Document:

EX-10.1

 

EXHIBIT
10.1

 

FOURTH AMENDED AND RESTATED CREDIT AGREEMENT

AMONG

REYNOLDS AMERICAN INC.,

JPMORGAN CHASE BANK, N.A.

as ADMINISTRATIVE AGENT,

LEHMAN COMMERCIAL PAPER INC.

and

CITICORP USA, INC.,

as SYNDICATION AGENTS,

GENERAL ELECTRIC CAPITAL CORPORATION

and

MIZUHO CORPORATE BANK, LTD.,

as DOCUMENTATION AGENTS,

LEHMAN BROTHERS INC.,

J.P. MORGAN SECURITIES INC.,

CITIGROUP GLOBAL MARKETS INC.

and

GENERAL ELECTRIC CAPITAL CORPORATION,

as JOINT LEAD ARRANGERS

LEHMAN BROTHERS INC.,

J.P. MORGAN SECURITIES INC.

and

CITIGROUP GLOBAL MARKETS INC.,

as JOINT BOOKRUNNERS

and

VARIOUS LENDING INSTITUTIONS

 

Dated as of May 31, 2006

 

$2,100,000,000

 

** This Fourth Amended and Restated Credit
Agreement (the “Credit Agreement”) contains representations
and warranties Reynolds American Inc. made to its lenders. These
representations and warranties were made as of specific dates and are
subject to qualifications and limitations agreed to by Reynolds
American Inc. and the other parties to the Credit Agreement in
connection with negotiating the terms of the Credit Agreement.
Moreover, these representations and warranties are subject to
contractual standards of materiality that may be different from
those generally applicable to disclosures to securityholders and in
some cases may have been made solely for the purpose of providing
contractual rights and remedies to the parties rather than to
establish matters as facts. Accordingly, you should not rely on the
representations and warranties as characterizations of the actual
state of affairs.**

 

 

TABLE
OF CONTENTS

	 	 	 	 	 
	SECTION 1. Amount and Terms of Credit
	 	 	1	 
	1.01 Commitments
	 	 	1	 
	1.02 Minimum Amount of Each Borrowing; Maximum Number of Borrowings
	 	 	3	 
	1.03 Notice of Borrowing of Committed Loans
	 	 	3	 
	1.04 Disbursement of Funds
	 	 	4	 
	1.05 Notes; Register
	 	 	5	 
	1.06 Conversions
	 	 	7	 
	1.07 Pro Rata Borrowings
	 	 	7	 
	1.08 Interest
	 	 	7	 
	1.09 Interest Periods
	 	 	8	 
	1.10 Increased Costs, Illegality, etc
	 	 	9	 
	1.11 Compensation
	 	 	11	 
	1.12 Change of Lending Office
	 	 	11	 
	1.13 [RESERVED]
	 	 	11	 
	1.14 Replacement of Lenders
	 	 	11	 
	1.15 Notice of Certain Costs
	 	 	12	 
	1.16 Incremental RL Commitments
	 	 	12	 
	 
	 	 	 	 
	SECTION 2. Letters of Credit
	 	 	14	 
	2.01 Letters of Credit
	 	 	14	 
	2.02 Letter of Credit Requests
	 	 	15	 
	2.03 Letter of Credit Participations
	 	 	15	 
	2.04 Agreement to Repay Letter of Credit Drawings
	 	 	17	 
	2.05 Increased Costs
	 	 	18	 
	2.06 Indemnification; Nature of Letter of Credit Issuers’ Duties
	 	 	18	 
	 
	 	 	 	 
	SECTION 3. Fees; Commitments
	 	 	20	 
	3.01 Fees
	 	 	20	 
	3.02 Voluntary Reduction of Commitments
	 	 	21	 
	3.03 Termination of Commitments
	 	 	21	 
	 
	 	 	 	 
	SECTION 4. Payments
	 	 	21	 
	4.01 Voluntary Prepayments
	 	 	21	 
	4.02 Mandatory Prepayments
	 	 	22	 
	4.03 Method and Place of Payment
	 	 	25	 
	4.04 Net Payments
	 	 	26	 
	 
	 	 	 	 
	SECTION 5. Conditions Precedent
	 	 	28	 
	5.01 Conditions Precedent to the Fourth Restatement Effective Date
	 	 	28	 
	5.02 Conditions Precedent to All Credit Events
	 	 	34	 

(i)

 

TABLE
OF CONTENTS

(continued)

	 	 	 	 	 
	SECTION 6. Representations, Warranties and Agreements
	 	 	34	 
	6.01 Status
	 	 	35	 
	6.02 Power and Authority
	 	 	35	 
	6.03 No Violation
	 	 	35	 
	6.04 Litigation
	 	 	35	 
	6.05 Use of Proceeds; Margin Regulations
	 	 	36	 
	6.06 Governmental Approvals
	 	 	36	 
	6.07 Investment Company Act
	 	 	36	 
	6.08 True and Complete Disclosure
	 	 	37	 
	6.09 Financial Condition; Financial Statements; Solvency
	 	 	37	 
	6.10 Tax Returns and Payments
	 	 	38	 
	6.11 Compliance with ERISA
	 	 	38	 
	6.12 Subsidiaries
	 	 	38	 
	6.13 Patents, etc.
	 	 	39	 
	6.14 Pollution and Other Regulations
	 	 	39	 
	6.15 Properties
	 	 	39	 
	 
	 	 	 	 
	SECTION 7. Affirmative Covenants
	 	 	39	 
	7.01 Information Covenants
	 	 	39	 
	7.02 Books, Records and Inspections
	 	 	41	 
	7.03 Insurance
	 	 	41	 
	7.04 Payment of Taxes
	 	 	41	 
	7.05 Consolidated Corporate Franchises
	 	 	42	 
	7.06 Compliance with Statutes, etc.
	 	 	42	 
	7.07 ERISA
	 	 	42	 
	7.08 Good Repair
	 	 	43	 
	7.09 End of Fiscal Years; Fiscal Quarters
	 	 	43	 
	7.10 Subsidiary Guaranty; Collateral
	 	 	43	 
	7.11 Margin Stock
	 	 	45	 
	7.12 Ownership Structure
	 	 	46	 
	7.13 Tax Sharing Agreement
	 	 	46	 
	7.14 Post Closing Liquidation
	 	 	46	 
	 
	 	 	 	 
	SECTION 8. Negative Covenants
	 	 	46	 
	8.01 Changes in Business
	 	 	46	 
	8.02 Consolidation, Merger, Sale of Assets, etc.
	 	 	46	 
	8.03 Liens
	 	 	49	 
	8.04 Indebtedness
	 	 	51	 
	8.05 Limitation on Dividends
	 	 	54	 
	8.06 Transactions with Affiliates
	 	 	55	 
	8.07 Consolidated Total Leverage Ratio
	 	 	56	 
	8.08 Consolidated Fixed Charge Coverage Ratio
	 	 	56	 
	8.09 Investments
	 	 	56	 

(ii)

 

TABLE
OF CONTENTS

(continued)

	 	 	 	 	 
	8.10 No Negative Pledge
	 	 	60	 
	8.11 Modifications of Acquisition Documents and Certain Other Agreements;
Limitations on Voluntary Payments, etc.
	 	 	60	 
	8.12 Maintenance of Company Separateness
	 	 	61	 
	8.13 Capital Expenditures
	 	 	61	 
	 
	 	 	 	 
	SECTION 9. Events of Default
	 	 	62	 
	9.01 Payments
	 	 	62	 
	9.02 Representations, etc.
	 	 	62	 
	9.03 Covenants.
	 	 	62	 
	9.04 Default Under Other Agreements
	 	 	62	 
	9.05 Bankruptcy, etc.
	 	 	63	 
	9.06 ERISA
	 	 	63	 
	9.07 Guaranties
	 	 	64	 
	9.08 Judgments
	 	 	64	 
	9.09 Security Documents
	 	 	64	 
	9.10 Change of Control
	 	 	64	 
	 
