Document:

AEE-2014 Q2-Exhibit 10.2

Exhibit 10.2

Ameren Corporation 
2014 Omnibus Incentive Compensation Plan

    

TABLE OF CONTENTS

	
						
	ARTICLE 1
	PAGE

	ESTABLISHMENT, EFFECTIVENESS, PURPOSE AND DURATION
	 

	Section 1.01.
	Establishment
	1

	Section 1.02.
	Effectiveness
	1

	Section 1.03. 
	Purpose of This Plan
	1

	Section 1.04.
	Duration of This Plan
	1

	 
	 
	 
	 
	 
	 

	ARTICLE 2
	 

	DEFINITIONS
	 

	 
	 
	 
	 
	 
	 

	ARTICLE 3
	 

	ADMINISTRATION
	 

	Section 3.01.
	General
	5

	Section 3.02.
	Authority of the Committee
	5

	Section 3.03.
	Delegation
	6

	 
	 
	 
	 
	 
	 

	ARTICLE 4
	 

	SHARES SUBJECT TO THIS PLAN AND MAXIMUM AWARDS
	 

	Section 4.01.
	Number of Shares Available for Awards
	6

	Section 4.02.
	Share Usage
	7

	Section 4.03. 
	Annual Award Limits
	7

	Section 4.04.
	Adjustments in Authorized Shares
	8

	Section 4.05.
	Source of Shares
	8

	 
	 
	 
	 
	 
	 

	ARTICLE 5
	 

	ELIGIBILITY AND PARTICIPATION
	 

	Section 5.01.
	Eligibility
	9

	Section 5.02.
	Actual Participation
	9

	 
	 
	 
	 
	 
	 

	ARTICLE 6
	 

	STOCK OPTIONS
	 

	Section 6.01.
	Grant of Options
	9

	Section 6.02.
	Award Agreement
	9

	Section 6.03. 
	Option Price
	9

	Section 6.04.
	Term of Options
	9

	Section 6.05.
	Exercise of Options
	9

	Section 6.06. 
	Payment
	9

	Section 6.07.
	Restrictions on Share Transferability
	10

	Section 6.08.
	Termination of Employment
	10

i

	
						
	Section 6.09. 
	 Automatic Option Exercise
	10

	 
	 
	 
	 
	 
	 

	ARTICLE 7
	 

	STOCK APPRECIATION RIGHTS
	 

	Section 7.01.
	Grant of SARs
	11

	Section 7.02.
	SAR Award Agreement
	11

	Section 7.03.
	Grant Price
	11

	Section 7.04.
	Term of SAR
	11

	Section 7.05.
	Exercise of SARs
	11

	Section 7.06.
	Settlement of SARs
	11

	Section 7.07.
	Termination of Employment
	12

	Section 7.08.
	Other Restrictions
	12

	Section 7.09.
	Automatic SAR Exercise
	12

	 
	 
	 
	 
	 
	 

	ARTICLE 8
	 

	RESTRICTED STOCK AND RESTRICTED STOCK UNITS
	 

	Section 8.01.
	Grant of Restricted Stock or Restricted Stock Units
	12

	Section 8.02.
	Restricted Stock or Restricted Stock Unit Award Agreement
	12

	Section 8.03.
	Other Restrictions
	12

	Section 8.04.
	Certificate Legend
	13

	Section 8.05.
	Voting Rights
	13

	Section 8.06.
	Termination of Employment
	13

	 
	 
	 
	 
	 
	 

	ARTICLE 9
	 

	PERFORMANCE UNITS / PERFORMANCE SHARES
	 

	Section 9.01.
	Grant of Performance Units / Performance Shares
	14

	Section 9.02.
	Value of Performance Units / Performance Shares
	14

	Section 9.03.
	Earning of Performance Units / Performance Shares
	14

	Section 9.04.
	Form and Timing of Payment of Performance Units / Performance Shares
	14

	Section 9.05.
	Termination of Employment
	14

	 
	 
	 
	 
	 
	 

	ARTICLE 10
	 

	CASH-BASED AWARDS AND OTHER STOCK-BASED AWARDS
	 

	Section 10.01.
	Grant of Cash-Based Awards
	15

	Section 10.02.
	Other Stock-Based Awards
	15

	Section 10.03.
	Value of Cash-Based and Other Stock-Based Awards
	15

	Section 10.04.
	Payment of Cash-Based Awards and Other Stock-Based Awards
	15

	Section 10.05.
	Termination of Employment
	15

	 
	 
	 
	 
	 
	 

	ARTICLE 11
	 

	TRANSFERABILITY OF AWARDS
	 

	Section 11.01.
	Transferability
	15

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

ii

	
						
	Section 11.02.
	Committee Action
	16

	 
	 

	ARTICLE 12
	 

	PERFORMANCE MEASURES
	 

	Section 12.01.
	Awards Under This Article 12
	16

	Section 12.02.
	Performance Goals
	16

	Section 12.03.
	Performance Measures
	16

	Section 12.04.
	Evaluation of Performance
	17

	Section 12.05.
	Certification of Performance
	17

	Section 12.06.
	Adjustment of Performance-Based Compensation
	17

	Section 12.07.
	Committee Discretion
	17

	 
	 
	 
	 
	 
	 

	ARTICLE 13
	 

	DIRECTOR AWARDS
	 

	 
	 
	 
	 
	 
	 

	ARTICLE 14
	 

	DIVIDEND EQUIVALENTS
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	ARTICLE 15
	 

	BENEFICIARY DESIGNATION
	 

	 
	 
	 
	 
	 
	 

	ARTICLE 16
	 

	RIGHTS OF PARTICIPANTS
	 

	Section 16.01.
	Employment
	18

	Section 16.02.
	Participation
	19

	Section 16.03.
	Rights as a Shareholder
	19

	 
	 
	 
	 
	 
	 

	ARTICLE 17
	 

	CHANGE OF CONTROL
	 

	 
	 
	 
	 
	 
	 

	ARTICLE 18
	 

	AMENDMENT, MODIFICATION, SUSPENSION, AND TERMINATION
	 

	Section 18.01.
	Amendment, Modification, Suspension, and Termination
	19

	Section 18.02.
	Awards Previously Granted
	19

	Section 18.03.
	Amendment to Conform to Law
	19

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

iii

	
						
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	ARTICLE 19
	 

	WITHHOLDING
	 

	 
	 
	 
	 
	 
	 

	ARTICLE 20
	 

	SUCCESSORS
	 

	 
	 
	 
	 
	 
	 

	ARTICLE 21
	 

	GENERAL PROVISIONS
	 

	Section 21.01.
	Forfeiture Events
	20

	Section 21.02.
	Legend
	21

	Section 21.03.
	Gender and Number
	21

	Section 21.04.
	Severability
	21

	Section 21.05.
	Requirements of Law
	21

	Section 21.06.
	Delivery of Title
	21

	Section 21.07.
	Inability to Obtain Authority
	21

	Section 21.08.
	Investment Representations
	22

	Section 21.09.
	Uncertificated Shares
	22

	Section 21.10.
	Unfunded Plan
	22

	Section 21.11.
	No Fractional Shares
	22

	Section 21.12.
	Retirement and Welfare Plans
	22

	Section 21.13.
	Deferred Compensation
	22

	Section 21.14.
	Nonexclusivity of this Plan
	23

	Section 21.15.
	No Constraint on Corporate Action
	23

	Section 21.16.
	Governing Law
	23

	Section 21.17.
	Indemnification
	23

	Section 21.18.
	No Guarantee of Favorable Tax Treatment
	23

	Section 21.19.
	Effect of Disposition of Facility or Operating Unit
	24

iv

Ameren Corporation 2014 Omnibus Incentive Compensation Plan
ARTICLE 1
ESTABLISHMENT, EFFECTIVENESS, PURPOSE AND DURATION

Section 1.01.  Establishment.  Ameren Corporation, a Missouri corporation (hereinafter referred to as the “Company”), establishes an incentive compensation plan to be known as the Ameren Corporation 2014 Omnibus Incentive Compensation Plan (hereinafter referred to as this “Plan”), as set forth in this document.

Section 1.02.  Effectiveness.  This Plan shall become effective upon shareholder approval (the “Effective Date”) and shall remain in effect as provided in Section 1.04.    The Company may make contingent Awards before the Effective Date; provided that the vesting, exercise, or payment of such Awards is expressly conditioned on shareholder approval and the Awards are forfeited if shareholders do not approve this Plan.  Subject to the approval of the Company’s shareholders of this Plan, no further awards shall be granted under the Prior Plan as of the Effective Date.

Section 1.03.  Purpose of This Plan.  The purpose of this Plan is to provide a means whereby Employees and Directors of the Company develop a sense of proprietorship and personal involvement in the development and financial success of the Company, and to encourage them to devote their best efforts to the business of the Company, thereby advancing the interests of the Company and its shareholders.  A further purpose of this Plan is to provide a means through which the Company may attract able individuals to become Employees or serve as Directors of the Company.  This Plan permits the grant of Nonqualified Stock Options, Incentive Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance Shares, Performance Units, Cash-Based Awards and Other Stock-Based Awards.

Section 1.04.  Duration of This Plan.  Unless sooner terminated as provided herein, this Plan shall terminate ten years from the Effective Date.  After this Plan is terminated, no Awards may be granted but Awards previously granted shall remain outstanding in accordance with their applicable terms and conditions and this Plan’s terms and conditions.  Notwithstanding the foregoing, no Incentive Stock Options may be granted more than ten years after the earlier of (a) adoption of this Plan by the Board, or (b) the Effective Date.

ARTICLE 2
DEFINITIONS

Whenever used in this Plan, the following terms shall have the meanings set forth below, and when the meaning is intended, the initial letter of the word shall be capitalized.
“Affiliate” means any corporation or other entity (including, but not limited to, a partnership or a limited liability company) that is affiliated with the Company through stock or equity ownership or otherwise, including each Subsidiary and any other 

corporation or entity designated as an Affiliate for purposes of this Plan by the Committee.
“Aggregate Share Authorization” has the meaning set forth in Section 4.01.  
“Annual Award Limit” and “Annual Award Limits” have the meaning set forth in Section 4.03.  
“Award” means, individually or collectively, a grant under this Plan of Nonqualified Stock Options, Incentive Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance Shares, Performance Units, Cash-Based Awards, or Other Stock-Based Awards, in each case subject to the terms of this Plan.
“Award Agreement” means either (i) an agreement entered into by the Company and a Participant setting forth the terms and provisions applicable to an Award granted under this Plan, or (ii) a written or electronic statement issued by the Company to a Participant describing the terms and provisions of such Award, including any amendment or modification thereof.  The Committee may provide for the use of electronic, Internet, or other non-paper Award Agreements, and the use of electronic, Internet, or other non-paper means for the acceptance thereof and actions thereunder by a Participant.
“Board” or “Board of Directors” means the Board of Directors of the Company.
“Cash-Based Award” means an Award, denominated in cash, granted to a Participant as described in Article 10.
“Code” means the U.S. Internal Revenue Code of 1986, as amended from time to time.  For purposes of this Plan, references to sections of the Code shall be deemed to include references to any applicable regulations or other published guidance thereunder and any successor or similar provision.
“Committee” means the Human Resources Committee of the Board or a subcommittee thereof, or any other committee designated by the Board to administer this Plan.  The members of the Committee shall be appointed from time to time by and shall serve at the discretion of the Board.  The Committee shall consist of two or more persons, each of whom qualifies as a “non-employee director” within the meaning of Rule 16b-3 of the Exchange Act and as an “outside director” within the meaning of Code Section 162(m).  If the Committee does not exist or cannot function for any reason, the Board may take any action under the Plan that would otherwise be the responsibility of the Committee.
“Company” has the meaning set forth in Section 1.01, and any successor thereto as provided in Article 21.
“Covered Employee” means any Employee who is or may become a “Covered Employee,” as defined in Code Section 162(m), and who is designated, either as an individual Employee or class of Employees, by the Committee within the shorter of (i) 90 

2

days after the beginning of the Performance Period, or (ii) before 25% of the Performance Period has elapsed, as a “Covered Employee” under this Plan for such applicable Performance Period.
“Director” means any individual who is a member of the Board of Directors of the Company and who is not an employee of the Company.
“Director Award” means any Award granted, whether singly, in combination, or in tandem, to a Participant who is a Director pursuant to such applicable terms, conditions, and limitations as the Board or Committee may establish in accordance with this Plan.
“Effective Date” has the meaning set forth in Section 1.02.  
“Employee” means any individual designated as an employee of the Company, its Affiliates, and/or its Subsidiaries on the payroll records thereof.
“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time.  For purposes of this Plan, references to sections of the Exchange Act shall be deemed to include references to any applicable regulations or other published guidance thereunder and any successor or similar provision.
“Fair Market Value” or “FMV” means a price that is based on the opening, closing, actual, high, low, or average selling prices of a Share reported on the New York Stock Exchange (“NYSE”) or other established stock exchange (or exchanges) on the applicable date, the preceding trading day, the next succeeding trading day, or an average of trading days, as determined by the Committee in its discretion.  Unless the Committee determines otherwise, Fair Market Value shall be the closing price of a Share on the date in question (or, if there is no reported sale on such date, on the last preceding date on which any reported sale occurred).  In the event that Shares are not publicly traded at the time a determination of their value is required to be made hereunder, the determination of their Fair Market Value shall be made by the Committee in such manner as it deems appropriate.  If Fair Market Value is a price other than the closing price of a Share on the most recent date on which Shares were publicly traded, the definition of FMV shall be specified in the Award Agreement.
“Full Value Award” means an Award other than an Award in the form of a Nonqualified Stock Option, Incentive Stock Option or Stock Appreciation Right, and which is settled by the issuance of Shares.
“Grant Price” means the price established at the time of grant of an SAR pursuant to Article 7, used to determine whether there is any payment due upon exercise of the SAR.
“Incentive Stock Option” or “ISO” means an Option to purchase Shares granted under Article 6 to an Employee that is designated as an Incentive Stock Option and intended to meet the requirements of Code Section 422.

