such coverage.”

14.

     Section 2.08(h) of the Plan is hereby amended in its entirety to read as follows:

	 	“(h)	 	A former Employee-Participant who is eligible for coverage under this Section
2.08 may reject individual coverage under the Plan and continue Dependent coverage
only, or vice versa, without regard to the Continuation Coverage provisions of Article
10. If a former Employee-Participant rejects coverage, then Dependent coverage and
costs shall be determined under Section 2.08 as if the Employee-Participant were a
Retired Participant, except that Sections 2.08(a)(3) and (4) shall apply as if the
Retired Participant were deceased on the date he or she rejected coverage. If coverage
is rejected, or if a Dependent ceases to be a Participant for any other reason after
the Dependent’s Employee-Participant has become a Retired Participant, the individual
shall not again be eligible to become a Participant under this Section 2.08, except as
follows:

Page 5 of 8

 

	 	(1)	 	if an individual rejects coverage under the Plan and enrolls in
Medicare Plus Choice, he or she may re-elect coverage under the Plan one time
during any calendar year if he or she demonstrates to the Claims Administrator
that (i) he or she was continuously enrolled in Medicare Plus Choice from the
time coverage was discontinued under the Plan until the re-enrollment, and (ii)
he or she has discontinued Medicare Plus Choice upon re-enrollment in the Plan;
or
	 
	 	(2)	 	if a Dependent ceases to be a Participant due to a loss of
full-time student status, as provided in Section 1.18(d), and thereafter
regains full-time student status, such Dependent shall be eligible to
recommence coverage under this Section 2.08, provided the Claims Administrator
receives notification within 31 days of the date such Dependent’s full-time
student status is re-established in accordance with Section 1.18(d).”

15.

     Section 3.02 of the Plan is hereby restated in its entirety to read as provided on Exhibit
A attached hereto.

16.

     Section 3.13(a)(6) of the Plan is hereby amended in its entirety to read as follows:

	 	“(6)	 	The Plan shall cover 100 percent of travel expenses for the recipient and one
companion in accordance with this subsection (6), except that the Plan shall not pay
more than $10,000 in the aggregate for travel expenses with respect to a transplant.
The Plan shall not cover any travel expenses unless (A) the transplant Services are
provided at a facility that is a member of the applicable Network’s transplant program
for organ and tissue transplants and the facility is more than 60 miles from the
recipient’s Principal Residence, and (B) the expenses are approved in advance by the
Claims Administrator. The Plan covers travel expenses if, but only if, the Claims
Administrator determines the expenses are reasonable for travel to and from the
transplant site. Travel expenses include lodging and food, but only while at or
traveling to and from the transplant site. The term “companion” means any individual
other than the donor who is actively involved as the recipient’s care giver, who may be
a spouse, family member, guardian or other person.”

17.

     Section 5.01(a)(6) of the Plan is hereby amended in its entirety to read as follows:

	 	“(6)	 	Any Services received as a result of Injury or Illness sustained by a
Participant in connection with his or her participation in an insurrection, civil
revolution or riot.”

Page 6 of 8

 

18.

     Section 5.01(a)(26) of the Plan is hereby amended in its entirety to read as follows:

	 	“(26)	 	Any Services received as a result of Injury or Illness that are furnished,
paid for, or for which benefits are provided or required under any law of a
government.”

19.

     Section 8.11(a)(16) is hereby amended in its entirety to read as follows.

	 	“(16)	 	Services received as a result of Injury or Illness (i) sustained by a
Participant in connection with his or her participation in an insurrection, civil
revolution or riot or (ii) that are furnished, paid for, or for which benefits are
provided or required under any law of a government.”

20.

     Section 8.11(a)(28) is hereby deleted in its entirety without renumbering the remaining
Subsections thereof.

21.

     Section 11.01(b) of the Plan is hereby amended in its entirety to read as follows:

	 	“(b)	 	This provision shall be applicable to all benefits available under the Plan,
except that no coordination of benefits provisions shall apply to the Prescription Drug
Plan (other than with respect to care, treatment or Services covered by Medicare Part
D, as provided in Section 11.03 below).”

22.

     Section 11.03(a) of the Plan is hereby amended by adding the following sentence to the end
thereof to read as follows:

“Notwithstanding anything in the foregoing sentence to the contrary, with respect to any
Retired Participant who is eligible for Medicare Part D by virtue of his retirement or
disability, the Plan shall remain primary with respect to care, treatment or Services
covered by Medicare Part D unless and until such time as the Retired Participant actually
enrolls and begins to receive Medicare Part D benefits through a third party.”

23.

     Section 11.03 of the Plan is hereby amended by adding the following new Subsection (c) to the
end thereof to read as follows:

     “(c) Notwithstanding anything in this Section 11.03 to the contrary, for any Retired
Participant (or a Dependent-Participant thereof) who was less than 65 years old prior to
January 1, 1999 (a “Pre-1999 Participant”), and who was then eligible for Medicare Part B
benefits or thereafter, prior to age 65, became eligible for Medicare Part B benefits,
except

Page 7 of 8

 

for his failure to enroll or apply for such benefits, the Plan shall remain primary with
respect to Medicare Part B benefits unless and until the earlier of such time as the
Pre-1999 Participant actually enrolls and begins to receive Medicare Part B benefits with
respect to the care, treatment or Services covered by the Plan or such time as the Pre-1999
Participant attains the earliest age at which he would be eligible for coverage under
Medicare Part B on the basis of his age. After such time, the Plan shall no longer be
primary with respect to care, treatment or Services covered by Medicare Part B, and shall in
all cases offset the amount of its normal benefit payment by all amounts paid or payable by,
Medicare Part A and/or Part B, as applicable, for the same covered claim.”

24.

     Effective as of January 1, 2005, Schedule A of the Plan is hereby restated in its
entirety to read as provided in the revised Schedule A attached hereto.

     IN WITNESS WHEREOF, the undersigned member of the Committee has executed this Amendment No. 5
as of the day and year first written above.

	 	 	 	 	 	 	 
	 	 	RAI Employee Benefits Committee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ McDara P. Folan, III	 	 
	 

	 	 	 	 

McDara P. Folan, III
	 	 
	 

	 	 	 	Secretary	 	 

Page 8 of 8

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