Document:

EX-10.2

 Exhibit 10.2 
  

 
 GUARANTY 

dated as of 
 September 17, 2013

 among 
 SCORPIO ACQUISITION
CORPORATION, 
 as Holdings, 

CERTAIN SUBSIDIARIES OF SCORPIO ACQUISITION CORPORATION IDENTIFIED HEREIN 

and 
 CITICORP NORTH AMERICA,
INC., 
 as Administrative Agent 
  

 

 Table of Contents 

 

							
	 	 	 	  	Page	 
	
	Article I.	  
	
	Definitions	  
			
	 Section 1.1.
	 	 Credit Agreement
	  	 	1	  
	 Section 1.2.
	 	 Other Defined Terms
	  	 	1	  
	
	Article II.	  
	
	Guaranty	  
			
	 Section 2.1.
	 	 Guaranty
	  	 	2	  
	 Section 2.2.
	 	 Guaranty of Payment
	  	 	2	  
	 Section 2.3.
	 	 No Limitations
	  	 	2	  
	 Section 2.4.
	 	 Reinstatement
	  	 	3	  
	 Section 2.5.
	 	 Agreement To Pay; Subrogation
	  	 	3	  
	 Section 2.6.
	 	 Information
	  	 	3	  
	
	Article III.	  
	
	Indemnity, Subrogation and Subordination	  
			
	 Section 3.1.
	 	 Waiver of Contribution and Subrogation
	  	 	4	  
	
	Article IV.	  
	
	Miscellaneous	  
			
	 Section 4.1.
	 	 Notices
	  	 	4	  
	 Section 4.2.
	 	 Waivers; Amendment
	  	 	4	  
	 Section 4.3.
	 	 Administrative Agent’s Fees and Expenses; Indemnification
	  	 	5	  
	 Section 4.4.
	 	 Successors and Assigns
	  	 	5	  
	 Section 4.5.
	 	 Survival of Agreement
	  	 	6	  
	 Section 4.6.
	 	 Counterparts; Effectiveness; Several Agreement
	  	 	6	  
	 Section 4.7.
	 	 Severability
	  	 	6	  
	 Section 4.8.
	 	 Right of Setoff
	  	 	6	  
	 Section 4.9.
	 	 Governing Law; Jurisdiction; Consent to Service of Process
	  	 	7	  
	 Section 4.10.
	 	 WAIVER OF JURY TRIAL
	  	 	7	  
	 Section 4.11.
	 	 Headings
	  	 	7	  
	 Section 4.12.
	 	 Security Interest Absolute
	  	 	7	  
	 Section 4.13.
	 	 Termination or Release
	  	 	7	  
	 Section 4.14.
	 	 Additional Guarantors
	  	 	8	  
	 Section 4.15.
	 	 Intercreditor Agreement
	  	 	8	  
			
	Exhibits	 		  			
			
	 Exhibit A
	 	 Form of Guaranty Supplement
	  			

  
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 GUARANTY, dated as of September 17, 2013, among SCORPIO ACQUISITION CORPORATION, a Delaware
corporation (“Holdings”), certain subsidiaries of Holdings from time to time party hereto and CITICORP NORTH AMERICA, INC., as Administrative Agent. 

Reference is made to the Credit Agreement dated as of the date hereof (as amended, supplemented or otherwise modified from time to time, the
“Credit Agreement”), among Holdings, POLYMER GROUP, INC., a Delaware corporation (the “Borrower”), CITICORP NORTH AMERICA, INC., as Administrative Agent, the other agents party thereto and each lender from time to
time party thereto (collectively, the “Lenders,” and individually, a “Lender”). The Lenders have agreed to extend credit to the Borrower subject to the terms and conditions set forth in the Credit Agreement. The
obligations of the Lenders to extend such credit are conditioned upon, among other things, the execution and delivery of this Agreement. Each Guarantor (as defined below) is an affiliate of the Borrower, will derive substantial benefits from the
extension of credit to the Borrower pursuant to the Credit Agreement and is willing to execute and deliver this Agreement in order to induce the Lenders to extend such credit. Accordingly, the parties hereto agree as follows: 

Article I. 
 Definitions 

Section 1.1. Credit Agreement. 

(a) Capitalized terms used in this Agreement and not otherwise defined herein have the meanings specified in the Credit Agreement. 

(b) The rules of construction specified in Article I of the Credit Agreement also apply to this Agreement. 

Section 1.2. Other Defined Terms. As used in this Agreement, the following terms have the meanings specified below: 

“Agreement” means this Guaranty. 

“Credit Agreement” has the meaning assigned to such term in the preliminary statement of this Agreement. 

“Guarantor” means Holdings and each Restricted Subsidiary of the Borrower that is a Wholly-Owned Domestic Restricted
Subsidiary and each Person that becomes a party to this Agreement after the Closing Date. 
 “Guaranty Parties” means,
collectively, the Borrower (other than in respect of its own Loan Obligations) and each Guarantor. 
 “Guaranty Supplement”
means an instrument in the form of Exhibit A hereto. 
 “Holdings” has the meaning assigned to such term in the
preliminary statement of this Agreement. 

 Article II. 

Guaranty 
 Section 2.1.
Guaranty. Each of the Guarantors hereby, jointly and severally, fully and unconditionally, Guarantees to each Senior Credit Party and to the Administrative Agent and its successors and assigns, irrespective of the validity and enforceability
of this Agreement or the Credit Agreement or the obligations of the Borrower hereunder or thereunder, the due and punctual payment and performance of the Loan Obligations, and that all other obligations of the Borrower to the Senior Credit Parties
or the Administrative Agent under this Agreement or the Credit Agreement shall be promptly paid in full or performed, all in accordance with the terms hereof and thereof. The obligation of any Guarantor hereunder shall be a general senior secured
obligation of such Guarantor and shall be pari passu in right of payment with all existing and future Senior Indebtedness of such Guarantor, if any, and senior in right of payment to all existing and future Subordinated Indebtedness of such
Guarantor. 
 Section 2.2. Guaranty of Payment. Each of the Guarantors further agrees that failing payment when due of any
amount so guaranteed or any performance so guaranteed for whatever reason, the Guarantors shall be jointly and severally obligated to pay the same immediately. Each Guarantor agrees that this is a guarantee of payment and not a guarantee of
collection. 
 Section 2.3. No Limitations. 

(a) Except for termination of a Guarantor’s obligations hereunder as expressly provided in Section 4.13, the obligations of each
Guarantor hereunder shall not be subject to any reduction, limitation, impairment or termination for any reason, including any claim of waiver, release, surrender, alteration or compromise, and shall not be subject to any defense or set-off,
counterclaim, recoupment or termination whatsoever by reason of the invalidity, illegality or unenforceability of the Loan Obligations, or otherwise. Without limiting the generality of the foregoing, the obligations of each Guarantor hereunder shall
not be discharged or impaired or otherwise affected by (i) the failure of the Administrative Agent or any other Senior Credit Party to assert any claim or demand or to enforce any right or remedy under the provisions of any Loan Document or
otherwise; (ii) any rescission, waiver, amendment or modification of, or any release from any of the terms or provisions of, any Loan Document or any other agreement, including with respect to any other Guarantor under this Agreement;
(iii) the release of any security held by the Collateral Agent or any other Senior Credit Party for the Loan Obligations; (iv) any default, failure or delay, willful or otherwise, in the performance of the Loan Obligations; or (v) any
other act or omission that may or might in any manner or to any extent vary the risk of any Guarantor or otherwise operate as a discharge of any Guarantor as a matter of law or equity (other than the indefeasible payment in full in cash of all the
Loan Obligations). Each Guarantor expressly authorizes the Senior Credit Parties to take and hold security for the payment and performance of the Loan Obligations, to exchange, waive or release any or all such security (with or without
consideration), to enforce or apply such security and direct the order and manner of any sale thereof in their sole discretion or to release or substitute any one or more other guarantors or obligors upon or in respect of the Loan Obligations, all
without affecting the obligations of any Guarantor hereunder. 
 (b) To the fullest extent permitted by applicable Law, each Guarantor
waives any defense based on or arising out of any defense of the Borrower or any other Guaranty Party or the unenforceability of the Loan Obligations, or any part thereof from any cause, or the cessation from any cause of the liability of the
Borrower or any other Guaranty Party, other than the indefeasible payment in full in cash of all the Loan Obligations. The Administrative Agent, Collateral Agent and the other Senior Credit Parties may in accordance with the terms of the Collateral
Documents, at their election, foreclose on any security held by one or more of them by one or more judicial or nonjudicial sales, accept an assignment of any 

  
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such security in lieu of foreclosure, compromise or adjust any part of the Loan Obligations, make any other accommodation with the Borrower or any other Guaranty Party or exercise any other right
or remedy available to them against the Borrower or any other Guaranty Party, without affecting or impairing in any way the liability of any Guarantor hereunder except to the extent the Loan Obligations have been fully and indefeasibly paid in full
in cash. To the fullest extent permitted by applicable Law, each Guarantor waives any defense arising out of any such election even though such election operates, pursuant to applicable Law, to impair or to extinguish any right of reimbursement or
subrogation or other right or remedy of such Guarantor against the Borrower or any other Guaranty Party, as the case may be, or any security. 