	 	 	 	 
	SECTION 10. Definitions
	 	 	65	 
	 
	 	 	 	 
	SECTION 11. The Lead Agents
	 	 	102	 
	11.01 Appointment
	 	 	102	 
	11.02 Delegation of Duties
	 	 	103	 
	11.03 Exculpatory Provisions
	 	 	103	 
	11.04 Reliance by Lead Agents
	 	 	104	 
	11.05 Notice of Default
	 	 	104	 
	11.06 Non-Reliance on Lead Agents and Other Lenders
	 	 	104	 
	11.07 Indemnification
	 	 	105	 
	11.08 Lead Agents in Their Individual Capacities
	 	 	105	 
	11.09 Successor Lead Agents, etc.
	 	 	105	 
	 
	 	 	 	 
	SECTION 12. Miscellaneous
	 	 	106	 
	12.01 Payment of Expenses, etc
	 	 	106	 
	12.02 Right of Setoff
	 	 	108	 
	12.03 Notices
	 	 	108	 
	12.04 Benefit of Agreement
	 	 	108	 
	12.05 No Waiver; Remedies Cumulative
	 	 	112	 
	12.06 Payments Pro Rata
	 	 	113	 
	12.07 Calculations; Computations
	 	 	113	 
	12.08 Governing Law; Submission to Jurisdiction; Venue
	 	 	114	 
	12.09 Counterparts; Severability
	 	 	115	 
	12.10 Execution
	 	 	115	 
	12.11 Headings Descriptive
	 	 	115	 
	12.12 Amendment or Waiver
	 	 	116	 

(iii)

 

TABLE
OF CONTENTS

(continued)

	 	 	 	 	 
	12.13 Survival
	 	 	116	 
	12.14 Domicile of Loans
	 	 	117	 
	12.15 Confidentiality
	 	 	117	 
	12.16 Waiver of Jury Trial
	 	 	118	 
	12.17 USA Patriot Act
	 	 	118	 
	12.18 Interest Rate Limitation
	 	 	118	 
	12.19 Post-Closing Actions
	 	 	119	 
	12.20 Special Provisions Relating to Amendment and Restatement
	 	 	119	 
	 
	 	 	 	 
	SECTION 13. Borrower Guaranty
	 	 	121	 
	13.01 The Guaranty
	 	 	121	 
	13.02 Bankruptcy
	 	 	121	 
	13.03 Nature of Liability
	 	 	122	 
	13.04 Independent Obligation
	 	 	122	 
	13.05 Authorization
	 	 	122	 
	13.06 Reliance
	 	 	123	 
	13.07 Subordination
	 	 	123	 
	13.08 Waiver
	 	 	124	 
	13.09 Payments
	 	 	125	 

	 	 	 
	ANNEX I

	 	List of Lenders and Commitments
	ANNEX II

	 	Lender Addresses
	ANNEX III

	 	Existing Letters of Credit
	ANNEX IV

	 	Certain Litigation
	ANNEX V

	 	List of Subsidiaries
	ANNEX VI

	 	Existing Liens
	ANNEX VII

	 	Existing Debt
	ANNEX VIII

	 	Real Property
	ANNEX IX

	 	Existing Investments
	ANNEX X

	 	Post-Closing Matters
	ANNEX XI

	 	Designated Properties
	 
	 	 
	EXHIBIT A-1

	 	Form of Term Note
	EXHIBIT A-2

	 	Form of Revolving Note
	EXHIBIT A-3

	 	Form of Swingline Note
	EXHIBIT B

	 	Form of Letter of Credit Request
	EXHIBIT C-1

	 	Form of Opinion of Executive Vice President, General Counsel and Assistant Secretary
	EXHIBIT C-2

	 	Form of Opinion of Womble Carlyle Sandridge & Rice, PLLC
	EXHIBIT C-3

	 	Form of Opinion of Kilpatrick Stockton LLP
	EXHIBIT D

	 	Form of Subsidiary Guaranty
	EXHIBIT E

	 	Form of Assignment Agreement
	EXHIBIT F

	 	Form of Solvency Certificate

(iv)

 

TABLE
OF CONTENTS

(continued)

	 	 	 
	EXHIBIT G

	 	Form of Intercompany Subordination Agreement
	EXHIBIT H

	 	Form of Pledge Agreement
	EXHIBIT I

	 	Form of Security Agreement
	EXHIBIT J

	 	Form of Section 4.04(b)(ii) Certificate
	EXHIBIT K

	 	Form of Incremental RL Commitment Agreement
	EXHIBIT L

	 	Form of RAI Assumption Agreement
	EXHIBIT M

	 	Form of RJRTH Intercompany Note
	EXHIBIT N

	 	Form of RAI Existing Senior Notes Assumption and Indemnification Agreement

(v)

 

          FOURTH AMENDED AND RESTATED CREDIT AGREEMENT, dated as of May 31, 2006, among REYNOLDS
AMERICAN INC., a North Carolina corporation (the “Borrower”), and the lending institutions
listed from time to time on Annex I hereto (each, a “Lender” and, collectively, the
“Lenders”). Unless otherwise defined herein, all capitalized terms used herein and defined
in Section 10 are used herein as so defined.

WITNESSETH:

          WHEREAS, the Borrower, R.J. Reynolds Tobacco Holdings, Inc., a Delaware corporation
(“RJRTH”), and certain financial institutions are party to a Credit Agreement, dated as of
May 7, 1999, amended and restated as of November 17, 2000, amended and restated as of May 10, 2002
and further amended and restated as of July 30, 2004 (as so amended and restated and as the same
has been further amended, modified, supplemented to, but not including, the Fourth Restatement
Effective Date, the “Third Amended and Restated Credit Agreement”); and

          WHEREAS, the parties hereto wish to amend and restate the Third Amended and Restated Credit
Agreement in its entirety as herein provided;

          NOW, THEREFORE, the parties hereto agree that the Third Amended and Restated Credit Agreement
shall be and is hereby amended and restated in its entirety as follows:

          NOW, THEREFORE, IT IS AGREED:

          SECTION
1. Amount and Terms of Credit.

          1.01 Commitments. (a) Subject to and upon the terms and conditions herein set forth,
each Lender with a Revolving Loan Commitment severally agrees to make a loan or loans (each, a
“Revolving Loan” and, collectively, the “Revolving Loans”) to the Borrower, which
Revolving Loans:

     (i) shall be made at any time and from time to time on and after the Original Effective
Date and prior to the Revolving Loan Maturity Date;

     (ii) may, at the option of the Borrower, be incurred and maintained as, and/or
converted into, Reference Rate Loans or Eurodollar Loans, provided that all
Revolving Loans comprising the same Borrowing shall, unless otherwise specifically provided
herein, consist entirely of Revolving Loans of the same Type;

     (iii) may be repaid and reborrowed in accordance with the provisions hereof; and

     (iv) shall not exceed for any Lender at any time outstanding that aggregate principal
amount which, when added to the product of (x) such Lender’s RL Percentage and (y) the sum
of (I) the aggregate Letter of Credit Outstandings plus (II) the aggregate
outstanding principal amount of all Swingline Loans then outstanding, equals the
Revolving Loan Commitment of such Lender at such time.

 

 

          (b) Subject to and upon the terms and conditions herein set forth, the Swingline Lender
agrees, at any time and from time to time on and after the Original Effective Date and prior to the
Swingline Maturity Date, to make a loan or loans (each, a “Swingline Loan” and,
collectively, the “Swingline Loans”) to the Borrower, which Swingline Loans:

     (i) shall be Reference Rate Loans;

     (ii) shall have the benefit of the provisions of Section 1.01(c);

     (iii) shall not exceed in the aggregate at any one time outstanding the Swingline
Commitment of the Swingline Lender at such time;

     (iv) shall not exceed at any time outstanding that aggregate principal amount which,
when combined with the aggregate principal amount of all Revolving Loans then outstanding
and all Letter of Credit Outstandings at such time, equals the Total Revolving Loan
Commitment then in effect; and

     (v) may be repaid and reborrowed in accordance with the provisions hereof.