3

“Nonqualified Stock Option” or “NQSO” means an Option that is not intended to meet the requirements of Code Section 422, or that otherwise does not meet such requirements.
“Option” means an Incentive Stock Option or a Nonqualified Stock Option, as granted pursuant to Article 6.
“Option Price” means the price at which a Share may be purchased by a Participant pursuant to an Option.
“Option Term” means the period of time during which an Option is exercisable as the Committee shall determine at the time of grant; provided, however, no Option shall be exercisable later than the tenth anniversary of its grant date.
“Other Stock-Based Award” means an equity-based or equity-related Award not otherwise described by the terms of this Plan, granted pursuant to Article 10.
“Participant” means any eligible individual as set forth in Article 5 to whom an Award is granted.
“Performance-Based Compensation” means compensation under an Award that is intended to satisfy the requirements of Code Section 162(m) for certain performance-based compensation paid to Covered Employees.
“Performance Measures” means measures as described in Article 12 on which the performance goals are based and which are approved by the Company’s shareholders pursuant to this Plan in order to satisfy the requirements for Performance-Based Compensation.
“Performance Period” means the period of time during which the performance goals must be met in order to determine the degree of payout and/or vesting with respect to an Award.
“Performance Share” means an Award granted pursuant to Article 9 that is denominated in Shares, the value of which at the time it is payable is determined based on achievement of corresponding performance criteria.
“Performance Unit” means an Award granted under Article 9 that is denominated in dollars, the value of which at the time it is payable is determined based on achievement of corresponding performance criteria.
“Period of Restriction” means the period when Restricted Stock or Restricted Stock Units are subject to a substantial risk of forfeiture (based on the performance of services, the achievement of performance goals, or the occurrence of other events as determined by the Committee, in its discretion), as provided in Article 8.

4

“Person” shall have the meaning ascribed to such term in Section 3(a)(9) of the Exchange Act and used in Sections 13(d) and 14(d) thereof, including a “group” as defined in Section 13(d) thereof.
“Plan” has the meaning set forth in Section 1.01.
“Plan Year” means the calendar year.
“Prior Plan” means the Ameren Corporation 2006 Omnibus Incentive Compensation Plan.
“Prior Plan Award” means an award granted under the Prior Plan that is outstanding as of the Effective Date.
“Restricted Stock” means an Award granted pursuant to Article 8, as set forth therein.
“Restricted Stock Unit” means an Award granted pursuant to Article 8, as set forth therein.
“Share” means a share of common stock of the Company, $0.01 par value per share.
“Stock Appreciation Right” or “SAR” means an Award, designated as an SAR, granted pursuant to Article 7.
“Subsidiary” means any corporation or other entity, whether domestic or foreign, in which the Company has or obtains, directly or indirectly, a proprietary interest of more than 50% by reason of stock ownership or otherwise.
ARTICLE 3
ADMINISTRATION

Section 3.01.  General.  The Committee shall be responsible for administering this Plan, subject to this Article 3 and the other provisions of this Plan.  The Committee may employ attorneys, consultants, accountants, agents, and other individuals, any of whom may be an Employee, and the Committee, the Company, and its officers and Directors shall be entitled to rely upon the advice, opinions, or valuations of any such individuals.  All actions taken and all interpretations and determinations made by the Committee shall be final and binding upon the Participants, the Company, and all other interested persons.

Section 3.02.  Authority of the Committee.  The Committee shall have full discretionary power to interpret the terms and the intent of this Plan and any Award Agreement or other agreement or document ancillary to or in connection with this Plan, to determine eligibility for Awards and to adopt such rules, regulations, forms, instruments, and guidelines for administering this Plan as the Committee may deem necessary or proper.  Such authority shall include, but not be limited to, selecting Award

5

 recipients, establishing all Award terms and conditions, including the terms and conditions set forth in Award Agreements, granting Awards as an alternative to or as the form of payment for grants or rights earned or due under compensation plans or arrangements of the Company, construing any ambiguous provision of the Plan or any Award Agreement, and, subject to Article 18, adopting modifications and amendments to this Plan or any Award Agreement, including without limitation, any that are necessary to comply with or qualify for the laws of the countries and other jurisdictions in which the Company, its Affiliates, and/or its Subsidiaries operate.

Section 3.03  Delegation.  To the extent permitted under applicable law, the Committee may delegate to one or more of its members or to one or more officers of the Company and/or its Subsidiaries and Affiliates, or to one or more agents or advisors, such administrative duties or powers as it may deem advisable, and the Committee or any individuals to whom it has delegated duties or powers as aforesaid may employ one or more individuals to render advice with respect to any responsibility that the Committee or such individuals may have under this Plan.  The Committee may, by resolution, authorize one or more officers of the Company to do one or both of the following on the same basis as can the Committee: (a) designate Employees to be recipients of Awards; and (b) determine the size of any such Awards; provided, however, (i) the Committee shall not delegate such responsibilities to any such officer for Awards granted to an Employee who is, on the relevant date, a Covered Employee or an officer or Director for purposes of Section 16 of the Exchange Act; (ii) the resolution providing such authorization sets forth the total number of Shares underlying Awards such officer(s) may grant; and (iii) the officer(s) shall report periodically to the Committee regarding the nature and scope of the Awards granted pursuant to the authority delegated.

ARTICLE 4
SHARES SUBJECT TO THIS PLAN AND MAXIMUM AWARDS

Section 4.01.  Number of Shares Available for Awards.  (a)  Subject to adjustment as provided in Section 4.04.  , the maximum number of Shares available for grant to Participants under this Plan (the “Aggregate Share Authorization”) shall be 8,000,000 Shares.  To the extent that the issuance of any Share subject to a Prior Plan Award that is outstanding as of the Effective Date would cause the Company to exceed the aggregate share authorization under the Prior Plan, any such Share shall be made under this Plan and shall reduce this Plan’s Aggregate Share Authorization by one Share.

(b)    Flexible Share Authorization.  To the extent that a Share is issued pursuant to the grant or exercise of a Full Value Award, it shall reduce the Aggregate Share Authorization by one Share; and, to the extent that a Share is issued pursuant to the grant or exercise of an Award other than a Full Value Award, it shall reduce the Aggregate Share Authorization by 0.47 of a Share.

(c)    The maximum number of Shares that may be issued pursuant to ISOs under this Plan shall be equal to the Aggregate Share Authorization.

6

(d)    The maximum aggregate value of Awards that may be granted to any Director under this Plan during any calendar year shall not exceed $400,000, as determined by the Committee based on the value of any Award at the time of grant.

Section 4.02.  Share Usage.  (a)  Shares covered by an Award or a Prior Plan Award (if applicable) shall be counted as used only to the extent they are actually issued.  Any Shares related to Awards that terminate by expiration, forfeiture, cancellation, or otherwise without the issuance of such Shares, are settled in cash in lieu of Shares, or are exchanged with the Committee’s permission (prior to the issuance of Shares) for Awards not involving Shares, shall be available again for grant under this Plan.  

(b)    Notwithstanding anything to the contrary in Section 4.02(a), Shares subject to an Award shall not again be available for grant under this Plan if such Shares are (i) Shares tendered or withheld in payment of the exercise price of an Option, (ii) Shares delivered to or withheld by the Company to satisfy any tax withholding liabilities arising from an Option, or (iii) Shares covered by a stock-settled Stock Appreciation Right that were not issued upon the settlement of the Stock Appreciation Right.

Section 4.03.  Annual Award Limits.  Unless and until the Committee determines that an Award to a Covered Employee shall not be designed to qualify as Performance-Based Compensation, the following limits (each an “Annual Award Limit” and, collectively, “Annual Award Limits”) shall apply to grants of Awards under this Plan:

(a)Options. The maximum aggregate number of Shares subject to Options granted in any one Plan Year to any one Participant shall be 2,000,000.

(b)SARs. The maximum aggregate number of Shares subject to Stock Appreciation Rights granted in any one Plan Year to any one Participant shall be 2,000,000.

(c)Restricted Stock or Restricted Stock Units. The maximum aggregate grant with respect to Awards of Restricted Stock or Restricted Stock Units in any one Plan Year to any one Participant shall be 300,000 Shares.

(d)Performance Units or Performance Shares. The maximum aggregate number of Performance Units or Performance Shares that a Participant may be awarded in any one Plan Year shall be 300,000 Shares.  As provided in Section 9.03.  , up to 2.5 Shares (or the cash value of 2.5 Shares) may be issued with respect to a Performance Unit or Performance Share, depending on the level of performance.

(e)Cash-Based Awards. The maximum aggregate amount awarded with respect to Cash-Based Awards to any one Participant in any one Plan Year may not exceed $5,000,000, determined as of the date of payment.

(f)Other Stock-Based Awards.  The maximum aggregate grant with respect to Other Stock-Based Awards pursuant to Section 10.02.   in any one Plan Year to any one Participant shall be 300,000 Shares.

    

7

Section 4.04.  Adjustments in Authorized Shares.  (a)  In the event of any corporate event or transaction (including, but not limited to, a change in the Shares of the Company or the capitalization of the Company) such as a merger, consolidation, reorganization, recapitalization, separation, partial or complete liquidation, stock dividend, stock split, reverse stock split, split up, spin-off, or other distribution of stock or property of the Company, combination of Shares, exchange of Shares, dividend in kind, or other like change in capital structure, number of outstanding Shares, or distribution (other than normal cash dividends) to shareholders of the Company, or any similar corporate event or transaction, or in the event of unusual or nonrecurring events affecting the Company or the financial statements of the Company or of changes in applicable laws, regulations, or accounting principles, the Committee, in order to prevent dilution or enlargement of Participants’ rights under this Plan, shall substitute or adjust, as applicable, the number and kind of Shares that may be granted under this Plan or under particular forms of Awards, the number and kind of Shares subject to outstanding Awards, the Option Price or Grant Price applicable to outstanding Awards, the Annual Award Limits, and other value determinations applicable to outstanding Awards. The Committee, in its discretion, shall determine the methodology or manner of making such substitution or adjustment.

(b)    The Committee, in its sole discretion, may also make appropriate adjustments in the terms of any Awards under this Plan to reflect, or that relate to, the changes or distributions described in Section 4.04(a) and to modify any other terms of outstanding Awards, including modifications of performance goals and changes in the length of Performance Periods.  The Committee shall not make any adjustment pursuant to this Section 4.04.   that would (i) prevent Performance-Based Compensation from satisfying the requirements of Code Section 162(m), (ii) cause an Award that is otherwise exempt from Code Section 409A to become subject to Section 409A, or (iii) cause an Award that is subject to Code Section 409A to fail to satisfy the requirements of Section 409A.  The determination of the Committee as to the foregoing adjustments, if any, shall be conclusive and binding on Participants under this Plan.

(c)    Subject to the provisions of Article 18 and notwithstanding anything else herein to the contrary, without affecting the number of Shares reserved or available hereunder, the Committee may authorize the issuance or assumption of benefits under this Plan in connection with any merger, consolidation, acquisition of property or stock, or reorganization upon such terms and conditions as it may deem appropriate (including, but not limited to, a conversion of equity awards into Awards under this Plan in a manner consistent with FASB ASC Topic 718-20-35-6 or its successor, subject to compliance with the rules under Code Sections 409A, 422, and 424, as and where applicable.

Section 4.05.    Source of Shares.  The Shares available for issuance under this Plan may be authorized and unissued Shares or treasury Shares.

8

ARTICLE 5
ELIGIBILITY AND PARTICIPATION 

Section 5.01.  Eligibility.  Individuals eligible to participate in this Plan include all Employees and Directors.

Section 5.02.  Actual Participation.  Subject to the provisions of this Plan, the Committee may, from time to time, select from all eligible individuals those individuals to whom Awards shall be granted and shall determine, in its sole discretion, the nature of any and all terms permissible by law, and the amount of each Award.

ARTICLE 6
STOCK OPTIONS

Section 6.01.  Grant of Options.  Subject to the terms and provisions of this Plan, Options may be granted to Participants in such number, and upon such terms, and at any time and from time to time as shall be determined by the Committee, in its sole discretion; provided that ISOs may be granted only to eligible Employees of the Company or of any parent or subsidiary corporation (to the extent permitted under Code Sections 422 and 424).

Section 6.02.  Award Agreement.  Each Option grant shall be evidenced by an Award Agreement that shall specify the Option Price, the maximum duration of the Option, the number of Shares to which the Option pertains, the conditions upon which an Option shall become vested and exercisable, and such other provisions as the Committee shall determine which are not inconsistent with the terms of this Plan.  The Award Agreement also shall specify whether the Option is intended to be an ISO or an NQSO.

Section 6.03.  Option Price.  The Option Price for each grant of an Option under this Plan shall be determined by the Committee in its sole discretion and shall be specified in the Award Agreement; provided, however, the Option Price must be at least equal to 100% of the FMV of the Shares as determined on the date of grant.

Section 6.04.  Term of Options.  Each Option granted to a Participant shall expire at such time as the Committee shall determine and set forth in the Award Agreement at the time of grant; provided, however, no Option shall be exercisable later than the tenth anniversary date of its grant.  Notwithstanding the foregoing, for Nonqualified Stock Options granted to Participants outside the United States, the Committee has the authority to grant Nonqualified Stock Options that have a term greater than ten years.