(c) In case any provision hereunder shall be invalid, illegal or unenforceable, the validity, legality, and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby. 
 (d) Each Guarantor and each Senior Credit Party hereby confirm that it
is the intention of all such parties that the Guarantee of such Guarantor hereunder not constitute a fraudulent transfer or conveyance for purposes of Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any
similar federal or state law to the extent applicable to this Agreement and the Loan Obligations of each Guarantor hereunder. To effectuate the foregoing intention, the Administrative Agent, the Secured Parties and the Guarantors hereby irrevocably
agree that the obligations of each Guarantor shall be limited to the maximum amount as shall, after giving effect to such maximum amount and all other contingent and fixed liabilities of such Guarantor that are relevant under such laws and after
giving effect to any collections from, rights to receive contribution from or payments made by or on behalf of any other Guarantor in respect of the obligations of such other Guarantor under this Section 2.3, result in the obligations of such
Guarantor under this Agreement not constituting a fraudulent conveyance or fraudulent transfer under applicable law. Each Guarantor that makes a payment hereunder shall be entitled upon payment in full of all guaranteed obligations under this
Agreement to a contribution from each other Guarantor in an amount equal to such other Guarantor’s pro rata portion of such payment based on the respective net assets of all the Guarantors at the time of such payment determined in accordance
with GAAP. 
 (e) Each Guarantor acknowledges that it shall receive direct and indirect benefits from the financing arrangements
contemplated by the Loan Documents and that the guarantee and waivers made pursuant to this Agreement are knowingly made in contemplation of such benefits. 

Section 2.4. Reinstatement. Each of the Guarantors agrees that if any Senior Credit Party or the Administrative Agent is required
by any court or otherwise to return to the Borrower, the Guarantors or any custodian, trustee, liquidator or other similar official acting in relation to either the Borrower or the Guarantors, any amount paid either to the Administrative Agent or
such Senior Credit Party, this Agreement, to the extent theretofore discharged, shall be reinstated in full force and effect. 

Section 2.5. Agreement To Pay; Subrogation. Each Guarantor shall be subrogated to all rights of Senior Credit Parties against the
Borrower in respect of any amounts paid by any Guarantor pursuant to the provisions of Section 2.1 hereof; provided that, if an Event of Default has occurred and is continuing, no Guarantor shall be entitled to enforce or receive any
payments arising out of, or based upon, such right of subrogation until all amounts then due and payable by the Borrower under this Agreement or the Loan Obligations shall have been paid in full. 

Section 2.6. Information. Each Guarantor assumes all responsibility for being and keeping itself informed of the Borrower’s
and each other Guaranty Party’s financial condition and assets, and of all other circumstances bearing upon the risk of nonpayment of the Loan Obligations, and the nature, scope and extent of the risks that such Guarantor assumes and incurs
hereunder, and agrees that none of the Administrative Agent or the other Senior Credit Parties will have any duty to advise such Guarantor of information known to it or any of them regarding such circumstances or risks. 

  
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 Article III. 

Indemnity, Subrogation and Subordination 

Section 3.1. Waiver of Contribution and Subrogation. Each Guaranty Party agrees that it shall not be entitled to any right of
subrogation in relation to the Senior Credit Parties in respect of any obligations guaranteed hereby until payment in full of all obligations guaranteed hereby. Each Guaranty Party further agrees that, as between the Guaranty Parties, on the one
hand, and the Senior Credit Parties and the Administrative Agent, on the other hand, (x) the maturity of the obligations guaranteed hereby may be accelerated as provided in Article VIII of the Credit Agreement for the purposes of this
Guarantee, notwithstanding any stay, injunction or other prohibition preventing such acceleration in respect of the obligations guaranteed hereby, and (y) in the event of any declaration of acceleration of such obligations as provided in
Article VIII of the Credit Agreement, such obligations (whether or not due and payable) shall forthwith become due and payable by the Guaranty Parties for the purpose of this Agreement. The Guaranty Parties shall have the right to seek contribution
from any non-paying Guaranty Party so long as the exercise of such right does not impair the rights of the Senior Credit Parties under the Guarantees. 

Section 3.2. Subordination. Each Guaranty Party hereby agrees that upon the occurrence and during the continuance of an Event of
Default and after notice from the Collateral Agent all Indebtedness owed by it to any Subsidiary shall be fully subordinated to the indefeasible payment in full in cash of the Loan Obligations. 

Article IV. 
 Miscellaneous 

Section 4.1. Notices. All communications and notices hereunder shall (except as otherwise expressly permitted herein) be in
writing and given as provided in Section 10.02 of the Credit Agreement. All communications and notices hereunder to any Guarantor shall be given to it in care of the Borrower as provided in Section 10.02 of the Credit Agreement. 

Section 4.2. Waivers; Amendment. 

(a) No failure or delay by the Administrative Agent, any other Agent, or any Senior Credit Party in exercising any right or power hereunder or
under any other Loan Document shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any other or further
exercise thereof or the exercise of any other right or power. The rights and remedies of the Administrative Agent, any other Agent, and the Senior Credit Parties hereunder and under the other Loan Documents are cumulative and are not exclusive of
any rights or remedies that they would otherwise have. No waiver of any provision of this Agreement or consent to any departure by any Guaranty Party therefrom shall in any event be effective unless the same shall be permitted by clause (b) of
this Section 4.2, and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given. Without limiting the generality of the foregoing, the making of a Loan or issuance of a Letter of
Credit shall not be construed as a waiver of any Default, regardless of whether the Administrative Agent, any other Agent, or any Senior Credit Party may have had notice or knowledge of such Default at the time. No notice or demand on any Guaranty
Party in any case shall entitle any Guaranty Party to any other or further notice or demand in similar or other circumstances. 

  
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 (b) Neither this Agreement nor any provision hereof may be waived, amended or modified except
pursuant to an agreement or agreements in writing entered into by the Administrative Agent and the Guaranty Party or Guaranty Parties with respect to which such waiver, amendment or modification is to apply, subject to any consent required in
accordance with Section 10.01 of the Credit Agreement. 
 Section 4.3. Administrative Agent’s Fees and Expenses;
Indemnification. 
 (a) The parties hereto agree that the Administrative Agent shall be entitled to reimbursement of its expenses
incurred hereunder as provided in Section 10.04 of the Credit Agreement. Each Guarantor also agrees to pay any and all costs and expenses (including reasonable attorneys’ fees) incurred by the Administrative Agent or any Secured Party in
enforcing any rights under this Agreement. 
 (b) Without limitation of its indemnification obligations under the other Loan Documents, each
Guarantor jointly and severally agrees to indemnify the Administrative Agent and the other Indemnitees against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities and reasonably related expenses (including the
reasonable fees, charges and disbursements of any counsel for any Indemnitee) incurred by any Indemnitee or asserted against any Indemnitee by any third party or by any Guarantor arising out of, in connection with, or as a result of, (i) the
execution or delivery of this Agreement, any other Loan Document or any agreement or instrument contemplated hereby or thereby, the performance by the parties hereto of their respective obligations hereunder or thereunder or the consummation of the
transactions contemplated hereby or thereby or, in the case of the Administrative Agent (and any sub-agent thereof) and its Related Parties only, the administration of this Agreement and the other Loan Documents or (ii) any actual or
prospective claim, litigation, investigation or proceeding relating to any of the foregoing brought by a third party or by any Guarantor or any of its directors, shareholders or creditors, and regardless of whether any Indemnitee is a party thereto;
provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses (x) are determined by a court of competent jurisdiction by final and
nonappealable judgment to have resulted from the gross negligence, fraud, bad faith or willful misconduct of such Indemnitee, (y) result from a material breach of this Agreement by such Indemnified Party or any Affiliate, director, officer,
employee or agent of such Indemnified Party or (z) in respect of any dispute among Indemnified Parties other than claims against any Indemnified Party in its capacity or in fulfilling its role as an agent or arranger of any other similar role
hereunder and other than any claims arising out of any act or omission of the Borrower or its Affiliates. 
 (c) Any such amounts payable as
provided hereunder shall be additional Loan Obligations secured hereby and by the other Collateral Documents. The provisions of this Section 4.3 shall remain operative and in full force and effect regardless of the termination of this Agreement
or any other Loan Document, the consummation of the transactions contemplated hereby, the repayment of any of the Loan Obligations, the invalidity or unenforceability of any term or provision of this Agreement or any other Loan Document, or any
investigation made by or on behalf of the Administrative Agent or any other Secured Party. All amounts due under this Section 4.3 shall be payable within 10 days of written demand therefor. 

