Document:

<PAGE>
                                                                    EXHIBIT 10.1

COMPOSITE COPY

June 12, 2002

Mr. Richard H. Bogan
803 Whisperingbrook Drive
Newtown Square, PA  19073

Dear Richard:

It is my pleasure to confirm our offer to you to join R.J. Reynolds Tobacco
Holdings, Inc. as Executive Vice President & CFO. We would like for you to begin
work as soon as practical and will confirm a starting date following your
acceptance of this offer. Your job level will be executive job level A.

As Executive Vice President & CFO, your new base salary will be $500,000 (or
$41,666.67 per month). Your target bonus under our Annual Performance Unit Plan
(APU) will be 75% of your annual base salary. Attached is a description of the
2002 APU terms. For 2002, your actual award will be the full year 2002
calculated award, prorated for the period of active service from your employment
date through December 31, 2002. For purposes of this plan, you will be deemed to
have begun work here on July 1, 2002.

As soon as practical following your employment date, you will be paid a
"sign-on" bonus of $250,000 (less applicable withholding amounts).

Under our Company's Long Term Incentive Plan (LTIP), you will receive a 2002
grant with an estimated target value upon vesting of $1.5 million. Following
your employment, you will receive later this summer your LTIP grant that
contains more detailed provisions about the 3-year vesting requirement and other
2002 LTIP provisions. In the future, you will be eligible to be considered for
LTIP grants under the same circumstances and LTIP provisions as other senior
executives of the Company.

Upon employment, you will be eligible for immediate coverage under our Company's
Employee Benefits Plans. Additionally, you will participate in the Company's
Flexible Perquisites Program as an executive job level A participant. This
program will provide you $47,500 per year in cash (paid quarterly) and the use
of a leased car with a purchase value of up to $29,999, although you can
supplement the lease payments with this cash to get a car with higher value.
This program will also provide you supplemental medical, dental, and business
travel accident insurance. Through this program, you may purchase through the
Company additional life insurance for yourself and your spouse as well as
insurance on your personal automobiles and excess liability insurance.

<PAGE>

Mr. Richard H. Bogan
Page 2
June 12, 2002

Provided that you remain employed by the Company for three years from your
employment date, you will be paid at the end of the three years a special
retention incentive bonus in the gross amount of $350,000. To secure this
obligation, the Company earlier established an irrevocable trust and contributed
funds it believes are sufficient to satisfy payments under the Special Incentive
Program. Any payments to you under this program will come from the trust, with
no recourse to the Company or its subsidiaries. If your employment terminates
before your payment date, certain rules of the program apply. They are described
in an attachment to this letter.

Lastly, the Company will provide to you substantial support under the terms and
provisions of our relocation program for new executives. Accompanying this
letter is a booklet outlining important details regarding relocation support.

In consideration of this offer of employment, you will be expected to sign the
enclosed "Non-Compete, Non-Disclosure of Confidential Information, and
Commitment to Provide Assistance Agreement". Further, in consideration for you
entering into this agreement, you will be eligible for special severance
benefits, the terms and conditions of which are set out below:

         -        If during the course of employment with the Company or one of
                  its affiliates, you are involuntarily terminated for any
                  reason other than cause (as defined under the Company's Long
                  Term Incentive Plan) you will receive two years pay (defined
                  as Base Pay and Target Bonus at time of termination) payable
                  over three years. These special severance benefits replace any
                  compensation or benefits under the Company's standard Salary
                  and Benefits Continuation ("SBC"). It is intended that you
                  would not receive any less than the SBC obligation would
                  provide, and the rules that determine eligibility for payment
                  under SBC apply to this program.

         -        In further consideration for this Special Severance Benefit,
                  and should an involuntary separation ever occur, the Company
                  will expect your cooperation in transitioning your
                  responsibilities and will ask you, prior to the payment of any
                  benefit, to sign a letter containing a release of claims and a
                  reaffirmation of the attached Non-Competition, Non-Disclosure
                  of Confidential Information and Commitment to Provide
                  Assistance Agreement.

         -        You acknowledge and agree that nothing contained in this
                  agreement obligates the Company to employ you for any specific
                  term.

