Document:

EX-4.1

 Exhibit 4.1 

SUPPLEMENTAL INDENTURE NO. 14 (this “Supplemental Indenture”), dated as of March 24, 2022, among B.A.T Capital
Corporation, a corporation incorporated in the state of Delaware (the “Company”), as issuer, British American Tobacco p.l.c., a public limited company incorporated under the laws of England and Wales (the “Parent”),
B.A.T. International Finance p.l.c., a public limited company incorporated under the laws of England and Wales (“BATIF”), B.A.T. Netherlands Finance B.V., a private company with limited liability (besloten vennootschap met
beperkte aansprakelijkheid) incorporated under the laws of The Netherlands (“BATNF”), and, until its guarantee is released in accordance with the Base Indenture (if ever), Reynolds American Inc., a North Carolina corporation
(“RAI”), as guarantors (the “Guarantors”) and Citibank, N.A., as trustee (the “Trustee”). 

W I T N E S S E T H 

WHEREAS, the Company has heretofore executed and delivered to the Trustee (i) an indenture dated as of September 6, 2019 (the
“Base Indenture”), providing for the issuance from time to time of an unlimited aggregate principal amount of guaranteed debt securities and (ii) a twelfth supplemental indenture dated as of March 16, 2022 (the
“Twelfth Supplemental Indenture”) providing for the issuance on such date by the Company of $700,000,000 aggregate principal amount of its 4.742% Notes due 2032 (the “Initial Notes”); 

WHEREAS, Section 7.01(g) of the Base Indenture and Section 2.01 of the Twelfth Supplemental Indenture provides, among other things,
that the Company may, from time to time, without the consent of any Holder, “reopen” the series of Initial Notes and create and issue additional notes having substantially identical terms and conditions as the Initial Notes (or in all
respects except as to issue price, denomination, rate of interest, maturity date and the date from which interest, if any, shall accrue) so that the additional notes are consolidated and form a single series with the outstanding Initial Notes; 

WHEREAS, pursuant to Section 7.01(g) of the Base Indenture and Section 2.01 of the Twelfth Supplemental Indenture, the parties
hereto are authorized to execute and deliver this Supplemental Indenture; 
 WHEREAS, the Company and the Guarantors have taken all
necessary corporate action to authorize the execution and delivery of this Supplemental Indenture; 
 WHEREAS, as contemplated by
Section 7.01(g) of the Base Indenture and Section 2.01 of the Twelfth Supplemental Indenture, the Company intends to issue, and the Guarantors intend to guarantee, an additional $200,000,000 aggregate principal amount of its 4.742% Notes
due 2032 (the “Additional Notes” and, together with the Initial Notes, the “2032 Notes”) as additional notes under the Base Indenture and the Twelfth Supplemental Indenture; and 

WHEREAS, the Additional Notes will have identical terms and conditions as the Initial Notes, other than with respect to the date of issuance
and the issue price; 

 NOW, THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt of which is hereby acknowledged, the parties hereto mutually covenant and agree for the equal and ratable benefit of the Holders of the Additional Notes as follows: 

ARTICLE I 

Definitions and Other Provisions of General Application 

SECTION 1.01. Definitions. 

Except as otherwise expressly provided in this Supplemental Indenture, all terms used in this Supplemental Indenture which are defined in the
Base Indenture shall have the meanings ascribed to them by the Base Indenture. 
 SECTION 1.02. Effect of Headings. 

The Article and Section headings herein are for convenience only and shall not affect the construction hereof. 

SECTION 1.03. Separability Clause. 

In case any provision in this Supplemental Indenture shall be invalid, illegal or unenforceable, the validity, legality and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby. 
 SECTION 1.04. Benefits of Instrument. 

Nothing in this Supplemental Indenture expressed, and nothing that may be implied from any of the provisions hereof, is intended, or shall be
construed, to confer upon, or to give to, any Person other than the parties hereto and their successors and the Holders of the Initial Notes or the Additional Notes any benefit or any right, remedy or claim under, or by reason of, this Supplemental
Indenture or any covenant, condition, stipulation, promise or agreement hereof, and all covenants, conditions, stipulations, promises and agreements contained in this Supplemental Indenture shall be for the sole and exclusive benefit of the parties
hereto and their successors and of the Holders of the Initial Notes or the Additional Notes. 
 ARTICLE II 

Additional Notes 

SECTION 2.01. Creation of the Additional Notes. 

In accordance with Section 7.01(g) of the Base Indenture and Section 2.01 of the Twelfth Supplemental Indenture, the Company hereby
creates and provides for the issuance of the Additional Notes under the Base Indenture. The form of the Additional Notes, including the form of the certificate of authentication, is attached hereto as Exhibit A. 

  
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 The Company shall issue the Additional Notes in an aggregate principal amount of
$200,000,000. The Company may from time to time, without the consent of the Holders of the Additional Notes, “reopen” the series of 2032 Notes and create and issue additional Notes having substantially identical terms and conditions as the
2032 Notes (or in all respects except as to issue price, denomination, rate of interest, maturity date and the date from which interest, if any, shall accrue, and except as may otherwise be provided in or pursuant to such Officer’s Certificate
or supplemental indenture relating thereto) so that the additional Notes are consolidated and form a single series with the outstanding 2032 Notes. 