          On (x) the Swingline Maturity Date, all Swingline Loans shall be repaid in full and (y) the
last Business Day of each calendar quarter, all Swingline Loans shall be repaid in full and may not
be reborrowed until the next succeeding Business Day, provided that repayment of the
Swingline Loans pursuant to this clause (y) shall not be required to the extent that the aggregate
outstanding principal amount of Swingline Loans to be repaid is less than $10,000,000. The
Swingline Lender will not make a Swingline Loan after it has received written notice from the
Required Lenders that one or more of the applicable conditions to Credit Events specified in
Section 5 are not then satisfied.

          (c) On any Business Day, the Swingline Lender may, in its sole discretion, give notice to the
RL Lenders that all then outstanding Swingline Loans shall be funded with a Borrowing of Revolving
Loans (provided that such notice shall be deemed to have been automatically given by the
Swingline Lender upon the occurrence of an Event of Default under Section 9.05), in which case a
Borrowing of Revolving Loans constituting Reference Rate Loans (each such Borrowing, a
“Mandatory Borrowing”) shall be made on the immediately succeeding Business Day by all RL
Lenders pro rata based on each RL Lender’s RL Percentage, and the proceeds thereof
shall be applied directly to repay the Swingline Lender for its outstanding Swingline Loans. Each
RL Lender hereby irrevocably agrees to make Reference Rate Loans upon one Business Day’s notice (or
deemed notice) pursuant to each Mandatory Borrowing in the amount and in the manner specified in
the preceding sentence and on the date specified in writing by the Swingline Lender,
notwithstanding (i) that the amount of the Mandatory Borrowing may not comply with the Minimum
Borrowing Amount otherwise required hereunder, (ii) whether any conditions specified in Section 5
are then satisfied, (iii) whether a Default or an Event of Default has occurred and is continuing,
(iv) the date of such Mandatory Borrowing and (v) any reduction in the Total Revolving Loan
Commitment after any such Swingline Loans were made. In the event that any Mandatory Borrowing
cannot for any reason
be made on the date otherwise required above (including, without limitation, as a result of
the commencement of a proceeding under the Bankruptcy Code in respect of the Borrower), each

-2-

 

RL Lender (other than the Swingline Lender) hereby agrees that it shall forthwith purchase from the
Swingline Lender (without recourse or warranty) such assignment of its outstanding Swingline Loans
as shall be necessary to cause the RL Lenders to share in such Swingline Loans ratably based upon
their respective RL Percentages; provided that all interest payable on such Swingline Loans
shall be for the account of the Swingline Lender until the date the respective assignment is
purchased and, to the extent attributable to the purchased assignment, shall be payable to the RL
Lender purchasing same from and after such date of purchase.

          (d) Subject to and upon the terms and conditions set forth herein, each Lender with a Term
Loan Commitment severally agrees to make a term loan or term loans (each, a “Term Loan”
and, collectively, the “Term Loans”) to the Borrower, which Term Loans:

     (i) shall be incurred pursuant to a single drawing on the Fourth Restatement Effective
Date;

     (ii) may, at the option of the Borrower, be incurred and maintained as, and/or
converted into, Reference Rate Loans or Eurodollar Loans, provided that all Term
Loans comprising the same Borrowing shall, unless otherwise specifically provided herein,
consist entirely of Term Loans of the same Type; and

     (iii) shall be made by each such Lender in that aggregate principal amount which equals
the Term Loan Commitment of such Lender on the Fourth Restatement Effective Date (before
giving effect to the termination thereof on such date pursuant to Section 3.03(c)).

Once repaid, Term Loans incurred hereunder may not be reborrowed.

          1.02 Minimum Amount of Each Borrowing; Maximum Number of Borrowings. The aggregate
principal amount of each Borrowing of Loans under a respective Tranche shall not be less than the
applicable Minimum Borrowing Amount with respect thereto (except that Mandatory Borrowings shall be
made in the amounts required by Section 1.01(c)). More than one Borrowing may be incurred on any
date; provided that at no time shall there be outstanding more than twenty Borrowings of
Eurodollar Loans in the aggregate for all Tranches of Loans under this Agreement.

          1.03
Notice of Borrowing of Committed Loans. (a) Whenever the Borrower desires to incur
(x) Eurodollar Loans hereunder, the Borrower shall give the Administrative Agent at the
Administrative Agent’s Office at least three Business Days’ prior notice of each Eurodollar Loan to
be incurred hereunder and (y) Reference Rate Loans hereunder (excluding Swingline Loans and
Revolving Loans made pursuant to a Mandatory Borrowing), the Borrower shall give the Administrative
Agent at the Administrative Agent’s Office at least one Business Day’s prior notice of each
Reference Rate Loan to be incurred hereunder, provided that (in each case) any such notice shall be
deemed to have been given on a certain day only if given before 11:00 A.M. (New York City time) on
such day. Each
such notice (each, together with each notice of a Borrowing of Swingline Loans pursuant to
Section 1.03(b), a “Notice of Borrowing”), shall be irrevocable and shall be in writing, or
by telephone promptly confirmed in writing, appropriately completed to specify: (i) the aggregate
principal amount of the Loans to be

-3-

 

incurred pursuant to such Borrowing, (ii) the date of such
Borrowing (which shall be a Business Day), (iii) whether the Loans being incurred pursuant to such
Borrowing shall constitute Term Loans or Revolving Loans, and (iv) whether the Loans being incurred
pursuant to such Borrowing are to be initially maintained as Reference Rate Loans or, to the extent
permitted hereunder, Eurodollar Loans and, if Eurodollar Loans, the initial Interest Period to be
applicable thereto. The Administrative Agent shall promptly give each Lender which is required to
make Loans of the Tranche specified in the respective Notice of Borrowing, notice of such proposed
Borrowing, of such Lender’s proportionate share thereof and of the other matters required by the
immediately preceding sentence to be specified in the Notice of Borrowing.

          (b) Whenever the Borrower desires to incur Swingline Loans hereunder, it shall give the
Swingline Lender at the Administrative Agent’s Office written notice (or telephonic notice promptly
confirmed in writing) of each Borrowing of Swingline Loans prior to 11:00 A.M. (New York time) on
the date of such Borrowing. Each such notice shall be irrevocable and shall specify (i) the
aggregate principal amount of the Swingline Loans to be made pursuant to such Borrowing and (ii)
the date of Borrowing (which shall be a Business Day).

          (c) Mandatory Borrowings shall be made upon the notice specified in Section 1.01(c), with the
Borrower irrevocably agreeing, by its incurrence of any Swingline Loan, to the making of Mandatory
Borrowings as set forth in such Section.

          (d) Without in any way limiting the obligation of the Borrower to confirm in writing any
notice it may give hereunder by telephone, the Administrative Agent may act prior to receipt of
written confirmation without liability upon the basis of such telephonic notice, believed by the
Administrative Agent in good faith to be from an Authorized Officer of the Borrower. In each such
case, the Borrower hereby waives the right to dispute the Administrative Agent’s record of the
terms of any such telephonic notice.

          1.04 Disbursement of Funds. (a) No later than 1:00 P.M. (New York time) on the date
of each Borrowing (including Mandatory Borrowings), each Lender with a Commitment under the
respective Tranche will make available its pro rata portion, if any, of each
Borrowing requested to be made on such date in the manner provided in Section 1.04(b) below.