Effective with your employment date, you will be approved as a participant in
the R. J. Reynolds Supplemental Executive Retirement Plan ("SERP") and granted
an additional 12 years of service thereunder. Your normal retirement under the
SERP will be the first day of the month following your 60th birthday. Unless
otherwise requested by the Company, you will retire at that date.

Our offer is contingent upon successful completion of our customary background
check and post-offer, pre-employment medical examination, which includes testing
for substance abuse.

<PAGE>

Mr. Richard H. Bogan
Page 3
June 12, 2002

Following your acceptance of this offer, we agree that there will be no external
announcement of your decision to join our Company prior to two weeks following
the date of this letter. Such announcement may occur earlier, but only after we
have obtained your consent.

The role that you have been offered represents a unique and significant
opportunity for you to positively impact the future of R.J. Reynolds Tobacco
Holdings, Inc. We have great confidence that you are well suited for this role
and that you will make an outstanding contribution to our business.

                                              /s/ Ann A. Johnston
                                               ---------------------------
                                              Ann A. Johnston
                                              Executive Vice President
                                              Human Resources

Acknowledged and Accepted:

             /s/ Richard H. Bogan                          6/18/02
          ---------------------------                   -------------
             Richard H. Bogan                                Date

AAJ/nl

Attachments

cc:  Mr. Andrew J. Schindler (w/o attachments)<PAGE>

                                                                    EXHIBIT 10.2

July 10, 2002

Mr. Kenneth J. Lapiejko
P. O. Box 123
112 Isleworth Court
Advance, NC 27006

Dear Ken:

Upon notification by R. J. Reynolds Tobacco Holdings, Inc., your employer, that
your active employment is coming to an end, this letter constitutes the entire
agreement by and among R. J. REYNOLDS TOBACCO HOLDINGS, INC., R. J. REYNOLDS
TOBACCO COMPANY (collectively the "Company"), its successors, affiliates and/or
assigns, and you regarding the termination of your employment relationship with
the Company and is in full and final satisfaction of all the Company's
obligations to you under your Amended Letter Agreement dated March 17, 1994,
including all applicable amendments (the "Letter Agreement") and your enhanced
special severance letter dated March 12, 2002. No benefits or payments other
than those expressly provided herein shall be paid or payable. Except as
otherwise defined herein, capitalized terms herein shall be defined as in the
Letter Agreement. Except as otherwise specifically provided herein, the benefits
provided herein and the payments made and to be made hereunder through your
Separation Date are to be provided or made without regard as to whether or not
you become employed by another employer unaffiliated with the Company and
without regard to your death or Permanent Disability. The severance-related
compensation and/or benefits as described in this letter, represent the
Company's entire severance obligation to you and are in lieu of any such
compensation and/or benefits to which you would otherwise have been entitled
under the Company's Salary and Benefit Continuation Program (the "SBC"). If
there is any conflict or ambiguity with any prior agreement or program, the
provisions of this Agreement will control.

Please read the rest of this letter carefully. Then sign the copy of this Letter
of Agreement where indicated on the last page and return it to Steve Karr or me.

     1.   a.   You will continue as a regular full-time employee through
               July 19, 2002. If you voluntarily quit or are terminated by the
               Company for violation of Company rules, policies, guides or
               standards of conduct before that date, you will not receive the
               benefits described below.

          b.   The date of your termination from active employment  is July 19,
               2002 (your "Termination Date"). Your Compensation Continuance
               commences July 20, 2002,

<PAGE>

Kenneth J. Lapiejko
Page 2

               and continues through July 31, 2005, which will be your official
               "Separation Date" for Company records. "Compensation Continuance"
               is a paid leave of absence and is calculated as follows:

                  Current Annual Rate of Base Salary           $416,000
                  AIAP at Target (75% of Base Salary)          $312,000
                                                               --------
                  Total Cash Compensation                      $728,000

                  Total Annual Compensation paid for 3 years   $728,000 per year

               Based on the foregoing, Compensation Continuance will be paid
               monthly at the rate of $60,666.67 for the period of Compensation
               Continuance and will be subject to deductions for income tax
               withholding, FICA, employee benefit plan contributions and other
               authorized deductions.