The Additional Notes initially shall be represented by one or more Additional Notes of the same series as the Initial Notes in registered,
global form without interest coupons. The global notes representing the Additional Notes (collectively, the “Additional Notes Global Notes”) initially shall be (i) registered in the name of the Depository Trust Company
(the “Depositary”) or the nominee of such Depositary, in each case for credit to an account of a member of, or direct or indirect participant in, the Depositary; and (ii) delivered to Citibank, N.A. as custodian for
such Depositary. 
 (a) The Additional Notes and the Initial Notes shall constitute a single series of Notes for all purposes under the Base
Indenture. The Additional Notes will have identical terms and conditions as the Initial Notes, other than with respect to the date of issuance and the issue price. 

Sections 2.04, 2.05, 2.06 and 2.07 of the Twelfth Supplemental Indenture will be applicable mutatis mutandi to the Additional Notes and
any references in such Sections of the Twelfth Supplemental Indenture to the “2032 Notes” shall be deemed to include the Initial Notes and the Additional Notes. 

(b) The maturity date of the principal of the Additional Notes shall be March 16, 2032 (the “Maturity Date”). 

(c) Unless supplemented or superseded in this Supplemental Indenture and in the Twelfth Supplemental Indenture, the terms of the Additional
Notes, including any Events of Default and covenants of the Company and the Guarantors are consistent with the Base Indenture and set forth therein. 

SECTION 2.02. Guarantee. 

Subject to the terms and applicable limitations set forth in the Base Indenture and the form of Additional Notes, each Guarantor, hereby
jointly and severally, fully, unconditionally and irrevocably guarantees the Additional Notes and obligations of the Company hereunder and thereunder, and guarantees to each Holder of an Additional Note authenticated and delivered by the
Authentication Agent, and to the Trustee on behalf of such Holder, that (i) the principal of (and premium, if any) and interest on the Additional Notes will be paid in full when due, whether at the Maturity Date, by acceleration or otherwise
(including, without limitation, the amount that would become due but for the operation of any automatic stay provision of any Bankruptcy Law), together with interest on the overdue principal, if any, and all other obligations of the Company to the
Holders or the Trustee hereunder or thereunder will be paid in full or performed, all in accordance with the terms hereof and thereof; and (ii) in case of any extension of time of 

  
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payment or renewal of any Additional Notes or of any such other obligations, the same will be paid in full when due or performed in accordance with the terms of the extension or renewal, whether
at the Maturity Date, by acceleration or otherwise, subject, however, in the case of clauses (i) and (ii) above, to the limitations set forth in Section 9.03 of the Base Indenture. 

SECTION 2.03. Interest. 
 The
Additional Notes shall bear interest at a rate equal to 4.742% per annum. The Additional Notes will bear interest from March 16, 2022, payable semi-annually in arrears on March 16 and September 16 of each year (each, an
“Interest Payment Date”), commencing on September 16, 2022, until the Maturity Date, unless previously purchased and cancelled or redeemed by the Company, to the person in whose name any Additional Note is registered at the
close of business on the 15th calendar day preceding each Interest Payment Date, whether or not such day is a Business Day (each, a “Record Date”) notwithstanding any transfer or exchange of such Additional Notes subsequent to the
Record Date and prior to such Interest Payment Date, except that, if and to the extent the Company shall default in the payment of the interest due on such Interest Payment Date, and the applicable grace period shall have expired, such defaulted
interest may at the option of the Company be paid to the persons in whose names the outstanding Additional Notes are registered at the close of business on a subsequent Record Date (which shall not be less than five Business Days prior to the date
of payment of such defaulted interest) established by notice sent by or on behalf of the Company to the Holders (which term means registered holders) of the Additional Notes, not less than 15 days preceding such subsequent Record Date. Interest will
be computed on the basis of a 360-day year consisting of twelve 30-day months, or in the case of an incomplete month, the number of days elapsed. If the date on which
any interest payment or principal payment is to be made is not a Business Day, such payment will be made on the next day which is a Business Day, without any further interest or other amounts being paid or payable in connection therewith. 

ARTICLE III 

Miscellaneous Provisions 

SECTION 3.01. Effectiveness. This Supplemental Indenture will become effective upon its execution and delivery. 

SECTION 3.02. Original Issue. The Additional Notes may, upon execution of this Supplemental Indenture, be executed by the Company and
delivered by the Company to the Trustee, as Authentication Agent, for authentication, and the Authentication Agent shall, upon Company order, authenticate and deliver such Additional Notes as in such Company order provided. 

SECTION 3.03. Ratification and Integral Part. The Base Indenture, as supplemented by this Supplemental Indenture, is in all respects
ratified and confirmed, and this Supplemental Indenture will be deemed an integral part of the Base Indenture in the manner and to the extent herein and therein provided. 