          (b) Each Lender with a Commitment under the respective Tranche shall make available all
amounts it is to fund under any Borrowing in U.S. Dollars and immediately available funds to the
Administrative Agent at the Administrative Agent’s Office and the Administrative Agent will (except
in the case of Mandatory Borrowings) make available to the Borrower by depositing to its account at
the Administrative Agent’s Office the aggregate of the amounts so made available in U.S. Dollars
and the type of funds received. Unless the Administrative Agent shall have been notified by any
Lender prior to the date of any such
Borrowing that such Lender does not intend to make available to the Administrative Agent its
portion of the Borrowing or Borrowings to be made on such date, the Administrative Agent may assume
that such Lender has made such amount available to the Administrative Agent on such date of
Borrowing, and the Administrative Agent, in reliance upon such assumption, may (in its sole
discretion and without any obligation to do so) make available to the Borrower a corresponding
amount. If such corresponding amount is not in fact made available to the

-4-

 

Administrative Agent by
such Lender and the Administrative Agent has made available same to the Borrower, the
Administrative Agent shall be entitled to recover such corresponding amount from such Lender. If
such Lender does not pay such corresponding amount forthwith upon the Administrative Agent’s demand
therefor, the Administrative Agent shall promptly notify the Borrower, and the Borrower shall
immediately pay such corresponding amount to the Administrative Agent. The Administrative Agent
shall also be entitled to recover from such Lender or the Borrower, as the case may be, interest on
such corresponding amount in respect of each day from the date such corresponding amount was made
available by the Administrative Agent to the Borrower to the date such corresponding amount is
recovered by the Administrative Agent, at a rate per annum equal to (x) if paid by such Lender, the
overnight Federal Funds Rate or (y) if paid by the Borrower, the then applicable rate of interest,
calculated in accordance with Section 1.08, for the respective Loans.

          (c) Nothing in this Section 1.04 shall be deemed to relieve any Lender from its obligation to
fulfill its commitments hereunder or to prejudice any rights which the Borrower may have against
any Lender as a result of any default by such Lender hereunder.

          1.05 Notes; Register. (a) The Borrower’s obligation to pay the principal of, and
interest on, the Loans made by each Lender shall be set forth in the Register maintained by the
Administrative Agent pursuant to Section 12.04(f) and, subject to the provisions of Section
1.05(f), shall be evidenced (i) if Term Loans, by a promissory note duly executed and delivered by
the Borrower substantially in the form of Exhibit A-1, with blanks appropriately completed in
conformity herewith (each, a “Term Note” and, collectively, the “Term Notes”), (ii)
if Revolving Loans, by a promissory note duly executed and delivered by the Borrower substantially
in the form of Exhibit A-2 with blanks appropriately completed in conformity herewith (each, a
“Revolving Note” and, collectively, the “Revolving Notes”) and (iii) if Swingline
Loans, by a promissory note duly executed and delivered by the Borrower substantially in the form
of Exhibit A-3 with blanks appropriately completed in conformity herewith (the “Swingline
Note” and, together with the Term Notes and the Revolving Notes, each, a “Note” and,
collectively, the “Notes”).

          (b) The Term Note issued to each Lender with a Term Loan Commitment or outstanding Term Loans
shall (i) be executed by the Borrower, (ii) be payable to such Lender or its registered assigns and
be dated the Fourth Restatement Effective Date (or, in the case of any Term Note issued after the
Fourth Restatement Effective Date, the date of issuance thereof), (iii) be in a stated principal
amount equal to the Term Loan Commitment of such Lender on the date of issuance thereof (or, if
issued after the termination of such Term Loan Commitment, in a stated principal amount equal to
the outstanding principal amount of the Term Loans of such Lender on the date of the issuance
thereof) and be payable in the principal amount of the Term Loans evidenced thereby from time to
time, (iv) mature on the Term Loan Maturity Date, (v)
bear interest as provided in the appropriate clause of Section 1.08 in respect of the
Reference Rate Loans and Eurodollar Loans, as the case may be, evidenced thereby, (vi) be subject
to voluntary repayment as provided in Section 4.01 and mandatory repayment as provided in Section
4.02 and (vii) be entitled to the benefits of this Agreement and the other Credit Documents.

-5-

 

          (c) The Revolving Note issued to each Lender with a Revolving Loan Commitment or outstanding
Revolving Loans shall (i) be executed by the Borrower, (ii) be payable to such Lender or its
registered assigns and be dated the Fourth Restatement Effective Date (or, in the case of any
Revolving Note issued after the Fourth Restatement Effective Date, the date of issuance thereof),
(iii) be in a stated principal amount equal to the Revolving Loan Commitment of such Lender on the
date of issuance thereof (or, if issued after the termination of such Revolving Loan Commitment, in
a stated principal amount equal to the outstanding principal amount of the Revolving Loans of such
Lender on the date of the issuance thereof) and be payable in the principal amount of the Revolving
Loans evidenced thereby from time to time, (iv) mature on the Revolving Loan Maturity Date, (v)
bear interest as provided in the appropriate clause of Section 1.08 in respect of the Reference
Rate Loans and Eurodollar Loans, as the case may be, evidenced thereby, (vi) be subject to
voluntary repayment as provided in Section 4.01 and mandatory repayment as provided in Section 4.02
and (vii) be entitled to the benefits of this Agreement and the other Credit Documents.

          (d) The Swingline Note issued to the Swingline Lender shall (i) be executed by the Borrower,
(ii) be payable to the Swingline Lender or its registered assigns and be dated the Fourth
Restatement Effective Date (or, in the case of any Swingline Note issued after the Fourth
Restatement Effective Date, the date of issuance thereof), (iii) be in a stated principal amount
equal to the Swingline Commitment of the Swingline Lender on the date of issuance thereof (or, if
issued after the termination of such Swingline Commitment, in a stated principal amount equal to
the outstanding principal amount of the Swingline Loans of the Swingline Lender on the date of the
issuance thereof) and be payable in the principal amount of the Swingline Loans evidenced thereby
from time to time, (iv) mature on the Swingline Maturity Date, (v) bear interest as provided in the
appropriate clause of Section 1.08 in respect of the Reference Rate Loans evidenced thereby, (vi)
be subject to voluntary repayment as provided in Section 4.01 and mandatory repayment as provided
in Section 4.02 and (vii) be entitled to the benefits of this Agreement and the other Credit
Documents.

          (e) Each Lender will note on its internal records the amount of each Loan made by it and each
payment in respect thereof and will prior to any transfer of its Note endorse on the reverse side
thereof the outstanding principal amount of Loans evidenced thereby. Failure to make any such
notation or any error in any such notation shall not affect the Borrower’s obligations in respect
of such Loans.

          (f) Notwithstanding anything to the contrary contained above or elsewhere in this Agreement,
Notes shall only be delivered to Lenders that at any time specifically request the delivery of such
Notes. No failure of any Lender to request or obtain a Note evidencing its Loans to the Borrower
shall affect or in any manner impair the obligations of the Borrower to pay the Loans (and all
related Obligations) which would otherwise be evidenced thereby in accordance with the requirements
of this Agreement, and shall not in any way affect the security
or guaranties therefor provided pursuant to the various Credit Documents. Any Lender that
does not have a Note evidencing its outstanding Loans shall in no event be required to make the
notations otherwise described in preceding clause (e). At any time when any Lender requests the
delivery of a Note to evidence any of its Loans, the Borrower shall promptly execute and deliver to
the respective Lender the requested Note or Notes in the appropriate amount or amounts to evidence
such Loans.

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          1.06 Conversions. The Borrower shall have the option to convert on any Business Day
all or a portion equal to at least the applicable Minimum Borrowing Amount of the outstanding
principal amount of Loans under a given Tranche of one Type into a Borrowing or Borrowings of Loans
under such Tranche of another Type; provided that (i) no partial conversion of Eurodollar
Loans shall reduce the outstanding principal amount of Eurodollar Loans made pursuant to a single
Borrowing to less than the applicable Minimum Borrowing Amount, (ii) Reference Rate Loans may only
be converted into Eurodollar Loans if no Event of Default is in existence on the date of the
conversion and (iii) Borrowings resulting from conversions pursuant to this Section 1.06 shall be
limited in number as provided in Section 1.02. Each such conversion shall be effected by the
Borrower by giving the Administrative Agent at the Administrative Agent’s Office prior to 11:00
A.M. (New York time) at least three Business Days’ (or one Business Day’s in the case of a
conversion into Reference Rate Loans) prior written notice (or telephonic notice promptly confirmed
in writing) (each, a “Notice of Conversion”) specifying the Loans of a given Tranche to be
so converted, the Type of Loans to be converted into and, if to be converted into Eurodollar Loans,
the Interest Period to be initially applicable thereto. The Administrative Agent shall give each
Lender notice as promptly as practicable of any such proposed conversion affecting any of its
Loans.

