Document:

EX-4.3

 

EXHIBIT 4.3

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “SECURITIES ACT”), OR
THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. NEITHER THIS SECURITY NOR ANY INTEREST OR
PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR
OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION UNLESS SUCH TRANSACTION IS EXEMPT FROM,
OR NOT SUBJECT TO, SUCH REGISTRATION. THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE HEREOF,
AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE (THE “RESALE
RESTRICTION TERMINATION DATE”) THAT IS TWO YEARS AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF
AND THE LAST DATE ON WHICH THE ISSUER OR ANY AFFILIATE OF THE ISSUER WAS THE OWNER OF THIS SECURITY
(OR ANY PREDECESSOR OF SUCH SECURITY), ONLY (A) TO THE ISSUER, (B) PURSUANT TO A REGISTRATION
STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THE
SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT, TO A PERSON IT
REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE
SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL
BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (D)
PURSUANT TO OFFERS AND SALES THAT OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF REGULATION
S UNDER THE SECURITIES ACT, OR (E) PURSUANT TO RULE 144 UNDER THE SECURITIES ACT OR ANY OTHER
AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE
ISSUER’S AND THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSES (D)
AND (E) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATIONS AND/OR OTHER INFORMATION
SATISFACTORY TO EACH OF THEM. THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE
RESALE RESTRICTION TERMINATION DATE.

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION (“DTC”), NEW YORK, NEW YORK, TO THE COMPANY OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME
OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY
PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO
NOMINEES OF DTC OR TO A SUCCESSOR

 

 

THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE
LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH OR INCORPORATED IN THE
INDENTURE REFERRED TO ON THE REVERSE HEREOF.

BY ITS ACQUISITION OF THIS SECURITY THE HOLDER HEREOF WILL BE DEEMED TO HAVE REPRESENTED AND
WARRANTED THAT EITHER (A) NO PORTION OF THE ASSETS USED BY SUCH HOLDER TO ACQUIRE AND HOLD THIS
SECURITY CONSTITUTES ASSETS OF AN “EMPLOYEE BENEFIT PLAN” AS DEFINED IN SECTION 3(3) OF THE U.S.
EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”) THAT IS SUBJECT TO TITLE I OF
ERISA, OF ANY PLAN, ACCOUNT OR OTHER ARRANGEMENT THAT IS SUBJECT TO SECTION 4975 OF THE U.S.
INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), OR ANY PROVISIONS UNDER ANY FEDERAL, STATE,
LOCAL, NON-U.S. OR OTHER LAWS OR REGULATIONS THAT ARE SIMILAR TO SUCH PROVISIONS OF ERISA OR THE
CODE (“SIMILAR LAWS”), OR OF ANY ENTITY WHOSE UNDERLYING ASSETS ARE CONSIDERED TO INCLUDE “PLAN
ASSETS” OF ANY SUCH PLAN, ACCOUNT OR ARRANGEMENT, OR (B) THE PURCHASE AND HOLDING OF THIS SECURITY
BY SUCH HOLDER WILL NOT CONSTITUTE A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA
OR SECTION 4975 OF THE CODE OR A VIOLATION UNDER ANY APPLICABLE SIMILAR LAWS.

R.J. REYNOLDS TOBACCO HOLDINGS, INC.

7.300% Secured Notes due 2015

$197,850,000

CUSIP No. 76182KAQ8

     R.J. Reynolds Tobacco Holdings, Inc., a Delaware corporation (the “Company,” which term
includes any successor corporation under the Indenture hereinafter referred to), for value
received, promises to pay to Cede & Co., or its registered assigns, the principal sum of ONE
HUNDRED NINETY-SEVEN MILLION EIGHT HUNDRED FIFTY THOUSAND DOLLARS on July 15, 2015.

     Interest Payment Dates: July 15 and January 15, commencing January 15, 2006.

     Record Dates: July 1 and January 1.

     Reference is hereby made to the further provisions of this Note set forth on the reverse
hereof, which further provisions shall have the same effect for all purposes as if set forth at
this place.

 

 

     Unless the certificate of authentication hereof has been executed by the Trustee referred to
on the reverse hereof by manual signature, this Note shall not be entitled to any benefit under the
Indenture or be valid or obligatory for any purpose.

 

 

     IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its
corporate seal.

	 	 	 	 	 	 	 
	Dated: June 29, 2005
	 	 	 	 	 	 
	 	 	R.J. REYNOLDS TOBACCO HOLDINGS, INC.,
	 	 	as Issuer
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

     Each of the undersigned hereby acknowledges its obligation as a Guarantor under the Indenture.

	 	 	 	 	 	 	 
	 	 	REYNOLDS AMERICAN INC., as a Guarantor
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	RJR ACQUISITION CORP., as a Guarantor
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	R. J. REYNOLDS TOBACCO COMPANY, as a
	 	 	     Guarantor
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

SIGNATURE PAGE TO R.J. REYNOLDS TOBACCO HOLDINGS, INC.

7.300% SECURED NOTES DUE 2015

 

 

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

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	RJR PACKAGING, LLC, as a Guarantor
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	FHS, INC., as a Guarantor
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	GMB, INC., as a Guarantor
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	BWT BRANDS, INC., as a Guarantor
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

SIGNATURE PAGE TO R.J. REYNOLDS TOBACCO HOLDINGS, INC.

7.300% SECURED NOTES DUE 2015

 

 

(Trustee’s Certificate of Authentication)

     This is one of the Notes of the series designated herein referred to in the within-mentioned
Indenture.

Dated: June 29, 2005

THE BANK OF NEW YORK,

as Trustee

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 

	 	Name:
	 	 
	 

	 	Title:	 	 

SIGNATURE PAGE TO R.J. REYNOLDS TOBACCO HOLDINGS, INC.

7.300% SECURED NOTES DUE 2015

 

 

[REVERSE OF INITIAL NOTE]

7.300% Secured Notes due 2015

     References herein to the “Notes” mean the Company’s 7.300% Secured Notes due 2015. Other
capitalized terms used herein shall have the meanings assigned to them in the Indenture referred to
below unless otherwise indicated.

     1. Interest. R.J. Reynolds Tobacco Holdings, Inc., a Delaware corporation (the
“Company”), promises to pay interest on the principal amount of this Note at 7.300% per annum from
the date provided below until maturity and shall pay the Additional Interest payable pursuant to
Section 2(d) of the Registration Rights Agreement referred to below. The Company shall pay
interest and Additional Interest semi-annually on July 15 and January 15 of each year, or if any
such day is not a Business Day, on the next succeeding Business Day (each an “Interest Payment
Date”). Interest on the Notes shall accrue from the most recent date to which interest has been
paid or, if no interest has been paid, from the date of issuance; provided that if there is no
existing Default in the payment of interest, and if this Note is authenticated between a record
date referred to on the face hereof and the next succeeding Interest Payment Date, interest shall
accrue from such next succeeding Interest Payment Date; provided further that the first Interest
Payment Date shall be January 15, 2006. Interest shall be computed on the basis of a 360-day year
of twelve 30-day months.

     2. Method of Payment. The Company shall pay interest on the Notes (except defaulted
interest) and Additional Interest, if any, to the Persons who are registered Holders of Notes at
the close of business on the July 1 or January 1 immediately preceding the Interest Payment Date,
even if such Notes are canceled after such record date and on or before such Interest Payment Date,
except as provided in Section 2.12 of the Indenture with respect to defaulted interest. The Notes
shall be payable as to principal, premium and Additional Interest, if any, and interest at the
office or agency of the Company maintained for such purpose within or without the City and State of
New York, or, at the option of the Company, payment of interest and Additional Interest may be made
by check mailed to the Holders at their addresses set forth in the register of Holders, and
provided that payment by wire transfer of immediately available funds shall be required with
respect to principal of and interest, premium and Additional Interest on, all Global Notes and all
other Notes the Holders of which shall have provided wire transfer instructions to the Company or
the Paying Agent. Such payment shall be in such coin or currency of the United States of America
as at the time of payment is legal tender for payment of public and private debts.

     3. Paying Agent and Registrar. Initially, The Bank of New York, the Trustee under
the Indenture, shall act as Paying Agent and Registrar. The Company may change any Paying Agent or
Registrar without notice to any Holder. The Company or any of its Subsidiaries may act in any such
capacity.

     4. Indenture. The Company issued the Notes under an Indenture dated as of May 20,
2002, among R.J. Reynolds Tobacco Holdings, Inc., as issuer, RJR Acquisition Corp. and R. J.
Reynolds Tobacco Company, as guarantors, and The Bank of New York, as trustee, as amended by a
first supplemental indenture dated as of June 30, 2003, pursuant to which R. J. Reynolds Tobacco
Co., RJR Packaging, LLC, FHS, Inc. and GMB, Inc. became parties to such indenture as guarantors,
and

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a second supplemental indenture dated as of July 30, 2004, pursuant to which Reynolds American Inc.
and BWT Brands, Inc. became parties to such indenture as guarantors (as supplemented, the
“Indenture”). The terms of the Notes include those set forth in Schedule I attached
hereto, those stated in the Indenture and those made part of the Indenture by reference to the
Trust Indenture Act of 1939, as amended. The Notes are subject to all such terms, and Holders are
referred to the Indenture and such Act for a statement of such terms. To the extent any provision
of this Note conflicts with the express provisions of the Indenture, the provisions of the
Indenture shall govern and be controlling.

     5. Optional Redemption. The Company may redeem all or a part of either series of the
Notes from time to time in accordance with Article 5 of the Indenture at a redemption price equal
to the greater of (a) 100% of the principal amount of the Notes and (b) the sum of the present
values of the remaining scheduled payments of principal and interest on the Notes, discounted to
the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day
months) at the applicable Treasury Rate plus 50 basis points plus with respect to each of the
Notes, accrued and unpaid interest, including Additional Interest, if any, on the principal amount
being redeemed to the date of redemption.

     6. No Sinking Fund. The Company shall not be required to make sinking fund payments
with respect to the Notes.

     7. Notice of Redemption. Notice of redemption shall be mailed at least 30 days but
not more than 60 days before the redemption date to each Holder whose Notes are to be redeemed at
its registered address. Notes in denominations larger than $1,000 may be redeemed in part but only
in whole multiples of $1,000, unless all of the Notes held by a Holder are to be redeemed. On and
after the redemption date interest ceases to accrue on Notes or portions thereof called for
redemption.

     8. Denominations, Transfer, Exchange. The Notes are in registered form without
coupons in denominations of $1,000 and integral multiples of $1,000. The transfer of Notes may be
registered and Notes may be exchanged as provided in the Indenture. The Registrar and the Trustee
may require a Holder, among other things, to furnish appropriate endorsements and transfer
documents and the Company may require a Holder to pay any taxes and fees required by law or
permitted by the Indenture. The Company need not exchange or register the transfer of any Note or
portion of a Note selected for redemption, except for the unredeemed portion of any Note being
redeemed in part. Also, the Company need not exchange or register the transfer of any Notes for a
period of 15 days before a selection of Notes to be redeemed or during the period between a record
date and the corresponding Interest Payment Date.

     9. Persons Deemed Owners. The registered Holder of a Note may be treated as its
owner for all purposes.

     10. Amendment, Supplement and Waiver. Subject to certain exceptions, the Indenture
or the Notes may be amended or supplemented with the consent of the Holders of at least a majority
in aggregate principal amount of the then outstanding Notes, voting as a single class, and any
existing default or compliance with any provision of the Indenture or the Notes may be waived with
the consent of the Holders of a majority in aggregate principal amount of the then outstanding
Notes, voting as a single class. Without the consent of any Holder of a Note, the Indenture or the
Notes may be amended or supplemented to cure any ambiguity, defect or inconsistency, to provide for

7

 

uncertificated Notes in addition to or in place of certificated Notes, to provide for the
assumption of the Company’s obligations to Holders of the Notes in case of a merger or
consolidation or sale of all or substantially all of the assets of the Company, to make any change
that would provide any additional rights or benefits to the Holders of the Notes or that does not
adversely affect the legal rights under the Indenture of any such Holder, to comply with the
requirements of the SEC in order to effect or maintain the qualification of the Indenture under the
Trust Indenture Act or to allow any Subsidiary to guarantee the Notes.