Section 4.4. Successors and Assigns. Whenever in this Agreement any of the parties hereto is referred to, such reference shall be
deemed to include the permitted successors and assigns of such party; and all covenants, promises and agreements by or on behalf of any Guarantor or the Administrative Agent that are contained in this Agreement shall bind and inure to the benefit of
their respective successors and assigns, except that neither the Borrower nor any other Guaranty Party may assign or otherwise transfer any of its rights or obligations hereunder except as otherwise permitted by this Agreement or the Credit
Agreement without the prior written consent of the Administrative Agent. 

  
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 Section 4.5. Survival of Agreement. All covenants, agreements, representations and
warranties made by the Guaranty Parties in the Loan Documents and in the certificates or other instruments prepared or delivered in connection with or pursuant to this Agreement or any other Loan Document shall be considered to have been relied upon
by the Senior Credit Parties and shall survive the execution and delivery of the Loan Documents and the making of any Loans, regardless of any investigation made by any Secured Party or on its behalf and notwithstanding that any Senior Credit Party
may have had notice or knowledge of any Default or incorrect representation or warranty at the time any credit is extended under the Credit Agreement, and shall continue in full force and effect as long as the principal of or any accrued interest on
any Loan or any fee or any other amount payable under any Loan Document is outstanding. 
 Section 4.6. Counterparts; Effectiveness;
Several Agreement. This Agreement may be executed in counterparts, each of which shall constitute an original but all of which when taken together shall constitute a single contract. Delivery of an executed signature page to this Agreement by
facsimile transmission or other electronic communication shall be as effective as delivery of a manually signed counterpart of this Agreement. This Agreement shall become effective as to any Guaranty Party when a counterpart hereof executed on
behalf of such Guaranty Party shall have been delivered to the Administrative Agent and a counterpart hereof shall have been executed on behalf of the Administrative Agent, and thereafter shall be binding upon such Guaranty Party and the
Administrative Agent and their respective permitted successors and assigns, and shall inure to the benefit of such Guaranty Party, the Administrative Agent and the other Secured Parties and their respective successors and assigns, except that no
Guaranty Party shall have the right to assign or transfer its rights or obligations hereunder or any interest herein (and any such assignment or transfer shall be void) except as otherwise permitted by this Agreement or the Credit Agreement. This
Agreement shall be construed as a separate agreement with respect to each Guaranty Party and may be amended, modified, supplemented, waived or released with respect to any Guaranty Party without the approval of any other Guaranty Party and without
affecting the obligations of any other Guaranty Party hereunder. 
 Section 4.7. Severability. Any provision of this Agreement
held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the
remaining provisions hereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction. The parties shall endeavor in good-faith
negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions. 

Section 4.8. Right of Setoff. In addition to any rights and remedies of the Senior Credit Parties provided by Law, upon the
occurrence and during the continuance of any Event of Default, each Senior Credit Party and its Affiliates is authorized at any time and from time to time, without prior notice to the Borrower or any other Guaranty Party, any such notice being
waived by the Borrower and each Guaranty Party to the fullest extent permitted by applicable Law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held by, and other Indebtedness at any
time owing by, such Senior Credit Party and its Affiliates to or for the credit or the account of the respective Guaranty Parties against any and all obligations owing to such Senior Credit Party and its Affiliates hereunder, now or hereafter
existing, irrespective of whether or not such Senior Credit Party or Affiliate shall have made demand under this Agreement and although such obligations may be contingent or unmatured or denominated in a currency different from that of the
applicable deposit or Indebtedness. Each Senior Credit Party agrees promptly to notify the Borrower and the Administrative Agent after any such setoff and application made by such Senior Credit Party; provided that the failure to give such
notice 

  
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shall not affect the validity of such setoff and application. The rights of each Senior Credit Party under this Section 4.8 are in addition to other rights and remedies (including other
rights of setoff) that the Administrative Agent and such Senior Credit Party may have. 
 Section 4.9. Governing Law; Jurisdiction;
Consent to Service of Process. 
 (a) THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW
YORK; PROVIDED, HOWEVER, THAT IF THE LAWS OF ANY JURISDICTION OTHER THAN NEW YORK SHALL GOVERN IN REGARD TO THE VALIDITY, PERFECTION OR EFFECT OF PERFECTION OF ANY LIEN OR IN REGARD TO PROCEDURAL MATTERS AFFECTING ENFORCEMENT OF ANY
LIENS IN COLLATERAL, SUCH LAWS OF SUCH OTHER JURISDICTIONS SHALL CONTINUE TO APPLY TO THAT EXTENT. 
 Section 4.10. WAIVER OF JURY
TRIAL. EACH OF THE GRANTORS AND THE SECURED PARTIES HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY. 
 Section 4.11. Headings. Article and Section headings and the Table of Contents used herein
are for convenience of reference only, are not part of this Agreement and are not to affect the construction of, or to be taken into consideration in interpreting, this Agreement. 

Section 4.12. Security Interest Absolute. All rights of the Administrative Agent hereunder and all obligations of each Guarantor
hereunder shall be absolute and unconditional irrespective of (a) any lack of validity or enforceability of the Credit Agreement, any other Loan Document, any agreement with respect to any of the Loan Obligations or any other agreement or
instrument relating to any of the foregoing, (b) any change in the time, manner or place of payment of, or in any other term of, all or any of the Loan Obligations, or any other amendment or waiver of or any consent to any departure from the
Credit Agreement, any other Loan Document, any other agreement or instrument, (c) any release or amendment or waiver of or consent under or departure from any guarantee guaranteeing all or any of the Loan Obligations or (d) any other
circumstance that might otherwise constitute a defense available to, or a discharge of, any Guarantor in respect of the Loan Obligations or this Agreement. 

Section 4.13. Termination or Release. 

(a) This Agreement and the Guarantees made herein shall terminate with respect to all Loan Obligations (other than contingent indemnification
obligations not yet accrued and payable) upon payment in full of the principal of, together with accrued and unpaid interest (including post-petition interest, if any) on, all of the Loans and all other Loan Obligations that are due and payable at
or prior to the time such principal, together with accrued and unpaid interest are paid. 
 (b) The obligations of such Subsidiary Guarantor
shall be automatically and unconditionally released and discharged, and no further action by such Subsidiary Guarantor, the Borrower or the Administrative Agent is required for the release of such Subsidiary Guarantor’s Guarantee, upon: 

(i) (A) any sale, exchange or disposal of the Capital Stock of such Subsidiary Guarantor (other than any such disposition to
the Borrower or a Guarantor), after which the applicable Subsidiary Guarantor is no longer a Restricted Subsidiary, if such sale, exchange or transfer is made in compliance with the applicable provisions of the Credit Agreement; 

  
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 (B) the release or discharge of the guarantee by such Subsidiary Guarantor of the
Indebtedness that resulted in the creation of such Guarantee, except a discharge or release by or as a result of payment under such guarantee; or 

(C) the proper designation of any Restricted Subsidiary that is a Subsidiary Guarantor as an Unrestricted Subsidiary in
accordance with Section 7.06 of the Credit Agreement and the definition of “Unrestricted Subsidiary” in Section 1.01 thereof; and 