  
 4 

 SECTION 3.04. Priority. This Supplemental Indenture shall be deemed part of the Base
Indenture in the manner and to the extent herein and therein provided. The provisions of this Supplemental Indenture shall, subject to the terms hereof, supersede the provisions of the Base Indenture with respect to the Additional Notes to the
extent the Base Indenture is inconsistent herewith. 
 SECTION 3.05. Successors and Assigns. All covenants and agreements in the Base
Indenture, as supplemented and amended by this Supplemental Indenture, by the Company and the Guarantors will bind their respective successors and assigns, whether so expressed or not. 

SECTION 3.06. NEW YORK LAW TO GOVERN. THE INTERNAL LAW OF THE STATE OF NEW YORK (INCLUDING, WITHOUT LIMITATION, SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW OR ANY SUCCESSOR TO SUCH STATUTE) WILL GOVERN AND BE USED TO CONSTRUE THIS SUPPLEMENTAL INDENTURE WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO
THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY. 
 SECTION 3.07. Counterparts. The
parties may sign any number of copies of this Supplemental Indenture. Each signed copy shall be an original, but all of them together represent the same agreement. The exchange of copies of this Supplemental Indenture and of signature pages by
facsimile or PDF transmission shall constitute effective execution and delivery of this Supplemental Indenture as to the parties hereto and may be used in lieu of the original Supplemental Indenture for all purposes. Signatures of the parties hereto
transmitted by facsimile or PDF shall be deemed to be their original signatures for all purposes. Any electronic signature hereof shall be of the same legal effect, validity or enforceability as a manually executed signature, to the extent and as
provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signature and Records Act or any other similar state laws based on the Uniform Electronic Transactions
Act. All notices, approvals, consents, requests and any communications hereunder must be in writing (provided that any communication sent to the Trustee hereunder must be in the form of a document that is signed manually or by way of a digital
signature provided by DocuSign (or such other digital signature provider as specified in writing to the Trustee by the Company)), in English. The Company agrees to assume all risks arising out of the use of using digital signatures and electronic
methods to submit communications to the Trustee including, without limitation, the risk of the Trustee acting on unauthorized instructions, and the risk of interception and misuse by third parties. 

SECTION 3.08. The Trustee. The Trustee shall not be responsible in any manner whatsoever for or in respect of the validity or
sufficiency of this Supplemental Indenture or for or in respect of the recitals contained herein, all of which are made solely by the Company and the Guarantors. 

[Remainder of page intentionally left blank.] 

  
 5 

 IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly
executed and attested, all as of the date first above written. 
  

			
	B.A.T CAPITAL CORPORATION
		
	By:	 	/s/ Caroline Price
		 	Name: Caroline M. Price
		 	Title: Treasurer
	
	BRITISH AMERICAN TOBACCO P.L.C.
		
	By:	 	/s/ Tadeu Marroco
		 	Name: Tadeu Marroco
		 	Title: Finance and Transformation Director
	
	B.A.T. NETHERLANDS FINANCE B.V.
		
	By:	 	/s/ Hendrik Lina
		 	Name: Hendrik Lina
		 	Title: Director
		
	By:	 	/s/ Judith Bollen
		 	Name: Judith Bollen
		 	Title: Director
	
	B.A.T. INTERNATIONAL FINANCE P.L.C.
		
	 By:
	 	/s/ Neil Wadey
		 	Name: Neil Wadey
		 	Title: Director

 [Signature Page to Supplemental Indenture No. 14] 

 
			
	 REYNOLDS AMERICAN INC.

		
	By: 	 	/s/ Anthony B. Petitt
		 	Name: Anthony B. Petitt
		 	Title: Treasurer
	
	 CITIBANK, N.A.,
 as
Trustee

		
	By: 	 	/s/ Keri-anne Marshall
		 	Name: Keri-anne Marshall
		 	Title: Senior Trust Officer

 [Signature Page to Supplemental Indenture No. 14] 

 EXHIBIT A 

CUSIP No. 05526D BW4 
 B.A.T CAPITAL CORPORATION

  

			
	No. [●]	  	$[●]

 4.742% NOTE DUE 2032 

B.A.T    Capital Corporation, a corporation incorporated in the state of Delaware (the “Company”),
for value received, promises to pay to CEDE & CO. or registered assigns the principal sum of $[●], on March 24, 2022. 

Interest Payment Dates: March 16 and September 16, commencing on September 16, 2022. 

Record Dates: at the close of business on the 15th calendar day that precedes the related Interest Payment Date, whether or not such day is a
Business Day. 
 Reference is made to the further provisions of this 2032 Note contained herein, which will for all purposes have the same
effect as if set forth at this place. 
 IN WITNESS WHEREOF, the Company has caused this 2032 Note to be signed manually or by facsimile by
one of its duly authorized officers. 

  
 1 

 
			
	 B.A.T CAPITAL CORPORATION

		
	 By:
	 	 
		 	 Name:

		 	 Title:

  
 2 

 Certificate of Authentication 

This is one of the 4.742% Notes due 2032 referred to in the within-mentioned Supplemental Indenture No. 14. 