     11. Defaults and Remedies. Any of the following events constitutes an “Event of
Default” under the Indenture: (a) default in the payment of any installment of interest upon
Securities of any series as and when the same shall become due and payable, and continuance of such
default for a period of 30 days; or (b) default in the payment of all or any part of the principal
on Securities of any series as and when the same shall become due and payable either at maturity,
upon any redemption, by declaration or otherwise; or (c) default in the payment of any sinking fund
installment as and when the same shall become due and payable by the terms of Securities of any
series; or (d) default in the performance, or breach, of any covenant or agreement of the Company
or the Guarantors in respect of Securities of any series (other than a covenant or agreement in
respect of such Securities a default in whose performance or whose breach is elsewhere in this
Section specifically dealt with), and continuance of such default or breach for a period of 90 days
after there has been given to the Company by the Trustee or to the Company and the Trustee by the
Holders of at least 25% in principal amount of the outstanding Securities of all series affected
thereby, a written notice specifying such default or breach and requiring it to be remedied and
stating that such notice is a “Notice of Default” hereunder; or (e) a court having jurisdiction in
the premises shall enter a decree or order for relief in respect of the Company or the Guarantors
in an involuntary case under any applicable bankruptcy, insolvency or other similar law now or
hereafter in effect, or appointing a receiver, liquidator, assignee, custodian, trustee or
sequestrator (or similar official) of the Company or for any substantial part of its property or
ordering the winding up or liquidation of its affairs, and such decree or order shall remain
unstayed and in effect for a period of 60 consecutive days; or (f) the Company or any Restricted
Subsidiary shall commence a voluntary case under any applicable bankruptcy, insolvency or other
similar law now or hereafter in effect, or consent to the entry of an order for relief in an
involuntary case under any such law, or consent to the appointment of or taking possession by a
receiver, liquidator, assignee, custodian, trustee or sequestrator (or similar official) of the
Company or for any substantial part of its property, or make any general assignment for the benefit
of creditors; or (g) any Guarantee ceases to be in full force and effect (except as contemplated by
the terms hereof), or any Guarantee is declared in a judicial proceeding to be null and void, or
any Guarantor denies or disaffirms in writing its obligations under the terms of the Indenture or
its Guarantee; or (h) any other Event of Default provided in the supplemental indenture or Board
Resolution under which Securities of any series are issued or in this Note.

     If an Event of Default described in clauses (a), (b), (c), (d) or (h) above (if the Event of
Default under clause (d) or (h) is with respect to less than all series of Securities then
outstanding) occurs and is continuing, then, and in each and every such case, except for any series
of Securities the principal of which shall have already become due and payable, either the Trustee
or the Holders of not less than 25% in aggregate principal amount of the Securities of each such
affected series then outstanding under the Indenture (voting as a single class) by notice in
writing to the Company (and to the Trustee if given by Securityholders), may declare the entire
principal of all Securities of all such affected series, and the interest accrued thereon, if any,
to be due and payable immediately,

8

 

and upon any such declaration the same shall become immediately due and payable. If an Event of
Default described in clause (d) or (h) (if the Event of Default under clauses (d) or (h), as the
case may be, is with respect to all series of Securities then outstanding), (e), (f) or (g) occurs
and is continuing, then and in each and every such case, unless the principal of all the Securities
shall have already become due and payable, either the Trustee or the Holders of not less than 25%
in aggregate principal amount of all the Securities then outstanding hereunder (treated as one
class), by notice in writing to the Company (and to the Trustee if given by Securityholders), may
declare the entire principal of all the Securities then outstanding and interest accrued thereon,
if any, to be due and payable immediately, and upon any such declaration the same shall become
immediately due and payable.

     12. Trustee Dealings with Company. The Trustee, in its individual or any other
capacity, may make loans to, accept deposits from, and perform services for the Company or its
Affiliates, and may otherwise deal with the Company or its Affiliates, as if it were not the
Trustee.

     13. No Recourse Against Others. No director, officer, employee, incorporator or
shareholder of the Company or the Trustee, as such, shall have any liability for any obligations of
the Company or the Trustee, respectively, under the Notes or the Indenture or for any claim based
on, in respect of, or by reason of, such obligations or their creation. Each Holder of Notes by
accepting a Note waives and releases all such liability. The waiver and release are part of the
consideration for issuance of the Notes. Such waiver may not be effective to waive liabilities
under the federal securities laws and it is the view of the SEC that such a waiver is against
public policy.

     14. Authentication. This Note shall not be valid until authenticated by the manual
signature of the Trustee or an authenticating agent.

     15. Guarantees. This Note will be entitled to the benefits of certain Guarantees
made for the benefit of the Holders. Pursuant to the terms of the Indenture, each Guarantor of the
Indenture fully, unconditionally and irrevocably guarantees, as primary obligor and not merely as
surety, jointly and severally, to each Holder of the Notes and the Trustee the full and punctual
payment when due, whether at maturity, by acceleration, by redemption, by repurchase, or otherwise,
of the principal of, premium, if any, and interest on the Notes and all other obligations of the
Company under the Indenture, as provided in the Indenture. Reference is made to the Indenture for
a statement of the respective rights, limitations of rights, duties and obligations thereunder of
the Guarantors, the Trustee and the Holders.

     16. Abbreviations. Customary abbreviations may be used in the name of a Holder or an
assignee, such as: TEN COM (– tenants in common), TEN ENT (= tenants by the entireties), JT TEN (=
joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and
U/G/M/A (=Uniform Gifts to Minors Act).

     17. Additional Rights of Holders of Notes. In addition to the rights provided to
Holders of Notes under the Indenture, Holders of Notes shall have all the rights set forth in the
Registration Rights Agreement, dated as of June 29, 2005, between the Company and each of the
parties named on the signature pages thereof (the “Registration Rights Agreement”).

     18. CUSIP and ISIN Numbers. Pursuant to a recommendation promulgated by the
Committee on Uniform Security Identification Procedures, the Company has caused CUSIP or ISIN

9

 

numbers or both numbers to be printed on the Notes and the Trustee may use CUSIP or ISIN numbers or
both numbers in notices to the Holders of the Notes as a convenience to Holders. No representation
is made as to the accuracy of such numbers either as printed on the Notes or as contained in any
notice to the Holders of the Notes and reliance may be placed only on the other identification
numbers placed thereon.

     19. Governing Law. This Note shall be governed by and construed in accordance with
the laws of the State of New York.

     The Company shall furnish to any Holder upon written request and without charge a copy of the
Indenture and/or the Registration Rights Agreement. Requests may be made to:

R.J. Reynolds Tobacco Holdings, Inc.

401 North Main Street

Winston-Salem, North Carolina 27101-3818

Facsimile: 336-741-5000

Attention: Treasurer

10

 

[FORM OF TRANSFER NOTICE]

     FOR VALUE RECEIVED the undersigned registered holder hereby sell(s), assign(s) and transfer(s)
unto

Insert Taxpayer Identification No.

 

Please print the name and
address including zip code of assignee

 

the within Note and all
rights thereunder, hereby irrevocably constituting and appointing                                                                          
       attorney to transfer said Note on the books of the Company with
full power of substitution in the premises.

          In connection with any transfer of this Note occurring prior to the date which is the earlier
of (i) the date the (a) Exchange Offer Registration Statement or (b) Shelf Registration Statement
is declared effective or (ii) the end of the period referred to in Rule 144(k) under the Securities
Act, the undersigned confirms that without utilizing any general solicitation or general
advertising that:

[Check One]

     o(a) this Note is being transferred in compliance with the exemption from registration
under the Securities Act of 1933 provided by Ride 144A thereunder.

or

	o(b)	 	this Note is being transferred other than in accordance with (a) above and documents
are being furnished which comply with the conditions of transfer set forth in this Note and
the Indenture.

If none of the foregoing boxes is checked, the Trustee or other Registrar shall not be obligated to
register this Note in the name of any Person other than the Holder hereof unless and until the
conditions to any such transfer of registration set forth herein and in Article II of the Indenture
shall have been satisfied.

	 	 	 	 	 	 	 
	Date:
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	 

	 	 	 	 	 	NOTICE: The signature to this assignment must correspond with the name
as written upon the face of the within-mentioned instrument in every
particular, without alteration or any change whatsoever.

	 	 	 	 	 
	Signature Guarantee:
	 	 	 	 
	 

	 	 	 	 

11

 

Signature must be guaranteed by a participant in a recognized signature guaranty medallion program
or other signature guarantor acceptable to the Trustee.

TO BE COMPLETED BY PURCHASER IF (a) ABOVE IS CHECKED.

          The undersigned represents and warrants that it is purchasing this Note for its own account
or an account with respect to which it exercises sole investment discretion and that it and any
such account is a “qualified institutional buyer” within the meaning of Rule 144A under the
Securities Act of 1933 and is aware that the sale to it is being made in reliance on Rule 144A and
acknowledges that it has received such information regarding the Company as the undersigned has
requested pursuant to Rule 144A or has determined not to request such information and that it is
aware that the transferor is relying upon the undersigned’s foregoing representations in order to
claim the exemption from registration provided by Rule 144A.

	 	 	 	 	 	 	 
	Date:
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	 

	 	 	 	 	 	NOTICE: To be executed by an executive officer

12

 

SCHEDULE I

R.J. REYNOLDS TOBACCO HOLDINGS, INC.

TERMS OF 6.500% SECURED NOTES DUE 2010

AND 7.300% SECURED NOTES DUE 2015

     Section 1.01 Designation of Notes. (a) The terms set forth herein pertain to notes issued
pursuant to that certain Indenture dated May 20, 2002, by and among R.J. Reynolds Tobacco Holdings,
Inc. (the “Company”) as Issuer, The Bank of New York, as Trustee, and certain Subsidiaries of the
Company and Reynolds American Inc., the Company’s parent, who have executed such indenture or a
supplement thereto as Guarantors (as so supplemented, the “Indenture”). The notes subject to these
terms are (i) the Company’s 6.500% Secured Notes due 2010 in the aggregate principal amount of
$300,000,000 and 7.300% Secured Notes due 2015 in the aggregate principal amount of $200,000,000
(collectively, the “Initial Notes”) and (ii) if and when issued, the Company’s 6.500% Secured Notes
due 2010 and 7.300% Secured Notes due 2015 that may be issued from time to time in exchange for
Initial Notes in an offer registered under the Securities Act in accordance with the Registration
Rights Agreement (the “Exchange Notes,” and together with Initial Notes, the “Notes”).

     (b) The Initial Notes and Exchange Notes constituting 6.500% Notes due 2010 shall be
considered collectively as a single series for all purposes of the Indenture, and the Initial Notes
and Exchange Notes constituting 7.300% Notes due 2015 shall constitute a separate single series.

     Section 1.02. Initial Issuance and Resale. (a) The Initial Notes are being offered and sold
by the Company pursuant to a Purchase Agreement, dated June 22, 2005 (the “Purchase Agreement”),
among the Company, Citigroup Global Markets Inc., J.P. Morgan Securities Inc., and the other
initial purchasers named therein. The Initial Notes will be resold initially only to (i) QIBs in
reliance on Rule 144A and (ii) Non-U.S. Persons in reliance on Regulation S. Such Initial Notes
may thereafter be transferred to, among others, QIBs and purchasers in reliance on Regulation S in
accordance with the procedures provided herein.

     Initial Notes offered and sold to QIBs in the United States of America in reliance on Rule
144A (“144A Notes”) shall be issued in the form of a permanent global Note, including appropriate
legends as set forth in Section 1.02(c) (the “144A Global Note”), deposited with the Trustee, as
Custodian for the Depositary, duly executed by the Company, as issuer, and the Guarantors, as
guarantors, and authenticated by the Trustee as hereinafter provided. The 144A Global Note may be
represented by more than one certificate, if so required by the Depositary’s rules regarding the
maximum principal amount to be represented by a single certificate and by one or more certificates
issued upon exchange or replacement of another certificate representing the 144A Global Note. The
aggregate principal amount of the 144A Global Note may from time to time be increased or decreased
by adjustments made on the records of the Trustee, as Custodian for the Depositary or its nominee,
as hereinafter provided.

     Initial Notes offered and sold outside the United States of America in reliance on Regulation
S (the “Regulation S Notes”) shall be issued in the form of a permanent global Note, including
appropriate legends as set forth in Section 1.02(c) (the “Regulation S Global Note”), deposited
with the Trustee, as Custodian for the Depositary, duly executed by the Company and authenticated
by the Trustee as hereinafter provided. The Regulation S Global Note may be represented by more

S-1

 

than one certificate, if so required by the Depositary’s rules regarding the maximum principal
amount to be represented by a single certificate and by one or more certificates issued upon
exchange or replacement of another certificate representing the Regulation S Global Note. The
aggregate principal amount of the Regulation S Global Note may from time to time be increased or

decreased by adjustments made on the records of the Trustee, as Custodian for the Depositary or its
nominee, as hereinafter provided.

     Subject to Section 1.02(e), Exchange Notes exchanged for the 144A Notes or the Regulation S
Notes (or interests therein) in the Exchange Offer will be issued in the form of a permanent global
Note, including the appropriate legends set forth in Section 1.02(c) (the “Exchange Global Note”),
deposited with the Trustee, as Custodian for the Depositary, duly executed by the Company and
authenticated by the Trustee as hereinafter provided. The Exchange Global Note may be represented
by more than one certificate, if so required by the Depositary’s rules regarding the maximum
principal amount to be represented by a single certificate and by one or more certificates issued
upon exchange or replacement of another certificate representing the Exchange Global Note. The
aggregate principal amount of the Exchange Global Note may from time to time be increased or
decreased by adjustments made on the records of the Trustee, as Custodian for the Depositary or its
nominee, as hereinafter provided.

     The 144A Global Note, the Regulation S Global Note, and the Exchange Global Note are sometimes
collectively herein referred to as the “Global Notes.”

     The Notes may have notations, legends or endorsements required by law, stock exchange rule or
usage, in addition to those set forth on the Global Notes and in Section 1.02(c). The Company and
the Trustee shall approve the forms of the Notes and any notation, endorsement or legend on them.

     (b) Denominations. The Notes shall be issuable only in fully registered form, without
interest coupons, and only in denominations of $1,000 and any integral multiple thereof.