(ii) such Subsidiary Guarantor delivering to the Administrative Agent an Officer’s Certificate and an Opinion of Counsel,
each stating that all conditions precedent provided for in the Credit Agreement relating to such transaction have been complied with. 
 (c)
In connection with any termination or release pursuant to paragraphs (a) or (b), the Administrative Agent shall, or shall cause the Collateral Agent to, execute, deliver or acknowledge to any Guarantor, at such Guarantor’s expense, any
necessary or proper instruments of termination or release that such Guarantor shall reasonably request to evidence such termination or release. Any execution and delivery of documents pursuant to this Section 4.13 shall be without
recourse to or warranty by the Administrative Agent. 
 Section 4.14. Additional Guarantors. Pursuant to Section 6.11 of
the Credit Agreement, certain Restricted Subsidiaries of a Borrower that were not in existence or not Restricted Subsidiaries on the date of the Credit Agreement are required to enter in this Agreement as Guarantors upon becoming a Wholly-Owned
Domestic Restricted Subsidiary or guaranteeing the payment of certain Indebtedness of the Borrower or any other Subsidiary Guarantor, as the case may be. Upon execution and delivery by the Administrative Agent and a Restricted Subsidiary of a
Guaranty Supplement, such Restricted Subsidiary shall become a Guarantor hereunder with the same force and effect as if originally named as a Guarantor herein. The execution and delivery of any such instrument shall not require the consent of any
other Guaranty Party hereunder. The rights and obligations of each Guaranty Party hereunder shall remain in full force and effect notwithstanding the addition of any new Guaranty Party as a party to this Agreement. 

Section 4.15. Intercreditor Agreement and Collateral Agency Agreement. Reference is made to the Intercreditor Agreement and the
Collateral Agency Agreement. Notwithstanding any other provision contained herein, this Agreement, the Liens created hereby and the rights, remedies, duties and obligations provided for herein are subject in all respects to the provisions of the
Intercreditor Agreement and the Collateral Agency Agreement. In the event of any conflict or inconsistency between the provisions of this Agreement and the Intercreditor Agreement or the Collateral Agency Agreement, the provisions of the
Intercreditor Agreement or the Collateral Agency Agreement, as applicable, shall control. 
 [Signature Pages Follow] 

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

					
	SCORPIO ACQUISITION CORPORATION
		
	By:	 	 /s/ Anjan Mukherjee

		 	Name:	 	Anjan Mukherjee
		 	Title:	 	President and Secretary
	
	CHICOPEE, INC.
	DOMINION TEXTILE (USA), L.L.C.
	FABRENE, L.L.C.
	PGI EUROPE, INC.
	PGI POLYMER, INC.
		
	By:	 	 /s/ Dennis E. Norman

		 	Name:	 	Dennis E. Norman
		 	Title:	 	Chief Financial Officer

 
					
	CITICORP NORTH AMERICA, INC.,
	as Administrative Agent
		
	By:	 	 /s/ Caesar Wyszomirski

		 	Name:	 	Caesar Wyszomirski
		 	Title:	 	Vice President

 Exhibit A to the 

Guaranty Agreement 
 SUPPLEMENT NO.
     (the “Guaranty Supplement”) dated as of [            ], to the Guaranty dated as of September 17, 2013, among SCORPIO ACQUISITION CORPORATION,
a Delaware corporation (“Holdings”), certain subsidiaries of Holdings from time to time party thereto and CITICORP NORTH AMERICA, INC., as Administrative Agent. 

A. Reference is made to the Credit Agreement dated as of September 17, 2013 (as amended, supplemented or otherwise modified from time to
time, the “Credit Agreement”), among POLYMER GROUP, INC., a Delaware corporation (the “Borrower”), Holdings, CITICORP NORTH AMERICA, INC., as Administrative Agent, the other agents party thereto and each lender from
time to time party thereto (collectively, the “Lenders” and individually, a “Lender”). 
 B. Capitalized
terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in the Credit Agreement and the Guaranty referred to therein. 

C. The Guarantors have entered into the Guaranty in order to induce the Lenders to make Loans. Section 4.14 of the Guaranty provides that
certain Restricted Subsidiaries of a Borrower that were not in existence or not Wholly-Owned Domestic Restricted Subsidiaries on the date of the Credit Agreement or that guarantee the payment of certain Indebtedness of the Borrower or any Subsidiary
Guarantor are required (pursuant to the terms of the Credit Agreement), to become Guarantors under the Guaranty by execution and delivery of an instrument in the form of this Guaranty Supplement. The undersigned Subsidiary of the Borrower or any
Guarantor (the “New Guarantor”) is executing this Guaranty Supplement in accordance with the requirements of the Credit Agreement to become a Guarantor under the Guaranty in order to induce the Lenders to make additional Loans and
as consideration for Loans previously made. 
 Accordingly, the Administrative Agent and the New Guarantor agree as follows: 

SECTION 1. Obligations under the Guaranty. In accordance with Section 4.14 of the Guaranty, the New Guarantor by its signature
below becomes a Guarantor under the Guaranty with the same force and effect as if originally named therein as a Guarantor and the New Guarantor hereby agrees as follows: 

(a) Along with all Guarantors named in the Guaranty, to jointly and severally unconditionally guarantee to each Senior Credit Party and to the
Administrative Agent and its successors and assigns, irrespective of the validity and enforceability of the Loan Documents or the obligations of the Borrower hereunder or thereunder, the due and punctual payment and performance of the Loan
Obligations, and that all other obligations of the Borrower to the Senior Credit Parties or the Administrative Agent under the Loan Documents shall be promptly paid in full or performed, all in accordance with the terms thereof. Failing payment when
due of any amount so guaranteed or any performance so guaranteed for whatever reason, the Guarantors and the New Guarantor shall be jointly and severally obligated to pay the same immediately. This is a guarantee of payment and not a guarantee of
collection. 
 (b) The obligations hereunder shall be unconditional, irrespective of the validity, regularity or enforceability of the Loan
Documents, the absence of any action to enforce the same, any waiver or consent by any Senior Credit Party with respect to any provisions hereof or thereof, the recovery of any judgment against the Borrower, any action to enforce the same or any
other circumstance which might otherwise constitute a legal or equitable discharge or defense of a guarantor. 

 (c) The following is hereby waived: diligence, presentment, demand of payment, filing of claims
with a court in the event of insolvency or bankruptcy of the Borrower, any right to require a proceeding first against the Borrower, protest, notice and all demands whatsoever. 

(d) The obligations of the New Guarantor hereunder shall not be discharged except by complete performance of the obligations contained in the
Guaranty, the Loan Documents and this Guaranty Supplement and the New Guarantor accepts all obligations of a Guarantor under the Guaranty. 

(e) If any Senior Credit Party or the Administrative Agent is required by any court or otherwise to return to the Borrower, the Guarantors
(including the New Guarantor), or any custodian, trustee, liquidator or other similar official acting in relation to either the Borrower or the Guarantors, any amount paid either to the Administrative Agent or such Senior Credit Party, this
Guarantee, to the extent theretofore discharged, shall be reinstated in full force and effect. 
 (f) The New Guarantor shall not be
entitled to any right of subrogation in relation to the Senior Credit Parties in respect of any obligations guaranteed hereby until payment in full of all obligations guaranteed hereby. 

(g) As between the New Guarantor, on the one hand, and the Senior Credit Parties and the Administrative Agent, on the other hand, (x) the
maturity of the obligations guaranteed hereby may be accelerated as provided in Article VIII of the Credit Agreement for the purposes of the obligations of the New Guarantor hereunder, notwithstanding any stay, injunction or other prohibition
preventing such acceleration in respect of the obligations guaranteed hereby, and (y) in the event of any declaration of acceleration of such obligations as provided in Article VIII of the Credit Agreement, such obligations (whether or not due
and payable) shall forthwith become due and payable by the New Guarantor for the purpose of the obligations of the New Guarantor hereunder. 