Section 6.05.  Exercise of Options.  Options granted under this Article 6 shall be exercisable at such times and be subject to such restrictions and conditions as the Committee shall in each instance approve, which terms and restrictions need not be the same for each grant or for each Participant.

Section 6.06.  Payment.  (a) Subject to Section 6.09, Options granted under this Article 6 shall be exercised by the delivery of a notice of exercise to the Company or an 

9

agent designated by the Company in a form specified or accepted by the Committee, or by complying with any alternative procedures which may be authorized by the Committee, setting forth the number of Shares with respect to which the Option is to be exercised, accompanied by full payment for the Shares.  The Shares shall become the property of the Participant on the exercise date, subject to any forfeiture conditions specified in the Option.

(b)A condition of the issuance of the Shares as to which an Option shall be exercised shall be the payment of the Option Price at the time of the exercise.  The Option Price of any Option shall be payable to the Company in full either (i) in cash or its equivalent; (ii) by tendering (either by actual delivery or attestation) previously acquired Shares having an aggregate Fair Market Value at the time of exercise equal to the Option Price; (iii) by a cashless (broker-assisted) exercise; (iv) by a combination of (i), (ii) and/or (iii); or (v) any other method approved or accepted by the Committee in its sole discretion.  Unless otherwise determined by the Committee, all payments under all of the methods indicated above shall be paid in United States dollars.

(c)Subject to any governing rules or regulations, as soon as practicable after receipt of written notification of exercise and full payment (including satisfaction of any applicable tax withholding), the Company shall deliver to the Participant a statement of holdings as evidence of book entry uncertificated Shares, or at the sole discretion of the Committee upon the Participant’s request, Share certificates in an appropriate amount based upon the number of Shares purchased under the Option(s).

Section 6.07.  Restrictions on Share Transferability.  The Committee may impose such restrictions on any Shares acquired pursuant to the exercise of an Option granted under this Article 6 as it may deem advisable, including, without limitation, minimum holding period requirements, restrictions under applicable federal securities laws, under the requirements of any stock exchange or market upon which such Shares are then listed and/or traded, or under any blue sky or state securities laws applicable to such Shares.

Section 6.08.  Termination of Employment.  Each Participant’s Award Agreement shall set forth the extent to which the Participant shall have the right to exercise the Option following termination of the Participant’s employment or provision of services to the Company, its Affiliates, and/or its Subsidiaries, as the case may be.  Such provisions shall be determined in the sole discretion of the Committee, shall be included in the Award Agreement entered into with each Participant, need not be uniform among all Options granted pursuant to this Article 6, and may reflect distinctions based on the reasons for termination.

Section 6.09.  Automatic Option Exercise.  An Award Agreement may provide that if, on the last day of the term of an Option, the Fair Market Value of one Share exceeds the exercise price per Share of the Option, if the Participant has not exercised the Option, and the Option has not otherwise expired, the Option shall be deemed to have been exercised by the Participant on such day.  In such event, the Company shall deliver Shares to the Participant in accordance with this Section 6.09, reduced by the number of 

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Shares required for payment of the exercise price and for payment of withholding taxes; any fractional Share shall be settled in cash.

ARTICLE 7
STOCK APPRECIATION RIGHTS

Section 7.01.  Grant of SARs.  Subject to the terms and conditions of this Plan, SARs may be granted to Participants at any time and from time to time as shall be determined by the Committee.  Subject to the terms and conditions of this Plan, the Committee shall have complete discretion in determining the number of SARs granted to each Participant and, consistent with the provisions of this Plan, the terms and conditions pertaining to such SARs.

Section 7.02.  SAR Award Agreement.  Each SAR grant shall be evidenced by an Award Agreement that shall specify the Grant Price, the maximum duration of the SAR, the number of Shares to which the SAR pertains, the conditions upon which an SAR shall become vested and exercisable, and such other provisions as the Committee shall determine which are not inconsistent with the terms of this Plan.

Section 7.03.  Grant Price.  The Grant Price for each grant of an SAR shall be determined by the Committee and shall be specified in the Award Agreement; provided, however, the Grant Price on the date of grant must be at least equal to 100% of the FMV of the Shares as determined on the date of grant.

Section 7.04.  Term of SAR.  The term of an SAR granted under this Plan shall be determined by the Committee, in its sole discretion, and set forth in the Award Agreement at the time of grant.  Except as determined otherwise by the Committee and specified in the SAR Award Agreement, no SAR shall be exercisable later than the tenth  anniversary date of its grant. Notwithstanding the foregoing, for SARs granted to Participants outside the United States, the Committee has the authority to grant SARs that have a term greater than ten years.

Section 7.05.  Exercise of SARs.  SARs granted under this Article 7 shall be exercisable at such times and be subject to such restrictions and conditions as the Committee shall in each instance approve, which terms and restrictions need not be the same for each grant or for each Participant.

Section 7.06.  Settlement of SARs.  Upon the exercise of an SAR, a Participant shall be entitled to receive payment from the Company on the exercise date in an amount determined by multiplying:

(a)the excess of the Fair Market Value of a Share on the date of exercise over the Grant Price; by

(b)the number of Shares with respect to which the SAR is exercised.

At the discretion of the Committee, the payment upon SAR exercise may be in cash, 

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Shares, or any combination thereof, or in any other manner approved by the Committee in its sole discretion.  The Committee’s determination regarding the form of SAR payout shall be set forth in the Award Agreement pertaining to the grant of the SAR.

Section 7.07.  Termination of Employment.  Each Award Agreement shall set forth the extent to which the Participant shall have the right to exercise the SAR following termination of the Participant’s employment with or provision of services to the Company, its Affiliates, and/or its Subsidiaries, as the case may be.  Such provisions shall be determined in the sole discretion of the Committee, shall be included in the Award Agreement entered into with Participants, need not be uniform among all SARs granted pursuant to this Article 7, and may reflect distinctions based on the reasons for termination.

Section 7.08.  Other Restrictions.  The Committee shall impose such other conditions and/or restrictions on any Shares received upon exercise of an SAR granted pursuant to this Plan as it may deem advisable or desirable.  These restrictions may include, but shall not be limited to, a requirement that the Participant hold the Shares received upon exercise of an SAR for a specified period of time.

Section 7.09.  Automatic SAR Exercise.  An Award Agreement may provide that if, on the last day of the term of an SAR, the Fair Market Value of one Share exceeds the Grant Price per Share of the SAR, if the Participant has not exercised the SAR, and the SAR has not otherwise expired, the SAR shall be deemed to have been exercised by the Participant on such day.  In such event, the Company shall deliver payment to the Participant in accordance with the terms of settlement set forth in Section 7.06.

ARTICLE 8
RESTRICTED STOCK AND RESTRICTED STOCK UNITS

Section 8.01.  Grant of Restricted Stock or Restricted Stock Units.  Subject to the terms and provisions of this Plan, the Committee, at any time and from time to time, may grant Shares of Restricted Stock and/or Restricted Stock Units to Participants in such amounts as the Committee shall determine.  Restricted Stock Units shall be similar to Restricted Stock except that no Shares are actually awarded to the Participant on the date of grant.

Section 8.02.  Restricted Stock or Restricted Stock Unit Award Agreement.  Each Restricted Stock and/or Restricted Stock Unit grant shall be evidenced by an Award Agreement that shall specify the Period(s) of Restriction, the number of Shares of Restricted Stock or the number of Restricted Stock Units granted, and such other provisions as the Committee shall determine.

Section 8.03.  Other Restrictions.  (a)  The Committee shall impose such other conditions and/or restrictions on any Shares of Restricted Stock or Restricted Stock Units granted pursuant to this Plan as it may deem advisable including, without limitation, a requirement that Participants pay a stipulated purchase price for each Share of Restricted Stock or each Restricted Stock Unit, restrictions based upon the achievement of specific 

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performance goals, time-based restrictions on vesting following the attainment of the performance goals, time-based restrictions, and/or restrictions under applicable laws or under the requirements of any stock exchange or market upon which such Shares are listed or traded, or holding requirements or sale restrictions placed on the Shares by the Company upon vesting of such Restricted Stock or Restricted Stock Units.

(b)To the extent deemed appropriate by the Committee, the Company may retain any certificates or statements of holdings representing Shares of Restricted Stock in the Company’s possession until such time as all conditions and/or restrictions applicable to such Shares have been satisfied or lapse.

(c)Except as otherwise provided in this Article 8, Shares of Restricted Stock covered by each Restricted Stock Award shall become freely transferable by the Participant after all conditions and restrictions applicable to such Shares have been satisfied or lapse (including satisfaction of any applicable tax withholding obligations), and Restricted Stock Units shall be paid in cash, Shares, or a combination of cash and Shares as the Committee, in its sole discretion, shall determine.

Section 8.04.  Certificate Legend.  In addition to any legends placed on certificates or statements of holdings pursuant to Section 8.03.  , each certificate or statement of holdings representing Shares of Restricted Stock granted pursuant to this Plan may bear a legend such as the following or as otherwise determined by the Committee in its sole discretion:

The sale or transfer of Shares of stock represented by this certificate or statement of holdings, whether voluntary, involuntary, or by operation of law, is subject to certain restrictions on transfer as set forth in the Ameren Corporation 2014 Omnibus Incentive Compensation Plan, and in the associated Award Agreement.  A copy of the Plan and such Award Agreement may be obtained from Ameren Corporation.

Section 8.05.  Voting Rights.  Unless otherwise determined by the Committee and set forth in a Participant’s Award Agreement, to the extent permitted or required by law, as determined by the Committee, Participants holding Shares of Restricted Stock granted hereunder may be granted the right to exercise full voting rights with respect to those Shares during the Period of Restriction.  A Participant shall have no voting rights with respect to any Restricted Stock Units granted hereunder.

Section 8.06.  Termination of Employment.  Each Award Agreement shall set forth the extent to which the Participant shall have the right to retain Restricted Stock and/or Restricted Stock Units following termination of the Participant’s employment with or provision of services to the Company, its Affiliates, and/or its Subsidiaries, as the case may be.  Such provisions shall be determined in the sole discretion of the Committee, shall be included in the Award Agreement entered into with each Participant, need not be uniform among all Shares of Restricted Stock or Restricted Stock Units granted pursuant to this Article 8, and may reflect distinctions based on the reasons for termination.

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ARTICLE 9
PERFORMANCE UNITS / PERFORMANCE SHARES

Section 9.01.  Grant of Performance Units / Performance Shares.  Subject to the terms and provisions of this Plan, the Committee, at any time and from time to time, may grant Performance Units and/or Performance Shares to Participants in such amounts and upon such terms as the Committee shall determine.

Section 9.02.  Value of Performance Units / Performance Shares.  Each Performance Unit shall have an initial value that is established by the Committee at the time of grant.  Each Performance Share shall have an initial value equal to the Fair Market Value of a Share on the date of grant.  The Committee shall set performance goals in its discretion which, depending on the extent to which they are met, will determine the value and/or number of Performance Units/Performance Shares that will be paid out to the Participant.

Section 9.03.  Earning of Performance Units / Performance Shares.  Subject to the terms of this Plan, after the applicable Performance Period has ended, the holder of Performance Units/Performance Shares shall be entitled to receive payout as provided in Section 9.04.   on the value and number of Performance Units/Performance Shares earned by the Participant over the Performance Period, to be determined as a function of the extent to which the corresponding performance goals have been achieved.  Regardless of the level of performance achieved, in no event will the number of Shares issued (or the amount of cash paid) with respect to a Performance Unit/Performance Share exceed 2.5 Shares (or the value of 2.5 Shares).

Section 9.04.  Form and Timing of Payment of Performance Units / Performance Shares.  Payment of earned Performance Units/Performance Shares shall be as determined by the Committee and as evidenced in the Award Agreement.  Subject to the terms of this Plan, the Committee, in its sole discretion, may pay earned Performance Units/Performance Shares in the form of cash or in Shares (or in a combination thereof) equal to the value of the earned Performance Units/Performance Shares at the close of the applicable Performance Period, or as soon as practicable after the end of the Performance Period.  Any Shares may be granted subject to any restrictions deemed appropriate by the Committee.  The determination of the Committee with respect to the form of payout of such Awards shall be set forth in the Award Agreement pertaining to the grant of the Award.

Section 9.05.  Termination of Employment.  Each Award Agreement shall set forth the extent to which the Participant shall have the right to retain Performance Units and/or Performance Shares following termination of the Participant’s employment with or provision of services to the Company, its Affiliates, and/or its Subsidiaries, as the case may be.  Such provisions shall be determined in the sole discretion of the Committee, shall be included in the Award Agreement entered into with each Participant, need not be uniform among all Awards of Performance Units or Performance Shares awarded pursuant to this Article 9, and may reflect distinctions based on the reasons for termination.

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ARTICLE 10
CASH-BASED AWARDS AND OTHER STOCK-BASED AWARDS

Section 10.01.  Grant of Cash-Based Awards.  Subject to the terms and provisions of the Plan, the Committee, at any time and from time to time, may grant Cash-Based Awards to Participants in such amounts and upon such terms as the Committee may determine.

Section 10.02.  Other Stock-Based Awards.  The Committee may grant other types of equity-based or equity-related Awards not otherwise described by the terms of this Plan (including the grant or offer for sale of unrestricted Shares) in such amounts and subject to such terms and conditions as the Committee shall determine.  Such Awards may involve the transfer of actual Shares to Participants, or payment in cash or otherwise of amounts based on the value of Shares and may include, without limitation, Awards designed to comply with or take advantage of the applicable local laws of jurisdictions other than the United States.