          c.   Compensation Continuance is provided in order to preserve the
               Company's access to you although you will be relieved of all your
               normal duties and responsibilities. You agree that you will
               personally provide reasonable assistance and cooperation in
               locating or obtaining information concerning the Company (past or
               present) about which you are knowledgeable.

          d.   You acknowledge that as of June 19, 2002, your active
               employment with the Company will end irrevocably and will not be
               resumed again at any time in the future except upon mutual
               agreement of the parties hereto.

          e.   During Compensation Continuance, if you become employed by an
               employer not affiliated with the Company, Compensation
               Continuance will continue. You will continue to be eligible to
               participate in the Company's Capital Investment Plan. However,
               other benefits under the Employee Benefits Programs shall be
               appropriately terminated, coordinated, or offset to the extent
               provided for by the other employer.

     2.   If you die during Compensation Continuance, any Compensation
          Continuance amounts that would have been paid to you had you lived
          until your Separation Date will be paid in a lump sum to your estate.

     3.   As of your Termination Date, no further vacation will accrue.
          Unused 2002 vacation plus vacation for 2003, accrued in 2002, will be
          paid in a lump sum at the end of Compensation Continuance and is not
          includable for any benefit plan calculations.

     4.   During Compensation Continuance, you may continue to participate
          in the employee benefit programs in which you participated as of your
          Termination Date except as otherwise provided in this Letter of
          Agreement or by the terms of the individual program. You may
          participate as though you were an active employee, subject to the
          continuation of applicable

<PAGE>

Kenneth J. Lapiejko
Page 3

          payroll deductions. Such participation will be subject to the terms,
          provisions and conditions of such programs, including the Company's
          right to amend, modify or terminate the programs. Employee Benefit
          Programs do not include the Annual Incentive Award Plan ("AIAP") or
          the Long-Term Incentive Plan ("LTIP"), the disposition of which is
          detailed in other provisions of this Agreement.

          Unless otherwise specified by the Company in its sole discretion,
          changes in the Employee Benefit Programs after the date of this letter
          will not apply to you, unless otherwise required by law. New benefit
          programs that replace or supersede current programs will apply to you
          if the Company chooses not to continue to make the current programs
          available to employees on Compensation Continuance.

          The following is a summary of benefit continuation:

          Your participation in the R. J. Reynolds Holdings, Inc., Welfare
          Benefit and Insurance Plans ("Welfare Plan") and Flexible Perquisite
          Program, except for the Short- and Long-Term Disability Plans, will
          continue until the end of Compensation Continuance, provided you make
          any required Plan contributions in the manner specified by the
          Company. If, as a result of the foregoing sentence you are carried
          into a new Welfare Plan year, you will be required to reenroll in the
          same manner as active employees. Should you become employed by an
          employer not affiliated with the Company, health care coverage
          provided by your new employer will be coordinated with health care
          benefits provided by the Company.

          Your participation in the group medical, dental and life insurance
          plans in which you now participate will continue during Compensation
          Continuance subject to the terms, provisions and conditions of such
          plans, including the Company's right to amend, modify or terminate the
          Plans. As an employee eligible for retirement under a
          Company-sponsored retirement plan following the end of your
          Compensation Continuance, you are eligible for medical, dental and
          life insurance benefits during retirement, subject to the terms,
          provisions and conditions of such plans, including the Company's right
          to amend, modify or terminate the Plans. Details of these benefits
          will be provided prior to your retirement date.

          During Compensation Continuance, you will continue to accrue service
          and benefits under all Company-sponsored retirement plans in which you
          currently participate. For benefits based on an Average Final
          Compensation calculation, your compensation will be deemed to be full
          pay (i.e., annual rate of base salary and AIAP) for the period of
          Compensation Continuance.

          During Compensation Continuance, you may continue to make
          contributions to the R. J. Reynolds Capital Investment Plan, and you
          retain all other rights under the Plan, including the right to
          transfer investments between funds, change your contribution amount,
          and to request withdrawals. However, no loan applications will be
          approved during Compensation

<PAGE>

Kenneth J. Lapiejko
Page 4

          Continuance. Following your Separation Date, you may elect to have
          your account balance distributed to you in accordance with the terms
          of the Plan.