     (c) Restrictive Legends. Unless and until an Initial Note is (i) sold under an effective
registration statement or (ii) exchanged for an Exchange Note in connection with an effective
registration statement, in each case pursuant to the Registration Rights Agreement or a similar
agreement,

(A) Each certificate representing the 144A Notes shall bear the following legend (the “Private
Placement Legend”) on the face thereof:

“THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE
“SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION.
NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED,
SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE
ABSENCE OF SUCH REGISTRATION UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT
TO, SUCH REGISTRATION. THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE HEREOF, AGREES
TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR

S-2

 

TO THE DATE (THE “RESALE RESTRICTION TERMINATION DATE”) THAT IS TWO YEARS AFTER THE
LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE ISSUER OR ANY
AFFILIATE OF THE ISSUER WAS THE OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF SUCH
SECURITY), ONLY (A) TO THE ISSUER, (B) PURSUANT TO A REGISTRATION STATEMENT THAT HAS
BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THE SECURITIES
ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT, TO A PERSON
IT REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A
UNDER THE SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A
QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE
IN RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS AND SALES THAT OCCUR OUTSIDE THE
UNITED STATES WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES ACT, OR (E)
PURSUANT TO RULE 144 UNDER THE SECURITIES ACT OR ANY OTHER AVAILABLE EXEMPTION FROM
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE ISSUER’S AND THE
TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSES (D) AND
(E) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATIONS AND/OR OTHER
INFORMATION SATISFACTORY TO EACH OF THEM. THIS LEGEND WILL BE REMOVED UPON THE
REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE.”

(B) Except as otherwise provided in the following legend (the “Regulation S Legend”) and, together
with the Private Placement Legend the “Restrictive Legends”), each certificate representing the
Regulation S Notes shall bear the following legend on the face thereof:

“THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933 (THE
“SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED
STATES OR TO OR FOR THE ACCOUNT OR BENEFIT OF U.S. PERSONS EXCEPT AS SET FORTH IN THE
FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF, THE HOLDER (1) REPRESENTS THAT IT IS
NOT A U.S. PERSON NOR IS IT PURCHASING FOR THE ACCOUNT OF A U.S. PERSON AND IS
ACQUIRING THIS SECURITY IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH REGULATION S
UNDER THE SECURITIES ACT (“REGULATION S”), (2) BY ITS ACCEPTANCE HEREOF AGREES TO
OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY PRIOR TO THE DATE (THE “RESALE
RESTRICTION TERMINATION DATE”) THAT IS TWO YEARS AFTER THE LATER OF THE ORIGINAL
ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE ISSUER OR ANY AFFILIATE OF THE
ISSUER WAS THE OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF SUCH SECURITY), ONLY (A)
TO THE ISSUER, (B) PURSUANT TO A

S-3

 

REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C)
FOR SO LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE
SECURITIES ACT, TO A PERSON IT REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL
BUYER” AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT THAT PURCHASES FOR ITS OWN
ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN
THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS AND
SALES THAT OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF REGULATION S, OR (E)
PURSUANT TO RULE 144 UNDER THE SECURITIES ACT OR ANY OTHER AVAILABLE EXEMPTION FROM
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE ISSUER’S AND THE
TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSES (D) OR
(E) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATIONS AND/OR OTHER
INFORMATION SATISFACTORY TO EACH OF THEM. THIS LEGEND WILL BE REMOVED AFTER 40
CONSECUTIVE DAYS BEGINNING ON AND INCLUDING THE LATER OF (A) THE DAY ON WHICH THE
SECURITIES ARE OFFERED TO PERSONS OTHER THAN DISTRIBUTORS (AS DEFINED IN REGULATION
S) AND (B) THE DATE OF THE CLOSING OF THE ORIGINAL OFFERING. AS USED HEREIN, THE
TERMS “OFFSHORE TRANSACTION,” “UNITED STATES” AND “U.S. PERSON” HAVE THE MEANINGS
GIVEN TO THEM BY REGULATION S UNDER THE SECURITIES ACT.”

(C) Each Global Note, whether or not an Initial Note, shall bear the following legend (the “Global
Note Legend”) on the face thereof:

“UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), NEW YORK, NEW YORK, TO THE
COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS
IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE
& CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN. TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN
WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH
SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE
LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET

S-4

 

FORTH OR INCORPORATED IN THE INDENTURE REFERRED TO ON THE REVERSE HEREOF.”

(D) Each Note, whether or not an Initial Note, shall bear the following legend:

“BY ITS ACQUISITION OF THIS SECURITY THE HOLDER HEREOF WILL BE DEEMED TO HAVE
REPRESENTED AND WARRANTED THAT EITHER (A) NO PORTION OF THE ASSETS USED BY SUCH
HOLDER TO ACQUIRE AND HOLD THIS SECURITY CONSTITUTES ASSETS OF AN “EMPLOYEE BENEFIT
PLAN” AS DEFINED IN SECTION 3(3) OF THE U.S. EMPLOYEE RETIREMENT INCOME SECURITY ACT
OF 1974, AS AMENDED (“ERISA”) THAT IS SUBJECT TO TITLE I OF ERISA, OF ANY PLAN,
ACCOUNT OR OTHER ARRANGEMENT THAT IS SUBJECT TO SECTION 4975 OF THE U.S. INTERNAL
REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), OR ANY PROVISIONS UNDER ANY FEDERAL,
STATE, LOCAL, NON-U.S. OR OTHER LAWS OR REGULATIONS THAT ARE SIMILAR TO SUCH
PROVISIONS OF ERISA OR THE CODE (“SIMILAR LAWS”), OR OF ANY ENTITY WHOSE UNDERLYING
ASSETS ARE CONSIDERED TO INCLUDE “PLAN ASSETS” OF ANY SUCH PLAN, ACCOUNT OR
ARRANGEMENT, OR (B) THE PURCHASE AND HOLDING OF THIS SECURITY BY SUCH HOLDER WILL NOT
CONSTITUTE A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION
4975 OF THE CODE OR A VIOLATION UNDER ANY APPLICABLE SIMILAR LAWS.”

     (d) Book-Entry Provisions.

                    (i) This Section 1.02(d) shall apply only to Global Notes deposited with the Trustee, as
Custodian for the Depositary.

                    (ii) Each Global Note initially shall (A) be registered in the name of the Depositary or the
nominee of the Depositary, (B) be delivered to the Trustee as Custodian for the Depositary and (C)
bear the applicable legends as set forth in Section 1.02(c).

                    (iii) Participants in the Depositary (“Participants”) shall have no rights under this
Indenture with respect to any Global Note held on their behalf by the Depositary or by the Trustee
as the Custodian for the Depositary or under such Global Note, and the Depositary may be treated by
the Company, the Trustee and any agent of the Company or the Trustee as the absolute owner of such
Global Note for all purposes whatsoever. Notwithstanding the foregoing, nothing herein shall
prevent the Company, the Trustee or any agent of the Company or the Trustee from giving effect to
any written certification, proxy or other authorization furnished by the Depositary or impair, as
between the Depositary and its Participants, the operation of customary practices of the Depositary
governing the exercise of the rights of a Holder of a beneficial interest in any Global Note.

                    (iv) In connection with any transfer of a portion of the beneficial interest in a Global Note
pursuant to subsection (e) of this Section 1.02 to beneficial owners who are

S-5

 

required to hold Definitive Notes, the Custodian shall reflect on its books and records the
date and a decrease in the principal amount of such Global Note in an amount equal to the principal
amount of the beneficial interest in the Global Note to be transferred, and the Company shall
execute, and the Trustee shall authenticate and deliver, one or more Definitive Notes of like tenor
and amount.

                    (v) In connection with the transfer of an entire Global Note to beneficial owners pursuant to
subsection (e) of this Section 1.02, such Global Note shall be deemed to be surrendered to the
Trustee for cancellation, and the Company shall execute, and the Trustee shall authenticate and
deliver, to each beneficial owner identified by the Depositary in exchange for its beneficial
interest in such Global Note, an equal aggregate principal amount of Definitive Notes of authorized
denominations.

                    (vi) The registered Holder of a Global Note may grant proxies and otherwise authorize any
person, including Participants and persons that may hold interests through Participants, to take
any action which a Holder is entitled to take under this Indenture or the Notes.

     (e) Definitive Notes. (i) Except as provided below and in Section 1.02(d)(iv) and (v), owners
of beneficial interests in Global Notes will not be entitled to receive Definitive Notes. If
required to do so pursuant to any applicable law or regulation, beneficial owners may obtain
Definitive Notes in exchange for their beneficial interests in a Global Note upon written request
in accordance with the Depositary’s and the Registrar’s procedures. In addition, Definitive Notes
shall be transferred to all beneficial owners in exchange for their beneficial interests in a
Global Note if (a) the Depositary notifies the Company that it is unwilling or unable to continue
as depositary for such Global Note or the Depositary ceases to be a clearing agency registered
under the Exchange Act, at a time when the Depositary is required to be so registered in order to
act as depositary, and in each case a successor depositary is not appointed by the Company within
90 days of such notice or, (b) the Company executes and delivers to the Trustee and Registrar an
Officers’ Certificate stating that such Global Note shall be so exchangeable or (c) an Event of
Default has occurred and is continuing and the Registrar has received a request from the
Depositary; and, if the Exchange Offer occurs after such exchange of Definitive Notes for Global
Notes as provided in this Section 1.02(e), any Exchange Notes may be issued in the form of
Definitive Notes.

                    (ii) Any Definitive Note delivered in exchange for an interest in a Global Note pursuant to
Section 1.02(d)(iv) or (v) shall, except as otherwise provided by Section 1.04(c), bear the
applicable legend regarding transfer restrictions applicable to such Definitive Note set forth in
Section 1.02(e).

                    (iii) In connection with the exchange of a portion of a Definitive Note for a beneficial
interest in a Global Note, the Trustee shall cancel such Definitive Note, and the Company shall
execute, and the Trustee shall authenticate and deliver, to the transferring Holder a new
Definitive Note representing the principal amount not so transferred.

     (f) Regulation S Notes. Prior to the expiration of the 40-day restricted period, as defined in
Regulation S (the “Restricted Period”), beneficial interests in a Regulation S Note may be held
only through Euroclear or Clearstream (as direct or indirect Participants in the Depositary) or
through another agent member of Euroclear and Clearstream acting for and on behalf of them (as
direct or indirect Participants in the Depositary), unless exchanged for interests in 144A Notes.
During the Restricted Period, interests in a Regulation S Note, if any, may be exchanged for 144A

S-6

 

Notes or interests therein only in accordance with the certification requirements described in
Section 1.04.

     Section 1.03. Depositary; Custodian. The Company initially appoints DTC to act as Depositary
with respect to the Global Notes. The Company initially appoints the Trustee to act as Custodian
with respect to the Global Notes.

     Section 1.04. Transfer and Exchange. (a) Subject to Section 1.02(f), the following
provisions shall apply with respect to any proposed transfer of a 144A Note or a beneficial
interest therein prior to the date which is two years after the later of the date of its original
issue and the last date on which the Company or any Affiliate of the Company was the owner of such
Notes (or any predecessor thereto) (the “Resale Restriction Termination Date”):

                    (i) A transfer of a 144A Note or a beneficial interest therein to a QIB shall be made upon the
representation of the transferee in the form as set forth on the reverse of the Note that it is
purchasing for its own account or an account with respect to which it exercises sole investment
discretion and that it and any such account is a QIB and is aware that the sale to it is being made
in reliance on Rule 144A and acknowledges that it has received such information regarding the
Company as the undersigned has requested pursuant to Rule 144A or has determined not to request
such information and that it is aware that the transferor is relying upon its foregoing
representations in order to claim the exemption from registration provided by Rule 144A.

                    (ii) A transfer of a 144A Note or a beneficial interest therein to a Non-U.S. Person shall be
made upon receipt by the Trustee or its agent of a certificate substantially in the form attached
hereto from the proposed transferor and, if requested by the Company or the Trustee, the delivery
of an opinion of counsel, certification and/or other information satisfactory to each of them.

     (b) Subject to Section 1.02(f), the following provisions shall apply with respect to any
proposed transfer of a Regulation S Note or a beneficial interest therein prior to the expiration
of the Restricted Period:

                    (i) A transfer of a Regulation S Note or a beneficial interest therein to a QIB shall be made
upon the representation of the transferee, in the form of assignment on the reverse of the
certificate, that it is purchasing the Note for its own account or an account with respect to which
it exercises sole investment discretion and that it and any such account is a QIB and is aware that
the sale to it is being made in reliance on Rule 144A and acknowledges that it has received such
information regarding the Company as the undersigned has requested pursuant to Rule 144A or has
determined not to request such information and that it is aware that the transferor is relying upon
its foregoing representations in order to claim the exemption from registration provided by Rule
144A.

                    (ii) A transfer of a Regulation S Note or a beneficial interest therein to a Non-U.S. Person
shall be made upon receipt by the Trustee or its agent of a certificate substantially in the form
attached hereto from the proposed transferor and, if requested by the Company or the Trustee,
receipt by the Trustee or its agent of an opinion of counsel, certification and/or other
information satisfactory to each of them.

S-7

 

     After the expiration of the Restricted Period, interests in the Regulation S Note may be
transferred without requiring the certification set forth in the form attached hereto or any other
certification.