Section 10.03.  Value of Cash-Based and Other Stock-Based Awards.  Each Cash-Based Award shall specify a payment amount or payment range as determined by the Committee.  Each Other Stock-Based Award shall be expressed in terms of Shares or units based on Shares, as determined by the Committee.  The Committee may establish performance goals in its discretion.  If the Committee exercises its discretion to establish performance goals, the number and/or value of Cash-Based Awards or Other Stock-Based Awards that will be paid out to the Participant will depend on the extent to which the performance goals are met.

Section 10.04.  Payment of Cash-Based Awards and Other Stock-Based Awards.  Payment, if any, with respect to a Cash-Based Award or an Other Stock-Based Award shall be made in accordance with the terms of the Award, in cash or Shares as the Committee determines.

Section 10.05.  Termination of Employment.  The Committee shall determine the extent to which the Participant shall have the right to receive Cash-Based Awards or Other Stock-Based Awards following termination of the Participant’s employment with or provision of services to the Company, its Affiliates, and/or its Subsidiaries, as the case may be.  Such provisions shall be determined in the sole discretion of the Committee.  Such provisions may be included in the Award Agreement, but need not be uniform among all Awards of Cash-Based Awards or Other Stock-Based Awards granted pursuant to this Article 10, and may reflect distinctions based on the reasons for termination.

ARTICLE 11
TRANSFERABILITY OF AWARDS

Section 11.01.  Transferability.  Except as provided in Section 11.02.  , during a Participant’s lifetime, the Participant’s Awards shall be exercisable only by the Participant.  Awards shall not be transferable other than by will or the laws of descent 

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and distribution; no Awards shall be subject, in whole or in part, to attachment, execution, or levy of any kind; and any purported transfer in violation of this Section 11.01 shall be null and void.  The Committee may establish such procedures as it deems appropriate for a Participant to designate a beneficiary to whom any amounts payable or Shares deliverable in the event of, or following, the Participant’s death, may be provided.

Section 11.02.  Committee Action.  The Committee may, in its discretion, determine that notwithstanding Section 11.01.  , any or all Awards (other than ISOs) shall be transferable to and exercisable by such transferees, and subject to such terms and conditions, as the Committee may deem appropriate; provided, however, no Award may be transferred for value (as defined in the General Instructions to Form S-8 Registration Statement under the Securities Act of 1933, as amended).

ARTICLE 12
PERFORMANCE MEASURES

Section 12.01.  Awards Under This Article 12.  If an Award (other than an Option or SAR) is intended to qualify as Performance-Based Compensation, the Award shall be granted in accordance with the terms of this Article 12 and shall vest or be paid solely on account of the attainment of an objective performance goal based on one or more of the Performance Measures listed in Section 12.03.  .  

Section 12.02.  Performance Goals.  The Committee shall establish the performance goal in writing not later than 90 days after the commencement of the Performance Period (or, if earlier, before 25% of the Performance Period has elapsed), and at a time when the outcome of the performance goal is still substantially uncertain.  The performance goal shall state, in terms of an objective formula or standard, the method for determining the amount of compensation payable to the Participant if the performance goal is attained.

Section 12.03.  Performance Measures.  (a)  The Performance Measures used to establish performance goals for Performance-Based Compensation shall be limited to (i) net earnings or net income (before or after taxes); (ii) earnings per share; (iii) net sales or revenue growth; (iv) net operating profit; (v) return measures (including, but not limited to, return on assets, capital, invested capital, equity, sales, or revenue); (vi) cash flow (including, but not limited to, operating cash flow, free cash flow, cash flow return on equity, and cash flow return on investment); (vii) earnings before or after taxes, interest, depreciation, and/or amortization; (viii) gross or operating margins; (ix) gross revenue; (x) productivity ratios; (xi) share price (including, but not limited to, growth measures); (xii) expense targets; (xiii) margins; (xiv) operating efficiency; (xv) capacity utilization; (xvi) increase in customer base; (xvii) environmental health and safety; (xviii) diversity; (xix) quality; (xx) customer satisfaction; (xxi) working capital targets; (xxii) economic value added or EVA (net operating profit after tax minus the sum of capital multiplied by the cost of capital); (xxiii) net debt; (xxiv) corporate governance; (xxv) total shareholder return; (xxvi) dividend; and (xxvii) bond rating.

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(b)Any Performance Measure(s) may be used in a quantitative manner to measure the performance of the Company, Subsidiary, and/or Affiliate as a whole or any business unit of the Company, Subsidiary, and/or Affiliate or any combination thereof, as the Committee may deem appropriate, or any of the above Performance Measures as compared to the performance of a group of comparator companies, or published or special index that the Committee, in its sole discretion, deems appropriate, or the Company may select Performance Measure (xi) above as compared to various stock market indices.  The Committee also has the authority to provide for accelerated vesting of any Award based on the achievement of performance goals pursuant to the Performance Measures specified in this Article 12.

Section 12.04.  Evaluation of Performance.  The evaluation of performance may include or exclude the effect of any of the following events that occurs during a Performance Period, and the Committee shall specify in writing when it establishes the performance goal whether the effect of one or more such events shall be so included or excluded: (a) asset write-downs; (b) litigation or claim judgments or settlements; (c) the effect of changes in tax laws, accounting principles, laws, regulatory actions, or provisions affecting reported results; (d) any reorganization and restructuring programs; (e) extraordinary nonrecurring items as described in FASB ASC Topic 225-20-20 or its successor and/or in management’s discussion and analysis of financial condition and results of operations appearing in the Company’s annual report to shareholders or Annual Report on Form 10-K, as the case may be, for the applicable year; (f) acquisitions or divestitures; and (g) foreign exchange gains and losses.  To the extent such inclusions or exclusions affect Awards to Covered Employees, they shall be prescribed in a form that meets the requirements of Code Section 162(m) for deductibility.

Section 12.05.  Certification of Performance.  No vesting or payment shall occur under an Award that is intended to qualify as Performance-Based Compensation until the Committee certifies in writing that the performance goal and any other material terms of the Award have been satisfied.

Section 12.06.  Adjustment of Performance-Based Compensation.  Awards that are intended to qualify as Performance-Based Compensation may not be adjusted upward.  The Committee shall retain the discretion to adjust such Awards downward, either on a formula or discretionary basis or any combination, as the Committee determines.

Section 12.07.  Committee Discretion.  For the avoidance of doubt, in the event that the Committee determines that it is advisable to grant Awards that shall not qualify as Performance-Based Compensation, the Committee may make such grants without satisfying the requirements of Code Section 162(m) and the terms of this Article 12.  In such event, among other things, the Committee may base the vesting or payment of such Awards on performance measures other than those set forth in Section 12.03.  

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ARTICLE 13
DIRECTOR AWARDS

Subject to Section 4.01(d), the Board shall determine all Awards to Directors.  The terms and conditions of any grant to any such Director shall be set forth in an Award Agreement.
ARTICLE 14
DIVIDEND EQUIVALENTS

Any Participant selected by the Committee may be granted dividend equivalents based on the dividends declared on Shares that are subject to any Full Value Award, to be credited as of the dividend payment dates, during the period between the date on which the Full Value Award is granted and the date on which the Award vests or expires, as determined by the Committee.  Such dividend equivalents shall be converted to cash or additional Shares by such formula and at such time and subject to such limitations as may be determined by the Committee; provided that such dividend equivalents shall be subject to any performance conditions that apply to the underlying Award.  For the avoidance of doubt, Participants shall not accrue, be granted or be paid any dividends or dividend equivalents with respect to Shares that are subject to any Option or Stock Appreciation Right.
ARTICLE 15
BENEFICIARY DESIGNATION

Each Participant under this Plan may, from time to time, name any beneficiary or beneficiaries (who may be named contingently or successively) to whom any benefit under this Plan is to be paid in case of his death before he receives any or all of such benefit.  Each such designation shall revoke all prior designations by the same Participant, shall be in a form prescribed by the Committee, and will be effective only when filed by the Participant in writing with the Company during the Participant’s lifetime.  In the absence of any such beneficiary designation, benefits remaining unpaid or rights remaining unexercised at the Participant’s death shall be paid to or exercised by the Participant’s executor, administrator, or legal representative on behalf of the Participant’s estate.
ARTICLE 16
RIGHTS OF PARTICIPANTS

Section 16.01.  Employment.  (a)  Nothing in this Plan or an Award Agreement shall interfere with or limit in any way the right of the Company, its Affiliates, and/or its Subsidiaries to terminate any Participant’s employment or service on the Board or to the Company at any time or for any reason not prohibited by law, nor confer upon any Participant any right to continue his employment or service as a Director for any specified period of time.

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(b)Neither an Award nor any benefits arising under this Plan shall constitute an employment contract with the Company, its Affiliates, and/or its Subsidiaries and, accordingly, subject to Articles 3 and 18, this Plan and the benefits hereunder may be terminated at any time in the sole and exclusive discretion of the Committee without giving rise to any liability on the part of the Company, its Affiliates, and/or its Subsidiaries.

Section 16.02.  Participation.  No individual shall have the right to be selected to receive an Award under this Plan, or, having been so selected, to be selected to receive a future Award.

Section 16.03.  Rights as a Shareholder.  Except as otherwise provided herein, a Participant shall have none of the rights of a shareholder with respect to Shares covered by any Award until the Participant becomes the record holder of such Shares.

 ARTICLE 17
CHANGE OF CONTROL

The treatment of Awards upon a change of control of the Company shall be set forth in the Award Agreement.
ARTICLE 18
AMENDMENT, MODIFICATION, SUSPENSION, AND TERMINATION

Section 18.01.  Amendment, Modification, Suspension, and Termination.  Subject to Section 18.02, the Committee may, at any time and from time to time, alter, amend, modify, suspend, or terminate this Plan and any Award Agreement in whole or in part; provided, however, that, without the prior approval of the Company’s shareholders and except as provided in Section 4.04, Options or SARs awarded under this Plan will not be repriced, replaced, regranted through cancellation, or by lowering the Option Price of a previously granted Option or the Grant Price of a previously granted SAR, or exchanged for a cash payment or other Awards (other than pursuant to Article 17 or as otherwise provided in connection with a change of control of the Company) and no material amendment of this Plan shall be made without shareholder approval if shareholder approval is required by law, regulation, or stock exchange rule, including, but not limited to, the Exchange Act, the Code, and if applicable, the NYSE Listed Company Manual.

Section 18.02.  Awards Previously Granted.  Notwithstanding any other provision of this Plan to the contrary (other than Section 18.03), no termination, amendment, suspension, or modification of this Plan or an Award Agreement shall adversely affect in any material way any Award previously granted under this Plan, without the written consent of the Participant holding such Award.

Section 18.03.  Amendment to Conform to Law.  Notwithstanding any other provision of this Plan to the contrary, the Board of Directors may amend the Plan or an Award Agreement, to take effect retroactively or otherwise, as deemed necessary or advisable for the purpose of conforming the Plan or an Award Agreement to any present 

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or future law relating to plans of this or similar nature (including, but not limited to, Code Section 409A), and to the administrative regulations and rulings promulgated thereunder.

ARTICLE 19
WITHHOLDING

The Company shall have the power and the right to deduct or withhold, or require a Participant to remit to the Company, the minimum statutory amount to satisfy federal, state, and local taxes, domestic or foreign, required by law or regulation to be withheld with respect to any taxable event arising as a result of this Plan.  Participants may elect to satisfy the withholding requirements, in whole or in part, by having the Company withhold shares having a Fair Market Value on the date the tax is to be determined equal to the minimum statutory total tax that could be imposed on the transaction.  The Participant shall remain responsible at all times for paying any federal, state, and local income or employment tax due with respect to any Award, and the Company shall not be liable for any interest or penalty that a Participant incurs by failing to make timely payments of tax.

ARTICLE 20
SUCCESSORS

All obligations of the Company under this Plan with respect to Awards granted hereunder shall be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business and/or assets of the Company.

ARTICLE 21
GENERAL PROVISIONS

Section 21.01.  Forfeiture Events.  (a)  The Committee may specify in an Award Agreement that the Participant’s rights, payments, and benefits with respect to an Award shall be subject to reduction, cancellation, forfeiture, or recoupment upon the occurrence of certain specified events, in addition to any otherwise applicable vesting or performance conditions of an Award.  Such events may include, but shall not be limited to, termination of employment for cause (as defined in the Award Agreement), termination of the Participant’s provision of services to the Company, Affiliate, and/or Subsidiary, violation of material Company, Affiliate, and/or Subsidiary policies, breach of noncompetition, confidentiality, or other restrictive covenants that may apply to the Participant, or other conduct by the Participant that is detrimental to the business or reputation of the Company, its Affiliates, and/or its Subsidiaries.

(b)If the Company is required to prepare an accounting restatement due to the material noncompliance of the Company, as a result of misconduct, with any financial reporting requirement under the securities laws, if the Participant knowingly or with gross negligence engaged in the misconduct, or knowingly or with gross negligence failed to prevent the misconduct, or if the Participant is one of the individuals subject to 

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automatic forfeiture under Section 304 of the Sarbanes-Oxley Act of 2002, the Participant shall reimburse the Company the amount of any payment in settlement of an Award earned or accrued during the 12-month period following the first public issuance or filing with the United States Securities and Exchange Commission (whichever just occurred) of the financial document embodying such financial reporting requirement.

(c)The Committee shall have full authority to implement any policies and procedures necessary or desirable to comply with Section 10D of the Exchange Act and any rules promulgated thereunder.  

(d)All Awards shall be subject to the Company’s compensation recoupment policy as such policy may be in effect from time to time.

Section 21.02.  Legend.  The certificates or statements of holdings for Shares may include any legend which the Committee deems appropriate to reflect any restrictions on transfer of such Shares.

Section 21.03.  Gender and Number.  Except where otherwise indicated by the context, any masculine term used herein also shall include the feminine, the plural shall include the singular, and the singular shall include the plural.