 

			
	 CITIBANK, N.A.,

 
 as Authentication Agent

		
	 By:
	 	 
		 	 Authorized Signatory

 Dated: 

  
 3 

 B.A.T CAPITAL CORPORATION 

4.742% NOTE DUE 2032 
 This 2032
Note is one of a duly authorized issue of 4.742% Notes due 2032 (the “2032 Notes”) of B.A.T Capital Corporation, a corporation incorporated in the state of Delaware, as issuer (the “Company”). 

(1) Interest. The Company, promises to pay, until the principal hereof is paid or made available for payment, interest on the principal
amount set forth on the face hereof at a rate of 4.742% per annum. Interest on this 2032 Note will accrue from and including the most recent date to which interest has been paid or, if no interest has been paid, from and including March 16,
2022, to but excluding the date on which interest is paid. Interest shall be payable in arrears on each March 16 and September 16, commencing on September 16, 2022. Interest will be computed on the basis of a 360-day year comprised of twelve 30-day months or, in the case of an incomplete month, the number of days elapsed. The Company shall pay interest on overdue principal (to the
full extent permitted by law) at the rate borne by the 2032 Notes. 
 (2) Method of Payment. The Company will pay interest to those
persons in whose name a 2032 Note is registered on the 2032 Note register at the close of business on the 15th calendar day that precedes each Interest Payment Date, whether or not such day is a Business Day. Interest on the 2032 Notes will accrue
from the date of original issuance or, if interest has already been paid, from the date it was most recently paid. If the date on which any interest payment or principal payment is to be made is not a Business Day, such payment will be made on the
next day which is a Business Day, without any further interest or other amounts being paid or payable in connection therewith. 
 (3)
Paying Agent, Transfer Agent and Registrar. Initially, Citibank, N.A. (the “Agent”) will act as a Paying Agent, Transfer Agent and Registrar. The Company may change any Paying Agent, Transfer Agent or Registrar without
notice to the Holders of the 2032 Notes. The Company or any of its subsidiaries may act as Paying Agent, Transfer Agent or Registrar. 
 (4)
Indenture. The Company issued the 2032 Notes under an indenture dated as of September 6, 2019 (the “Indenture”), as supplemented by a twelfth supplemental indenture dated as of March 16, 2022 (the
“Supplemental Indenture No. 12”) and a fourteenth supplemental indenture dated as of March 24, 2022 (the “Supplemental Indenture No. 14” and, together with the Supplemental
Indenture No. 12, the “Supplemental Indentures”), in each case among the Company, the Guarantors, the Trustee and the Agent. 

The terms of the 2032 Notes include those stated in the Indenture and the Supplemental Indentures. The 2032 Notes are subject to all such
terms, and Holders of the 2032 Notes are referred to the Indenture and the Supplemental Indentures for a statement of them. Capitalized and certain other terms used and not otherwise defined herein have the meanings set forth in the Indenture or the
Supplemental Indentures (as applicable). 

  
 4 

 (5) Optional Redemption. At any time and from time to time before the Par Call Date,
the Company may redeem the 2032 Notes, in whole or in part, at the Company’s option, upon not less than 10 nor more than 60 days’ prior notice, at a price equal to the greater of: 

(1) 100% of the aggregate principal amount of any 2032 Notes being redeemed, and 

(2) the sum of the present values of the applicable Remaining Scheduled Payments discounted to the Redemption Date on a
semi-annual basis (assuming a 360-day year consisting of twelve 30-day months or, in the case of an incomplete month, the number of days elapsed) at the Treasury Rate,
plus 40 basis points, 
 together with, in each case, accrued and unpaid interest on the principal amount of the 2032 Notes to be redeemed
to, but excluding, the Redemption Date. 
 On or after the Par Call Date of the 2032 Notes, the 2032 Notes will be redeemable in whole at
any time or in part, from time to time, at the Company’s option, upon at least 10 days’ but no more than 60 days’ prior notice, at a price equal to 100% of the principal amount of the 2032 Notes to be redeemed, plus accrued and unpaid
interest thereon to, but excluding, the Redemption Date. 
 The 2032 Notes are also redeemable by the Company, in whole but not in part, at
100% of the principal amount of the 2032 Notes plus any accrued and unpaid interest to the Redemption Date (including any Additional Amounts) at the Company’s option at any time prior to their maturity if, due to a Change in Tax Law:
(i) the Company or any Guarantor, in accordance with the Supplemental Indentures, has, or would, become obligated to pay any Additional Amounts to the Holders of the 2032 Notes; (ii) in the case of any Guarantor, (A) the Parent would
be unable, for reasons outside its control, to procure payment by the Company or any other Guarantor or (B) the procuring of such payment by the Company and each such other Guarantor would be subject to withholding taxes imposed by a Relevant
Taxing Jurisdiction; and (iii) such obligation cannot otherwise be avoided by such Guarantor, the Parent or the Company, taking reasonable measures available to it. 