          1.07 Pro Rata Borrowings. All Borrowings of Term Loans and Revolving Loans under this
Agreement shall be loaned by the Lenders pro rata on the basis of their respective
Term Loan Commitments or Revolving Loan Commitments, as the case may be. It is understood that no
Lender shall be responsible for any default by any other Lender in its obligation to make Loans
hereunder and that each Lender shall be obligated to make the Loans provided to be made by it
hereunder, regardless of the failure of any other Lender to fulfill its commitments hereunder.

          1.08 Interest. (a) The unpaid principal amount of each Reference Rate Loan shall bear
interest from the date of the Borrowing thereof until maturity (whether by acceleration or
otherwise) at a rate per annum which shall at all times be the Applicable Margin plus the
Reference Rate, in each case as in effect from time to time.

          (b) The unpaid principal amount of each Eurodollar Loan shall bear interest from the date of
the Borrowing thereof until maturity (whether by acceleration or otherwise) at a rate per annum
which shall at all times be the Applicable Margin plus the relevant Eurodollar Rate.

          (c) Overdue principal and, to the extent permitted by law, overdue interest in respect of each
Loan under a given Tranche shall, in each case, bear interest at a rate per annum equal to the
Reference Rate in effect from time to time plus the sum of (i) 2% and (ii) the Applicable
Margin for Loans of the respective Tranche maintained as Reference Rate Loans; provided
that each Eurodollar Loan shall bear interest after maturity (whether by acceleration or otherwise)
until the end of the Interest Period then applicable thereto at a rate per annum equal to 2% in
excess of the rate of interest applicable thereto at maturity. All other overdue amounts payable
hereunder and under any other Credit Document shall bear interest at a rate per annum equal to the
rate which is 2% in excess of the rate applicable to Revolving Loans that are maintained as
Reference Rate Loans from time to time. Interest that accrues under this Section 1.08(c) shall be
payable on demand.

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          (d) Interest on each Loan shall accrue from and including the date of any Borrowing to but
excluding the date of any repayment thereof and shall be payable (i) in respect of each Reference
Rate Loan, quarterly in arrears on each Quarterly Payment Date, (ii) in respect of each Eurodollar
Loan, on the last day of each Interest Period applicable thereto and, in the case of an Interest
Period in excess of three months, on each date occurring at three-month intervals after the first
day of such Interest Period, and on any prepayment (on the amount prepaid) and (iii) in respect of
each Loan, at maturity (whether by acceleration or otherwise) and, after such maturity, on demand.

          (e) All computations of interest hereunder shall be made in accordance with Section 12.07(b).

          (f) The Administrative Agent, upon determining the interest rate for any Borrowing of
Eurodollar Loans for any Interest Period, shall promptly notify the Borrower and the Lenders
thereof.

          1.09 Interest Periods. At the time the Borrower gives a Notice of Borrowing or Notice
of Conversion in respect of the making of, or conversion into, a Borrowing of Eurodollar Loans (in
the case of the initial Interest Period applicable thereto) or prior to 11:00 A.M. (New York time)
on the third Business Day prior to the expiration of an Interest Period applicable to a Borrowing
of Eurodollar Loans, it shall have the right to elect by giving the Administrative Agent written
notice (or telephonic notice promptly confirmed in writing) the Interest Period applicable to such
Borrowing, which Interest Period shall, at the option of the Borrower, be a one, two, three or six
month period. Notwithstanding anything to the contrary contained above:

     (i) the initial Interest Period for any Borrowing of Eurodollar Loans shall commence on
the date of such Borrowing (including the date of any conversion from a Borrowing of
Reference Rate Loans) and each Interest Period occurring thereafter in respect of such
Borrowing shall commence on the day on which the next preceding Interest Period expires;

     (ii) if any Interest Period relating to a Borrowing of Eurodollar Loans begins on a day
for which there is no numerically corresponding day in the calendar
month at the end of such Interest Period, such Interest Period shall end on the last
Business Day of such calendar month;

     (iii) if any Interest Period would otherwise expire on a day which is not a Business
Day, such Interest Period shall expire on the next succeeding Business Day, provided
that if any Interest Period in respect of a Eurodollar Loan would otherwise expire on a day
which is not a Business Day but is a day of the month after which no further Business Day
occurs in such month, such Interest Period shall expire on the next preceding Business Day;

     (iv) no Interest Period in respect of any Borrowing of any Tranche of Loans shall be
selected which extends beyond the Maturity Date for such Tranche of Loans; and

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     (v) no Interest Period in respect of any Borrowing of Term Loans shall be selected
which extends beyond any date upon which a mandatory repayment of such Term Loans will be
required to be made under Section 4.02(b), if the aggregate principal amount of such Term
Loans which have Interest Periods which will expire after such date will be in excess of the
aggregate principal amount of such Term Loans then outstanding less the aggregate
amount of such required repayment.

          Notwithstanding the foregoing, if an Event of Default is in existence at the time any Interest
Period in respect of any Eurodollar Loans is to expire, such Eurodollar Loans may not be continued
as Eurodollar Loans but instead shall be automatically converted on the last day of such Interest
Period into Reference Rate Loans. If upon the expiration of any Interest Period in respect of
Eurodollar Loans, the Borrower has failed to elect a new Interest Period to be applicable thereto
as provided above, the Borrower shall be deemed to have elected to convert such Borrowing into a
Borrowing of Reference Rate Loans effective as of the expiration date of such current Interest
Period.

          1.10 Increased Costs, Illegality, etc. (a) In the event that (x) in the case of
clause (i) below, the Administrative Agent or (y) in the case of clauses (ii) and (iii) below, any
Lender shall have determined (which determination shall, absent manifest error, be final and
conclusive and binding upon all parties hereto):

     (i) on any date for determining the Eurodollar Rate for any Interest Period that, by
reason of any changes arising on or after the Fourth Restatement Effective Date affecting
the interbank Eurodollar market, adequate and fair means do not exist for ascertaining the
applicable interest rate on the basis provided for in the definition of Eurodollar Rate; or

     (ii) at any time, that such Lender shall incur increased costs or reductions in the
amounts received or receivable hereunder with respect to any Eurodollar Loans because of (x)
any change since the Fourth Restatement Effective Date in any applicable law, governmental
rule, regulation, guideline or order (or in the interpretation or administration thereof and
including the introduction of any new law or governmental rule, regulation, guideline or order) such as, for example, but not limited to, (A) a
change in official reserve requirements, but, in all events, excluding reserves required
under Regulation D to the extent included in the computation of the Eurodollar Rate or (B) a
change in the basis of taxation of payments to a Lender of the principal of or interest on
the Loans or any other amount payable hereunder (except for changes in the rate of tax on,
or determined by reference to, the net income or net profits of such Lender imposed by the
jurisdiction in which its principal office or applicable lending office is located) and/or
(y) other circumstances affecting the interbank Eurodollar market; or

     (iii) at any time, that the making or continuance of any Loan (other than Reference
Rate Loans) has become unlawful by compliance by such Lender in good faith with any law,
governmental rule, regulation, guideline or order (or would conflict with any such
governmental rule, regulation, guideline or order not having the force of law even though
the failure to comply therewith would not be unlawful), or, in the case of a Eurodollar
Loan, has become impracticable as a result of a contingency occurring after

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the Fourth Restatement Effective Date which materially and adversely affects the interbank Eurodollar
market;

then, and in any such event, such Lender (or the Administrative Agent, in the case of clause (i)
above) shall on such date give notice (if by telephone confirmed in writing) to the Borrower and to
the Administrative Agent of such determination (which notice the Administrative Agent shall
promptly transmit to each of the other Lenders). Thereafter (x) in the case of clause (i) above,
Eurodollar Loans shall no longer be available until such time as the Administrative Agent notifies
the Borrower and the Lenders that the circumstances giving rise to such notice by the
Administrative Agent no longer exist, and any Notice of Borrowing or Notice of Conversion given by
the Borrower with respect to Eurodollar Loans which have not yet been incurred shall be deemed
rescinded by the Borrower, (y) in the case of clause (ii) above, the Borrower shall pay to such
Lender, upon written demand therefor, such additional amounts (in the form of an increased rate of,
or a different method of calculating, interest or otherwise as such Lender in its sole discretion
shall determine) as shall be required to compensate such Lender for such increased costs or
reductions in amounts receivable hereunder (a written notice as to the additional amounts owed to
such Lender, showing in reasonable detail the basis for the calculation thereof, submitted to the
Borrower by such Lender shall, absent manifest error, be final and conclusive and binding upon all
parties hereto) and (z) in the case of clause (iii) above, the Borrower shall take one of the
actions specified in Section 1.10(b) as promptly as possible and, in any event, within the time
period required by law.