          Since you will be at least age 55 with 10 or more years of retirement
          service as of your Separation Date, you will be entitled to an Early
          Retirement benefit under the Company's retirement plan commencing the
          first day of the month following the end of your Compensation
          Continuance. In accordance with your March 12, 2002, enhanced special
          severance letter, for the purposes of calculating total retirement
          benefits, including vesting for purposes of retiree health
          contributions, you will be deemed to have 30 years of credited and
          eligibility service upon your retirement from the Company. Prior to
          your Separation Date, you will be given appropriate retirement
          application forms and other retirement materials.

     5.   You will continue to be eligible to receive the benefits of the
          Flexible Perquisite Program during Compensation Continuance. At the
          end of Compensation Continuance, you may purchase the Company car
          under the terms of the Flexible Perquisite Program.

     6.   You will be paid an award under the Annual Incentive Award Plan
          for your months of active employment during the 2002 plan year based
          on the target award for the plan year and adjusted for actual
          financial performance of the Company. This award will be paid to you
          at the same time as other Plan participants, cannot be deferred, and
          is the last AIAP award to be made to you. Payment of any such award
          will be subject to appropriate taxes and a CIP contribution, if
          applicable. In addition, as a participant in AIAP, you will be paid
          your target AIAP over the period of Compensation Continuance as set
          forth in Paragraph 1 above. This was determined by dividing your AIAP
          target amount by the number of pay periods in a year and including
          such amount in the subtotal in determining each Compensation
          Continuance payment. Thus, there will be no lump sum AIAP award
          payment for the period of Compensation Continuance.

     7.   Prior to your Termination Date, you are expected to submit expense
          reports for all outstanding travel, entertainment and other business
          expenses. If any expense report(s) reflect any amounts owing to the
          Company, such expense will be deducted from Compensation Continuance
          payments as necessary. In addition, prior to your last day of active
          employment, you must return all Company equipment such as cellular
          telephones or personal computers, or the value of such equipment, as
          determined by the Company, shall be deducted from the calculation of
          your Compensation Continuance.

<PAGE>

Kenneth J. Lapiejko
Page 5

     8.   The estimated value of your other compensation is summarized as
          follows:

<TABLE>
<CAPTION>
                                                                       AT RETIREMENT (ASSUMES
     COMPENSATION                   CURRENT VALUE                      8/1/2005 RETIREMENT DATE)
     ------------                   -------------                      ------------------------
     <S> <C>                        <C>                                <C>

     a.  1998 PARS                  TOB - 26,800 Vested -              Will be automatically paid 2/03 if there
                                    $0 Value                           is a value

     b.  1999 PARS                  TOB - 34,000 Vested                If not exercised before, will be automatically
                                    Floor Value - $172,822             paid 2/03

     c.  RJR Stock Options
         4/27/95 Surrender/Reissue  12,833 @ $26.0960                  Expires 4/27/10
         4/27/95 Premium Grant      7,759 @ $28.7039                   Expires 4/27/10
         3/05/96 1996 LTIP          7,762 @ $33.7058                   Expires 3/05/06

     d.  1998 RJR Restricted Stock  2,383 Shares (rounded up)          Prorate 2,666.67 X 53.61/60; vest 7/19/02
                                                                       (last day of active employment)

     e.  1999 Tandem Agreement      70,000 Options @ $32.4375          50% of 140,000 vest on 6/15/02; expire 6/15/09

                                    16,590 Options @ $32.4375          140,000 X 37.11/60 = 86,590 - 70,000; expire 6/15/09
                                                                       Cancel 35,000 Restricted Stock
                                                                       Note:  If restricted stock has more value at time of
                                                                       retirement, 100% of stock options would be cancelled
                                                                       and restricted stock would be prorated.

     f.  2000 Grant                 25,332 Shares Restricted Stock     Prorate 30,798 X 29.61/36; vest 7/19/02
                                                                       (last day of active employment)

                                    688,725 PUPs                       Prorate 810,000 X 30.61/36; scored and paid 2/03
                                                                       (Automatically Paid)

     g.  2001 Grant                 6,366 Shares Restricted Stock      Prorate 13,012 X 17.61/36; vest 7/19/02
                                                                       (last day of active employment)

                                    418,725 PUPs                       Prorate 810,000 X 18.61/36; scored and paid 2/04
                                                                       (Automatically Paid)
</TABLE>

     9.   If you are an active participant in the Tuition Refund Plan on
          your Termination Date and all of the requirements of the Plan are
          fulfilled, you will continue to be eligible for tuition aid
          reimbursement during Compensation Continuance for courses completed
          during Compensation Continuance.