     (c) Restrictive Legend. Upon the transfer, exchange or replacement of Notes not bearing a
Restrictive Legend, the Registrar shall deliver Notes that do not bear a Restrictive Legend. Upon
the transfer, exchange or replacement of Notes bearing a Restrictive Legend, the Registrar shall
deliver only Notes that bear each applicable Restrictive Legend as set forth in Section 1.02 hereof
unless there is delivered to the Registrar evidence satisfactory to the Company and the Registrar
(which may include an opinion of counsel) that neither the legend nor the restrictions on transfer
set forth therein are required to ensure compliance with the Securities Act. Any Definitive Note
delivered in exchange for an interest in a Global Note pursuant to Section 1.02(d) shall, except as
otherwise provided by this subsection (c), bear the applicable legend regarding transfer
restrictions applicable to such Definitive Note set forth in Section 1.02(c).

     (d) No Obligation of the Trustee. The Trustee shall have no obligation or duty to monitor,
determine or inquire as to compliance with any restrictions on transfer imposed under the Indenture
or under applicable law with respect to any transfer of any interest in any Note (including any
transfers between or among Participants in the Depositary or beneficial owners of any Global Note)
other than to require delivery of such certificates and other documentation or evidence as are
expressly required by, and to do so if and when expressly required by, the terms of the Notes or
the Indenture, and to examine the same to determine substantial compliance as to form with the
express requirements hereof.

     (e) Transfer and Exchange of Global Notes. A Global Note may not be transferred as a whole
except by the Depositary to a nominee of the Depositary, by a nominee of the Depositary to the
Depositary or to another nominee of the Depositary, or by the Depositary or any such nominee to a
successor Depositary or to a nominee of such successor Depositary.

     (f) Accrual of Interest on the Exchange Note; Exchange of Exchange Notes. Interest on any
Exchange Note shall accrue from the dates provided in the Exchange Global Note.

     Subject to Section 1.02(e), upon the occurrence of the Exchange Offer in accordance with the
Registration Rights Agreement, the Company shall issue and, in accordance with Section 2.04 of the
Indenture, the Trustee shall authenticate one or more Exchange Global Notes in an aggregate
principal amount equal to the principal amount of the beneficial interests in the Initial Notes
tendered for acceptance by Persons that certify in the applicable letters of transmittal that (i)
they are not Broker-Dealers, (ii) they are not participating in a distribution of the Exchange
Notes and (iii) they are not affiliates (as defined in Rule 144) of the Company, and accepted for
exchange in the Exchange Offer. No exchanges of Notes for Exchange Notes shall occur until a
Registration Statement, as defined in the Registration Rights Agreement, shall have been declared
effective by the SEC and any Initial Notes that are exchanged for Exchange Notes shall be cancelled
by the Trustee. Concurrently with the issuance of such Notes, the Trustee shall cause the
aggregate principal amount of the applicable Initial Notes in the form of Global Notes to be
reduced accordingly.

     Section 1.05 Definitions. (a) Capitalized terms not defined herein shall have the meanings
set forth in the Indenture.

S-8

 

     (b) As used herein the following terms shall have the meanings set forth below:

          “Additional Interest” means the additional interest (if any) payable by the Company in the
event of a Registration Default under, and as defined in, the Registration Rights Agreement.

          “Broker-Dealer” has the meaning set forth in the Registration Rights Agreement.

          “Clearstream” means Citibank, N.A., as operator of Clearstream Banking, S.A.

          “Comparable Treasury Issue” means the U.S. Treasury security selected by an Independent
Investment Banker as having a maturity comparable to the remaining term (“Remaining Life”) of the
notes to be redeemed that would be utilized, at the time of selection and in accordance with
customary financial practice, in pricing new issues of corporate debt securities of comparable
maturity to the remaining term of such notes.

          “Comparable Treasury Price” means (i) the average of five Reference Treasury Dealer Quotations
for such redemption date, after excluding the highest and lowest Reference Treasury Dealer
Quotations, or (ii) if the Independent Investment Banker obtains fewer than five such Reference
Treasury Dealer Quotations, the average of all such quotations.

          “Custodian” means the Trustee, as custodian with respect to the Notes in global form, or any
successor entity thereto.

          “Definitive Note” means a certificated Note registered in the name of the Holder thereof in
the form of the 144A Note, the Regulation S Note or the Exchange Note, as applicable, except that
such Note shall not bear the Global Note Legend.

          “Depositary” means, with respect to the Notes issued in the form of one or more Global Notes,
DTC as the Person appointed hereby as the Depositary with respect to the Notes, or another Person
appointed as Depositary by the Company, which Person must be a clearing agency registered under the
Exchange Act, and any and all successors thereto appointed as Depositary hereunder and having
become such pursuant to the applicable provision of the Indenture.

          “Euroclear” means Euroclear Bank S.A./N.V., as operator of the Euroclear System.

          “Exchange Act” means the Securities Exchange Act of 1934, as amended.

          “Exchange Offer” has the meaning set forth in the Registration Rights Agreement.

          “Independent Investment Banker” means either Citigroup Global Markets Inc. or J.P. Morgan
Securities Inc., or, if both firms are unwilling or unable to select the Comparable Treasury Issue,
an independent investment banking institution of national standing appointed by the Trustee after
consultation with the Company.

          “Non-U.S. Person” means a Person who is not a U.S. Person.

          “QIB” means a “qualified institutional buyer” as defined in Rule 144A.

S-9

 

          “Reference Treasury Dealer” means (i) J.P. Morgan Securities Inc. and Citigroup Global Markets
Inc. and their respective successors, provided, however, that if either of the foregoing shall
cease to be a primary U.S. Government securities dealer in New York City (a “Primary Treasury
Dealer”), the Company will substitute for such initial purchaser another Primary Treasury Dealer
and (ii) any other Primary Treasury Dealer selected by the Independent Investment Banker after
consultation with the Company.

          “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer
and any redemption date, the average, as determined by the Independent Investment Banker, of the
bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of
its principal amount) quoted in writing to the Independent Investment Banker at 5:00 p.m., New York
City time, on the third business day preceding such redemption date.

          “Registration Rights Agreement” means the Registration Rights Agreement, dated as of June 29,
2005, by and among the Company and the other parties named on the signature pages thereof, as such
agreement may be amended, modified or supplemented from time to time.

          “Regulation S” means Regulation S promulgated under the Securities Act.

          “Rule 144” means Rule 144 promulgated under the Securities Act.

          “Rule 144A” means Rule 144A promulgated under the Securities Act.

          “Securities Act” means the Securities Act of 1933, as amended.

          “Treasury Rate” means, with respect to any redemption date, (i) the yield, under the heading
which represents the average for the immediate preceding week, appearing in the most recently
published statistical release designated “H.15(519)” or any successor publication which is
published weekly by the Board of Governors of the Federal Reserve System and which establishes
yields on actively traded U.S. Treasury securities adjusted to constant maturity under the caption
“Treasury Constant Maturities,” for the maturity corresponding to the Comparable Treasury Issue (if
no maturity is within three months before or after the Remaining Life, yields for the two published
maturities most closely corresponding to the Comparable Treasury Issue will be determined and the
Treasury Rate will be interpolated or extrapolated from such yields on a straight line basis,
rounding to the nearest month) or (ii) if such release (or any successor release) is not published
during the week preceding the calculation date or does not contain such yields, the rate per annum
equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, calculated
using a price for the Comparable Treasury Price for such redemption date. The Treasury Rate will
be calculated on the third business day preceding the redemption date.

          “U.S. Person” means a U.S. person as defined in Rule 902(k) under the Securities Act.

S-10

 

FORM OF CERTIFICATE TO BE DELIVERED IN CONNECTION WITH

TRANSFERS PURSUANT TO REGULATION S

R.J. Reynolds Tobacco Holdings, Inc.

201 North Main Street

Winston-Salem, North Carolina 27101-3818

Facsimile: 336-741-5000

	 	 	 
	Attention:                                                             

	 	 
	 
	 	 
	The Bank of New York
	 	 
	                                                                                
	 	 
	                                                                                
	 	 
	Facsimile:
                                                             
	 	 
	 
	 	 
	Attention:                                                             
	 	 

     Re: ___% Secured Notes due [2010][2015]

     Reference is hereby made to the Indenture, dated as of May 20, 2002 (the “Indenture”), between
R.J. Reynolds Tobacco Holdings, Inc., as issuer (the “Company”) and The Bank of New York, as
trustee.

     In connection with our proposed sale of $ aggregate principal amount of ___% Notes due
[2010][2015] (the “Notes”) of the Company, we confirm that such sale has been effected pursuant to
and in accordance with Regulation S under the United States Securities Act of 1933, as amended (the
“Securities Act”), and, accordingly, we represent that:

     (a) the offer of the Notes was not made to a person in the United States;

     (b) either (i) at the time the buy order was originated, the transferee was outside the United
States or we and any person acting on our behalf reasonably believed that the transferee was
outside the United States or (ii) the transaction was executed in, on or through the facilities of
a designated off-shore securities market and neither we nor any person acting on our behalf knows
that the transaction has been pre-arranged with a buyer in the United States;

     (c) no directed selling efforts have been made in the United States in contravention of the
requirements of Rule 903(b) or Rule 904(b) of Regulation S, as applicable; and

     (d) the transaction is not part of a plan or scheme to evade the registration requirements of
the Securities Act.

     In addition, if the sale is made during a restricted period, we represent that the sale is not
being made to a United States person or for the account or benefit of a United States person.

     The Company and the Trustee are entitled to rely upon this letter and are irrevocably
authorized to produce this letter or a copy hereof to any interested party in any administrative or

S-11

 

legal proceedings or official inquiry with respect to the matters covered hereby. Terms used in
this certificate have the meanings forth in Regulation S.

	 	 	 	 	 	 	 
	 	 	[Insert Name of Transferor]
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 

Name:

Title:

	 	 	 
	 

Authorized Signature

Signature Medallion Guaranteed

	 	 

S-12EX-10.1

 

Exhibit 10.1

	 	 	 
	 
	 

	 	 

REGISTRATION RIGHTS AGREEMENT

Dated as of June 29, 2005

By and Among

R.J. REYNOLDS TOBACCO HOLDINGS, INC.

as Issuer,

the Guarantors listed on Schedule 1 hereto,

and

CITIGROUP GLOBAL MARKETS INC.

and J.P. MORGAN SECURITIES INC.

on behalf of themselves and the

Initial Purchasers listed on Schedule 2 hereto

6.500% Secured Notes due 2010

7.300% Secured Notes due 2015

	 	 	 
	 
	 

	 	 

 

 

REGISTRATION RIGHTS AGREEMENT

     This REGISTRATION RIGHTS AGREEMENT dated June 29, 2005 (the “Agreement”) is entered into by
and among R.J. REYNOLDS TOBACCO HOLDINGS, INC., a Delaware corporation (the “Company”), the
guarantors listed in Schedule 1 hereto (the “Guarantors”), and CITIGROUP GLOBAL MARKETS INC., J.P.
MORGAN SECURITIES INC., and the several purchasers named in Schedule 2 hereto (the “Initial
Purchasers”).

     The Company, the Guarantors and the Initial Purchasers are parties to the Purchase Agreement
dated June 22, 2005, among the Company and the Initial Purchasers (the “Purchase Agreement”), which
provides for the sale by the Company to the Initial Purchasers of $300 million aggregate principal
amount of the Company’s 6.500% Secured Notes due 2010 (the “2010 Notes”) and $200 million aggregate
principal amount of the Company’s 7.300% Secured Notes due 2015 (the “2015 Notes”) (collectively,
the “Securities”) which will be guaranteed on a secured basis as and to the extent described in the
Indenture (as defined herein) by each of the Guarantors. As an inducement to the Initial
Purchasers to enter into the Purchase Agreement, the Company and the Guarantors have agreed to
provide to the Initial Purchasers and their direct and indirect transferees the registration rights
set forth in this Agreement. The execution and delivery of this Agreement is a condition to the
closing under the Purchase Agreement.

     In consideration of the foregoing, the parties hereto agree as follows:

     1. Definitions. As used in this Agreement, the following terms shall have the
following meanings:

     “Business Day” shall mean any day that is not a Saturday, Sunday or other day on which
commercial banks in New York City are authorized or required by law to remain closed.

     “Closing Date” shall mean the Closing Date as defined in the Purchase Agreement.

     “Company” shall have the meaning set forth in the preamble and shall also include the
Company’s successors.

     “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended from time to time.

     “Exchange Dates” shall have the meaning set forth in Section 2(a)(ii) hereof.

     “Exchange Offer” shall mean the exchange offer by the Company and the Guarantors of Exchange
Securities for Registrable Securities pursuant to Section 2(a) hereof.

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     “Exchange Offer Registration” shall mean a registration under the Securities Act effected
pursuant to Section 2(a) hereof.

     “Exchange Offer Registration Statement” shall mean an exchange offer registration statement on
Form S-4 (or, if applicable, on another appropriate form) and all amendments and supplements to
such registration statement, in each case including the Prospectus contained therein, all exhibits
thereto and any document incorporated by reference therein.

     “Exchange Securities” shall mean secured notes issued by the Company and guaranteed by the
Guarantors under the Indenture containing terms identical to the Securities (except that the
Exchange Securities will not be subject to restrictions on transfer or to any increase in annual
interest rate for failure to comply with this Agreement and will otherwise differ from the
Securities as described in the Offering Memorandum) and to be offered to Holders of Securities in
exchange for Securities pursuant to the Exchange Offer.