          (b) At any time that any Eurodollar Loan is affected by the circumstances described in Section
1.10(a)(ii) or (iii), the Borrower may (and in the case of a Eurodollar Loan affected pursuant to
Section 1.10(a)(iii) shall) either (i) if the affected Eurodollar Loan is then being made pursuant
to a Borrowing, cancel said Borrowing by giving the Administrative Agent telephonic notice
(confirmed promptly in writing) thereof as promptly as practicable after the Borrower was notified
by a Lender pursuant to Section 1.10(a)(ii) or (iii), or (ii) if the affected Eurodollar Loan is
then outstanding, upon at least three Business Days’ notice to the Administrative Agent, require
the affected Lender to convert each such Eurodollar Loan into a Reference Rate Loan;
provided that if more than one Lender is affected in a similar manner at
any time, then all such similarly affected Lenders must be treated the same pursuant to this
Section 1.10(b).

          (c) If after the Fourth Restatement Effective Date hereof, the adoption of any applicable law,
rule or regulation regarding capital adequacy, or any change therein, or any change in the
interpretation or administration thereof by any governmental authority, central bank or comparable
agency charged with the interpretation or administration thereof, or compliance by a Lender or its
parent with any request or directive made or adopted after the Fourth Restatement Effective Date
regarding capital adequacy (whether or not having the force of law) of any such authority, central
bank or comparable agency, has or would have the effect of reducing the rate of return on such
Lender’s or its parent’s capital or assets as a consequence of such Lender’s commitments or
obligations hereunder to a level below that which such Lender or its parent could have achieved but
for such adoption, effectiveness, change or compliance (taking into consideration such Lender’s or
its parent’s policies with respect to capital adequacy), then from time to time, within 15 days
after demand by such Lender (with a copy to the Administrative Agent), the Borrower shall pay to
such Lender such additional amount or

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amounts as will compensate such Lender or its parent for such
reduction. Each Lender, upon determining in good faith that any additional amounts will be payable
pursuant to this Section 1.10(c), will give prompt written notice thereof to the Borrower, which
notice shall set forth in reasonable detail the basis of the calculation of such additional
amounts, although the failure to give any such notice shall not, subject to Section 1.15, release
or diminish any of the Borrower’s obligations to pay additional amounts pursuant to this Section
1.10(c) upon receipt of such notice.

          1.11 Compensation. The Borrower shall compensate each Lender, upon its written
request (which request shall set forth in reasonable detail the basis for requesting such
compensation), for all reasonable losses, expenses and liabilities (including, without limitation,
any loss, expense or liability incurred by reason of the liquidation or reemployment of deposits or
other funds required by such Lender to fund its Eurodollar Loans but excluding any loss of
anticipated profit with respect to such Loans) which such Lender may sustain: (i) if for any reason
(other than a default by such Lender or the Administrative Agent) a Borrowing of Eurodollar Loans
does not occur on a date specified therefor in a Notice of Borrowing or Notice of Conversion
(whether or not withdrawn by the Borrower or deemed withdrawn pursuant to Section 1.10); (ii) if
any repayment or conversion of any of its Eurodollar Loans occurs on a date which is not the last
day of an Interest Period applicable thereto; (iii) if any prepayment of any of its Eurodollar
Loans is not made on any date specified in a notice of prepayment given by the Borrower; or (iv) as
a consequence of (x) any other default by the Borrower to repay its Eurodollar Loans when required
by the terms of this Agreement or (y) an election made pursuant to Section 1.10(b). Calculation of
all amounts payable to a Lender under this Section 1.11 in respect of Eurodollar Loans shall be
made as though that Lender had actually funded its relevant Eurodollar Loan through the purchase of
a Eurodollar deposit bearing interest at the Eurodollar Rate in an amount equal to the amount of
that Loan, having a maturity comparable to the relevant Interest Period and through the transfer of
such Eurodollar deposit from an offshore office of that Lender to a domestic office of that Lender
in the United States of America; provided, however, that each
Lender may fund each of its Eurodollar Loans in any manner it sees fit and the foregoing
assumption shall be utilized only for the calculation of amounts payable under this Section 1.11.

          1.12 Change of Lending Office. Each Lender agrees that, upon the occurrence of any
event giving rise to the operation of Section 1.10(a)(ii) or (iii), 2.05 or 4.04 with respect to
such Lender, it will, if requested by the Borrower, use reasonable efforts (subject to overall
policy considerations of such Lender) to designate another lending office for any Loans affected by
such event; provided that such designation is made on such terms that such Lender and its
lending office suffer no economic, legal or regulatory disadvantage, with the object of avoiding
the consequence of the event giving rise to the operation of any such Section. Nothing in this
Section 1.12 shall affect or postpone any of the obligations of the Borrower or the right of any
Lender provided in Section 1.10, 2.05 or 4.04.

          1.13 [RESERVED]

          1.14 Replacement of Lenders. If (x) any Lender becomes a Defaulting Lender or
otherwise defaults in its obligations to make Loans or fund Unpaid Drawings, (y) any Lender refuses
to give timely consent to proposed changes, waivers, discharges or terminations with

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respect to
this Agreement which have been approved by the Required Lenders as, and to the extent, provided in
Section 12.12(b), or (z) any Lender is owed increased costs under Section 1.10(a) or (c), Section
2.05 or Section 4.04 which in the judgment of the Borrower are material in amount and which are not
otherwise requested generally by the other Lenders, the Borrower shall have the right, if no Event
of Default then exists and, in the case of a Lender described in clause (z) above, such Lender has
not withdrawn its request for such compensation or changed its applicable lending office with the
effect of eliminating or substantially decreasing (to a level which in the judgment of the Borrower
is not material) such increased cost, to replace such Lender (the “Replaced Lender”) with
one or more other Eligible Transferee or Transferees (collectively, the “Replacement
Lender”) reasonably acceptable to the Administrative Agent and, in the case of the replacement
of a Replaced Lender with a Revolving Loan Commitment (and/or related Obligations), each
Significant Letter of Credit Issuer, provided that (i) at the time of any replacement
pursuant to this Section 1.14, the Replacement Lender shall enter into one or more Assignment
Agreements pursuant to which the Replacement Lender shall acquire all of the Commitment and
outstanding Loans of, and participations in Letters of Credit by, the Replaced Lender and, in
connection therewith, shall pay to (x) the Replaced Lender in respect thereof an amount equal to
the sum of (a) an amount equal to the principal of, and all accrued interest on, all outstanding
Loans of the Replaced Lender, (b) an amount equal to such Replaced Lender’s participations in
Unpaid Drawings that have been funded by such Replaced Lender, together with all then accrued but
unpaid interest with respect thereto at such time, and (c) an amount equal to all accrued, but
theretofore unpaid, Fees owing to the Replaced Lender pursuant to Section 3.01 hereof and (y) the
appropriate Letter of Credit Issuer an amount equal to such Replaced Lender’s RL Percentage of any
Unpaid Drawing not funded by such Replaced Lender
and (ii) all Obligations of the Borrower owing to the Replaced Lender (other than those
specifically described in clause (i) above in respect of which the assignment purchase price has
been, or is concurrently being, paid) shall be paid in full to such Replaced Lender concurrently
with such replacement. Upon the execution of the respective assignment documentation, the payment
of amounts referred to in clauses (i) and (ii) above and, if so requested by the Replacement
Lender, delivery to the Replacement Lender of the appropriate Note executed by the Borrower (if
any), the Replacement Lender shall become a Lender hereunder and the Replaced Lender shall cease to
constitute a Lender hereunder, except with respect to indemnification provisions under this
Agreement, which shall survive as to such Replaced Lender.