(6) Redemption Procedures. If the Company elects to redeem less than all of the 2032 Notes at any time, in the case of 2032 Notes
issued in definitive form, the 2032 Notes to be redeemed shall be selected in accordance with applicable procedures of the Depositary. 

(7) Notice of Redemption. Notices of redemption shall be transmitted at least 10 but not more than 60 days before the Redemption Date
to each Holder of 2032 Notes to be redeemed in accordance with Section 10.01 of the Indenture. If the 2032 Notes are to be redeemed in part only, the notice of redemption that relates to such 2032 Notes will state the portion of the principal
amount thereof that is to be redeemed. Any redemption may, at the Company’s sole discretion, be subject to the satisfaction of one or more conditions precedent. In the event of a conditional redemption, the notice of conditional redemption
shall reflect and specify the conditions to the redemption. Once the notice of redemption is delivered, 2032 Notes called for redemption shall, subject to the satisfaction of any applicable conditions, become irrevocably due and payable on the
Redemption Date. 

  
 5 

 (8) Denominations, Transfer, Exchange. The 2032 Notes shall be issuable only in fully
registered form without coupons in denominations of $2,000 and any integral multiple of $1,000 in excess thereof. A Holder may transfer or exchange 2032 Notes in accordance with the Indenture. 

(9) Persons Deemed Owners. The Depositary may be treated by the Company, the Trustee and any agent of the Company or the Trustee as the
absolute owner of the 2032 Global Notes for all purposes whatsoever. 
 (10) Unclaimed Money. If money for the payment of principal
or interest remains unclaimed for two years, the Trustee or Paying Agent will pay the money back to the Company at its request or, if such money is then held by the Company in trust, such money shall be released from such trust. After that, Holders
of the 2032 Notes entitled to the money must look only to the Company for payment as general creditors unless applicable abandoned property law designates another Person. 

(11) Amendment, Supplement, Waiver, Etc. The Company, the Guarantors and the Trustee may modify or amend the Indenture, the 2032 Notes
or the Guarantees without the consent of any Holder to, among other things, cure any ambiguity, or to correct or supplement any provision contained in the Indenture, the 2032 Notes or the Guarantees and add to the covenants, or the restrictions,
conditions or provisions applicable to, the Company and Guarantors, as the case may be, such further covenants, restrictions, conditions or provisions as the Company and any Guarantor, as the case may be, shall consider to be for the protection of
the Holders of the applicable 2032 Notes issued pursuant to the Indenture. Other amendments and modifications of the Indenture or the 2032 Notes may be made by the Company and the Trustee with the consent of the Holders of a majority of the
aggregate principal amount of all series of Notes affected by such amendments or modifications (voting as one class), subject to certain exceptions requiring the consent of each of the Holders of the 2032 Notes to be affected. 

(12) Defaults and Remedies. Events of Default are set forth in the Indenture. Subject to certain limitations in the Indenture, if an
Event of Default with respect to the 2032 Notes (other than an Event of Default specified in Section 5.01 (vii), (viii) or (ix) of the Indenture with respect to the Company or any Guarantor) shall have occurred and be continuing, unless the
principal of all the 2032 Notes shall have already become due and payable, the Holders of not less than 25% in aggregate principal amount of the 2032 Notes then outstanding, by notice in writing to the Company, each Guarantor and the Trustee, may
declare the entire principal amount of all 2032 Notes and interest accrued and unpaid thereon, if any, to be due and payable immediately, and upon any such declaration the same shall become immediately due and payable, without any further
declaration or other act on the part of any Holder of the 2032 Notes. If certain Events of Default specified in Section 5.01 (vii), (viii) or (ix) of the Indenture occur with respect to the Company and are continuing, the principal amount of
and accrued and unpaid interest on all the 2032 Notes issued pursuant to the Indenture shall become immediately due and payable, without any declaration or other act on the part of the Trustee or any Holder of the 2032 Notes. The Trustee shall be
under no obligation to exercise any of its rights or powers under the Indenture at the request or direction of any of the Holders of the 2032 Notes, unless such Holders have offered to the Trustee security or indemnity satisfactory to the Trustee.
Except in the case of a Default or Event of Default in payment of the principal of, premium, if any, or interest on any 

  
 6 

 
2032 Note (including payments pursuant to a redemption or repurchase of the 2032 Notes pursuant to the provisions of the Indenture), the Trustee may withhold the notice if and so long as a
committee of its Responsible Officers in good faith determines that withholding the notice is in the interests of Holders of the 2032 Notes. 

(13) Trustee Dealings with Company. The Trustee in its individual or any other capacity may become the owner or pledgee of 2032 Notes
and may make loans to, accept deposits from, perform services for or otherwise deal with the Company or any Affiliate thereof with the same rights it would have if it were not Trustee. 