     “Guarantors” shall have the meaning set forth in the preamble and shall also include any
Guarantor’s successors.

     “Holders” shall mean the Initial Purchasers, for so long as they own any Registrable
Securities, and each of their successors, assigns and direct and indirect transferees who become
owners of Registrable Securities under the Indenture; provided that for purposes of
Sections 4 and 5 of this Agreement, the term “Holders” shall include Participating Broker-Dealers.

     “Initial Purchasers” shall have the meaning set forth in the preamble.

     “Indenture” shall mean the Indenture relating to the Securities and the Exchange Securities
dated as of May 20, 2002, among the Company, RJR Acquisition Corp. and R. J. Reynolds Tobacco
Company, and The Bank of New York, as trustee, as amended by a First Supplemental Indenture dated
as of June 30, 2003, pursuant to which R. J. Reynolds Tobacco Co., RJR Packaging, LLC, FHS, Inc.
and GMB, Inc. became parties to such Indenture as guarantors, and a Second Supplemental Indenture
dated as of July 30, 2004, pursuant to which Reynolds American Inc. and BWT Brands, Inc. became
parties to such Indenture as guarantors, and as the same may be amended from time to time hereafter
in accordance with the terms thereof.

     “Majority Holders” shall mean the Holders of a majority of the aggregate principal amount of
outstanding Registrable Securities; provided that whenever the consent or approval of
Holders of a specified percentage of Registrable Securities is required hereunder, (i) any
Registrable Securities owned directly or indirectly by the Company or any of its affiliates shall
not be counted in determining whether such consent or approval was given by the Holders of such
required percentage or amount, and (ii) in the case of a Shelf Registration Statement, such
percentage shall be required from Holders of Registrable

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Securities entitled to be covered by such Shelf Registration Statement; and provided,
further, that if the Company shall issue any additional Securities under the Indenture prior to
consummation of the Exchange Offer or, if applicable, the effectiveness of any Shelf Registration
Statement, such additional Securities and the Registrable Securities to which this Agreement
relates shall be treated together as one class for purposes of determining whether the consent or
approval of Holders of a specified percentage of Registrable Securities has been obtained.

     “Offering Memorandum” shall mean the Offering Memorandum as defined in the Purchase Agreement.

     “Participating Broker-Dealers” shall have the meaning set forth in Section 4(a) hereof.

     “Person” shall mean an individual, partnership, limited liability company, corporation, trust
or unincorporated organization, or a government or agency or political subdivision thereof.

     “Prospectus” shall mean the prospectus included in a Registration Statement, including any
preliminary prospectus, and any such prospectus as amended or supplemented by any prospectus
supplement, including a prospectus supplement with respect to the terms of the offering of any
portion of the Registrable Securities covered by a Shelf Registration Statement, and by all other
amendments and supplements to such prospectus, and in each case including any document incorporated
by reference therein.

     “Purchase Agreement” shall have the meaning set forth in the preamble.

     “Registrable Securities” shall mean the Securities; provided that the Securities shall
cease to be Registrable Securities (i) when a Registration Statement with respect to such
Securities has been declared effective under the Securities Act and such Securities have been
exchanged or disposed of pursuant to such Registration Statement, (ii) in the case of Securities
eligible to be exchanged for Exchange Securities in the Exchange Offer, upon the closing of the
Exchange Offer, (iii) when such Securities have been transferred pursuant to Rule 144 under the
Securities Act or eligible to be sold pursuant to Rule 144(k) under the Securities Act (or in each
case, any similar provision then in force, but not Rule 144A) under the Securities Act or (iv) when
such Securities cease to be outstanding.

     “Registration Default” shall have the meaning set forth in Section 2(d) hereof.

     “Registration Expenses” shall mean any and all expenses incident to performance of or
compliance by the Company and the Guarantors with this Agreement, including without limitation: (i)
all SEC, stock exchange or National Association of Securities Dealers, Inc. registration and filing
fees, (ii) all fees and

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expenses incurred in connection with compliance with state securities or blue sky laws
(including reasonable fees and disbursements of counsel for any Underwriters or Holders in
connection with blue sky qualification of any Exchange Securities or Registrable Securities), (iii)
all expenses of any Persons in preparing or assisting in preparing, word processing, printing and
distributing any Registration Statement, any Prospectus and any amendments or supplements thereto,
any underwriting agreements, securities sales agreements or other similar agreements and any other
documents relating to the performance of and compliance with this Agreement, (iv) all rating agency
fees, (v) the reasonable fees and disbursements of the Trustee and its counsel, (vi) the fees and
disbursements of counsel for the Company and the Guarantors and, in the case of a Shelf
Registration Statement, the reasonable fees and disbursements of one counsel for the Holders (which
counsel shall be selected by the Majority Holders and which counsel may also be counsel for the
Initial Purchasers) and (vii) the fees and disbursements of the independent public accountants of
the Company and the Guarantors, including the expenses of any special audits or “comfort” letters
required by or incident to the performance of and compliance with this Agreement, but excluding
fees and expenses of counsel to the Underwriters (other than reasonable fees and expenses set forth
in clause (ii) above) or the Holders and underwriting discounts and commissions and transfer taxes,
if any, relating to the sale or disposition of Registrable Securities by a Holder.

     “Registration Statement” shall mean any registration statement of the Company and the
Guarantors that covers any of the Exchange Securities or Registrable Securities pursuant to the
provisions of this Agreement and all amendments and supplements to any such registration statement,
including post-effective amendments, in each case including the Prospectus contained therein, all
exhibits thereto and any document incorporated by reference therein.

     “SEC” shall mean the Securities and Exchange Commission.

     “Securities Act” shall mean the Securities Act of 1933, as amended from time to time.

     “Shelf Effectiveness Period” shall have the meaning set forth in Section 2(b) hereof.

     “Shelf Registration” shall mean a registration effected pursuant to Section 2(b) hereof.

     “Shelf Registration Statement” shall mean a “shelf” registration statement of the Company and
the Guarantors that covers all or a portion of the Registrable Securities (but no other securities
unless approved by the Holders of a majority in aggregate principal amount of the Registrable
Securities to be covered by such Shelf Registration Statement) on an appropriate form under Rule
415 under the Securities Act, or any similar rule that may be adopted by the SEC, and all

4

 

amendments and supplements to such registration statement, including post-effective
amendments, in each case including the Prospectus contained therein, all exhibits thereto and any
document incorporated by reference therein.

     “Trust Indenture Act” shall mean the Trust Indenture Act of 1939, as amended from time to
time.

     “Trustee” shall mean the trustee with respect to the Securities under the Indenture.

     “Underwriter” shall have the meaning set forth in Section 3 hereof.

     “Underwritten Offering” shall mean an offering in which Registrable Securities are sold to an
Underwriter for reoffering to the public.

     2. Registration Under the Securities Act. (a) To the extent not prohibited by any
applicable law or applicable interpretations of the Staff of the SEC, the Company and the
Guarantors shall use their reasonable best efforts to (i) cause to be filed an Exchange Offer
Registration Statement covering an offer to the Holders to exchange all the Registrable Securities
for Exchange Securities and (ii) have such Registration Statement remain effective until the
earlier of (A) 180 days after the closing of the Exchange Offer and (B) the first day after the
closing of the Exchange Offer on which Participating Broker-Dealers no longer have a prospectus
delivery obligation under the interpretations of the Staff of the SEC referenced in Section 4(a).
The Company and the Guarantors shall commence the Exchange Offer promptly after the Exchange Offer
Registration Statement is declared effective by the SEC and use their reasonable best efforts to
complete the Exchange Offer not later than 240 days after the Closing Date.

     The Company and the Guarantors shall commence the Exchange Offer by mailing the related
Prospectus, appropriate letters of transmittal and other accompanying documents to each Holder
stating, in addition to such other disclosures as are required by applicable law, substantially the
following:

	(i)	 	that the Exchange Offer is being made pursuant to this Agreement and that all Registrable
Securities validly tendered and not properly withdrawn will be accepted for exchange;
	 
	(ii)	 	the dates of acceptance for exchange (which shall be a period of at least 20 Business Days
from the date such notice is mailed) (the “Exchange Dates”);
	 
	(iii)	 	that any Registrable Security not tendered will remain outstanding and continue to accrue
interest but will not retain any rights under this Agreement;
	 
	(iv)	 	that any Holder electing to have a Registrable Security exchanged pursuant to the Exchange
Offer will be required to surrender such

5

 

	 	 	Registrable Security, together with the appropriate letters of transmittal, to the
institution and at the address (located in the Borough of Manhattan, The City of New York)
and in the manner specified in the notice, prior to the close of business on the last
Exchange Date; and
	 
	(v)	 	that any Holder will be entitled to withdraw its election, not later than the close of
business on the last Exchange Date, by sending to the institution and at the address specified
in the notice, a telegram, telex, facsimile transmission or letter setting forth the name of
such Holder, the principal amount of Registrable Securities delivered for exchange and a
statement that such Holder is withdrawing its election to have such Securities exchanged.

     As a condition to participating in the Exchange Offer, a Holder will be required to represent
to the Company and the Guarantors that (i) any Exchange Securities to be received by it will be
acquired in the ordinary course of its business, (ii) at the time of the commencement of the
Exchange Offer it has no arrangement or understanding with any Person, or any intention, to
participate in the distribution (within the meaning of the Securities Act) of the Exchange
Securities, (iii) it is not an “affiliate” (within the meaning of Rule 405 under the Securities
Act) of the Company or any Guarantor, (iv) if such Holder is a broker-dealer, it did not purchase
the Securities being tendered in the Exchange Offer directly from the Company for resale pursuant
to (A) Rule 144A under the Securities Act or (B) any other available exemption from registration
under the Securities Act, (v) if such Holder is a broker-dealer that will receive Exchange
Securities for its own account in exchange for Registrable Securities that were acquired as a
result of market-making or other trading activities, then such Holder will deliver a Prospectus in
connection with any resale of such Exchange Securities, and (vi) it is not acting on behalf of any
person that could not truthfully make the representations set forth in clauses (i) – (v) of this
paragraph.

     As soon as practicable after the last Exchange Date, the Company and the Guarantors shall:

	(i)	 	accept for exchange Registrable Securities or portions thereof validly tendered and not
properly withdrawn pursuant to the Exchange Offer; and
	 
	(ii)	 	deliver, or cause to be delivered, to the Trustee for cancellation all Registrable Securities
or portions thereof so accepted for exchange by the Company and issue, and cause the Trustee
to promptly authenticate and deliver to each Holder, Exchange Securities equal in principal
amount to the principal amount of the Registrable Securities surrendered by such Holder.

     The Company and the Guarantors shall use their reasonable best efforts to complete the
Exchange Offer as provided above and shall comply with the applicable requirements of the
Securities Act, the Exchange Act and other

6

 

applicable laws and regulations in connection with the Exchange Offer. The Exchange Offer
shall not be subject to any conditions, other than that the Exchange Offer does not violate any
applicable law or applicable interpretations of the Staff of the SEC.

     (b) In the event that (i) the Company and the Guarantors determine that the Exchange Offer
Registration provided for in Section 2(a) above is not available or may not be completed as soon as
practicable after the last Exchange Date because it would violate any applicable law or applicable
interpretations of the Staff of the SEC, (ii) the Exchange Offer is not for any other reason
completed by the 240th day after the Closing Date or (iii) any Initial Purchaser shall
so request in writing not later than the 30th day following completion of the Exchange
Offer in connection with any offering or sale of Registrable Securities held by such requesting
Initial Purchaser, which Registrable Securities are ineligible to be exchanged for Exchange
Securities in the Exchange Offer, the Company and the Guarantors shall use their reasonable best
efforts to cause to be filed as soon as practicable after such determination, date or request, as
the case may be, a Shelf Registration Statement providing for the sale of all the Registrable
Securities by the Holders thereof, or the Registrable Securities ineligible for exchange in the
Exchange Offer, as the case may be, and to have such Shelf Registration Statement declared
effective by the SEC.

     In the event that the Company and the Guarantors are required to file a Shelf Registration
Statement pursuant to clause (iii) of the preceding sentence, the Company and the Guarantors shall
use their reasonable best efforts to file and have declared effective by the SEC both an Exchange
Offer Registration Statement pursuant to Section 2(a) with respect to all Registrable Securities
and a Shelf Registration Statement (which may be a combined Registration Statement with the
Exchange Offer Registration Statement) with respect to offers and sales of Registrable Securities
held by the Initial Purchasers after completion of the Exchange Offer.

     The Company and the Guarantors agree to use their reasonable best efforts to keep the Shelf
Registration Statement continuously effective until the expiration of the period referred to in
Rule 144(k) under the Securities Act with respect to the Registrable Securities or such shorter
period that will terminate when all the Registrable Securities covered by the Shelf Registration
Statement have been sold pursuant to the Shelf Registration Statement or otherwise cease to be
Registrable Securities (the “Shelf Effectiveness Period”). The Company and the Guarantors further
agree to supplement or amend the Shelf Registration Statement and the related Prospectus if
required by the rules, regulations or instructions applicable to the registration form used by the
Company for such Shelf Registration Statement or by the Securities Act or by any other rules and
regulations thereunder for shelf registration or if reasonably requested by a Holder of Registrable
Securities with respect to information relating to such Holder, and to use their reasonable best
efforts to cause any such amendment to become effective and such Shelf Registration Statement and
Prospectus to

7

 

become usable as soon as thereafter practicable. The Company and the Guarantors agree to
furnish to the Holders of Registrable Securities copies of any such supplement or amendment
promptly after its being used or filed with the SEC.