Section 21.04.  Severability.  In the event any provision of this Plan shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining parts of this Plan, and this Plan shall be construed and enforced as if the illegal or invalid provision had not been included.

Section 21.05.  Requirements of Law.  The granting of Awards and the issuance of Shares under this Plan shall be subject to all applicable laws, rules, and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required.

Section 21.06.  Delivery of Title.  The Company shall have no obligation to issue or deliver evidence of title for Shares issued under this Plan prior to:

(a)obtaining any approvals from governmental agencies that the Company determines are necessary or advisable; and

(b)completion of any registration or other qualification of the Shares under any applicable national or foreign law or ruling of any governmental body that the Company determines to be necessary or advisable.

Section 21.07.  Inability to Obtain Authority.  The inability of the Company to obtain authority from any regulatory body having jurisdiction, which authority is deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of any liability in respect of the failure to issue or sell such Shares as to which such requisite authority shall not have been obtained.

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Section 21.08.  Investment Representations.  The Committee may require any individual receiving Shares pursuant to an Award under this Plan to represent and warrant in writing that the individual is acquiring the Shares for investment and without any present intention to sell or distribute such Shares.

Section 21.09.  Uncertificated Shares.  To the extent that this Plan provides for issuance of certificates to reflect the transfer or issuance of Shares, the transfer or issuance of such Shares may be effected on a noncertificated basis, to the extent not prohibited by applicable law or the rules of any stock exchange upon which the Shares are listed.

Section 21.10.  Unfunded Plan.  Participants shall have no right, title, or interest whatsoever in or to any investments that the Company, and/or its Subsidiaries, and/or its Affiliates may make to aid it in meeting its obligations under this Plan.  Nothing contained in this Plan, and no action taken pursuant to its provisions, shall create or be construed to create a trust of any kind, or a fiduciary relationship between the Company and any Participant, beneficiary, legal representative, or any other individual.  To the extent that any individual acquires a right to receive payments from the Company, its Subsidiaries, and/or its Affiliates under this Plan, such right shall be no greater than the right of an unsecured general creditor of the Company, a Subsidiary, or an Affiliate, as the case may be.  All payments to be made hereunder shall be paid from the general funds of the Company, a Subsidiary, or an Affiliate, as the case may be, and no special or separate fund shall be established and no segregation of assets shall be made to assure payment of such amounts except as expressly set forth in this Plan.

Section 21.11.  No Fractional Shares.  No fractional Shares shall be issued or delivered pursuant to this Plan or any Award.  The Committee shall determine whether cash, Awards, or other property shall be granted or paid in lieu of fractional Shares or whether such fractional Shares or any rights thereto shall be forfeited or otherwise eliminated.

Section 21.12.  Retirement and Welfare Plans.  Neither Awards made under this Plan nor Shares or cash paid pursuant to such Awards, except pursuant to a Covered Employee’s annual incentive award, may be included as “compensation” for purposes of computing the benefits payable to any Participant under the Company’s or any Subsidiary’s or Affiliate’s retirement plans (both qualified and non-qualified) or welfare benefit plans unless such other plan expressly provides that such compensation shall be taken into account in computing a Participant’s benefit.

Section 21.13.  Deferred Compensation.  With respect to Awards subject to Code Section 409A, the Plan is intended to comply with the requirements of Code Section 409A, and the provisions of the Plan and any Award Agreement shall be interpreted in a manner that satisfies the requirements of Code Section 409A, and the Plan shall be operated accordingly.  The Committee may make changes in the terms or operation of the Plan and/or Awards (including changes that may have retroactive effect) deemed necessary or desirable to comply with Code Section 409A.  The Company, however, 

22

makes no representation or covenants that the Plan or Awards will comply with Section 409A.

Section 21.14.  Nonexclusivity of this Plan.  The adoption of this Plan shall not be construed as creating any limitations on the power of the Board or Committee to adopt such other compensation arrangements as it may deem desirable for any Participant.

Section 21.15.  No Constraint on Corporate Action.  Nothing in this Plan shall be construed to (a) limit, impair, or otherwise affect the Company’s or a Subsidiary’s or an Affiliate’s right or power to make adjustments, reclassifications, reorganizations, or changes of its capital or business structure, or to merge or consolidate, or dissolve, liquidate, sell, or transfer all or any part of its business or assets; or (b) limit the right or power of the Company or a Subsidiary or an Affiliate to take any action which such entity deems to be necessary or appropriate.

Section 21.16.  Governing Law.  The Plan and each Award Agreement shall be governed by the laws of the state of Missouri, excluding any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of this Plan to the substantive law of another jurisdiction.  Unless otherwise provided in the Award Agreement, recipients of an Award under this Plan are deemed to submit to the exclusive jurisdiction and venue of the federal or state courts of Missouri, to resolve any and all issues that may arise out of or relate to this Plan or any related Award Agreement.

Section 21.17.  Indemnification.  (a)  Subject to requirements and limitations of applicable law, each individual who is or shall have been a member of the Board, or a Committee appointed by the Board, or an officer of the Company, a Subsidiary, or an Affiliate to whom authority was delegated in accordance with Article 3, shall be indemnified and held harmless by the Company against and from any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by him in connection with or resulting from any claim, action, suit, or proceeding to which he may be a party or in which he may be involved by reason of any action taken or failure to act under this Plan and against and from any and all amounts paid by him in settlement thereof, with the Company’s approval, or paid by him in satisfaction of any judgment in any such action, suit, or proceeding against him, provided he shall give the Company an opportunity, at its own expense, to handle and defend the same before he undertakes to handle and defend it on his own behalf, unless such loss, cost, liability, or expense is a result of his own willful misconduct or except as expressly provided by statute.

(b)The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such individuals may be entitled under the Company’s Articles of Incorporation or Bylaws, as a matter of law, or otherwise, or any power that the Company may have to indemnify them or hold them harmless.

Section 21.18.  No Guarantee of Favorable Tax Treatment.  Although the Company intends to administer the Plan so that Awards will be exempt from, or will comply with, the requirements of Code Section 409A, the Company does not warrant that any Award under the Plan will qualify for favorable tax treatment under Code Section 

23

409A or any other provision of federal, state, local, or foreign law.  The Company shall not be liable to any Participant for any tax, interest, or penalties that the Participant might owe as a result of the grant, holding, vesting, exercise, or payment of any Award under the Plan.

Section 21.19.  Effect of Disposition of Facility or Operating Unit.  In the event that the Company or any of its Affiliates and/or Subsidiaries closes or disposes of the facility at which a Participant is located or the Company or any of its Affiliates and/or Subsidiaries diminish or eliminate ownership interests in any operating unit of the Company or any of its Affiliates and/or Subsidiaries so that such operating unit ceases to be majority owned by the Company or any of its Affiliates and/or Subsidiaries, then, with respect to Awards held by Participants who subsequent to such event will not be Employees, the Committee may, to the extent consistent with Code Section 409A (if applicable), (i) accelerate the exercisability of Awards to the extent not yet otherwise exercisable or remove any restrictions applicable to any Awards and (ii) extend the period during which Awards will be exercisable to a date subsequent to the date when such Awards would otherwise have expired by reason of the termination of such Participant’s employment with the Company or any of its Affiliates and/or Subsidiaries (but in no event to a date later than the expiration date of the Awards or the fifth anniversary of the transaction in which such facility closes or operating unit ceases).  If the Committee takes no special action with respect to any disposition of a facility or an operating unit, then the terms and conditions of the Award Agreement and the other terms and conditions of this Plan shall control.

24EX-10.1

 Exhibit 10.1 

FIRST AMENDMENT TO CREDIT AGREEMENT 

This FIRST AMENDMENT TO CREDIT AGREEMENT (this “First
Amendment”), dated as of August 7, 2014, among REYNOLDS AMERICAN INC., a North Carolina Corporation (the “Borrower”), various lending institutions party to the Credit
Agreement referred to below (the “Lenders”), and JPMORGAN CHASE BANK, N.A., as Administrative Agent (in such capacity, the “Administrative Agent”) under the Credit
Agreement. All capitalized terms used herein and not otherwise defined herein shall have the respective meanings provided such terms in the Credit Agreement. 

W I T N E S S E T H : 

WHEREAS, the Borrower, the Lenders and the Administrative Agent are parties to a Credit Agreement, dated as of October 8, 2013 (the
“Credit Agreement”); 
 WHEREAS, subject to the terms and conditions of this First Amendment, the Borrower, the
Administrative Agent and the undersigned Lenders wish to amend the Credit Agreement, in each case as provided herein; 
 NOW, THEREFORE, it
is agreed: 
  

	I.	Amendments to the Credit Agreement. 

 1. Section 1 of the Credit Agreement is
hereby amended by amending and restating the definition of “Consolidated EBITDA” in its entirety as follows: 

“Consolidated EBITDA” means, for any period, Consolidated Net Income for such period plus, without duplication and (other than
with respect to clause (I)(n) below) to the extent reflected as a charge in the statement of such Consolidated Net Income for such period, the sum of: 

(I) (a) provision for all income taxes and foreign withholding taxes, (b) interest expense, amortization or write-off of debt
discount and debt issuance costs and commissions, discounts and other fees and charges associated with Indebtedness (including the Loans), (c) depreciation and amortization expense, (d) amortization of intangibles (including, but not
limited to, goodwill) and organization costs, (e) any extraordinary losses, (f) any non-cash expenses or losses, (g) any losses on sales of assets outside of the ordinary course of business (whether or not otherwise includable as a
separate item in the statement of such Consolidated Net Income for such period), (h) any cash payment received during such period in respect of any non-cash item described in clause (II)(a)(i) or (ii) below subsequent to the fiscal quarter
in which the relevant non-cash item was reflected as a gain or income in the statement of Consolidated Net Income, (i) the amount of all cash payments received during such period in respect of any settlement with respect to tobacco litigation
related liability which otherwise did not increase Consolidated Net Income for such period or a prior period, (j) any losses for such period attributable to early extinguishment of Indebtedness or net realized loss obligations under any Swap
Agreement, (k) non-recurring transaction fees, costs, 

 
expenses and charges (including but not limited to investment banker, consulting, advisory and legal fees) incurred in connection with the following transactions, agreements and documents
(collectively, the “Subject Transactions”): this Amendment, the Bridge Loan Facility Documents, the Ancillary Agreements (as such term is defined in the Imperial Purchase Agreement), the Lorillard Acquisition, the BAT Equity
Issuance, the issuance by the Borrower of common equity to the shareholders of Lorillard pursuant to the terms of the Lorillard Acquisition Agreement, the issuance and sale of any senior unsecured notes in a public offering or, if appropriate, a
Rule 144A or other private placement, the proceeds of which are used to finance in whole or in part the Lorillard Acquisition or to refinance any portion of the Bridge Loan Facility or to repay or refinance any existing Indebtedness of Lorillard or
any of its Subsidiaries on or following the consummation of the Lorillard Acquisition, and the Specified Asset Dispositions; provided that the aggregate amount for all such items under this clause (k) shall not exceed $400,000,000 in the
aggregate during the term of this Agreement, (l) business optimization, restructuring and transition expenses, costs, charges, accruals or reserves incurred within three (3) years of the Acquisition Closing Date in connection with any of
the Subject Transactions, which for the avoidance of doubt shall include severance payments and costs, legal defense and settlement costs (including any costs paid in satisfaction of judgments), relocation costs, costs related to the closure,
opening, curtailment and/or consolidation of facilities, retention charges, systems establishment costs, spin-off costs, integration costs, signing costs, retention and completion bonuses, amortization of signing bonuses, inventory optimization
expenses, contract termination costs, transaction costs, costs related to entry into new markets, consulting fees, recruiter fees, provided that the aggregate amount for all such items under this clause (l) shall not exceed $500,000,000
in the aggregate during the term of this Agreement, provided further that the aggregate amount for all such items under this clause (l) shall not exceed $250,000,000 in the aggregate during the second and third years following the
Acquisition Closing Date, (m) any expenses, costs, charges, accruals or reserves incurred in connection with any of the Subject Transactions pursuant to or in connection with any management or employee benefit plan, including but not limited to
curtailments or modifications to pension and post-retirement employee benefit plans, and conversion costs and excess pension charges, provided that the aggregate amount for all such items under this clause (m) shall not exceed
$100,000,000 in the aggregate during the term of this Agreement, and (n) the amount of cost savings and synergies projected by the Borrower in good faith to be reasonably anticipated to be realized from actions taken prior to or during such
period in connection with any of the Subject Transactions (calculated on a pro forma basis as though such cost savings had been realized on the first day of such period, net of the amount of actual benefits realized prior to or during such period
from such actions); provided that the aggregate amount under this clause (n) shall not exceed $200,000,000 in the aggregate during any four fiscal quarter period (prior to giving effect to such amount), all as determined on a
consolidated basis for the Borrower and its Subsidiaries for such period, minus 

  
 2 

 (II) (a) to the extent included in the statement of such Consolidated Net Income for such
period, the sum of (i) any extraordinary gain, (ii) any non-cash income or gains, (iii) any gain on sales of assets outside of the ordinary course of business (whether or not otherwise includable as a separate item in the statement of
such Consolidated Net Income for such period), and (iv) income tax credits (to the extent not netted from income tax expense), (b) any cash payments made during such period in respect of any non-cash items described in clause (I)(d),
(e) or (f) above subsequent to the fiscal quarter in which the relevant non-cash item was reflected as a charge in the statement of Consolidated Net Income, (c) the amount of all cash payments made by the Borrower and its Subsidiaries
during such period pursuant to any settlement with respect to tobacco litigation related liability which otherwise did not reduce Consolidated Net Income for such period or a prior period, all as determined on a consolidated basis for the Borrower
and its Subsidiaries for such period and (d) net realized income or gains from obligations under Swap Agreements. 
 For the purposes of
calculating Consolidated EBITDA for any period of four consecutive fiscal quarters (each, a “Reference Period”) pursuant to any determination of the Consolidated Leverage Ratio or the Consolidated Interest Coverage Ratio,
(i) if at any time during such Reference Period (or, for purposes of Section 6.05(c) only, during the period commencing on the first day of such Reference Period and ending on or prior to such date of determination), the Borrower or any
Subsidiary shall have made any Material Disposition, the Consolidated EBITDA for such Reference Period shall be reduced by an amount equal to the Consolidated EBITDA (if positive) attributable to the property that is the subject of such Material
Disposition for such Reference Period or increased by an amount equal to the Consolidated EBITDA (if negative) attributable thereto for such Reference Period and (ii) if during such Reference Period (or, for purposes of Section 6.05(c)
only, during the period commencing on the first day of such Reference Period and ending on or prior to such date of determination), the Borrower or any Subsidiary shall have made a Material Acquisition, Consolidated EBITDA for such Reference Period
shall be calculated after giving pro forma effect thereto (including for purposes of calculating Consolidated EBITDA as if such Material Acquisition occurred on the first day of such Reference Period, which pro forma calculation may include, among
other things, a reduction in costs and expenses (and a resulting increase in Consolidated EBITDA) as a result of any transfer, disposition or sale of any employees, assets or business or any other cost reducing measures undertaken by the target of
such Material Acquisition and/or any of its Subsidiaries during the applicable Reference Period. As used in this definition, “Material Acquisition” means any acquisition of property or series of related acquisitions of property that
(a) constitutes assets comprising all or substantially all of an operating unit of a business or constitutes all or substantially all of the Equity Interests of a Person and (b) involves the payment of consideration by the Borrower and its
Subsidiaries in excess of $250,000,000; and “Material Disposition” means any disposition of property or series of related dispositions of property that yields gross proceeds to the Borrower or any of its Subsidiaries in excess of
$250,000,000. 