(14) No Recourse Against Others. No director, officer, employee or stockholder of the Company or any of the Guarantors, past, present
or future, will have any liability for any of the Company’s or such Guarantor’s obligations under the 2032 Notes or the Indenture or for any claim based on, in respect of, or by reason of, such obligations or their creation. Each Holder of
2032 Notes by accepting a Note waives and releases all such liability. The waiver and release are part of the consideration for issuance of the 2032 Notes. 

(15) Discharge. The Company’s obligations pursuant to the Indenture will be discharged, except for obligations pursuant to certain
sections thereof, subject to the terms of the Indenture, upon the payment or cancellation of all the 2032 Notes or upon the irrevocable deposit with the Trustee of United States dollars or U.S. Government Obligations sufficient to pay when due
principal of and interest on the 2032 Notes at maturity or redemption, as the case may be. 
 (16) Guarantees. The Company’s
obligations under the 2032 Notes are jointly and severally, fully and unconditionally guaranteed, to the extent set forth in the Indenture, by each of the Guarantors. 

(17) Authentication. This 2032 Note shall not be valid until the Authentication Agent manually signs the certificate of authentication
on this 2032 Note. 
 (18) Governing Law. THE INTERNAL LAW OF THE STATE OF NEW YORK (INCLUDING, WITHOUT LIMITATION, SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW OR ANY SUCCESSOR TO SUCH STATUTE) WILL GOVERN AND BE USED TO CONSTRUE THIS 2032 NOTE WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT
THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY. 
 (19) Abbreviations. Customary abbreviations
may be used in the name of a Holder or an assignee, such as: TEN COM (= tenants in common), TENANT (= tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (=
Uniform Gifts to Minors Act). 

  
 7 

 The Company will furnish to any Holder of the 2032 Notes upon written request and without
charge a copy of the Indenture. Requests may be made to: 
 B.A.T Capital Corporation 

c/o British American Tobacco p.l.c. 

Globe House 

4 Temple Place 

London WC2R 2PG 

United Kingdom 

Facsimile: +44 (0)20 7845 0555 

Attention: Company Secretary 

With a copy (which shall not constitute notice) to: 

Cravath, Swaine & Moore LLP 

CityPoint, 1 Ropemaker St. 

London EC2Y 9HR 

United Kingdom 

Facsimile: +44 20 7860 1150 

Attention: Alyssa K. Caples 

  
 8 

 ASSIGNMENT 

I or we assign and transfer this 2032 Note to: 
  

	
	 (Insert assignee’s social security or tax I.D. number)

 

	 (Print or type name, address and zip code of assignee)

 

 and irrevocably appoint: 
 as
Transfer Agent to transfer this 2032 Note on the books of the Company. The Transfer Agent may substitute another to act for him. 
  

					
	
Date:                  
                                         
     
	  	Your Signature:	  	 
		  		  	(Sign exactly as your name appears on the face of this Note)
	Signature Guarantee:                                	  		  	

 SIGNATURE GUARANTEE 

Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Registrar, which requirements
include membership or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Registrar in addition to, or in substitution for, STAMP, all
in accordance with the Securities Exchange Act of 1934, as amended. 

  
 9 

 SCHEDULE OF INCREASES OR DECREASES IN GLOBAL NOTE 

The following increases or decreases in this Global Note have been made: 
  

									
	 Date of

Exchange
	  	 Amount of

decrease in

Principal
 Amount of
this
 Global Note
	  	 Amount of

increase in

Principal
 Amount of
this
 Global Note
	  	 Principal

Amount of this
 Global
Note
 following such

decrease or

increase
	  	 Signature of

authorized
 signatory
of
 Trustee or

Notes

Custodian

  
 10eldn-ex1012_1073.htm

Exhibit 10.12

 

ELEDON PHARMACEUTICALS, INC.

Stock Option Agreement
Granted Under 2020 Long Term Incentive Plan

 

	
1)
	
GRANT OF OPTION.

	
 
	
A)
	
This agreement evidences the grant by ELEDON PHARMACEUTICALS, Inc., a Delaware corporation (the “Company”), on February 1, 2022 (the “Grant Date”) to david-alexandre gros, an Officer of the Company (the “Participant”), of an option (the “Option”) to purchase, in whole or in part, on the terms provided herein and in the Company’s 2020 Long Term Incentive Plan (the “Plan”), a total of 192,000 shares (the “Shares”) of common stock, $0.001 par value per share, of the Company (“Common Stock”), at an exercise price of $3.97USD per Share.  Unless earlier terminated, this Option shall expire at 5:00 p.m., Pacific Time, on February 1, 2032 (the “Final Exercise Date”). This Option is subject in all respects to the terms and conditions of the Plan, a copy of which has been made available to the Participant prior to the date hereof.

	
 
	
B)
	
If and to the extent that this Agreement conflicts or is inconsistent with the terms, conditions and provisions of any employment, consulting or similar services agreement between the Participant and the Company as may be in effect (the “Service Agreement”), the Service Agreement shall control, and this Agreement shall be deemed to be modified accordingly as long as the terms of the Service Agreement are consistent with the Plan.