(h) The New Guarantor shall have the right to seek contribution from any non-paying Guarantor so long as the exercise of such right does not
impair the rights of the Senior Credit Parties under this Guarantee. 
 (i) Pursuant to Section 2.3(d) of the Guaranty, after giving
effect to all other contingent and fixed liabilities that are relevant under any applicable Bankruptcy Law or fraudulent conveyance laws and after giving effect to any collections from, rights to receive contribution from or payments made by or on
behalf of any other Guarantor in respect of the obligations of such other Guarantor under the Guaranty, this new Guarantee shall be limited to the maximum amount permissible such that the obligations of such New Guarantor under this Guarantee shall
not constitute a fraudulent transfer or conveyance. 
 (j) This Guarantee shall remain in full force and effect and continue to be effective
should any petition be filed by or against the Borrower for liquidation, reorganization, should the Borrower become insolvent or make an assignment for the benefit of creditors or should a receiver or trustee be appointed for all or any significant
part of the Borrower’s assets, and shall, to the fullest extent permitted by law, continue to be effective or be reinstated, as the case may be, if at any time payment and performance of the Loan Obligations are, pursuant to applicable law,
rescinded or reduced in amount, or must otherwise be restored or returned by any obligee on the Loan Obligations and Guarantee, whether as a “voidable preference,” “fraudulent transfer” or otherwise, all as though such payment or
performance had not been made. In the event that any payment or any part thereof, is rescinded, reduced, restored or returned, the Loan Obligations shall, to the fullest extent permitted by law, be reinstated and deemed reduced only by such amount
paid and not so rescinded, reduced, restored or returned. 

  
 -2- 

 (k) In case any provision of this Guaranty Supplement shall be invalid, illegal or unenforceable,
the validity, legality, and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 
 (l) The
obligations of the New Guarantor hereunder shall be a general senior secured obligation of such New Guarantor, ranking pari passu with any other future Senior Indebtedness of the New Guarantor, if any, and senior in right of payment to all
existing and future Subordinated Indebtedness of the New Guarantor. 
 (m) Each payment to be made by the New Guarantor in respect of this
Guarantee shall be made without set-off, counterclaim, reduction or diminution of any kind or nature. 
 SECTION 2. Representations and
Warranties. The New Guarantor represents and warrants to the Administrative Agent and the other Senior Credit Parties that this Guaranty Supplement has been duly authorized, executed and delivered by it and constitutes its legal, valid and
binding obligation, enforceable against it in accordance with its terms. 
 SECTION 3. Execution and Delivery. 

(a) This Guaranty Supplement may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall
constitute an original, but all of which when taken together shall constitute a single contract. This Guaranty Supplement shall become effective when the Administrative Agent shall have received a counterpart of this Guaranty Supplement that bears
the signature of the New Guarantor and the Administrative Agent has executed a counterpart hereof. Delivery of an executed signature page to this Guaranty Supplement by facsimile transmission or other electronic communication shall be as effective
as delivery of a manually signed counterpart of this Guaranty Supplement. 
 (b) The New Guarantor agrees that the Guarantee shall remain in
full force and effect notwithstanding the absence of the endorsement of any notation of such Guarantee. 
 SECTION 4. Merger,
Consolidation or Sale of All or Substantially All Assets. 
 (a) Except as otherwise provided in Section 7.04(c) of the Credit
Agreement, the New Guarantor shall not consolidate or merge with or into or wind up into (whether or not such New Guarantor is the surviving corporation), or sell, assign, transfer, lease, convey or otherwise dispose of all or substantially all of
its properties or assets, in one or more related transactions, to any Person unless: 
 (i) (A) such New Guarantor is
the surviving entity or the Person formed by or surviving any such consolidation or merger (if other than such New Guarantor) or to which such sale, assignment, transfer, lease, conveyance or other disposition shall have been made is a corporation,
partnership, trust or limited liability company organized or existing under the laws of the jurisdiction of organization of such New Guarantor, as the case may be, or the laws of the United States, any state thereof, the District of Columbia, or any
territory thereof (such New Guarantor or such Person, as the case may be, being herein called the “Successor Person”); 

(B) the Successor Person, if other than such New Guarantor, expressly assumes all the obligations of such New Guarantor under
the Guaranty, the Collateral Documents pursuant to a Supplemental Guaranty or other documents or instruments in a form reasonably satisfactory to the Administrative Agent; 

  
 -3- 

 (C) immediately after such transaction, no Default or Event of Default exists;

 (D) the Borrower shall have delivered to the Administrative Agent an Officer’s Certificate and an Opinion of Counsel,
each stating that such consolidation, merger or transfer and such supplemental documents, if any, comply with the Guaranty; and 

(E) the Collateral transferred to the Successor Person shall (i) continue to constitute Collateral under the Loan
Documents, (ii) be subject to the Lien in favor of the Collateral Agent for the benefit of the Senior Credit Parties with the same relative priorities as existed immediately prior to such transaction, and (iii) not be subject to any Lien,
other than Liens permitted by the terms of the Credit Agreement; or 
 (ii) the transaction is made in compliance with
Section 7.05 of the Credit Agreement. 
 (b) Subject to certain limitations described in the Guaranty, the Successor Person shall
succeed to, and be substituted for, such New Guarantor under the Guaranty and the New Guarantor’s Guarantee. Notwithstanding the foregoing, such New Guarantor may (i) merge or consolidate with or into, wind up into or transfer all or part
of its properties and assets to another Subsidiary Guarantor or the Borrower, (ii) merge with an Affiliate of the Borrower solely for the purpose of reincorporating the Guarantor in the United States, any state thereof, the District of Columbia
or any territory thereof or (iii) convert into a corporation, partnership, limited partnership, limited liability company or trust organized under the laws of the jurisdiction of organization of such Guarantor, in each case without regard to
the requirements set forth in Section 7.04(c) of the Credit Agreement. 
 SECTION 5. Releases. The Guarantee of the New
Guarantor shall be automatically and unconditionally released and discharged, and no further action by the New Guarantor, the Borrower or the Administrative Agent is required for the release of the New Guarantor’s Guarantee, upon: 

(1) (A) any sale, exchange or transfer (by merger or otherwise) of the Capital Stock of such New Guarantor, after which
the applicable New Guarantor is no longer a Restricted Subsidiary, if such sale, exchange or transfer is made in compliance with the applicable provisions of the Credit Agreement; 

(B) the release or discharge of the guarantee by such New Guarantor of the Indebtedness that resulted in the creation of such
Guarantee, except a discharge or release by or as a result of payment under such guarantee; or 
 (C) the proper designation
of any Restricted Subsidiary that is a Subsidiary Guarantor as an Unrestricted Subsidiary in accordance with Section 7.06 of the Credit Agreement and the definition of “Unrestricted Subsidiary” in Section 1.01 thereof; and 

(2) such New Guarantor delivering to the Administrative Agent an Officer’s Certificate and an Opinion of Counsel, each
stating that all conditions precedent provided for in the Guaranty relating to such transaction have been complied with. 
 SECTION 6. No
Recourse Against Others. No director, officer, employee, incorporator or stockholder of the New Guarantor shall have any liability for any obligations of the Borrower or the Guarantors (including the New Guarantor) under the Loan Documents or
for any claim based on, in respect of, or by reason of such obligations or their creation. Each Senior Credit Party waives and releases all such liability. The waiver and release are part of the consideration for the Loans. 

  
 -4- 

 SECTION 7. Governing Law; Jurisdiction; Waiver of Jury Trial, Etc. THIS GUARANTY
SUPPLEMENT WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK 
 SECTION 8. Counterparts. The
parties may sign any number of copies of this Guaranty Supplement. Each signed copy shall be an original, but all of them together represent the same agreement. 

SECTION 9. Effect of Headings. The Section headings herein are for convenience only and shall not affect the construction
hereof. 
 SECTION 10. Administrative Agent. The Administrative Agent shall not be responsible in any manner whatsoever for or in
respect of the validity or sufficiency of this Guaranty Supplement or for or in respect of the recitals contained herein, all of which recitals are made solely by the New Guarantor. 

SECTION 11. Subrogation. The New Guarantor shall be subrogated to all rights of the Senior Credit Parties against the Borrower in
respect of any amounts paid by the New Guarantor pursuant to the provisions of Section 1 hereof and Section 2.5 of the Guaranty; provided that, if an Event of Default has occurred and is continuing, the New Guarantor shall not be
entitled to enforce or receive any payments arising out of, or based upon, such right of subrogation until all amounts then due and payable by the Borrower under the Loan Documents shall have been paid in full. 