          1.15 Notice of Certain Costs. Notwithstanding anything in this Agreement to the
contrary, to the extent any notice required by Section 1.10 or 2.05 is given by any Lender more
than 180 days after the occurrence of the event giving rise to the additional cost, reduction in
amounts or other additional amounts of the type described in such Section, such Lender shall not be
entitled to compensation under Section 1.10 or Section 2.05, as the case may be, for any such
amounts incurred or accruing prior to the giving of such notice to the Borrower.

          1.16 Incremental RL Commitments. (a) The Borrower shall have the right, without
requiring the consent of any of the Lenders, to request at any time and from time to time after the
Fourth Restatement Effective Date so long as no Default or Event Default has occurred and is
continuing, that one or more Lenders (and/or one or more other Persons which are Eligible
Transferees and which will become Lenders as provided below) satisfactory to the Administrative
Agent (with such consent not to be unreasonably withheld) provide Incremental RL Commitments and,
subject to the applicable terms and conditions contained in this

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Agreement, make Revolving Loans
pursuant thereto; it being understood and agreed, however, that (i) until such time, if any, as
such Lender has agreed in its sole discretion to provide an Incremental RL Commitment and executed
and delivered to the Administrative Agent an Incremental RL Commitment Agreement in respect thereof
as provided in clause (b) of this Section 1.16, such Lender shall not be obligated to fund any
Revolving Loans in excess of its Revolving Loan Commitment as in effect prior to giving effect to
such Incremental RL Commitment provided pursuant to this Section 1.16, (ii) any Lender (including
any Eligible Transferee who will become a Lender) may so provide an Incremental RL Commitment
without the consent of any other Lender, (iii) each provision of Incremental RL Commitments on a
given date pursuant to this Section 1.16 shall be in a minimum aggregate amount (for all Lenders
(including any Eligible Transferee who will become a Lender)) of at least $20,000,000, (iv) the
aggregate amount of all Incremental RL Commitments provided pursuant to this Section 1.16 shall not
exceed $250,000,000, (v) all Revolving Loans made pursuant to an Incremental RL Commitment (and all
interest, fees and other amounts payable thereon) shall be Obligations under this Agreement and the
other applicable Credit Documents and shall be secured by the Security Documents, and guaranteed
under the Subsidiaries Guaranty, on a pari passu basis with all other Obligations
secured by the Security Documents and guaranteed under the Subsidiaries Guaranty and (vi) all
actions taken by the Borrowers pursuant to this Section 1.16 shall be done in coordination with the
Administrative Agent.

          (b) At the time of the provision of Incremental RL Commitments pursuant to this Section 1.16,
the Borrower, the Administrative Agent and each such Lender or other Eligible Transferee which
agrees to provide an Incremental RL Commitment (each, an “Incremental RL Lender”) shall
execute and deliver to the Administrative Agent an Incremental RL Commitment Agreement, with the
effectiveness of such Incremental RL Lender’s Incremental RL Commitment to occur on the date set
forth in such Incremental RL Commitment Agreement, which date in any event shall be no earlier than
the date on which (w) all fees required to be paid in connection therewith at the time of such
effectiveness shall have been paid (including, without limitation, any agreed upon up-front or
arrangement fees), (x) all Incremental Commitment Requirements are satisfied, (y) all other
conditions set forth in this Section 1.16 shall have been satisfied, and (z) all other conditions
precedent that may be set forth in such Incremental RL Commitment Agreement shall have been
satisfied. The Administrative Agent shall promptly notify each Lender as to the effectiveness of
each Incremental RL Commitment Agreement, and at such time, (i) the Total Revolving Loan Commitment
under, and for all purposes of, this Agreement shall be increased by the aggregate amount of such
Incremental RL Commitments, (ii) Annex I shall be deemed modified to reflect the revised Revolving
Loan Commitments of the affected Lenders and (iii) to the extent requested by any Incremental RL
Lender, Revolving Notes will be issued, at the Borrower’s expense, to such Incremental RL Lender in
conformity with the requirements of Section 1.05.

          (c) At the time of any provision of Incremental RL Commitments pursuant to this Section 1.16,
the Borrower shall, in coordination with the Administrative Agent, repay outstanding Revolving
Loans of certain of the RL Lenders, and incur additional Revolving Loans from certain other RL
Lenders (including the Incremental RL Lenders), in each case to the extent necessary so that all of
the RL Lenders participate in each outstanding Borrowing of Revolving Loans pro
rata on the basis of their respective Revolving Loan Commitments (after giving effect to
any increase in the Total Revolving Loan Commitment pursuant to this Section 1.16) and with

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the Borrower being obligated to pay to the respective RL Lenders any costs of the type referred to in
Section 1.11 in connection with any such repayment and/or Borrowing.

          SECTION 2. Letters of Credit.

          2.01 Letters of Credit. (a) Subject to and upon the terms and conditions set forth
herein, the Borrower may request that a Letter of Credit Issuer issue, at any time and from time to
time on or after the Original Effective Date and prior to the L/C Termination Date, for the account
of the Borrower and in support of any Permitted Obligations, to replace Existing Letters of Credit,
to effect Permitted Litigation Bonding or in support of such other obligations of the Borrower
and/or any of its Subsidiaries as are acceptable to the Administrative Agent, an irrevocable
standby letter of credit or letters of credit in such form as may be approved by such Letter of
Credit Issuer and the Administrative Agent, acting reasonably, and, subject to and upon the terms
and conditions set forth in this Agreement, the Letter of Credit Issuer will issue the Letters of
Credit so requested to be issued.

          (b) Notwithstanding the foregoing (i) no Letter of Credit shall be issued (x) the Stated
Amount of which, when added to the Letter of Credit Outstandings at such time would exceed, when
added to the sum of the aggregate principal amount of all Revolving Loans and all Swingline Loans
then outstanding, the Total Revolving Loan Commitment at such time or (y) with an expiration date
beyond the L/C Termination Date, provided that, at the request of the Borrower, a Letter of
Credit Issuer may in its sole discretion permit any Letter of Credit to have an expiration date
after the L/C Termination Date by giving written notice of such permission to the Borrower, so long
as (x) upon the earlier to occur of (I) the date of any request of the respective Letter of Credit
Issuer and (II) the 91st day preceding the L/C Termination Date, the Borrower shall pay to the
respective Letter of Credit Issuer an amount of cash and/or Marketable Investments acceptable to
such Letter of Credit Issuer equal to 105% of the Letter of Credit Outstandings with respect to
such Letter of Credit, such cash and Marketable Investments to be held as security for the
obligations of the Borrower in respect of such Letter of Credit in a cash collateral account, and
pursuant to cash collateral arrangements, satisfactory to such Letter of Credit Issuer and (y) the
aggregate Stated Amount of all Letters of Credit at any time having an expiration date after the
L/C Termination Date shall not exceed $15,000,000; (ii) each Letter of Credit shall be denominated
in U.S. Dollars or an Approved Alternate Currency; and (iii) no Letter of Credit shall be issued by
a Letter of Credit Issuer after it has received a notice in writing from the Required Lenders that
one or more of the applicable conditions specified in Section 5 are not then satisfied.