	
 
	
C)
	
This Option is a non-qualified option under Section 422 of the Internal Revenue Code of 1986, as amended, and any regulations promulgated thereunder (the “Code”).  Except as otherwise indicated by the context, the term “Participant”, as used in this Option, shall be deemed to include any person who acquires the right to exercise this Option validly under its terms. 

	
2)
	
VESTING SCHEDULE.

	
 
	
A)
	
One hundred ninety-two thousand (192,000) of the Shares subject to this Option (the “Performance-Based Options”) shall be subject to the performance-based and time-based vesting requirements set forth below.  Subject to satisfying the time-based vesting terms set forth below, 100% of the Performance-Based Options shall become eligible to vest and become exercisable if the Company achieves 100% of the corporate research and development, chemistry, manufacturing and controls and general administrative goals approved by the Board of Directors for the 2022 calendar year (the “Performance Goals”).  The maximum number of Performance-Based Options that may become eligible to vest and become exercisable is 100% of the Performance-Based Options.  However, if the Performance Goals are achieved at or above the threshold performance levels but below the target performance levels, the Committee or Board shall determine the percentage of the Performance-Based Options that are eligible to vest and become exercisable.  All determinations with respect to the number of the Performance-Based Options that become eligible to vest and become exercisable shall be made by the Board or Committee, whose determination shall be final and binding.  Any Performance-Based Options that do not become eligible to vest and become exercisable following the Board’s or Committee’s determination shall automatically be forfeited for no consideration.

 

 

Subject to the Participant’s continued serve as an Eligible Participant, twenty-five percent (25%) of the Performance-Based Options that become eligible to vest and become exercisable shall vest immediately upon the Committee’s or Board’s determination of the achievement of the Performance Goals (which is expected to occur in the first quarter of the 2023 calendar year).  The remaining 75% of the Performance-Based Options that have become eligible to vest and become exercisable shall vest and become exercisable with respect to approximately 1/48th of the underlying Shares monthly thereafter until the fourth anniversary of the Grant Date so that such Performance-Based Options are fully vested on the fourth anniversary of the Grant Date (subject to the Participant’s continued serve as an Eligible Participant as of each applicable vesting date).  In addition to any accelerated vesting provided for in Participant’s Service Agreement, if the Participant’s employment with the Company is terminated by the Company without “Cause” or by the Participant for “Good Reason” (in each case as defined below) prior to the Committee’s determination of the level of achievement of the Performance Goals, (A) except as provided in clause (B) below, 100% of the Performance-Based Options (and for these purposes ignoring the level of achievement of the Performance Goals) that would have vested based on continued employment for 12 months following the termination shall accelerate and become vested on the date that the release of claims contemplated by the Service Agreement becomes effective and irrevocable, and (B) in lieu of the accelerated vesting provided in clause (A) above, if the Participant’s termination without Cause or for Good Reason occurs either within 90 days before the consummation of a Change in Control or within 12 months after the consummation of a Change in Control, 100% of the Performance-Based Options (and for these purposes ignoring the level of achievement of the Performance Goals) shall accelerate and become vested on the date that the release of claims contemplated by the Service Agreement becomes effective and irrevocable.  If the Participant’s employment with the Company is terminated by the Company without Cause or by the Participant for Good Reason after the Committee’s determination of the level of achievement of the Performance Goals, then the Performance-Based Options that become eligible to vest and become exercisable shall be treated as awards subject to time-based vesting for purposes of the Service Agreement.

	
 
	
B)
	
In addition to the accelerated vesting provided for above or in the Service Agreement, notwithstanding anything herein to the contrary, if, upon the consummation of a Change in Control (as defined in the Plan) or during a period of ninety-days prior to the Reorganization Event or one-year period thereafter, the Participant’s employment with the Company is terminated by the Company without “Cause” or by the Participant for “Good Reason” (in each case as defined below), then this Option shall automatically vest and become exercisable with respect to all of the Shares underlying the Time-Based Option not already vested and all of the Shares underlying the Performance-Based Option that are then outstanding and remain eligible to vest and become exercisable.

	
3)
	
EXERCISE OF OPTION.

	
 
	
A)
	
Form of Exercise.  Each election to exercise this Option shall be done electronically through the Company’s equity plan administrator’s website or in writing, in the form of the Stock Option Exercise Notice attached as Annex A, signed by the Participant, and received by the Company at its principal office, together with payment in full in the manner provided in the Plan. 

 

 

	
 
	
B)
	
Continuous Relationship with the Company Required.  Except as otherwise provided in this Section 3, this Option may not be exercised unless the Participant, at the time he or she exercises this Option, is, and has been at all times since the Grant Date, an employee, director or officer of, or consultant or advisor to, the Company or any other entity the employees, officers, directors, consultants, or advisors of which are eligible to receive option grants under the Plan (an “Eligible Participant”).