     (c) The Company and the Guarantors shall pay all Registration Expenses in connection with the
registration pursuant to Section 2(a) and Section 2(b) hereof. Each Holder shall pay all
underwriting discounts and commissions, brokerage commissions and transfer taxes, if any, relating
to the sale or disposition of such Holder’s Registrable Securities pursuant to the Shelf
Registration Statement or the Exchange Offer Registration Statement.

     (d) An Exchange Offer Registration Statement pursuant to Section 2(a) hereof or a Shelf
Registration Statement pursuant to Section 2(b) hereof will not be deemed to have become effective
unless it has been declared effective by the SEC.

     In the event that either the Exchange Offer is not completed on or prior to February 24, 2006,
or the Shelf Registration Statement, if required hereby, is not declared effective on or prior to
the 60th day after the Company and Guarantors are first requested to file the Shelf
Registration Statement pursuant to Section 2(b)(iii) hereof, the interest rate on the Registrable
Securities will be increased by 0.5% per annum until the Exchange Offer is completed or the Shelf
Registration Statement, if required hereby, is declared effective by the SEC or the Registrable
Securities become freely tradable under the Securities Act.

     If the Shelf Registration Statement has been declared effective and thereafter either ceases
to be effective or the Prospectus contained therein ceases to be usable at any time during the
Shelf Effectiveness Period, and such failure to remain effective or usable exists for more than 90
days (whether or not consecutive) in any 12-month period, then the interest rate on the Registrable
Securities will be increased by 0.5% per annum commencing on the 31st day in such
12-month period and ending on such date that the Shelf Registration Statement has again been
declared effective or the Prospectus again becomes usable.

     A circumstance that requires an increase in the interest rate on the Registrable Securities
pursuant to this Section 2(d) is referred to as a “Registration Default.”

     (e) Without limiting the remedies available to the Initial Purchasers and the Holders, the
Company and the Guarantors acknowledge that any failure by the Company or the Guarantors to comply
with their obligations under Section 2(a) and Section 2(b) hereof may result in material
irreparable injury to the Initial Purchasers or the Holders for which there is no adequate remedy
at law, that it will not be possible to measure damages for such injuries precisely and that, in
the event of any such failure, the Initial Purchasers or any Holder may obtain

8

 

such relief as may be required to specifically enforce the Company’s and the Guarantors’
obligations under Section 2(a) and Section 2(b) hereof. Notwithstanding the foregoing, the
additional interest provided for in Section 2(d) shall be the exclusive monetary remedy available
to holders of Registrable Securities in respect of Registration Defaults.

     3. Registration Procedures. In connection with their obligations pursuant to Section
2(a) and Section 2(b) hereof, the Company and the Guarantors shall as expeditiously as possible,
until the last day on which an Exchange Offer Registration Statement must be kept effective
pursuant to Section 2(a) hereof in the case of an Exchange Registration, or on which a Shelf
Registration Statement must be kept effective pursuant to Section 2(b) hereof in the case of a
Shelf Registration:

     (a) prepare and file with the SEC a Registration Statement on the appropriate form under the
Securities Act, which form (i) shall be selected by the Company and the Guarantors, (ii) shall, in
the case of a Shelf Registration, be available for the sale of the Registrable Securities by the
selling Holders thereof, or the Holders of Registrable Securities that are ineligible to be
exchanged in the Exchange Offer as set forth in Section 2(b), and (iii) shall comply as to form in
all material respects with the requirements of the applicable form and include or incorporate by
reference, as appropriate, all financial statements required by the SEC to be filed therewith; and
use their reasonable best efforts to cause such Registration Statement to become effective and
remain effective for the applicable period in accordance with Section 2 hereof;

     (b) prepare and file with the SEC such amendments and post-effective amendments to each
Registration Statement as may be necessary under applicable law to keep such Registration Statement
effective for the applicable period in accordance with Section 2 hereof and cause each Prospectus
to be supplemented by any required prospectus supplement and, as so supplemented, to be filed
pursuant to Rule 424 under the Securities Act; and keep each Prospectus current during the period
described in Section 4(3) of and Rule 174 under the Securities Act that is applicable to
transactions by brokers or dealers with respect to the Registrable Securities or Exchange
Securities;

     (c) in the case of a Shelf Registration, furnish to each Holder of Registrable Securities, to
counsel for the Initial Purchasers, to counsel for such Holders and to each Underwriter of an
Underwritten Offering of Registrable Securities, if any, without charge, as many copies of each
Prospectus as such Holder or Underwriter may reasonably request, including each preliminary
Prospectus, and any amendment or supplement thereto, in order to facilitate the sale or other
disposition of the Registrable Securities thereunder; and the Company and the Guarantors consent to
the use of such Prospectus and any amendment or supplement thereto in accordance with applicable
law by each of the selling Holders of Registrable Securities and any such Underwriters in
connection with the offering and sale of the Registrable Securities covered by

9

 

and in the manner described in such Prospectus or any amendment or supplement thereto in
accordance with applicable law;

     (d) use their reasonable best efforts to register or qualify the Registrable Securities under
all applicable state securities or blue sky laws of such jurisdictions in the United States as any
Holder of Registrable Securities covered by a Registration Statement shall reasonably request in
writing by the time the applicable Registration Statement is declared effective by the SEC;
cooperate with the Holders in connection with any filings required to be made with the National
Association of Securities Dealers, Inc. in connection with the sale of Registrable Securities; and
do any and all other acts and things that may be reasonably necessary or advisable to enable each
Holder to complete the disposition in each such jurisdiction of the Registrable Securities owned by
such Holder; provided that neither the Company nor any Guarantor shall be required to (i)
qualify as a foreign corporation or other entity or as a dealer in securities in any such
jurisdiction where it would not otherwise be required to so qualify, (ii) file any general consent
to service of process in any such jurisdiction or (iii) subject itself to taxation in any such
jurisdiction if it is not so subject;

     (e) in the case of a Shelf Registration, notify each Holder of Registrable Securities, counsel
for such Holders and counsel for the Initial Purchasers promptly (and, if requested by any such
Holder or counsel, confirm such notice in writing) (i) when a Registration Statement has become
effective and when any post-effective amendment thereto has been filed and becomes effective, (ii)
of any request by the SEC or any state securities authority for amendments and supplements to a
Registration Statement and Prospectus or for additional information after the Registration
Statement has become effective, (iii) of the issuance by the SEC or any state securities authority
of any stop order suspending the effectiveness of a Registration Statement or the initiation of any
proceedings for that purpose, (iv) if, between the effective date of a Registration Statement and
the closing of any sale of Registrable Securities covered thereby, the representations and
warranties of the Company or any Guarantor contained in any underwriting agreement, securities
sales agreement or other similar agreement, if any, relating to an offering of such Registrable
Securities cease to be true and correct in all material respects or if the Company or any Guarantor
receives any notification with respect to the suspension of the qualification of the Registrable
Securities for sale in any jurisdiction or the initiation of any proceeding for such purpose, (v)
of the happening of any event during the period a Shelf Registration Statement is effective that
makes any statement made in such Registration Statement or the related Prospectus untrue in any
material respect or that requires the making of any changes in such Registration Statement or
Prospectus in order to make the statements therein not misleading and (vi) of any determination by
the Company or any Guarantor that a post-effective amendment to a Registration Statement would be
appropriate, and (vii) of any determination by the Company or the Guarantors, in the exercise of
their reasonable judgment, that (A) it is not in the best interests of the Company and the
Guarantors to disclose a possible acquisition or business combination or

10

 

other transaction, business development or event involving the Company or the Guarantors that
may require disclosure in the Shelf Registration Statement, or if required to be kept effective
after consummation of the Exchange Offer, the Exchange Offer Registration Statement, or (B)
obtaining any financial statements relating to an acquisition or business combination required to
be included in the Shelf Registration Statement, or if required to be kept effective after
consummation of the Exchange Offer, the Exchange Offer Registration Statement, would be
impracticable;

     (f) use their reasonable best efforts to obtain the withdrawal of any order suspending the
effectiveness of a Registration Statement at the earliest possible moment and provide immediate
notice to each Holder of the withdrawal of any such order;

     (g) in the case of a Shelf Registration, furnish to each Holder of Registrable Securities
included in such Shelf Registration, without charge, at least one conformed copy of each
Registration Statement and any post-effective amendment thereto (without any documents incorporated
therein by reference or exhibits thereto, unless requested);

     (h) in the case of a Shelf Registration, cooperate with the selling Holders of Registrable
Securities to facilitate the timely preparation and delivery of certificates representing
Registrable Securities to be sold and not bearing any restrictive legends and enable such
Registrable Securities to be issued in such denominations and registered in such names (consistent
with the provisions of the Indenture) as the selling Holders may reasonably request at least two
Business Days prior to the closing of any sale of Registrable Securities;

     (i) in the case of a Shelf Registration, upon the occurrence of any event contemplated by
Section 3(e)(v) hereof, use their reasonable best efforts to prepare and file with the SEC a
supplement or post-effective amendment to a Registration Statement or the related Prospectus or any
document incorporated therein by reference or file any other required document so that, as
thereafter delivered to purchasers of the Registrable Securities, such Prospectus will not contain
any untrue statement of a material fact or omit to state a material fact necessary to make the
statements therein, in the light of the circumstances under which they were made, not misleading;
and the Company and the Guarantors shall notify the Holders of Registrable Securities to suspend
use of the Prospectus as promptly as practicable after the occurrence of such an event, and such
Holders hereby agree to suspend use of the Prospectus until the Company and the Guarantors have
amended or supplemented the Prospectus to correct such misstatement or omission;

     (j) a reasonable time prior to the filing of any Registration Statement, any Prospectus, any
amendment to a Registration Statement or amendment or supplement to a Prospectus or of any document
that is to be incorporated by reference into a Registration Statement or a Prospectus after initial
filing of a

11

 

Registration Statement (other than reports and statements filed by the Company or the
Guarantors pursuant to the Exchange Act), provide copies of such document to the Initial Purchasers
and their counsel (and, in the case of a Shelf Registration Statement, to the Holders of
Registrable Securities and their counsel included in such Shelf Registration) and make such of the
representatives of the Company and the Guarantors as shall be reasonably requested by the Initial
Purchasers or their counsel (and, in the case of a Shelf Registration Statement, the Holders of
Registrable Securities or their counsel included in such Shelf Registration) available for
discussion of such document; and the Company and the Guarantors shall not, at any time after
initial filing of a Registration Statement, file any Prospectus, any amendment of or supplement to
a Registration Statement or a Prospectus, or any document that is to be incorporated by reference
into a Registration Statement or a Prospectus (other than reports and statements filed by the
Company or the Guarantors pursuant to the Exchange Act), of which the Initial Purchasers and their
counsel (and, in the case of a Shelf Registration Statement, the Holders of Registrable Securities
and their counsel included in such Shelf Registration) shall not have previously been advised and
furnished a copy or to which the Initial Purchasers or their counsel (and, in the case of a Shelf
Registration Statement, the Holders or their counsel of Registrable Securities included in such
Shelf Registration) shall reasonably object;

     (k) obtain a CUSIP number for all Exchange Securities or Registrable Securities, as the case
may be, not later than the effective date of a Registration Statement;

     (l) cause the Indenture to be qualified under the Trust Indenture Act, if not so qualified, in
connection with the registration of the Exchange Securities or Registrable Securities, as the case
may be; cooperate with the Trustee and the Holders to effect such changes to the Indenture as may
be required for the Indenture to be so qualified in accordance with the terms of the Trust
Indenture Act; and execute, and use their reasonable best efforts to cause the Trustee to execute,
all documents as may be required to effect such changes and all other forms and documents required
to be filed with the SEC to enable the Indenture to be so qualified in a timely manner;

     (m) in the case of a Shelf Registration, and subject to the execution and delivery by any
Inspector, Underwriter, any attorneys and accountants designated by the Inspector, or other agents
of the Holders or any Underwriter, of a customary confidentiality agreement, make available for
inspection, at the offices and locations where such records, documents and properties are normally
kept, by a representative of the Holders of the Registrable Securities (an “Inspector”), any
Underwriter participating in any disposition pursuant to such Shelf Registration Statement, and
attorneys from no more than one law firm and accountants from no more than one accounting firm
designated by the Inspector, at reasonable times and in a reasonable manner, all financial and
other records, documents and properties of the Company and the Guarantors pertinent to such

12

 

Person establishing a due diligence defense under applicable securities law, and cause the
respective officers, directors and employees of the Company and the Guarantors to supply all
information reasonably requested by any such Inspector, Underwriter, attorney or accountant in
connection with a Shelf Registration Statement; provided that the Company and the
Guarantors shall not be obligated to make available for inspection by any Person any records,
documents and properties if such action may reasonably impair the availability of any claim of
legal privilege for such record, document or property in any proceeding and counsel for any
Underwriter is provided a reasonably satisfactory explanation regarding the risk of such
impairment; provided further that the confidentiality agreement referred to in this
Section 3(m) shall not restrict any Person from disclosing any information in connection with such
Person establishing a due diligence defense, under applicable securities law, in any proceeding.