  
 3 

 2. Section 1 of the Credit Agreement is hereby further amended by inserting the following
new definitions in the appropriate alphabetical order within said Section: 
 “Acquisition Closing Date” means the date upon
which the Lorillard Acquisition has been consummated in accordance with the terms and conditions of the Lorillard Acquisition Agreement. 

“BAT” means British American Tobacco p.l.c., a public limited company incorporated under the laws of England and Wales, and
any successor thereto. 
 “BAT Subscription Agreement” means that certain Subscription and Support Agreement dated as of
July 15, 2014, among the Borrower, BAT and Brown & Williamson Holdings Inc., as may be amended, restated, supplemented or otherwise modified from time to time, pursuant to which BAT has agreed, directly or indirectly through one or
more of its wholly owned subsidiaries, to subscribe for and purchase simultaneously with the consummation of the Lorillard Acquisition, shares of the Borrower’s common stock for an aggregate purchase price of approximately $4.7 billion (the
“BAT Equity Issuance”). 
 “Bridge Commitment Parties” means each of JPMorgan Chase Bank, N.A., Citigroup
Global Markets Inc. and one or more affiliates thereof, together with the other financial institutions that become “Commitment Parties” or “Lenders” under the Bridge Commitment Letter and the other financial institutions as
lenders and agents under the Bridge Loan Facility Documents. 
 “Bridge Loan Facility” means the term loan credit facility
in an amount of up to $9,000,000,000 to be provided by the Bridge Commitment Parties (or one or more affiliates thereof) in connection with the Lorillard Acquisition as contemplated by that certain Commitment Letter (the “Bridge Commitment
Letter”), dated as of July 15, 2014, among the Bridge Commitment Parties party thereto, the other financial institutions that may become party thereto after the date hereof as lenders and the Borrower, as amended or supplemented from
time to time. 
 “Bridge Loan Facility Documents” means the loan agreement evidencing the Bridge Loan Facility, together
with each other agreement, contract, instrument, certificate or other loan document entered into by the Borrower and/or the other Loan Parties in connection with the Bridge Loan Facility on or after the date hereof. 

“Imperial” means Imperial Tobacco Group PLC, a public limited company incorporated under the laws of England and Wales, and
any successor thereto. 
 “Imperial Divestiture Documents” means the Imperial Purchase Agreement, the Imperial Transfer
Agreement, and each other agreement, instrument or other document heretofore, now or hereafter entered into in connection therewith, in each case as may be amended, restated, supplemented or otherwise modified from time to time. 

  
 4 

 “Imperial Purchase Agreement” means that certain Asset Purchase Agreement, dated
as of July 15, 2014, by and among the Borrower, Lignum-2, L.L.C., and Imperial, as may be amended, restated, supplemented or otherwise modified from time to time. 

“Imperial Transfer Agreement” means that certain Transfer Agreement, dated as of July 15, 2014, by and between Lignum-2, L.L.C. and Lorillard, as may be amended, restated, supplemented or otherwise modified from time to time. 

“Lorillard” means Lorillard, Inc., a Delaware corporation, and any successor thereto. 

“Lorillard Acquisition” means the acquisition of one hundred percent (100%) of the equity interests of Lorillard by the
Borrower, directly or indirectly through one or more of its subsidiaries, in accordance with the terms and conditions of the Lorillard Acquisition Agreement. 

“Lorillard Acquisition Agreement” means that certain Agreement and Plan of Merger, dated as of July 15, 2014, by and
among Lorillard, the Borrower, and Lantern Acquisition Co., as may be amended, restated, supplemented or otherwise modified from time to time. 

“Specified Asset Dispositions” means consummation of (a) the asset dispositions (which may include Equity Interests of
one or more Subsidiaries of the Borrower or Lorillard) specified in the Imperial Divestiture Documents, as in effect on the date hereof, including, but not limited to, the asset dispositions made to Imperial (or one or more affiliates or assignees
thereof) of cigarette brands “Winston”, “Kool” and “Salem” and, under certain circumstances, “Doral”, certain assets related to the “e-vapor” brand “blu” and the cigarette brand
“Maverick”, and the disposition of certain factories, headquarters and employees of Lorillard or its Subsidiaries and the transfer of certain associated liabilities as specified in the Imperial Divestiture Documents, and (b) any other
asset dispositions (which may include Equity Interests of one or more Subsidiaries of the Borrower or Lorillard) by the Borrower and/or its Subsidiaries in connection with the consummation of the Lorillard Acquisition made pursuant to any
modifications, amendments, supplements, replacements or substitutions (in each case, in whole or in part), waivers, consents or requests (including the effects of any such requests) under the Imperial Divestiture Documents that do not result in
(i) additional assets exceeding in the aggregate $250 million becoming part of the Specified Asset Dispositions or (ii) a Substantial Detriment (as defined in the Lorillard Acquisition Agreement on the date hereof) unless either such
addition of assets or Substantial Detriment is consented to in writing by the Administrative Agent (which consent shall not be unreasonably withheld or delayed). 

  
 5 

 3. Section 6.03 of the Credit Agreement is hereby amended by deleting the word
“and” immediately preceding clause (iii) thereof and the period at the end of clause (iii) thereof, and inserting the following new clause (iv) at the end thereof immediately following clause (iii) thereof to read in
its entirety as follows: 
 “, and (iv) the Borrower and/or one or more of its Subsidiaries may consummate the Specified Asset
Dispositions that by their terms are to occur on or after the Acquisition Closing Date in connection with the consummation of the Lorillard Acquisition.” 

4. Section 6.04(a) of the Credit Agreement is hereby amended by amending and restating said Section to read in its entirety as follows:

 (a) Consolidated Leverage Ratio. The Borrower will not permit the Consolidated Leverage Ratio as of the last day of
any period of four consecutive fiscal quarters of the Borrower to exceed (i) 3.00:1.00, as of the last day of any such period ending prior to the Acquisition Closing Date, (ii) 4.50:1.00, as of the last day of any such period ending in the
fiscal quarter in which the Acquisition Closing Date occurs through and including the next two immediately succeeding fiscal quarters, (iii) 4.25:1.00, as of the last day of any four fiscal quarters ending with the next three fiscal quarters
after the period described in the immediately preceding clause (ii), (iv) 3.75:1.00, as of the last day of any four fiscal quarters ending with the next three fiscal quarters after the period described in the immediately preceding clause (iii),
and (v) 3.50:1.00, thereafter. 
 5. Section 6.05 of the Credit Agreement is hereby amended by deleting the word “and”
immediately preceding clause (e) thereof and the period at the end of clause (e) thereof, and inserting the following new clause (f) at the end thereof to read in its entirety as follows: 

“(f) the Borrower may make any and all payments and distributions required to be made pursuant to the Lorillard Acquisition Agreement as
in effect on the date hereof.” 
 6. Section 6.06 of the Credit Agreement is hereby amended by deleting the word “and”
immediately preceding clause (f) thereof and the period at the end of clause (f) thereof, and inserting the following new clause (g) at the end thereof to read in its entirety as follows: 

“, and (g) any transactions entered into pursuant to the BAT Subscription Agreement, the Imperial Divestiture Documents or the
Lorillard Acquisition Agreement.” 
 7. Section 6.07(a) of the Credit Agreement is hereby amended by deleting the word
“and” immediately preceding clause (x) of the proviso thereof and the period at the end thereof and inserting the following new clause (xi) at the end thereto to read in its entirety as follows: 

“and (xi) the foregoing shall not apply to (A) any mandatory prepayment provisions in the loan agreement
governing the Bridge Loan Facility or (B) any other restrictions in the Bridge Loan Facility Documents provided such other restrictions are no more restrictive than the restrictions set forth in this Agreement.” 

  
 6 

 8. Section 6.08 of the Credit Agreement is hereby amended by amending and restating said
Section to read in its entirety as follows: 
 “SECTION 6.08. Subsidiary Indebtedness. The Borrower will not
permit the aggregate principal amount of Indebtedness of its Non-Guarantor Subsidiaries (excluding any Indebtedness of a Subsidiary of the Borrower owed to the Borrower or another Subsidiary of the Borrower, but including any Guarantee by a
Non-Guarantor Subsidiary of Indebtedness of the Borrower) to exceed: (a) the indebtedness of Lorillard and its Subsidiaries outstanding on the Acquisition Closing Date after giving effect to the Subject Transactions, during the period
commencing on the Acquisition Closing Date and ending on the earlier of (x) the date Lorillard and its Material Subsidiaries enter into guarantees of the Obligations to the extent required pursuant to Section 5.09 hereof, and, if
applicable, guarantees of the Bridge Loan Facility, and (y) the tenth (10th) day after the Acquisition Closing Date or such later date as agreed to by the Administrative Agent in its
sole discretion, and (b) $300,000,000, on and at all times after the expiration of the period described in the immediately preceding clause (a). 

9. Exhibit D to the Credit Agreement, the form of Compliance Certificate is hereby amended and restated to read in its entirety as set forth
on Annex I attached hereto. 
  

	II.	Conditions. 

 This First Amendment shall become effective on the date (such date being
referred to as the “First Amendment Effective Date”) that the following conditions have been satisfied: 
 1. The
Administrative Agent shall have received an officer’s certificate from a responsible officer of the Borrower certifying that: 
 (a) no
Default or Event of Default exists as of the First Amendment Effective Date (as defined below), both before and after giving effect to this First Amendment; and 

(b) all of the representations and warranties contained in the Credit Agreement or other Loan Documents are true and correct in all material
respects on the First Amendment Effective Date, both before and after giving effect to this First Amendment, with the same effect as though such representations and warranties had been made on and as of the date hereof (it being understood that any
representation or warranty made as of a specific date shall be true and correct in all material respects as of such specific date). 
 2.
(i) All reasonable out-of-pocket fees, costs and expenses owing to the Administrative Agent (including reasonable invoiced costs and expenses of counsel to the Administrative Agent) incurred in connection with the preparation, execution and delivery
of this First Amendment shall have been paid in full and (ii) the Administrative Agent shall have received, for the account of each Lender that has validly submitted an executed counterpart to this First Agreement on or prior to 5:00 p.m., New
York City time, on August 1, 2014 (and has not withdrawn such consent as of the First Amendment Effective Date), a fee equal to 0.05% of the principal amount of such Lender’s Commitment (whether used or unused) at such time. 

  
 7 

 3. The Administrative Agent shall have received executed signature pages hereto from each of the
Borrower, the Administrative Agent and the Lenders constituting Required Lenders under the Credit Agreement. 
  

	III.	Miscellaneous Provisions. 

 1. This First Amendment is limited as specified and shall not
constitute a modification, acceptance or waiver of any other provision of the Credit Agreement or any other Loan Document. 
 2. This First
Amendment may be executed in any number of counterparts and by the different parties hereto on separate counterparts, each of which counterparts when executed and delivered shall be an original, but all of which shall together constitute one and the
same instrument. Delivery of an executed counterpart of a signature page of this First Amendment by electronic transmission or other electronic imaging shall be effective as delivery of a manually executed counterpart of this First Amendment. 

3. THIS FIRST AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE
LAW OF THE STATE OF NEW YORK. 
 4. From and after the First Amendment Effective Date, all references in the Credit Agreement and each
of the other Loan Documents to the Credit Agreement shall be deemed to be references to the Credit Agreement as amended hereby. 

*     *     * 

  
 8 

 IN WITNESS WHEREOF, each of the parties hereto has caused a counterpart of this First Amendment
to Credit Agreement to be duly executed and delivered as of the date first above written. 
  