	
 
	
C)
	
Termination of Relationship with the Company.  If the Participant ceases to be an Eligible Participant for any reason, then, except as provided in paragraphs (D) and (E) below, the right to exercise this Option shall terminate three months after such cessation (but in no event after the Final Exercise Date), provided that this Option shall be exercisable only to the extent that the Participant was entitled to exercise this Option on the date of such cessation.  Notwithstanding the foregoing, if the Participant, prior to the Final Exercise Date, violates the non-competition or confidentiality provisions of any employment contract, confidentiality and nondisclosure agreement or other agreement between the Participant and the Company, the right to exercise this Option shall terminate immediately upon such violation.

	
 
	
D)
	
Exercise Period Upon Death or Disability.  If the Participant dies or becomes disabled (within the meaning of Section 22(e)(3) of the Code) prior to the Final Exercise Date while he or she is an Eligible Participant and the Company has not terminated such relationship for “Cause” as specified in paragraph (E) below, this Option shall be exercisable, within the period of one year following the date of death or disability of the Participant, by the Participant (or in the case of death by an authorized transferee), provided that this Option shall be exercisable only to the extent that this Option was exercisable by the Participant on the date of his or her death or disability, and further provided that this Option shall not be exercisable after the Final Exercise Date.

	
 
	
E)
	
Termination for Cause.  If, prior to the Final Exercise Date, the Participant’s employment is terminated by the Company for Cause, the right to exercise this Option shall terminate immediately upon the effective date of such termination of employment.

 

	
4)
	
TAX MATTERS.

	
 
	
A)
	
Withholding.  No Shares will be issued pursuant to the exercise of this Option unless and until the Participant pays to the Company, or makes provision satisfactory to the Company for payment of, any federal, state or local withholding taxes required by law to be withheld in respect of this Option.

	
 
	
B)
	
Disqualifying Disposition.  If the Participant disposes of Shares acquired upon exercise of this Option within two years from the Grant Date or one year after such Shares were acquired pursuant to exercise of this Option, the Participant shall notify the Company in writing of such disposition.

 

 

	
5)
	
Definitions.

	
 
	
A)
	
For the purposes of this Option:

	
 
	
i)
	
“Cause” shall have the meaning set forth in any employment or other agreement between the Participant and the Company or, in the absence of such an agreement, shall mean that, in the good faith determination of the Company, the Participant has: (a) committed gross negligence or willful malfeasance in the performance of the Participant’s work or duties; (b) committed a breach of fiduciary duty or a breach of any non-competition, non-solicitation or confidentiality obligations to the Company; (c) failed to follow the proper directions of the Participant’s direct or indirect supervisor after written notice of such failure; (d) been convicted of, or pleaded “guilty” or “no contest” to, any misdemeanor relating to the affairs of the Company or any felony; (e) disregarded the material rules or material policies of the Company which has not been cured within 15 days after notice thereof from the Company; or (f) engaged in intentional acts that have generated material adverse publicity toward or about the Company.

	
 
	
ii)
	
“Good Reason” shall have the meaning set forth in any employment or other agreement between the Participant and the Company or, in the absence of such an agreement, shall mean any action on the part of the Company or a successor in interest not consented to by the Participant in writing having the following effect or effects: (a) a material diminution in the Participant’s duties, authority or responsibilities from and after the Reorganization Event; (b) a material reduction in the Participant’s base salary from and after the Reorganization Event, other than a reduction comparable to reductions generally applicable to similarly situated persons; or (c) the Company’s requiring the Participant’s ongoing and regular services to be performed at a location more than fifty (50) miles from the geographic location at which the Participant was providing services before such requirement. Notwithstanding the occurrence of any such event or circumstance, such occurrence shall not be deemed to constitute Good Reason unless (1) the Participant gives the Company’s Chief Executive Officer (or the Chief Executive Officer of the Company’s successor in interest, if applicable) written notice specifying that such event or circumstance will give rise to a right of termination no more than thirty (30) days after the initial existence of such event or circumstance, (2) such event or circumstance shall not have been cured within thirty (30) days following such written notice from the Participant and (3) the Participant terminates the Participant’s employment within forty-five (45) days after the end of the 30-day cure period and prior to such event or circumstance having been cured.

	
 
	
iii)
	
Except as otherwise indicated by the context, the term “Participant”, as used in this Option, shall be deemed to include any person who acquires the right to exercise this Option validly under its terms.

[Signatures page follow.]

 

 

IN WITNESS WHEREOF, the Company has caused this Option to be executed under by its duly authorized officer.

 

	
ELEDON PHARMACEUTICALS, INC.

	
 
	
 

	
 
	
 

	
By:
	
/s/ Paul Little

	
Name:
	
Paul Little

	
Title:
	
Chief Financial Officer

 

 

The undersigned hereby accepts the foregoing option and agrees to the terms and conditions thereof.  The undersigned hereby acknowledges receipt of a copy of the Plan.

 

	
PARTICIPANT:

	
 
	
 

	
 
	
 

	
/s/ David-Alexandre C. Gros, M.D.

	
Signature of Participant

	
 
	
 

	
February 1, 2022

	
Grant Acceptance Date

	
 
	
 

	
David-Alexandre C. Gros

	
Print Name of Participant

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