SECTION 13. Benefits Acknowledged. The New Guarantor’s Guarantee is subject to the terms and conditions set forth in the Credit
Agreement. The New Guarantor acknowledges that it shall receive direct and indirect benefits from the financing arrangements contemplated by the Credit Agreement and this Guaranty Supplement and that the guarantee and waivers made by it pursuant to
this Guarantee are knowingly made in contemplation of such benefits. 
 SECTION 14. Successors. All agreements of the New Guarantor
in this Guaranty Supplement shall bind its Successors, except as otherwise provided in Section 2(k) hereof or elsewhere in this Guaranty Supplement. All agreements of the Administrative Agent in this Guaranty Supplement shall bind their
respective successors. 
 [Signature Pages Follow] 

  
 -5- 

 IN WITNESS WHEREOF, the parties hereto have duly executed this Guaranty Supplement as of the date
first above written. 
  

					
	[NEW GUARANTOR]
		
	By:	 	  

		 	Name:	 	
		 	Title:	 	

 
					
	 CITICORP NORTH AMERICA, INC.,
 as
Administrative Agent

		
	By:	 	  

		 	Name:	 	
		 	Title:EX-4.1

 EXHIBIT 4.1 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION
(“DTC”), TO ISSUER 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. 
 REYNOLDS AMERICAN INC. 

4.850% Senior Notes due 2023 
  

			
	 Certificate No.
	 	$                              
		 	CUSIP No. 761713 AY2
		 	ISIN US761713AY21

 Reynolds American Inc., a North Carolina 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
                                 DOLLARS
($                         ) on September 15, 2023. 

Interest Payment Dates: March 15 and September 15, commencing March 15, 2014. 

Record Dates: March 1 and September 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. 

  
 2 

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

 

							
		  		  	REYNOLDS AMERICAN INC.,
		  		  	 as Issuer

			
		  		  	
By:                            
                                         
         

		  		  	 Name: Daniel A. Fawley

		  		  	 Title: Senior Vice President and Treasurer

			
		  		  	
By:                            
                                         
         

		  		  	 Name: McDara P. Folan, III

		  		  	 Title:   Senior Vice President and Secretary

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

			
	SANTA FE NATURAL TOBACCO COMPANY, INC.,	  	
	 as Guarantor
	  	
		
	
By:                            
                                         
   
	  	
	 Name: Daniel A. Fawley
	  	
	 Title:   Vice President and Treasurer
	  	
		
	 R. J. REYNOLDS TOBACCO COMPANY,

as Guarantor
	  	
		
	
By:                            
                                         
   
	  	
	 Name: Daniel A. Fawley
	  	
	 Title:   Treasurer
	  	

  
 Note Signature Page 

					
	R. J. REYNOLDS TOBACCO CO.,	  	
	as Guarantor	  	
		
	By:                                   
                                     	  	
	Name:	 	Daniel A. Fawley	  	
	Title:	 	Vice President and Treasurer	  	
		
	 REYNOLDS FINANCE COMPANY,

as Guarantor
	  	
		
	By:                                   
                                     	  	
	Name:	 	Caroline M. Price	  	
	Title:	 	President	  	
		
	 REYNOLDS INNOVATIONS INC.,

as Guarantor
	  	
		
	By:                                   
                                     	  	
	Name:	 	Daniel A. Fawley	  	
	Title:	 	Treasurer	  	
		
	 CONWOOD HOLDINGS, INC.,
 as
Guarantor
	  	
		
	By:                                   
                                     	  	
	Name:	 	Daniel A. Fawley	  	
	Title:	 	Vice President and Treasurer	  	
		
	 AMERICAN SNUFF COMPANY, LLC,

as Guarantor
	  	
		
	By:                                   
                                     	  	
	Name:	 	Daniel A. Fawley	  	
	Title:	 	Vice President and Treasurer	  	

 Note Signature Page 

					
	ROSSWIL LLC,	  	
	as Guarantor	  	
		
	By:                                   
                                     	  	
	Name:	 	Daniel A. Fawley	  	
	Title:	 	Vice President and Treasurer	  	
		
	 R.J. REYNOLDS TOBACCO HOLDINGS, INC.,

as Guarantor
	  	
		
	By:                                   
                                     	  	
	Name:	 	Daniel A. Fawley	  	
	Title:	 	Senior Vice President and Treasurer	  	
		
	 R. J. REYNOLDS GLOBAL PRODUCTS, INC.,

as Guarantor
	  	
		
	By:                                   
                                     	  	
	Name:	 	Daniel A. Fawley	  	
	Title:	 	Vice President and Treasurer	  	
		
	 RAI SERVICES COMPANY,
 as
Guarantor
	  	
		
	By:                                   
                                     	  	
	Name:	 	Daniel A. Fawley	  	
	Title:	 	Senior Vice President and Treasurer	  	

 Note Signature Page 

 (Trustee’s Certificate of Authentication) 

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

Dated:                     , 

 

			
	THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,
	 as Trustee

			
		
	 By:
	 	
                             
                       

			
	 Name:
	 	
	 Title:
	 	

 Note Signature Page 

 [REVERSE OF NOTE] 

4.850% Senior Notes due 2023 

References herein to the “Notes” mean the Company’s 4.850% Senior Notes due 2023 and not to any other series.
Other capitalized terms used, but not defined, herein shall have the meanings assigned to them in the Indenture and Schedule I attached hereto unless otherwise indicated. 

1.     Interest.   The Company promises to pay interest on the principal amount of this
Note at 4.850% per annum from the date provided below until maturity. The Company shall pay interest semi-annually, in arrears, on March 15 and September 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”), except that, if the maturity date of the Note falls on a day that is not a Business Day, the Company will make the required payment of interest and principal on the immediately
succeeding Business Day, as if it were made on the date the payment was due. Interest on the Notes shall accrue from the date of initial issuance or, if interest has already been paid on the Notes, from and including the most recent Interest Payment
Date to which interest has been paid or provided for, to, but excluding the relevant Interest Payment Date; provided the first Interest Payment Date shall be March 15, 2014. Interest shall be computed on the basis of a 360-day year of
twelve 30-day months. Interest will not accrue as a result of any postponed or delayed payment in accordance with this paragraph. 

2.     Method of Payment.   The Company shall pay interest on the Notes (except defaulted
interest) to the Persons who are registered Holders of Notes at the close of business on the March 1 or September 1 immediately preceding the Interest Payment Date (except that interest payable at maturity of the Notes shall be paid to the
same persons to whom principal of such Notes is payable), even if such Notes are canceled after such record date and on or before such Interest Payment Date, except as provided in Section 2.13 of the Indenture with respect to defaulted
interest. The Notes shall be payable as to principal, premium, if any, and interest at the office or agency of the Company maintained for such purpose within the Borough of Manhattan of the City of New York, or, at the option of the Company, payment
of 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 and
premium, if any, 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 Mellon Trust Company, N.A. (formerly known as The Bank of New York Trust Company, N.A.), 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 31, 2006, as amended and supplemented, among the Company, as issuer, certain direct and indirect subsidiaries of the Company, as guarantors, and The Bank of New York Mellon Trust Company, N.A., as trustee

  
 1 

 
(the “Indenture”). The terms of the Notes include those stated in the Indenture, those made part of the Indenture by reference to the Trust Indenture Act of 1939, as
amended (the “TIA”), and those set forth in Schedule I attached hereto. The Notes are subject to all such terms, and Holders are referred to the Indenture, the TIA and Schedule I for a statement of such terms. 