			
	 REYNOLDS AMERICAN INC., as the

Borrower

		
	By:	 	/s/ Daniel A. Fawley
		 	Name: Daniel A. Fawley
		 	Title: SVP and Treasurer

 [Signature page to First Amendment to Credit Agreement] 

 
			
	 JPMORGAN CHASE BANK, Individually

and as Administrative Agent

		
	By:	 	/s/ Tony Yung
		 	Name: Tony Yung
		 	Title: Executive Director

 [Signature page to First Amendment to Credit Agreement] 

 
			
	SIGNATURE PAGE TO THE FIRST AMENDMENT TO CREDIT AGREEMENT, DATED AS OF THE DATE FIRST ABOVE WRITTEN, AMONG REYNOLDS AMERICAN, INC., VARIOUS LENDERS PARTY TO THE CREDIT AGREEMENT AND JPMORGAN CHASE BANK, N.A., AS
ADMINISTRATIVE AGENT
	
	NAME OF INSTITUTION:
	
	CITIBANK, N.A.
		
	By:	 	/s/ Michael Vondriska
		 	Name: Michael Vondriska
		 	Title: Vice President

 
			
	SIGNATURE PAGE TO THE FIRST AMENDMENT TO CREDIT AGREEMENT, DATED AS OF THE DATE FIRST ABOVE WRITTEN, AMONG REYNOLDS AMERICAN, INC., VARIOUS LENDERS PARTY TO THE CREDIT AGREEMENT AND JPMORGAN CHASE BANK, N.A., AS
ADMINISTRATIVE AGENT
	
	NAME OF INSTITUTION:
	
	CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH
		
	By:	 	/s/ Michael Spaight
		 	Name: Michael Spaight
		 	Title: Authorized Signatory
		
	By:	 	/s/ Samuel Miller
		 	Name: Samuel Miller
		 	 Title: Authorized Signatory

  
 12 

 
			
	SIGNATURE PAGE TO THE FIRST AMENDMENT TO CREDIT AGREEMENT, DATED AS OF THE DATE FIRST ABOVE WRITTEN, AMONG REYNOLDS AMERICAN, INC., VARIOUS LENDERS PARTY TO THE CREDIT AGREEMENT AND JPMORGAN CHASE BANK, N.A., AS
ADMINISTRATIVE AGENT
	
	NAME OF INSTITUTION:
	
	GOLDMAN SACHS BANK USA
		
	By:	 	/s/ Allison O’Connor
		 	Name: Allison O’Connor
		 	Title: Authorized Signatory

  
 13 

 
			
	SIGNATURE PAGE TO THE FIRST AMENDMENT TO CREDIT AGREEMENT, DATED AS OF THE DATE FIRST ABOVE WRITTEN, AMONG REYNOLDS AMERICAN, INC., VARIOUS LENDERS PARTY TO THE CREDIT AGREEMENT AND JPMORGAN CHASE BANK, N.A., AS
ADMINISTRATIVE AGENT
	
	NAME OF INSTITUTION:
	
	MIZUHO BANK, LTD.
		
	By:	 	/s/ James Fayen
		 	Name: James Fayen
		 	Title: Deputy General Manager

  
 14 

 
			
	SIGNATURE PAGE TO THE FIRST AMENDMENT TO CREDIT AGREEMENT, DATED AS OF THE DATE FIRST ABOVE WRITTEN, AMONG REYNOLDS AMERICAN, INC., VARIOUS LENDERS PARTY TO THE CREDIT AGREEMENT AND JPMORGAN CHASE BANK, N.A., AS
ADMINISTRATIVE AGENT
	
	NAME OF INSTITUTION:
	
	ROYAL BANK OF CANADA
		
	By:	 	/s/ Simone G. Vinocour McKeever
		 	Name: Simone G. Vinocour McKeever
		 	Title: Authorized Signatory

  
 15 

 
			
	SIGNATURE PAGE TO THE FIRST AMENDMENT TO CREDIT AGREEMENT, DATED AS OF THE DATE FIRST ABOVE WRITTEN, AMONG REYNOLDS AMERICAN, INC., VARIOUS LENDERS PARTY TO THE CREDIT AGREEMENT AND JPMORGAN CHASE BANK, N.A., AS
ADMINISTRATIVE AGENT
	
	NAME OF INSTITUTION:
	
	THE BANK OF NOVA SCOTIA:
		
	By:	 	/s/ Michelle Phillips
		 	Name: Michelle C. Phillips
		 	Title: Director & Execution Head

  
 16 

 
			
	SIGNATURE PAGE TO THE FIRST AMENDMENT TO CREDIT AGREEMENT, DATED AS OF THE DATE FIRST ABOVE WRITTEN, AMONG REYNOLDS AMERICAN, INC., VARIOUS LENDERS PARTY TO THE CREDIT AGREEMENT AND JPMORGAN CHASE BANK, N.A., AS
ADMINISTRATIVE AGENT
	
	NAME OF INSTITUTION:
	
	FIFTH THIRD BANK:
		
	By:	 	/s/ Mary Ramsey
		 	Name: Mary Ramsey
		 	Title: Vice President

  
 17 

 
			
	 SIGNATURE PAGE TO THE FIRST AMENDMENT TO CREDIT AGREEMENT, DATED AS OF THE DATE FIRST ABOVE WRITTEN, AMONG REYNOLDS AMERICAN,
INC., VARIOUS LENDERS PARTY TO THE CREDIT AGREEMENT AND JPMORGAN CHASE BANK, N.A., AS ADMINISTRATIVE AGENT
  

NAME OF INSTITUTION:
  

WELLS FARGO BANK, NA.

		
	By:	 	/s/ Caroline B. Olzinski
		 	 Name: Caroline B. Olzinski

Title: Vice President

  
 18 

 
			
	 SIGNATURE PAGE TO THE FIRST AMENDMENT TO CREDIT AGREEMENT, DATED AS OF THE DATE FIRST ABOVE WRITTEN, AMONG REYNOLDS AMERICAN,
INC., VARIOUS LENDERS PARTY TO THE CREDIT AGREEMENT AND JPMORGAN CHASE BANK, N.A., AS ADMINISTRATIVE AGENT
  

NAME OF INSTITUTION:
  

PNC BANK, NATIONAL ASSOCIATION, as Lender:

		
	By:	 	/s/ Jessica Fabrizi Sidhom
		 	 Name: Jessica Fabrizi Sidhom

Title: Vice President

  
 19 

 
			
	 SIGNATURE PAGE TO THE FIRST AMENDMENT TO CREDIT AGREEMENT, DATED AS OF THE DATE FIRST ABOVE WRITTEN, AMONG REYNOLDS AMERICAN,
INC., VARIOUS LENDERS PARTY TO THE CREDIT AGREEMENT AND JPMORGAN CHASE BANK, N.A., AS ADMINISTRATIVE AGENT
  

NAME OF INSTITUTION:
  

THE BANK OF NEW YORK MELLON

		
	By:	 	/s/ Jeffrey Dears
		 	 Name: Jeffrey Dears

Title: Vice President

  
 20 

 
			
	 SIGNATURE PAGE TO THE FIRST AMENDMENT TO CREDIT AGREEMENT, DATED AS OF THE DATE FIRST ABOVE WRITTEN, AMONG REYNOLDS AMERICAN,
INC., VARIOUS LENDERS PARTY TO THE CREDIT AGREEMENT AND JPMORGAN CHASE BANK, N.A., AS ADMINISTRATIVE AGENT
  

NAME OF INSTITUTION:
  

NORTHERN TRUST COMPANY

		
	By:	 	/s/ John Canty
		 	 Name: John Canty

Title: Senior Vice President

  
 21 

 
			
	 SIGNATURE PAGE TO THE FIRST AMENDMENT TO CREDIT AGREEMENT, DATED AS OF THE DATE FIRST ABOVE WRITTEN, AMONG REYNOLDS AMERICAN,
INC., VARIOUS LENDERS PARTY TO THE CREDIT AGREEMENT AND JPMORGAN CHASE BANK, N.A., AS ADMINISTRATIVE AGENT
  

NAME OF INSTITUTION:
  

AGFIRST FARM CREDIT BANK

		
	By:	 	/s/ Steven J. O’Shea
		 	 Name: Steven J. O’Shea

Title: Vice President

  
 22 

 
			
	 SIGNATURE PAGE TO THE FIRST AMENDMENT TO CREDIT AGREEMENT, DATED AS OF THE DATE FIRST ABOVE WRITTEN, AMONG REYNOLDS AMERICAN,
INC., VARIOUS LENDERS PARTY TO THE CREDIT AGREEMENT AND JPMORGAN CHASE BANK, N.A., AS ADMINISTRATIVE AGENT
  

NAME OF INSTITUTION:
  

FARM CREDIT BANK OF TEXAS:

		
	By:	 	/s/ Alan Robinson
		 	 Name: Alan Robinson

Title: Vice President

  
 23 

 
			
	 SIGNATURE PAGE TO THE FIRST AMENDMENT TO CREDIT AGREEMENT, DATED AS OF THE DATE FIRST ABOVE WRITTEN, AMONG REYNOLDS AMERICAN,
INC., VARIOUS LENDERS PARTY TO THE CREDIT AGREEMENT AND JPMORGAN CHASE BANK, N.A., AS ADMINISTRATIVE AGENT
  

NAME OF INSTITUTION:
  

UNITED FCS, PCA DBA FCS
 COMMERCIAL FINANCE GROUP:

		
	By:	 	/s/ Daniel J. Best
		 	 Name: Daniel J. Best

Title: Vice President

  
 24 

 Annex I 

[Form of Compliance Certificate – To be Attached] 

 EXHIBIT D 

FORM OF COMPLIANCE CERTIFICATE 

This Compliance Certificate is delivered to you pursuant to Section 5.01(c) of the Credit Agreement, dated as of October [__], 2013 (as
amended, restated, supplemented or modified from time to time, the “Credit Agreement”), among Reynolds American Inc., (the “Borrower”), the lenders party thereto from time to time, and JPMorgan Chase Bank, N.A., as
Administrative Agent. Terms defined in the Credit Agreement and not otherwise defined herein are used herein as therein defined. 
 1. I am
the duly elected, qualified and acting [            ]1 of the Borrower. 

2. I have reviewed and am familiar with the contents of this Compliance Certificate. I am providing this Compliance Certificate solely in my
capacity as an officer of the Borrower. The matters set forth herein are true to the best of my knowledge after due inquiry. 
 3. I have
reviewed the terms of the Credit Agreement and the other Loan Documents and have made or caused to be made under my supervision a review in reasonable detail of the transactions and condition of the Borrower and its Subsidiaries during the
accounting period covered by the financial statements attached hereto as ANNEX 1 (the “Financial Statements”). [Except as set forth on Annex 1(a),] [S]uch review did not disclose the existence during or at the end of the accounting
period covered by the Financial Statements, and I have no knowledge of the existence, as of the date of this Compliance Certificate, of any condition or event which constitutes a Default. 

4. [Except as set forth on Annex 1(b),] I have no knowledge of the existence, as of the date of this Compliance Certificate, of any material
change in GAAP or in the application thereof since the date of the audited financial statements referred to in Section 3.04 of the Credit Agreement. 

5. The following represent true and accurate calculations, as of
[                 , 20    ], to be used to determine compliance with the covenants set forth in Section 6.04 of the Credit
Agreement: 
  

	(a)	Consolidated Leverage Ratio: 

  

			
	 Consolidated Debt (as at the last day of any period) =
	  	[__________]
	 Consolidated EBITDA (for such period) =
	  	[__________]
	 Actual Ratio =
	  	[_____] to 1.00
	 Required Ratio =
	  	[     ]2 to 1.00

 Supporting detail showing the calculation of Consolidated Leverage Ratio is attached hereto as Schedule 1.

  

	1 	Insert position of Financial Officer. 

	2 	To be inserted pursuant to Section 6.04(a) of the Credit Agreement. 

	(b)	Consolidated Interest Coverage Ratio: 

  

			
	 Consolidated EBITDA (for such period) =
	  	[__________]
	 Consolidated Interest Expense (for such period) =
	  	[__________]
	 Actual Ratio =
	  	[_____] to 1.00
	 Required Ratio =
	  	4.00 to 1.00

 Supporting detail showing the calculation of Consolidated Interest Coverage Ratio is attached hereto as
Schedule 2. 
  

 ANNEX 1 

[Applicable Financial Statements to Be Attached] 

 SCHEDULE 1 

CONSOLIDATED LEVERAGE RATIO 
  

			
	(A) Consolidated Leverage Ratio: as at the last day of any period, the ratio of (a) Consolidated Debt on such day to (b) Consolidated EBITDA for such period.	  	
		