     10.  If otherwise eligible, you may continue to participate or newly
          enroll in the MedSave Retiree Savings Plan during Compensation
          Continuance. Upon your Separation Date, no further contributions will
          be permitted; however, your account(s) including any applicable
          Company match will be maintained with continued interest growth.
          Distribution of your account(s) will be processed in accordance with
          program rules for active employees.

     11.  You shall be covered by the same liability and indemnification
          programs afforded to other officers for acts that occurred while you
          were an officer of the Company and/or its affiliates.

<PAGE>

Kenneth J. Lapiejko
Page 6

     12.  You shall maintain the terms and conditions of this Agreement in
          confidence. In addition, you will not without prior written consent of
          the Company, use, divulge, disclose or make accessible to any other
          person, firm, partnership or corporation or other entity any
          confidential information pertaining to the businesses of R.J. Reynolds
          Holdings, Inc., R. J. Reynolds Tobacco Company or any of their
          affiliates, except (i) while employed by the Company in the business
          of and for the benefit of the Company or (ii) when required to do so
          by a court of competent jurisdiction by any governmental agency having
          supervisory authority over the business of the Company, or by any
          administrative body or legislative body (including a committee
          thereof) with jurisdiction to order you to divulge, disclose or make
          accessible such information. For purposes of this Agreement,
          "Confidential Information" shall mean non-public information
          concerning R.J. Reynolds Holdings, Inc., R. J. Reynolds Tobacco
          Company or any of their affiliate companies' data, strategic business
          plans, product development data (or other proprietary product data),
          customer lists, marketing plans and other proprietary information,
          except for specific items which have become publicly available
          information (other than such items which you know have become publicly
          available through a breach of fiduciary duty or any confidentiality
          agreement.)

          a.   You will personally provide reasonable assistance and
               cooperation to the Company in activities related to the
               prosecution or defense of any pending or future lawsuits or
               claims involving the Company.

          b.   You will promptly notify the Company if you receive any
               requests from anyone other than an employee or agent of the
               Company for information regarding the Company which could
               reasonably be construed as being proprietary, non-public or
               confidential or if you become aware of any potential claim or
               proposed litigation against the Company.

          c.   You will refrain from providing any information related to
               any claim or potential litigation against the Company to any
               non-Company representatives without either the Company's written
               permission or being required to provide information pursuant to
               legal process.

          d.   If required by law to provide sworn testimony regarding any
               Company-related matter, you will consult with and have
               Company-designated legal counsel present for such testimony. The
               Company will be responsible for the costs of such designated
               counsel and you will bear no cost for it.

          e.   If you are required by law to provide sworn testimony
               regarding any Company-related matter and if you require legal
               counsel to represent and protect your interest (in addition to
               the Company-designated legal counsel provided for under
               subparagraph D herein), the Company will reimburse you for any
               legal expenses (including, but not limited to, the costs of any
               attorney reasonably acceptable to you and the Company, which
               acceptance by the Company shall not be unreasonably withheld) and
               other out-of-pocket expenses you may incur in relation to such
               testimony.

<PAGE>

Kenneth J. Lapiejko
Page 7

          f.   You will cooperate with the Company's attorneys to assist
               their efforts, especially on matters you have been privy to,
               holding all privileged attorney-client matters in strictest
               confidence unless ordered to do otherwise by a court of competent
               jurisdiction or a committee of the Congress of the United States
               or of a state legislature. You understand that you will be
               reimbursed for travel, food, lodging or similar out-of-pocket
               expenses incurred at the Company's request in discharging any of
               your obligations under this Agreement.

          g.   Nothing in sentences a-f of the above paragraph is intended
               to apply to governmental or judicial investigations, including
               but not limited to an investigation by any agency or department
               of the federal or state government, any hearing before a
               committee of the Congress of the United States or of a state
               legislature, any investigation or proceeding by or of a special
               prosecutor, or any proceeding brought before a grand jury;
               provided, however, the Company will reimburse you for legal
               expenses including, but not limited to, the cost of any attorney
               reasonably acceptable to the Company and other out-of-pocket
               expenses if you are compelled to appear in a governmental or
               judicial investigation.