5.     Redemption at Company’s Option.   The Company may redeem all or a part 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 30 basis points plus, with respect to each of the Notes,
accrued and unpaid interest, on the principal amount being redeemed to the date of redemption. Notice of redemption under this Article 5 shall be mailed, by first class mail, 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 equal to or larger than $2,000 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 (unless the Company shall default in the payment of the redemption price and accrued interest). All redemptions shall be effected pursuant
to applicable depositary procedures. 
 6.     Repurchase upon Change of Control Repurchase
Event.   If a Change of Control Repurchase Event occurs with respect to the Notes, unless the Company has exercised its right to redeem the Notes, the Company will make an offer to each Holder of Notes to repurchase all or any part (in
excess of $2,000 and in integral multiples of $1,000) of that Holder’s Notes at a repurchase price in cash equal to 101% of the aggregate principal amount of Notes repurchased plus any accrued and unpaid interest on the Notes repurchased to the
date of repurchase. Within 30 days following any Change of Control Repurchase Event, the Company will mail a notice to each Holder, with a copy to the Trustee, describing the transaction or transactions that constitute the Change of Control
Repurchase Event and offering to repurchase Notes on the payment date specified in the notice, which date will be no earlier than 30 days and no later than 60 days from the date such notice is mailed. The Company will comply with the requirements of
Rule 14e-1 under the Exchange Act and any other securities laws and regulations thereunder, to the extent those laws and regulations are applicable in connection with the repurchase of the Notes as a result of a Change of Control Repurchase Event.
To the extent that the provisions of any securities laws or regulations conflict with the Change of Control Repurchase Event provisions of the Notes, the Company will comply with the applicable securities laws and regulations and will not be deemed
to have breached its obligations hereunder by virtue of such conflict. On the Change of Control Repurchase Event payment date, the Company will, to the extent lawful (i) accept for payment all Notes or portions of Notes (in excess of $2,000 and
in integral multiples of $1,000) properly tendered pursuant to the Company’s offer; (ii) deposit with the Paying Agent an amount equal to the aggregate repurchase price in respect of all Notes or portions of Notes properly tendered; and
(iii) deliver or cause to be delivered to the Trustee the Notes properly accepted, together with an Officers’ Certificate stating the aggregate principal amount of Notes being purchased by the Company. The Paying Agent will promptly mail
to each Holder of Notes properly tendered the repurchase price for the Notes, and the Trustee will promptly authenticate and mail (or cause to be transferred by book-entry) to each Holder a new Note equal in principal amount to any unpurchased

  
 2 

 
portion of any Notes surrendered; provided that each new Note will be in a principal amount of $2,000 or an integral multiple of $1,000. The Company will not be required to make an offer to
repurchase the notes upon a Change of Control Repurchase Event if a third party makes such an offer in the manner, at the times and otherwise in compliance with the requirements for an offer made by the Company, and such third party purchases all
Notes properly tendered and not withdrawn under its offer. 
 7.     No Sinking Fund.
  The Company shall not be required to make sinking fund payments with respect to the Notes. 

8.     Denominations, Transfer, Exchange.   The Notes are in registered form without
coupons in minimum denominations of $2,000 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, including any transfer tax or other similar governmental charge payable in
connection therewith. 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 Note for a period of 15 days before a selection of Notes to be redeemed. 

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 by the Company and Guarantors, each when authorized by a Board Resolution, with the consent of the Holders of at least a majority in aggregate principal amount of the
Securities at the time outstanding of all series affected by such amendment or supplement, 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 Securities at the time outstanding of all series affected by such Default or waiver of compliance, voting as a single class. Without the consent of any Holder of a Note, the Company and the
Guarantors, when authorized by a Board Resolution, and the Trustee may supplement the Indenture or the Notes: (a) to convey, transfer, assign, mortgage or pledge to the Trustee as security for the Notes any property or assets; (b) to
evidence the succession of another corporation to the Company, or successive successions, and the assumption by the successor corporation of the covenants, agreements and obligations of the Company; (c) to add to the covenants of the Company
such further covenants, restrictions, conditions or provisions as its Board of Directors and the Trustee shall consider to be for the protection or benefit of the Holders of the Notes, and to make the occurrence, or the occurrence and continuance,
of a Default in any such additional covenants, restrictions, conditions or provisions an Event of Default permitting the enforcement of all or any of the several remedies provided in the Indenture as therein set forth; provided, that in respect of
any such additional covenant, restriction, condition or provision such amendment or supplement may provide for a particular period of grace after Default (which period may be shorter or longer than that allowed in the case of other Defaults) or may
provide for an immediate enforcement upon such an Event of Default or may limit the remedies available to the Trustee upon such an Event of Default or may 

  
 3 

 
limit the right of the Holders of a majority in aggregate principal amount of the Notes to waive such an Event of Default; (d) to cure any ambiguity or to correct or supplement any provision
contained in the Indenture or in any indenture supplemental thereto which may be defective or inconsistent with any other provision contained in the Indenture or in any indenture supplemental thereto; (e) to make such other provisions in regard
to matters or questions arising under the Indenture or under any indenture supplemental thereto as the Board of Directors may deem necessary or desirable and which shall not adversely affect the interests of the Holders of the Notes in any material
respect; (f) to establish the form or forms or terms of Securities of any series as permitted by the Indenture; (g) to evidence and provide for the acceptance of appointment under the Indenture by a successor trustee with respect to the
Notes and to add to or change any of the provisions of the Indenture as shall be necessary to provide for or facilitate the administration of the trusts thereunder by more than one trustee; (h) to provide for uncertificated Securities and to
make all appropriate changes for such purpose; (i) to comply with the requirements of the TIA; and (j) to add additional Guarantors with respect to the Notes. 

The Trustee is hereby authorized to join with the Company and the Guarantors in the execution of any such supplemental
indenture, to make any further appropriate agreements and stipulations which may be therein contained and to accept the conveyance, transfer, assignment, mortgage or pledge of any property thereunder, but the Trustee shall not be obligated to enter
into any such supplemental indenture which affects the Trustee’s own rights, duties or immunities under this Indenture or otherwise. 

11.     Defaults and Remedies.   Any of the following events which shall have occurred
and be continuing (whatever the reason for such Event of Default and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any
administrative or governmental body) 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, by first class mail, 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 

  
 4 

 
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 of the Indenture), 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) at any time as such security is required by the terms of the Indenture, any Security Document shall cease to be in full force and effect or shall cease to give
the Collateral Agent the liens or any of the material rights, powers and privileges purported to be created thereby in favor of the Collateral Agent and such default shall continue unremedied for a period of at least 30 days after written notice to
the Company by the Collateral Agent; or (i) any other Event of Default provided in Schedule I or in this Note. 

If an Event of Default described in clauses (a), (b), (c), (d) or (i) above (if the Event of Default under clause
(d) or (i) 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, and upon any such declaration the same shall
become immediately due and payable. If an Event of Default described in clause (d) or (i) (if the Event of Default under clauses (d) or (i), as the case may be, is with respect to all series of Securities then outstanding), (e), (f),
(g) or (h) 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 under the Indenture (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. 

The foregoing provisions, however, are subject to the condition that if, at any time after the principal of the Securities of
any series (or of all the Securities, as the case may be) shall have been so declared due and payable, and before any judgment or decree for the payment of the moneys due shall have been obtained or entered as hereinafter provided, the Company or
any Guarantor shall pay or shall deposit with the Trustee a sum sufficient to pay all matured installments of interest upon all the Securities of each such series (or of all the Securities, as the case may be) and the principal of any and all
Securities of each such series (or of all the Securities, as the case may be) which shall have become due otherwise than by acceleration (with interest upon such principal and, to the extent that payment of such interest is enforceable under
applicable law, on overdue installments of interest, at the same rate as the rate of interest specified in the Securities of each such series to the date of such payment or deposit) and such amount as shall be sufficient to cover reasonable
compensation to the Trustee and each predecessor Trustee, their respective agents, attorneys and counsel, and all other expenses and liabilities incurred, and all advances made, by the 

  
 5 

 
Trustee and each predecessor Trustee except as a result of gross negligence or willful misconduct, and if any and all Events of Default under the Indenture, other than the non-payment of the
principal of Securities which shall have become due by acceleration, shall have been cured, waived or otherwise remedied as provided herein, then and in every such case the Holders of a majority in aggregate principal amount of all the Securities of
each such series, or of all the Securities, in each case voting as a single class, then outstanding, by written notice to the Company and to the Trustee, may waive all defaults with respect to each such series (or with respect to all the Securities,
as the case may be) and rescind and annul such declaration and its consequences, but no such waiver or rescission and annulment shall extend to or shall affect any subsequent default or shall impair any right consequent thereon. 

12. Trustee Dealings with Company.   The Trustee, in its individual or any other capacity, may become the
owner or pledgee of Securities, and may otherwise deal with the Company, as if it were not the Trustee. 
 13. No
Recourse Against Others.       No director, officer, employee, incorporator or shareholder or controlling person 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 Securities and Exchange Commission 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 and in accordance with the Indenture. 
 15.
Guarantees.  This Note will be entitled to the benefits of certain Guarantees made for the benefit of the Holders. Subject 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, and of the circumstances under which the Guarantees may be released. 

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

  
 6 

 
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. 
 18.  Governing Law.  This Note shall be governed by and
construed in accordance with the laws of the State of New York without regard to principles of conflicts of laws. 

  
 7 

 The Company shall furnish to any Holder upon written request and without charge a
copy of the Indenture. Requests may be made to: 
 Reynolds American Inc. 