     (n) in the case of a Shelf Registration, if reasonably requested by any Holder of Registrable
Securities covered by a Shelf Registration Statement, promptly incorporate in a Prospectus
supplement or post-effective amendment such information with respect to such Holder as such Holder
reasonably requests to be included therein and make all required filings of such Prospectus
supplement or such post-effective amendment as soon as practicable after the Company has received
notification of the matters to be incorporated in such filing; and

     (o) in the case of a Shelf Registration, enter into such customary agreements and take all
such other actions in connection therewith (including those reasonably requested by the Holders of
a majority in principal amount of the Registrable Securities being sold) in order to expedite or
facilitate the disposition of such Registrable Securities including, but not limited to, an
Underwritten Offering and in such connection, (i) to the extent possible, make such representations
and warranties to the Holders (if such Holders may reasonably have a due diligence defense under
the Securities Act) and any Underwriters of such Registrable Securities with respect to the
business of the Company and its subsidiaries, the Registration Statement, Prospectus and documents
incorporated by reference or deemed incorporated by reference, if any, in each case, in form,
substance and scope as are reasonable and customarily made by issuers to underwriters in
underwritten offerings of debt securities similar to the Securities, and confirm the same if and
when requested, (ii) obtain opinions of counsel to the Company and the Guarantors addressed to each
selling Holder (if such Holders may reasonably have a due diligence defense under the Securities
Act) and Underwriter of Registrable Securities, covering the matters customarily covered in
opinions requested in underwritten offerings of debt securities similar to the Securities (which
opinions and counsel, in form, scope and substance, shall be customary and reasonably satisfactory
to the Holders and such Underwriters and their respective counsel), (iii) obtain “comfort” letters
from the independent certified public accountants of the Company and the Guarantors (and, if
necessary, any other certified public accountant of any subsidiary of the Company or any Guarantor,
or of any

13

 

business acquired by the Company or any Guarantor for which financial statements and financial
data are or are required to be included in the Registration Statement) addressed to each selling
Holder (if such Holders may reasonably have a due diligence defense under the Securities Act) and
Underwriter of Registrable Securities, such letters to be in customary form and covering matters of
the type customarily covered in “comfort” letters in connection with underwritten offerings of debt
securities similar to the Securities and (iv) deliver such documents and certificates as may be
reasonably requested by the Holders of a majority in principal amount of the Registrable Securities
being sold (if such Holders may reasonably have a due diligence defense under the Securities Act)
or the Underwriters, and which are customarily delivered in underwritten offerings of debt
securities similar to the Securities, to evidence the continued validity of the representations and
warranties of the Company and the Guarantors made pursuant to clause (i) above and to evidence
compliance with any customary conditions contained in an underwriting agreement.

     In the case of a Shelf Registration Statement, the Company may require each Holder of
Registrable Securities to furnish to the Company such information regarding such Holder and the
proposed disposition by such Holder of such Registrable Securities as the Company and the
Guarantors may from time to time reasonably request in writing.

     Notwithstanding anything in this Agreement to the contrary, in the case of a Shelf
Registration Statement, or an Exchange Offer Registration Statement in connection with which a
Participating Broker-Dealer has a prospectus delivery requirement, each Holder of Registrable
Securities agrees that, upon receipt of any notice from the Company and the Guarantors of the
happening of any event of the kind described in Section 3(e)(iii), 3(e)(v) or 3(e)(vii) hereof,
such Holder will forthwith discontinue disposition of Registrable Securities pursuant to a
Registration Statement until such Holder’s receipt of the copies of the supplemented or amended
Prospectus contemplated by Section 3(i) hereof or notice from the Company or the Guarantors that
dispositions of Registrable Securities pursuant to the Registration Statement may be resumed and,
if so directed by the Company and the Guarantors, such Holder will deliver to the Company and the
Guarantors all copies in its possession, other than permanent file copies then in such Holder’s
possession, of the Prospectus covering such Registrable Securities that is current at the time of
receipt of such notice. Any notice provided pursuant to Section 3(e)(v) or 3(e)(vii) shall not be
required to disclose any possible acquisition, business combination or other transaction, business
development or event if the Company or the Guarantors determine in the exercise of their reasonable
judgment that such acquisition or business combination or other transaction, business development
or event should remain confidential.

     If the Company and the Guarantors shall give any such notice to suspend the disposition of
Registrable Securities pursuant to a Registration Statement, the Company and the Guarantors shall
extend the period during which the

14

 

Registration Statement shall be maintained effective pursuant to this Agreement by the number
of days during the period from and including the date of the giving of such notice to and including
the date when the Holders shall have received copies of the supplemented or amended Prospectus
necessary to resume such dispositions. The Company and the Guarantors may give any such notice only
twice during any 365-day period and any such suspensions shall not exceed 60 days for each
suspension and there shall not be more than two suspensions in effect during any 365-day period.

     The Holders of Registrable Securities covered by a Shelf Registration Statement who desire to
do so may sell such Registrable Securities in an Underwritten Offering. In any such Underwritten
Offering, the investment banker or investment bankers and manager or managers (the “Underwriters”)
that will administer the offering will be selected by the Majority Holders of the Registrable
Securities included in such offering.

     4. Participation of Broker-Dealers in Exchange Offer. (a) The Staff of the SEC has
taken the position that any broker-dealer that receives Exchange Securities for its own account in
the Exchange Offer in exchange for Securities that were acquired by such broker-dealer as a result
of market-making or other trading activities (a “Participating Broker-Dealer”) may be deemed to be
an “underwriter” within the meaning of the Securities Act and must deliver a prospectus meeting the
requirements of the Securities Act in connection with any resale of such Exchange Securities.

     The Company and the Guarantors understand that it is the Staff’s position that if the
Prospectus contained in the Exchange Offer Registration Statement includes a plan of distribution
containing a statement to the above effect and the means by which Participating Broker-Dealers may
resell the Exchange Securities, without naming the Participating Broker-Dealers or specifying the
amount of Exchange Securities owned by them, such Prospectus may be delivered by Participating
Broker-Dealers to satisfy their prospectus delivery obligation under the Securities Act in
connection with resales of Exchange Securities for their own accounts, so long as the Prospectus
otherwise meets the requirements of the Securities Act.

     (b) In light of the above, and notwithstanding the other provisions of this Agreement, the
Company and the Guarantors agree to amend or supplement the Prospectus contained in the Exchange
Offer Registration Statement, as would otherwise be contemplated by Section 3(i), for a period
ending upon the earlier of (i) 180 days after the closing of the Exchange Offer and (ii) the first
day after the consummation of the Exchange Offer when Participating Broker-Dealers no longer have a
prospectus delivery obligation under the interpretations of the Staff of the SEC referenced in
Section 4(a) (as such period may be extended pursuant to the penultimate paragraph of Section 3 of
this Agreement), if requested by the Initial Purchasers or by one or more Participating
Broker-Dealers, in order to expedite or facilitate the disposition of

15

 

any Exchange Securities by Participating Broker-Dealers consistent with the positions of the
Staff recited in Section 4(a) above. The Company and the Guarantors further agree that
Participating Broker-Dealers shall be authorized to deliver such Prospectus during such period in
connection with the resales contemplated by this Section 4, subject to the Company’s and the
Guarantors’ ability to suspend the disposition of Registrable Securities as set forth in Section 3.

     (c) The Initial Purchasers shall have no liability to the Company, any Guarantor or any Holder
with respect to any request that they may make pursuant to Section 4(b) above.

     5. Indemnification and Contribution. (a) The Company and each Guarantor, jointly and
severally, agree to indemnify and hold harmless each Initial Purchaser and each Holder, their
respective affiliates, directors and officers and each Person, if any, who controls any Initial
Purchaser or any Holder within the meaning of Section 15 of the Securities Act or Section 20 of the
Exchange Act, from and against any and all losses, claims, damages and liabilities (including,
without limitation, reasonable legal fees and other expenses incurred in connection with any suit,
action or proceeding or any claim asserted, as such fees and expenses are incurred), joint or
several, that arise out of, or are based upon, any untrue statement or alleged untrue statement of
a material fact contained in any Registration Statement or any Prospectus or any omission or
alleged omission to state therein a material fact required to be stated therein or necessary in
order to make the statements therein, in the light of the circumstances under which they were made,
not misleading, except insofar as such losses, claims, damages or liabilities arise out of, or are
based upon, any untrue statement or omission or alleged untrue statement or omission made in
reliance upon and in conformity with any information relating to any Initial Purchaser or
information relating to any Holder furnished to the Company in writing through J.P. Morgan
Securities Inc., Citigroup Global Markets Inc. or any selling Holder expressly for use therein,
provided that with respect to any such untrue statement in or omission from any preliminary
prospectus relating to a Registration Statement, the indemnity agreement contained in this
paragraph (a) shall not inure to the benefit of any Holder to the extent that the sale to the
Person asserting any such loss, claim, damage or liability was an initial resale by such Holder and
any such loss, claim, damage or liability of or with respect to such Holder results from the fact
that both (i) a copy of the final Prospectus was not sent or given to such Person at or prior to
the written confirmation or the sale of such Securities to such Person and (ii) the untrue
statement in or omission from such preliminary prospectus was corrected in the final Prospectus
relating to such Registration Statement unless, in either case, such failure to deliver the
Prospectus was a result of non-compliance by the Company or any of the Guarantors with the
provisions of Section 3 hereof. In connection with any Underwritten Offering permitted by Section
3, the Company and the Guarantors, jointly and severally, will also indemnify the Underwriters, if
any, selling brokers, dealers and similar securities industry professionals participating in the

16

 

distribution, their respective affiliates and each Person who controls such Persons (within
the meaning of the Securities Act and the Exchange Act) to the same extent as provided above with
respect to the indemnification of the Holders, if requested in connection with any Registration
Statement.

     (b) Each Holder agrees, severally and not jointly, to indemnify and hold harmless the Company,
the Guarantors, the Initial Purchasers and the other selling Holders, their respective affiliates,
the directors of the Company and the Guarantors, each officer of the Company and the Guarantors who
signed the Registration Statement and each Person, if any, who controls the Company, the
Guarantors, any Initial Purchaser and any other selling Holder within the meaning of Section 15 of
the Securities Act or Section 20 of the Exchange Act to the same extent as the indemnity set forth
in paragraph (a) above, but only with respect to any losses, claims, damages or liabilities that
arise out of, or are based upon, any untrue statement or omission or alleged untrue statement or
omission made in reliance upon and in conformity with any information relating to such Holder
furnished to the Company in writing by such Holder expressly for use in any Registration Statement
and any Prospectus.

     (c) If any suit, action, proceeding (including any governmental or regulatory investigation),
claim or demand shall be brought or asserted against any Person in respect of which indemnification
may be sought pursuant to either paragraph (a) or (b) above, such Person (the “Indemnified Person”)
shall promptly notify the Person against whom such indemnification may be sought (the “Indemnifying
Person”) in writing; provided that the failure to notify the Indemnifying Person shall not
relieve it from any liability that it may have under this Section 5 except to the extent that it
has been materially prejudiced (through the forfeiture of substantive rights or defenses) by such
failure; and provided, further, that the failure to notify the Indemnifying Person
shall not relieve it from any liability that it may have to an Indemnified Person otherwise than
under this Section 5. If any such proceeding shall be brought or asserted against an Indemnified
Person and it shall have notified the Indemnifying Person thereof, the Indemnifying Person shall
retain counsel reasonably satisfactory to the Indemnified Person to represent the Indemnified

Person and any others entitled to indemnification pursuant to this Section 5 that the Indemnifying
Person may designate in such proceeding and shall pay the reasonable fees and expenses of such
counsel related to such proceeding, as incurred upon receipt of appropriate supporting
documentation. In any such proceeding, any Indemnified Person shall have the right to retain its
own counsel, but the fees and expenses of such counsel shall be at the expense of such Indemnified
Person unless (i) the Indemnifying Person and the Indemnified Person shall have mutually agreed in
writing to the contrary; (ii) the Indemnifying Person has failed within a reasonable time to retain
counsel reasonably satisfactory to the Indemnified Person; (iii) the Indemnified Person shall have
reasonably concluded that there may be legal defenses available to it that are different from or in
addition to those available to the Indemnifying Person; or (iv) the named parties in any such
proceeding (including any impleaded parties) include both the Indemnifying Person and the

17

 

Indemnified Person and representation of both parties by the same counsel would be
inappropriate due to actual or potential differing interests between them. It is understood and
agreed that the Indemnifying Person shall not, in connection with any proceeding or related
proceeding in the same jurisdiction, be liable for the fees and expenses of more than one separate
firm (in addition to any local counsel) for all Indemnified Persons, and that all such fees and
expenses shall be reasonable and reimbursed as they are incurred upon the receipt by the
Indemnifying Person of an invoice therefor. Any such separate firm (x) for any Initial Purchaser,
its affiliates, directors and officers and any control Persons of such Initial Purchaser shall be
designated in writing by J.P. Morgan Securities Inc. or Citigroup Global Markets Inc., (y) for any
Holder, its affiliates, directors and officers and any control Persons of such Holder shall be
designated in writing by the Majority Holders and (z) in all other cases shall be designated in
writing by the Company. The Indemnifying Person shall not be liable for any settlement of any
proceeding effected without its written consent, but if settled with such consent or if there be a
final judgment for the plaintiff, the Indemnifying Person agrees to indemnify each Indemnified
Person from and against any loss or liability by reason of such settlement or judgment.
Notwithstanding the foregoing sentence, if at any time an Indemnified Person shall have requested
that an Indemnifying Person reimburse the Indemnified Person for reasonable fees and expenses of
counsel as contemplated by this paragraph, the Indemnifying Person shall be liable for any
settlement of any proceeding effected without its written consent if (i) such settlement is entered
into more than 30 days after receipt by the Indemnifying Person of such request and (ii) the
Indemnifying Person shall not have reimbursed the Indemnified Person in accordance with such
request prior to the date of such settlement. No Indemnifying Person shall, without the written
consent of the Indemnified Person, effect any settlement of any pending or threatened proceeding in
respect of which any Indemnified Person is or could have been a party and indemnification could
have been sought hereunder by such Indemnified Person, unless such settlement (A) includes an
unconditional release of such Indemnified Person, in form and substance reasonably satisfactory to
such Indemnified Person, from all liability on claims that are the subject matter of such
proceeding and (B) does not include any statement as to or any admission of fault, culpability or a
failure to act by or on behalf of any Indemnified Person.