	 (a) Consolidated Debt as of [                 ,
20__]:
	  	
		
	 (I)    at any date, the aggregate principal amount of all Indebtedness of the Borrower and its Subsidiaries at such
date, determined on a consolidated basis in accordance with GAAP; provided that the aggregate amount available to be drawn (i.e., unfunded amounts) under all letters of credit, acceptances and similar arrangements and all surety,
appeal and litigation bonds and similar obligations issued for the account of the Borrower or any of its Subsidiaries (but excluding, for avoidance of doubt, all unpaid drawings or other matured monetary obligations or reimbursement obligations
owing in respect of thereof) shall not be included in any determination of “Consolidated Debt”:
	  	
		
	 (i)    all indebtedness of such Person for borrowed money or with respect to deposits or advances of any
kind;
	  	  

		
	 (ii)   all obligations of such Person for the deferred purchase price of property or services (other than current trade
payables and accrued expenses incurred in the ordinary course of such Person’s business and any obligation of the Borrower or any Subsidiary thereof to purchase tobacco and/or other products, services and produce utilized in its business
pursuant to agreements entered into in the ordinary course of business on a basis consistent with the Borrower’s or such Subsidiary’s past practices or then current industry practices);
	  	  

		
	 (iii)  all obligations of such Person evidenced by notes, bonds, debentures or other similar instruments;
	  	  

		
	 (iv)  all indebtedness created or arising under any conditional sale or other title retention agreement with respect to
property acquired by such Person (even though the rights and remedies of the seller or lender under such agreement in the event of default are limited to repossession or sale of such property);
	  	  

		
	 (v)   all Capital Lease Obligations of such Person;
	  	  

		
	 (vi)  all obligations of such Person, contingent or otherwise, as an account party or applicant under or in respect of
acceptances, letters of credit or similar arrangements;
	  	  

			
	 (vii)      the maximum amount available to be drawn or paid under all surety, appeal and litigation bonds
and similar obligations issued for the account of such Person and all unreimbursed payments in respect of such surety, appeal and litigation bonds and similar obligations;
	  	
              
                           

		
	 (viii)     all Guarantees by such Person in respect of obligations of the kind referred to in items
(A)(a)(I)(i) through (vii) above;
	  	      

		
	 (ix)       all obligations of the kind referred to in items (A)(a)(I)(i) through (viii) above
secured by (or for which the holder of such obligation has an existing right, contingent or otherwise, to be secured by) any Lien on property (including accounts and contract rights) owned by such Person, whether or not such Person has assumed or
become liable for the payment of such obligation.
	  	  

		
	The Indebtedness of any Person shall include the Indebtedness of any other entity (including any partnership in which such Person is a general partner) to the extent such Person is liable therefor as a result of such Person’s
ownership interest in or other relationship with such entity, except to the extent the terms of such Indebtedness expressly provide that such Person is not liable therefor.	  	
		
	 Consolidated Debt
	  	  

  

			
	 (b) Consolidated EBITDA as of [_______ __, 20__]:
	 	
		
	 (I)     Consolidated Net Income for such period
	 	
		
	 (i)     Consolidated net income or loss of the Borrower and its Subsidiaries for such period, determined on a
consolidated basis in accordance with GAAP; provided that there shall be excluded:
	 	  

		
	 (ii)    the income (or deficit) of any Person accrued prior to the date it becomes a Subsidiary of the Borrower or
is merged into or consolidated with the Borrower or any of its Subsidiaries, subject to the second sentence of the definition of “Consolidated EBITDA”;
	 	  

		
	 (iii)  the income (or deficit) of any Person (other than a Subsidiary of the Borrower) in which the Borrower or any of its
Subsidiaries has an ownership interest, except to the extent that any such income is actually received by the Borrower or such Subsidiary in the form of dividends or similar distributions; and
	 	  

		
	 (iv)   the undistributed earnings of any Subsidiary of the Borrower to the extent that the declaration or payment of
dividends or similar distributions by such Subsidiary is not at the time permitted by the terms of any Contractual Obligation or Requirement of Law applicable to such Subsidiary.
	 	  

		
	 plus; without duplication and to the extent reflected as a charge in the statement of such Consolidated Net Income for such period, the sum
of:
	 	
		
	 (II)(a) provision for all income taxes and foreign withholding taxes;
	 	  

		
	 (b)      interest expense, amortization or write-off of debt discount and debt issuance costs and
commissions, discounts and other fees and charges associated with Indebtedness (including the Loans);
	 	  

		
	 (c)      depreciation and amortization expense;
	 	  

		
	 (d)      amortization of intangibles (including, but not limited to, goodwill) and organization
costs;
	 	  

		
	 (e)      any extraordinary losses;
	 	  

		
	 (f)       any non-cash expenses or losses;
	 	  

		
	 (g)      any losses on sales of assets outside of the ordinary course of business (whether or not
otherwise includable as a separate item in the statement of such Consolidated Net Income for such period),
	 	
              
                           

			
		
	 (h)    any cash payment received during such period in respect of any non-cash item described in items (III)(a)(i)
or (ii) below subsequent to the fiscal quarter in which the relevant non-cash item was reflected as a gain or income in the statement of Consolidated Net Income;
	 	
              
                           

		
	 (i)     the amount of all cash payments received during such period in respect of any settlement with respect
to tobacco litigation related liability which otherwise did not increase Consolidated Net Income for such period or a prior period;
	 	  

		
	 (j)     any losses for such period attributable to early extinguishment of Indebtedness or net realized loss
obligations under any Swap Agreement;
	 	  

		
	 (k)    non-recurring transaction fees, costs, expenses and charges (including but not limited to investment banker,
consulting, advisory and legal fees) incurred in connection with the following transactions, agreements and documents (collectively, the “Subject Transactions”): this Amendment, the Bridge Loan Facility Documents, the Ancillary
Agreements (as such term is defined in the Imperial Purchase Agreement), the Lorillard Acquisition, the BAT Equity Issuance, the issuance by the Borrower of common equity to the shareholders of Lorillard pursuant to the terms of the Lorillard
Acquisition Agreement, the issuance and sale of any senior unsecured notes in a public offering or, if appropriate, a Rule 144A or other private placement, the proceeds of which are used to finance in whole or in part the Lorillard Acquisition or to
refinance any portion of the Bridge Loan Facility or to repay or refinance any existing Indebtedness of Lorillard or any of its Subsidiaries on or following the consummation of the Lorillard Acquisition, and the Specified Asset Dispositions;
provided that the aggregate amount for all such items under this item (k) shall not exceed $400,000,000 in the aggregate during the term of the Credit Agreement;
	 	  

		
	 (l)     business optimization, restructuring and transition expenses, costs, charges, accruals or reserves
incurred within three (3) years of the Acquisition Closing Date in connection with any of the Subject Transactions, which for the avoidance of doubt shall include severance payments and costs, legal defense and settlement costs (including any costs
paid in satisfaction of judgments), relocation costs, costs related to the closure, opening, curtailment and/or consolidation of facilities, retention charges, systems establishment costs, spin-off costs, integration costs, signing costs, retention
and completion bonuses, amortization of signing bonuses, inventory optimization
	 	

			
	 expenses, contract termination costs, transaction costs, costs related to entry into new markets, consulting fees, recruiter fees, provided that the
aggregate amount for all such items under this item (l) shall not exceed $500,000,000 in the aggregate during the term of the Credit Agreement, provided further that the aggregate amount for all such items under this item (l) shall not
exceed $250,000,000 in the aggregate during the second and third years following the Acquisition Closing Date;
	  	
              
                           

		  	  

		
	 (m)  any expenses, costs, charges, accruals or reserves incurred in connection with any of the Subject Transactions pursuant
to or in connection with any management or employee benefit plan, including but not limited to curtailments or modifications to pension and post-retirement employee benefit plans, and conversion costs and excess pension charges, provided that
the aggregate amount for all such items under this item (m) shall not exceed $100,000,000 in the aggregate during the term of the Credit Agreement; and
	  	  

		
	 (n)    the amount of cost savings and synergies projected by the Borrower in
good faith to be reasonably anticipated to be realized from actions taken prior to or during such period in connection with any of the Subject Transactions (calculated on a pro forma basis as though such cost savings had been realized on the first
day of such period, net of the amount of actual benefits realized prior to or during such period from such actions); provided that the aggregate amount under this item (n) shall not exceed $200,000,000 in the aggregate during any four
fiscal quarter period (prior to giving effect to such amount), all as determined on a consolidated basis for the Borrower and its Subsidiaries for such period; 
  

minus:
	  	  
  

 

		
	 (III)(a) to the extent included in the statement of such Consolidated Net Income for such period, the sum of
	  	  

		
	 (i)    any extraordinary gain;
	  	  

		
	 (ii)   any non-cash income or gains;
	  	  

		
	 (iii)  any gain on sales of assets outside of the ordinary course of business (whether or not otherwise includable as a
separate item in the statement of such Consolidated Net Income for such period); and
	  	  

  

			
	 (iv)   income tax credits (to the extent not netted from income tax expense);
	  	
              
                           

		
	 (b)    any cash payments made during such period in respect of any non-cash items described in items (II)(d),
(e) or (f) above subsequent to the fiscal quarter in which the relevant non-cash item was reflected as a charge in the statement of Consolidated Net Income;
	  	  

		
	 (c)    the amount of all cash payments made by the Borrower and its Subsidiaries during such period pursuant to any
settlement with respect to tobacco litigation related liability which otherwise did not reduce Consolidated Net Income for such period or a prior period, all as determined on a consolidated basis for the Borrower and its Subsidiaries for such
period; and
	  	  

		
	 (d)    net realized income or gains from obligations under Swap Agreements
	  	  

		
	 For the purposes of calculating Consolidated EBITDA for any period of four consecutive fiscal quarters (each, a “Reference
Period”) pursuant to any determination of the Consolidated Leverage Ratio or the Consolidated Interest Coverage Ratio
  

(i) if at any time during such Reference Period (or, for purposes of Section 6.05(c) of the Credit Agreement only, during the period
commencing on the first day of such Reference Period and ending on or prior to such date of determination), the Borrower or any Subsidiary shall have made any Material Disposition, the Consolidated EBITDA for such Reference Period shall be reduced
by an amount equal to the Consolidated EBITDA (if positive) attributable to the property that is the subject of such Material Disposition for such Reference Period or increased by an amount equal to the Consolidated EBITDA (if negative) attributable
thereto for such Reference Period and
  
 (ii) if during such
Reference Period (or, for purposes of Section 6.05(c) of the Credit Agreement only, during the period commencing on the first day of such Reference Period and ending on or prior to such date of determination), the Borrower or any Subsidiary
shall have made a Material Acquisition, Consolidated EBITDA for such Reference Period shall be calculated after giving pro forma effect thereto (including for purposes of calculating Consolidated EBITDA as if such Material Acquisition occurred on
the first day of such Reference Period, which pro forma calculation may include, among other things, a reduction in costs and expenses (and a resulting increase in Consolidated EBITDA) as a result of any transfer, disposition or sale of any
employees, assets or business or any other cost reducing measures undertaken by the target of such Material Acquisition and/or any of its Subsidiaries during the applicable Reference Period.
	  	

			
	“Material Acquisition” means any acquisition of property or series of related acquisitions of property that (a) constitutes assets comprising all or substantially all of an operating unit of a business or
constitutes all or substantially all of the Equity Interests of a Person and (b) involves the payment of consideration by the Borrower and its Subsidiaries in excess of $250,000,000; and “Material Disposition” means any disposition
of property or series of related dispositions of property that yields gross proceeds to the Borrower or any of its Subsidiaries in excess of $250,000,000.	  	
		
	Consolidated EBITDA	  	  

		
	Ratio of (a) Consolidated Debt to (b) Consolidated EBITDA	  	[    ]:1.00
		
	Required Ratio	  	[    ]3:1.00

  
  

	3 	To be inserted pursuant to Section 6.04(a) of the Credit Agreement. 

 SCHEDULE 2 

CONSOLIDATED INTEREST COVERAGE RATIO 
  

			
	(A) Consolidated Interest Coverage Ratio: as at the last day of any period, the ratio of (a) Consolidated EBITDA for such period to (b) Consolidated Interest Expense for such period.	  	
	  
 (a) Consolidated EBITDA as of
[                         , 20__]:
	  	
	  
 Consolidated EBITDA (See
Schedule 1 for calculation)
	  	  

	  
 (b) Consolidated Interest Expense for such
period:
	  	
	  

(I)    Total cash interest expense (including that attributable to Capital Lease Obligations) of
the Borrower and its Subsidiaries calculated on a consolidated basis for such period with respect to all outstanding Indebtedness of the Borrower and its Subsidiaries (including all commissions, discounts and other fees and charges owed with respect
to letters of credit and bankers’ acceptance financing and net costs under Swap Agreements in respect of interest rates to the extent such net costs are allocable to such period in accordance with GAAP).
	  	  

	  
 For the purposes of calculating Consolidated Interest Expense for any
Reference Period pursuant to any determination of the Consolidated Interest Coverage Ratio,
  

(i) all Indebtedness incurred or issued during the relevant Reference Period (or, for purposes of Section 6.05(c) of the Credit
Agreement only, during the period commencing on the first day of such Reference Period and ending on or prior to such date of determination) shall be deemed to have been incurred or issued (and the proceeds thereof applied) on the first day of such
Reference Period and remain outstanding through such Reference Period,
  

(ii) all Indebtedness (other than revolving Indebtedness, except to the extent accompanied by a corresponding permanent commitment
reduction) permanently retired or redeemed during the relevant Reference Period (or, for purposes of Section 6.05(c) of the Credit Agreement only, during the period commencing on the first day of such Reference Period and ending on or prior to
such date of determination) shall be deemed to have been retired or redeemed on the first day of such Reference Period and remain retired through the entirety of such Reference Period, and

 
 (iii) all Indebtedness assumed to be outstanding pursuant to preceding
item (i) shall be deemed to have borne interest at (x) the rate applicable thereto, in the case of fixed rate indebtedness, or (y) the rates which would have been applicable thereto during the respective Reference Period when same was
deemed outstanding (for this purpose, using the floating rate applicable thereto at the time of determination), in the case of floating rate Indebtedness; provided that interest
	  	

			
	 expense with respect to any Indebtedness for periods while same was actually outstanding during the respective period shall be calculated using the actual
rates applicable thereto while the same was actually outstanding.
	  	
	  
 Consolidated Interest Expense
	  	  

	  
 Ratio of (a) Consolidated EBITDA to (b) Consolidated Interest
Expense
	  	[    ]:1.00
	  
 Required Ratio
	  	4:00:1.00

 SCHEDULE 2 

IN WITNESS WHEREOF, I have executed this Compliance Certificate this         day of
                    , 20__. 
  

			
	REYNOLDS AMERICAN INC.
		
	By:  	 	 
		 	 Name:
 Title:

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