401 North Main Street 

Winston-Salem, North Carolina 27101 

Facsimile: 336-741-5000 

Attention: Treasurer 

  
 8 

 [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. 
  

                       
                        

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:                                       
              
  

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

  
 9 

 SCHEDULE I 

REYNOLDS AMERICAN INC. 
 TERMS OF
4.850% SENIOR NOTES DUE 2023 
 AND 

6.150% SENIOR NOTES DUE 2043 

Section 1.01 Designation of Notes. (a) The terms set forth in this Schedule I pertain to notes to be
issued pursuant to that certain Indenture dated May 31, 2006, as amended and supplemented, by and among Reynolds American Inc. (the “Company”) as Issuer, The Bank of New York Mellon Trust Company, N.A. (formerly known as The
Bank of New York Trust Company, N.A.), as Trustee, and certain Subsidiaries of the Company 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 4.850% Senior Notes due 2023 in the original principal amount of $550,000,000 (CUSIP Number 761713 AY2), (the “2023 Notes”) and (ii) the Company’s 6.150% Senior Notes due 2043 in the original principal
amount of $550,000,000 (CUSIP Number 761713 AZ9) (the “2043 Notes,” and together with the 2023 Notes, the “Notes”). 

(b)        The 2023 Notes and the 2043 Notes shall each be considered a separate
series for all purposes of the Indenture. 
 Section 1.02 Initial
Issuance.    (a)    The Notes are being offered and sold by the Company pursuant to an Underwriting Agreement, dated September 12, 2013 (the “Underwriting Agreement”) among the
Company, Citigroup Global Markets Inc., Goldman, Sachs & Co., J.P. Morgan Securities LLC and the other underwriters named therein. The Notes will be sold in an offering registered under the Securities Act. Each series of Notes shall be
issued in the form of a permanent global note, with each such global note to be deposited with the Trustee, as Custodian for the Depository, duly executed by the Company, and authenticated by the Trustee as hereinafter provided. Each such global
note may be represented by more than one certificate, if so required by the Depository’s rules regarding the maximum principal amount to be represented by a single certificate. The global notes representing the Notes 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. 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 $2,000 and any integral multiples of $1,000 in excess thereof. 

Section 1.03.    Depository: Custodian.   The Company initially appoints The
Depository Trust Company (“DTC”) to act as Depository 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 of Global Notes.   A Global Note may
not be transferred as a whole except by the Depository to a nominee of the Depository, by a nominee of the Depository to the Depository or to another nominee of the Depository, or by the Depository or any such nominee to a successor Depository or to
a nominee of such successor Depository. 

  
 I-1 

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

(b)        As used herein and in the Notes, the following terms shall have the
meanings set forth below: 
 “Below Investment Grade Rating Event” means, with respect to each series of
Notes, the Notes of that series are downgraded by each of the Rating Agencies on any date from the date of the public notice of an arrangement that could result in a Change of Control until the end of the 60-day period following public notice of the
occurrence of a Change of Control (which period shall be extended so long as the rating of the Notes is under publicly announced consideration for possible downgrade by any of the Rating Agencies) from a rating that is Investment Grade to a rating
that is below Investment Grade. 
 “Change of Control” means the occurrence of any of the following: 

(1)        the direct or indirect sale, transfer, conveyance or other disposition
(other than by way of merger or consolidation), in one or a series of related transactions, of all or substantially all of the properties or assets of the Company and its subsidiaries taken as a whole to any person other than the Company or one of
its wholly owned subsidiaries; 
 (2)        the consummation of any transaction
(including, without limitation, any merger or consolidation) the result of which is that any person other than the Company or one of its wholly owned subsidiaries becomes the beneficial owner, directly or indirectly, of more than 50% of the then
outstanding number of shares of Voting Stock of the Company or other Voting Stock into which the Company’s Voting Stock is reclassified, consolidated, exchanged or changed, measured by voting power rather than number of shares; 

(3)        the consolidation of the Company with, or merger of the Company with or
into, any person, or the consolidation of any person with, or merger with or into, the Company, in any such event pursuant to a transaction in which any of the Company’s outstanding Voting Stock or the Voting Stock of such other person is
converted into or exchanged for cash, securities or other property, other than any such transaction where the shares of the Company’s Voting Stock outstanding immediately prior to such transaction constitute, or are converted into or exchanged
for, a majority of the Voting Stock of the surviving person or any direct or indirect parent company of the surviving person immediately after giving effect to such transaction; and 

(4)        the adoption of a plan relating to the Company’s liquidation or
dissolution (other than its liquidation into a holding company newly formed in accordance with the following paragraph, provided that all claims and obligations of the Company are assumed by, and all assets are transferred to such holding company).

 Notwithstanding the foregoing, a transaction will not be deemed to involve a change of control under clause
(2) above if (1) the Company becomes a direct or indirect wholly owned subsidiary of a holding company and (2) (a) the direct or indirect holders of the Voting Stock of such 

  
 I-2 

 
holding company immediately following that transaction are substantially the same as the holders of the Company’s Voting Stock immediately prior to that transaction or (b) immediately
following that transaction no person (other than a holding company satisfying the requirements of this sentence) is the beneficial owner, directly or indirectly, of more than 50% of the Voting Stock of such holding company. As used in this paragraph
and the definition of “Change of Control,” the term “person” has the meaning given thereto in Section 13(d)(3) of the Exchange Act and the term “beneficial owner” has the meaning given thereto in Rules 13d-3 and
13d-5 promulgated under the Exchange Act. 
 “Change of Control Repurchase Event” means the occurrence of
both a Change of Control and a Below Investment Grade Rating Event. 
 “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: (1) the average of five Reference Treasury Dealer Quotations for
such redemption date, after excluding the highest and lowest Reference Treasury Dealer Quotations; or (2) 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 Global Notes, or any
successor entity thereto. 
 “Depository” means, with respect to the Notes issued in the form of one or
more Global Notes, DTC as the Person appointed hereby as the Depository with respect to the Notes, or another Person appointed as Depository by the Company, which Person must be a clearing agency registered under the Exchange Act, and any and all
successors thereto appointed as Depository hereunder and having become such pursuant to the applicable provision of the Indenture. 

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

“Independent Investment Banker” means any of Citigroup Global Markets Inc., Goldman, Sachs & Co. or
J.P. Morgan Securities LLC, or, if all such firms are unwilling or unable to select the Comparable Treasury Issue, an independent investment banking institution of national standing appointed by the Company. 

“Investment Grade” means a rating of Baa3 or better by Moody’s (or its equivalent under any successor
rating categories of Moody’s); a rating of BBB- or better by S&P (or its equivalent under any successor rating categories of S&P); or the equivalent investment grade credit rating from any additional Rating Agency or Rating Agencies
selected by the Company pursuant to clause (2) of the definition of Rating Agency. 
 “Moody’s”
means Moody’s Investors Service Inc., and any successor to its credit ratings business. 

  
 I-3 

 “Person” means any individual, corporation, partnership, limited liability
company, joint venture, association, joint-stock company, trust, unincorporated organization or government or any agency or political subdivision thereof. 

“Rating Agency” means (1) each of Moody’s and S&P; and (2) if either of Moody’s or
S&P ceases to rate the Notes or fails to make a rating of the Notes publicly available for reasons outside of the control of the Company, a “nationally recognized statistical rating organization” within the meaning of Rule
15c3-1(c)(2)(vi)(F) under the Exchange Act, selected by us as a replacement agency for Moody’s or S&P, as the case may be. 

“Reference Treasury Dealer” means: (1) Citigroup Global Markets Inc., Goldman, Sachs & Co. or
J.P. Morgan Securities LLC, and their respective successors; provided, however, that if any 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 firm another Primary Treasury Dealer; and (2) 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. 
 “S&P”
means Standard & Poor’s Ratings Services, a division of Standard & Poor’s Financial Services LLC, a subsidiary of The McGraw-Hill Companies, Inc., and any successor to its credit ratings business. 

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

“Treasury Rate” means, with respect to any redemption date: (1) 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 that is published weekly by the Board of Governors of the Federal
Reserve System and that 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 (2) 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. 
 “Voting Stock” means, with respect to any specified “person” (as that term is used in
Section 13(d)(3) of the Exchange Act) as of any date, the capital stock of such person that is at the time entitled to vote generally in the election of the board of directors of such person. 

  
 I-4

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