     (d) If the indemnification provided for in paragraphs (a) and (b) above is unavailable to an
Indemnified Person or insufficient in respect of any losses, claims, damages or liabilities
referred to therein, then each Indemnifying Person under such paragraph, in lieu of indemnifying
such Indemnified Person thereunder, shall contribute to the amount paid or payable by such
Indemnified Person as a result of such losses, claims, damages or liabilities (i) in such
proportion as is appropriate to reflect the relative benefits received by the Company and the
Guarantors from the offering of the Securities and the Exchange Securities, on the one hand, and by
the Holders from receiving Securities or Exchange Securities registered under the Securities Act,
on the other hand, or (ii) if the allocation provided by clause (i) is not permitted by

18

 

applicable law, in such proportion as is appropriate to reflect not only the relative benefits
referred to in clause (i) but also the relative fault of the Company and the Guarantors on the one
hand and the Holders on the other in connection with the statements or omissions that resulted in
such losses, claims, damages or liabilities, as well as any other relevant equitable
considerations. The relative fault of the Company and the Guarantors on the one hand and the
Holders on the other shall be determined by reference to, among other things, whether the untrue or
alleged untrue statement of a material fact or the omission or alleged omission to state a material
fact relates to information supplied by the Company and the Guarantors or by the Holders and the
parties’ relative intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission.

     (e) The Company, the Guarantors and the Holders agree that it would not be just and equitable
if contribution pursuant to this Section 5 were determined by pro rata allocation
(even if the Holders were treated as one entity for such purpose) or by any other method of
allocation that does not take account of the equitable considerations referred to in paragraph (d)
above. The amount paid or payable by an Indemnified Person as a result of the losses, claims,
damages and liabilities referred to in paragraph (d) above shall be deemed to include, subject to
the limitations set forth above, any legal or other expenses incurred by such Indemnified Person in
connection with any such action or claim. Notwithstanding the provisions of this Section 5, in no
event shall a Holder be required to contribute any amount in excess of the amount by which the
total price at which the Securities or Exchange Securities sold by such Holder exceeds the amount
of any damages that such Holder has otherwise been required to pay by reason of such untrue or
alleged untrue statement or omission or alleged omission. No Person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any Person who was not guilty of such fraudulent misrepresentation.

     (f) The remedies provided for in this Section 5 are not exclusive and shall not limit any
rights or remedies that may otherwise be available to any Indemnified Person at law or in equity.

     (g) The indemnity and contribution provisions contained in this Section 5 shall remain
operative and in full force and effect regardless of (i) any termination of this Agreement, (ii)
any investigation made by or on behalf of the Initial Purchasers or any Holder, their respective
affiliates or any Person controlling any Initial Purchaser or any Holder, or by or on behalf of the
Company or the Guarantors, their respective affiliates or the officers or directors of or any
Person controlling the Company or the Guarantors, (iii) acceptance of any of the Exchange
Securities and (iv) any sale of Registrable Securities pursuant to a Shelf Registration Statement.

     6. General.

19

 

     (a) No Inconsistent Agreements. The Company and the Guarantors represent, warrant and agree
that (i) the rights granted to the Holders hereunder do not in any way conflict with and are not
inconsistent with the rights granted to the holders of any other outstanding securities issued or
guaranteed by the Company or any Guarantor under any other agreement and (ii) neither the Company
nor any Guarantor has entered into, or on or after the date of this Agreement will enter into, any
agreement that is inconsistent with the rights granted to the Holders of Registrable Securities in
this Agreement or otherwise conflicts with the provisions hereof.

     (b) Amendments and Waivers. The provisions of this Agreement, including the provisions of
this sentence, may not be amended, modified or supplemented, and waivers or consents to departures
from the provisions hereof may not be given unless the Company and the Guarantors have obtained the
written consent of Holders of at least a majority in aggregate principal amount of the outstanding
Registrable Securities affected by such amendment, modification, supplement, waiver or consent;
provided that no amendment, modification, supplement, waiver or consent to any departure
from the provisions of Section 5 hereof shall be effective as against any Holder of Registrable
Securities unless consented to in writing by such Holder. Any amendments, modifications,
supplements, waivers or consents pursuant to this Section 6(b) shall be by a writing executed by
each of the parties hereto.

     (c) Notices. All notices and other communications provided for or permitted hereunder shall
be made in writing by hand-delivery, registered first-class mail, telex, telecopier, or any courier
guaranteeing overnight delivery (i) if to a Holder, at the most current address given by such
Holder to the Company by means of a notice given in accordance with the provisions of this Section
6(c), which address initially is, with respect to the Initial Purchasers, the address set forth in
the Purchase Agreement; (ii) if to the Company and the Guarantors, initially at the Company’s
address set forth in the Purchase Agreement and thereafter at such other address, notice of which
is given in accordance with the provisions of this Section 6(c); and (iii) to such other persons at
their respective addresses as provided in the Purchase Agreement and thereafter at such other
address, notice of which is given in accordance with the provisions of this Section 6(c). All such
notices and communications shall be deemed to have been duly given: at the time delivered by hand,
if personally delivered; five Business Days after being deposited in the mail, postage prepaid, if
mailed; when answered back, if telexed; when receipt is acknowledged, if telecopied; and on the
next Business Day if timely delivered to an air courier guaranteeing overnight delivery. Copies of
all such notices, demands or other communications shall be concurrently delivered by the Person
giving the same to the Trustee, at the address specified in the Indenture.

     (d) Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon
the successors, assigns and transferees of each of the parties, including, without limitation and
without the need for an express

20

 

assignment, subsequent Holders; provided that nothing herein shall be deemed to permit
any assignment, transfer or other disposition of Registrable Securities in violation of the terms
of the Purchase Agreement or the Indenture. If any transferee of any Holder shall acquire
Registrable Securities in any manner, whether by operation of law or otherwise, such Registrable
Securities shall be held subject to all the terms of this Agreement, and by taking and holding such
Registrable Securities such Person shall be conclusively deemed to have agreed to be bound by and
to perform all of the terms and provisions of this Agreement and such Person shall be entitled to
receive the benefits hereof. The Initial Purchasers (in their capacity as Initial Purchasers)
shall have no liability or obligation to the Company or the Guarantors with respect to any failure
by a Holder to comply with, or any breach by any Holder of, any of the obligations of such Holder
under this Agreement.

     (e) Third Party Beneficiaries. Other than the agreements made pursuant to Section 5 hereto,
each Holder shall be a third party beneficiary to the agreements made hereunder between the Company
and the Guarantors, on the one hand, and the Initial Purchasers, on the other hand, and shall have
the right to enforce such agreements directly to the extent it deems such enforcement necessary or
advisable to protect its rights or the rights of other Holders hereunder.

     (f) Counterparts. This Agreement may be executed in any number of counterparts and by the
parties hereto in separate counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute one and the same agreement.

     (g) Headings. The headings in this Agreement are for convenience of reference only, are not a
part of this Agreement and shall not limit or otherwise affect the meaning hereof.

     (h) Governing Law. This Agreement shall be governed by and construed in accordance with the
laws of the State of New York.

     (i) Miscellaneous. This Agreement contains the entire agreement between the parties relating
to the subject matter hereof and supersedes all oral statements and prior writings with respect
thereto. If any term, provision, covenant or restriction contained in this Agreement is held by a
court of competent jurisdiction to be invalid, void or unenforceable or against public policy, the
remainder of the terms, provisions, covenants and restrictions contained herein shall remain in
full force and effect and shall in no way be affected, impaired or invalidated. The Company, the
Guarantors and the Initial Purchasers shall endeavor in good faith negotiations to replace the
invalid, void or unenforceable provisions with valid provisions the economic effect of which comes
as close as possible to that of the invalid, void or unenforceable provisions.

21

 

          IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written
above.

	 	 	 	 	 	 	 
	 	 	R.J. REYNOLDS TOBACCO
      HOLDINGS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Daniel A. Fawley	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Daniel A. Fawley	 	 
	 

	 	Title:
	 	Senior Vice President and
 Treasurer
	 	 
	 
	 	 	 	 	 	 
	 	 	REYNOLDS AMERICAN INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Daniel A. Fawley	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Daniel A. Fawley	 	 
	 

	 	Title:
	 	Senior Vice President and
 Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	RJR ACQUISITION CORP.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Daniel A. Fawley	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Daniel A. Fawley	 	 
	 

	 	Title:
	 	Assistant Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	R. J. REYNOLDS TOBACCO COMPANY	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Daniel A. Fawley	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Daniel A. Fawley	 	 
	 

	 	Title:
	 	Senior Vice President and
 Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	R. J. REYNOLDS TOBACCO CO.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Daniel A. Fawley	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Daniel A. Fawley	 	 
	 

	 	Title:
	 	Vice President and
 Treasurer	 	 

22

 

	 	 	 	 	 	 	 
	 	 	RJR PACKAGING, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Daniel A. Fawley	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Daniel A. Fawley	 	 
	 

	 	Title:
	 	Vice President and
 Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	FHS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Vernon A. Stewart	 	 
	 

	 	 
	 	 	 	 
	 

	 	Name:
	 	Vernon A. Stewart	 	 
	 

	 	Title:
	 	Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	GMB, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Daniel A. Fawley	 	 
	 

	 	 
	 	 	 	 
	 

	 	Name:
	 	Daniel A. Fawley	 	 
	 

	 	Title:
	 	Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	BWT BRANDS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Daniel A. Fawley	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Daniel A. Fawley	 	 
	 

	 	Title:
	 	Treasurer	 	 

Confirmed and accepted as of the date first above written:

	 	 	 	 	 
	CITIGROUP GLOBAL MARKETS
      INC.	 	 
	 
	 	 	 	 
	For itself and on behalf of the
 several Initial Purchasers	 	 
	 
	 	 	 	 
	By

	 	/s/ Brian D. Bednarski	 	 
	 

	 	 	 	 
	Name:

	 	Brian D. Bednarski	 	 
	Title:

	 	Authorized Signatory	 	 

23

 

	 	 	 	 	 
	J.P. MORGAN SECURITIES INC.	 	 
	 
	 	 	 	 
	For itself and on behalf of the 
     several Initial Purchasers	 	 
	 
	 	 	 	 
	By

	 	/s/ Maria Sramek	 	 
	 

	 	 	 	 
	Name:

	 	Maria Sramek	 	 
	Title:

	 	Authorized Signatory	 	 

24

 

Schedule 1

GUARANTORS

Reynolds American Inc.

RJR Acquisition Corp.

R. J. Reynolds Tobacco Company

R. J. Reynolds Tobacco Co.

RJR Packaging, LLC

FHS, Inc.

GMB, Inc.

BWT Brands, Inc.

 

 

Schedule 2

INITIAL PURCHASERS

	 	 	 	 	 	 	 	 	 
	 	 	Aggregate Principal	 	 	Aggregate Principal	 
	 	 	Amount of 2010	 	 	Amount of 2015	 
	 	 	Notes to be	 	 	Notes to be	 
	Initial Purchaser	 	Purchased	 	 	Purchased	 
	Citigroup Global Markets Inc.
	 	$	115,500,000	 	 	$	77,000,000	 
	J.P. Morgan Securities, Inc.
	 	 	115,500,000	 	 	 	77,000,000	 
	Lehman Brothers Inc.
	 	 	22,500,000	 	 	 	15,000,000	 
	Mizuho International plc
	 	 	17,100,000	 	 	 	11,400,000	 
	Scotia Capital (USA) Inc.
	 	 	12,000,000	 	 	 	8,000,000	 
	BNY Capital Markets, Inc.
	 	 	8,700,000	 	 	 	5,800,000	 
	Wachovia Capital Markets, LLC
	 	 	8,700,000	 	 	 	5,800,000	 
	 
	 	 	 	 	 	 
	Total
	 	$	300,000,000	 	 	$	200,000,000

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}]]