     13.  Except as otherwise stated herein, no benefits (other than those
          provided by a Tax-qualified Plan or Trust) or promise hereunder shall
          be secured by any specific assets of the Company. The payments under
          this Agreement shall not be assigned by you or anticipated in any way
          and any such attempted assignment will be void.

     14.  You agree not to apply for unemployment insurance attributable to
          your period of Compensation Continuance.

     15.  IN CONSIDERATION OF THE COMPENSATION AND BENEFITS SET FORTH IN
          THIS AGREEMENT, YOU VOLUNTARILY, KNOWINGLY AND WILLINGLY RELEASE AND
          FOREVER DISCHARGE THE COMPANY, ITS PARENTS, SUBSIDIARIES AND
          AFFILIATES, TOGETHER WITH THEIR RESPECTIVE OFFICERS, DIRECTORS,
          SHAREHOLDERS, EMPLOYEES AND AGENTS, AND EACH OF THEIR PREDECESSORS,
          SUCCESSORS AND ASSIGNS, FROM ANY AND ALL CHARGES, COMPLAINTS, CLAIMS,
          PROMISES, AGREEMENTS, CONTROVERSIES, CAUSES OF ACTION AND DEMANDS OF
          ANY NATURE WHATSOEVER WHICH AGAINST THEM YOU OR YOUR EXECUTORS,
          ADMINISTRATORS, SUCCESSORS OR ASSIGNS EVER HAD, NOW HAVE OR HEREAFTER
          CAN, SHALL OR MAY HAVE BY REASON OF ANY MATTER, CAUSE OR THING
          WHATSOEVER ARISING TO THE TIME YOU SIGN THIS AGREEMENT. YOU FURTHER
          AGREE THAT YOU WILL NOT SEEK OR BE ENTITLED TO ANY AWARD OF EQUITABLE
          OR MONETARY RELIEF IN ANY PROCEEDING OF ANY NATURE BROUGHT ON YOUR
          BEHALF ARISING OUT OF ANY OF THE MATTERS RELEASED BY THIS PARAGRAPH.
          THIS RELEASE INCLUDES, BUT IS NOT LIMITED TO ANY RIGHTS OR CLAIMS
          RELATING IN ANY WAY TO YOUR EMPLOYMENT RELATIONSHIP WITH THE COMPANY,
          OR THE TERMINATION THEREOF, OR UNDER ANY STATUTE, INCLUDING THE AGE
          DISCRIMINATION IN EMPLOYMENT ACT, TITLE VII OF THE CIVIL RIGHTS ACT,
          THE AMERICANS WITH DISABILITIES ACT, OR ANY OTHER FEDERAL, STATE OR
          LOCAL LAW.
<PAGE>

Kenneth J. Lapiejko
Page 8

     16.  By signing this Agreement, you represent that you have not
          commenced any proceeding against the Company in any forum
          (administrative or judicial) concerning your employment or the
          termination thereof. You further acknowledge that you were given
          sufficient notice under the Worker Adjustment and Retraining
          Notification Act (the "WARN Act") and that the termination of your
          employment does not give rise to any claim or right to notice, or pay
          or benefits in lieu of notice under the WARN Act. In the event any
          WARN act issue does exist or arises in the future, you agree and
          acknowledge that the payments and benefits set forth in this Agreement
          shall be applied to any pay or benefits in lieu of notice required by
          the WARN Act, provided that any such offset shall not impair or affect
          the validity of any provision of this Agreement, including the release
          set forth in paragraph 15.

     17.  In consideration of the additional consideration referenced in
          this Agreement, you covenant and agree that during the period of
          Compensation Continuance (i) you will not directly or indirectly
          (whether as owner, partner, consultant, employee, or otherwise) engage
          in any of the "major" businesses in which R. J. Reynolds Tobacco
          Holdings, Inc., R. J. Reynolds Tobacco Company or any of their
          affiliates are engaged and (ii) you will not, on your own behalf or on
          behalf of any person, firm or company, directly or indirectly, for a
          period of 12 months following your termination, offer employment to
          any person who was, at the time of your termination, employed by R. J.
          Reynolds Tobacco Holdings, Inc., R. J. Reynolds Tobacco Company, or
          any other affiliates.

     18.  "Major businesses" for this purpose are the major business
          segments of R.J. Reynolds Tobacco Holdings, Inc., R. J. Reynolds
          Tobacco Company or any of their affiliates dealing in the manufacture,
          sale or marketing of tobacco and smoking products or products deemed
          to be in competition with smoking products, including but not limited
          to those developed, marketed or intended to be used as part of smoking
          cessation programs, or as tobacco or smoking substitutes. You and the
          Company agree that this covenant not to compete is a reasonable
          covenant under the circumstances and further agree that if, in the
          opinion of any court of competent jurisdiction, such restraint is not
          reasonable in any respect, such court shall have the right, power and
          authority to excise or modify such provision or provisions of this
          covenant as to the court shall appear not reasonable and to enforce
          the remainder of the covenant as so amended.

     19.  The Company advises you that you may wish to consult with an
          attorney of your choosing prior to signing this Agreement. You
          understand and agree that you have the right and have been given the
          opportunity to review this Agreement, specifically the release in
          paragraph 15, with an attorney of your choice should you so desire.
          You have entered into this Agreement freely, knowingly and
          voluntarily. After a Change of Control (as defined under the LTIP),
          the Company shall pay to you as incurred all legal and accounting fees
          and expenses incurred by you in seeking to obtain or enforce any right
          or benefit provided by this Agreement or any other
          compensation-related plan, agreement or arrangement of the Company
          unless your claim is found by a tribunal of competent jurisdiction to
          have been frivolous.

<PAGE>

Kenneth J. Lapiejko
Page 9

     20.  You will be reimbursed for travel, food, lodging or similar
          out-of-pocket expense incurred at the Company's request in discharging
          any of your obligations under this Agreement. If the Company
          reasonably determines that you have violated any of your obligations
          under this Agreement, then the Company may, at its option, terminate
          the Compensation Continuance and any other benefits hereunder; and the
          Company may demand the return of all Compensation Continuance payments
          already made and you hereby agree to return such payments upon such
          demand. If after such demand you fail to return said payments, the
          Company has the right to commence judicial proceedings against you to
          recover any and all of its attorney's fees and costs. The Executive
          Vice President - Human Resources or the designated representative
          thereof shall have exclusive authority to interpret this Agreement.
          The decision of the Executive Vice President - Human Resources with
          respect to any question arising as to the amount, term, form, and time
          of payment of benefits under this Agreement or any other matter
          concerning this Agreement shall be final, conclusive and binding on
          both you and the Company.

     21.  This Agreement may not be amended except in writing signed by you
          and the Company, and no amendments or modifications are contemplated
          at this time. This Agreement shall not be construed to provide any
          rights to anyone other than you and the Company.

     22.  If you have any questions about this Agreement, contact Ann A.
          Johnston or Stephen P. Karr in the Human Resources Department.

     23.  You have at least twenty-one (21) days to consider the terms of
          this Agreement, although you may sign and return it sooner if you
          wish. This Agreement may be revoked by you for a period of seven (7)
          consecutive calendar days after you have signed and dated it, and
          after such seven (7) days it becomes final.

     24.  This Agreement shall be construed, interpreted and governed in
          accordance with the laws of the State of North Carolina and the United
          States of America without reference to rules relating to conflicts of
          law.

Please indicate your acceptance of the terms of this Agreement by signing this
letter and returning it to me.

                                      Sincerely,

                                      R. J. REYNOLDS TOBACCO HOLDINGS, INC.

                                      /s/ Ann A. Johnston
                                      ------------------------------
                                      Ann A. Johnston
                                      Executive Vice President
                                      Human Resources
Understood and agreed:

   /s/ Kenneth J. Lapiejko
----------------------------
   Kenneth J. Lapiejko

Date:  7/15/02
     ---------------

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}]]