          (c) Annex III hereto contains a description of all letters of credit issued by any Lender for
the account of RJRTH pursuant to the Third Amended and Restated Credit Agreement and outstanding on
the Fourth Restatement Effective Date (and setting forth, with respect to each such letter of
credit, (i) the name of the issuing lender, (ii) the letter of credit number, (iii) the name(s) of
the account party or account parties, (iv) the stated amount (which shall be in U.S. Dollars or an
Approved Alternate Currency), (v) the name of the beneficiary and (vi) the expiry date). Each such
letter of credit, including any extension or renewal thereof (each, as amended from time to time in
accordance with the terms thereof and hereof, an “Existing Letter of Credit”) shall
constitute a “Letter of Credit” issued for the account of the Borrower for all purposes of this
Agreement, issued, for purposes of Section 2.03(a), on the

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Fourth Restatement Effective Date and
the respective issuer(s) thereof shall constitute the “Letter of Credit Issuer(s)” with respect to
such Letter of Credit for all purposes of this Agreement.

          2.02 Letter of Credit Requests. Whenever the Borrower desires that a Letter of Credit
be issued for its account, it shall give the Administrative Agent and the Letter of Credit Issuer
that is to issue same at least five Business Days’ (or such lesser number of days as may be agreed
to by the relevant Letter of Credit Issuer) written notice thereof. Each notice shall be executed
by the Borrower and shall be in the form of Exhibit B attached hereto (each, a “Letter of
Credit Request”). The Administrative Agent shall promptly transmit copies of each Letter of
Credit Request to each RL Lender.

          2.03 Letter of Credit Participations. (a) Immediately upon the issuance by a Letter of Credit Issuer of any Letter of Credit
(and on the Fourth Restatement Effective Date, in the case of Existing Letters of Credit), such
Letter of Credit Issuer shall be deemed to have sold and transferred to each other RL Lender (each
such other RL Lender, in its capacity under this Section 2.03, a “Participant”), and each
such Participant shall be deemed irrevocably and unconditionally to have purchased and received
from such Letter of Credit Issuer, without recourse or warranty, an undivided interest and
participation (each, a “participation”), to the extent of such Participant’s RL Percentage,
in such Letter of Credit, each substitute letter of credit, each drawing made thereunder and the
obligations of the Borrower under this Agreement with respect thereto, and any security therefor
that remains in effect after the Original Effective Date, or guaranty pertaining thereto (although
Letter of Credit Fees will be paid directly to the Administrative Agent for the ratable account of
the Participants as provided in Section 3.01(c) and the Participants shall have no right to receive
any portion of any Facing Fees). Upon any change in the Revolving Loan Commitments of the RL
Lenders pursuant to Section 1.14, 1.16 or 12.04, it is hereby agreed that, with respect to all
outstanding Letters of Credit and Unpaid Drawings, there shall be an automatic adjustment to the
participations pursuant to this Section 2.03 to reflect the new RL Percentages of the assignor and
assignee RL Lender and of all RL Lenders.

          (b) In determining whether to pay under any Letter of Credit, the Letter of Credit Issuer
issuing same shall have no obligation relative to the Participants other than to confirm that any
documents required to be delivered under such Letter of Credit have been delivered and that they
appear to comply on their face with the requirements of such Letter of Credit. Any action taken or
omitted to be taken by a Letter of Credit Issuer under or in connection with any Letter of Credit
issued by it, if taken or omitted in the absence of gross negligence or willful misconduct, shall
not create for such Letter of Credit Issuer any resulting liability.

          (c) In the event that any Letter of Credit Issuer makes any payment under any Letter of Credit
issued by it and the Borrower shall not have reimbursed such amount in full to such Letter of
Credit Issuer pursuant to Section 2.04(a), such Letter of Credit Issuer shall promptly notify the
Administrative Agent and each Participant of such failure, and each Participant shall promptly and
unconditionally pay to the Administrative Agent for the account of such Letter of Credit Issuer,
the amount of such Participant’s RL Percentage of such unreimbursed payment in U.S. Dollars and in
same day funds; provided, however, that no Participant shall be obligated to pay to
the Administrative Agent for the account of such Letter of Credit Issuer its RL Percentage of such
unreimbursed amount for any wrongful payment made by such Letter of Credit Issuer under a Letter of
Credit as a result of acts or omissions constituting willful misconduct or gross negligence on the
part of such Letter of

-15-

 

Credit Issuer (as determined by a court of competent jurisdiction in a final
and non-appealable decision). If such Letter of Credit Issuer so notifies, prior to 11:00 A.M.
(New York time) on any Business Day, any Participant required to fund a payment under a Letter of
Credit, such Participant shall make available to the Administrative Agent for the account of such
Letter of Credit Issuer such Participant’s RL Percentage of the amount of such payment on such
Business Day in same day funds. If and to the extent such Participant shall not have so made its
RL Percentage of the amount of such payment available to the Administrative Agent for the account
of such Letter of Credit Issuer, such Participant agrees to pay to the Administrative Agent for the
account of such Letter of Credit Issuer, forthwith on demand such amount, together with interest
thereon for each
day from such date until the date such amount is paid to the Administrative Agent for the
account of such Letter of Credit Issuer at the overnight Federal Funds Rate. The failure of any
Participant to make available to the Administrative Agent for the account of the applicable Letter
of Credit Issuer its RL Percentage of any payment under any Letter of Credit shall not relieve any
other Participant of its obligation hereunder to make available to the Administrative Agent for the
account of such Letter of Credit Issuer its RL Percentage of any payment under any Letter of Credit
on the date required, as specified above, but no Participant shall be responsible for the failure
of any other Participant to make available to the Administrative Agent such other Participant’s RL
Percentage of any such payment.

          (c) Whenever any Letter of Credit Issuer receives a payment in respect of an unpaid
reimbursement obligation as to which the Administrative Agent has received for the account of such
Letter of Credit Issuer any payments from the Participants pursuant to the preceding clause (c),
such Letter of Credit Issuer shall pay to the Administrative Agent and the Administrative Agent
shall promptly pay to each Participant which has paid its RL Percentage of such reimbursement
obligation, in U.S. Dollars and in same day funds, an amount equal to such Participant’s share
(based upon the proportionate aggregate amount originally funded by such Participant to the
aggregate amount funded by all Participants) of the principal amount of such reimbursement
obligation and interest thereon accruing after the purchase of the respective participations.

          (d) The obligations of the Participants to make payments to the Administrative Agent for the
account of a Letter of Credit Issuer with respect to Letters of Credit shall be irrevocable and not
subject to counterclaim, set-off or other defense or any other qualification or exception
whatsoever (except as expressly provided in Section 2.03(c)) and shall be made in accordance with
the terms and conditions of this Agreement under all circumstances, including, without limitation,
any of the following circumstances:

     (i) any lack of validity or enforceability of this Agreement or any of the other Credit
Documents;

     (ii) the existence of any claim, set-off, defense or other right which the Borrower may
have at any time against a beneficiary named in a Letter of Credit, any transferee of any
Letter of Credit (or any Person for whom any such transferee may be acting), the
Administrative Agent, any Letter of Credit Issuer, any Lender, or other

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Person, whether in
connection with this Agreement, any Letter of Credit, the transactions contemplated herein
or any unrelated transactions (including any underlying transaction between the Borrower and
the beneficiary named in any such Letter of Credit);

     (iii) any draft, certificate or any other document presented under the Letter of Credit
proving to be forged, fraudulent, invalid or insufficient in any respect or any statement
therein being untrue or inaccurate in any respect;

     (iv) the surrender or impairment of any security for the performance or observance of
any of the terms of any of the Credit Documents;

     (v) the occurrence of any Default or Event of Default; or

     (vi) the failure of any condition precedent set forth in Section 5 hereof to have been
satisfied at the time of the issuance of any Letter of Credit, unless the applicable Letter
of Credit Issuer shall have received a notice in writing to such effect from the Required
Lenders pursuant to Section 2.01(b)(iv) hereof prior to the issuance of such Letter of
Credit.

          2.04 Agreement to Repay Letter of Credit Drawings. (a) The Borrower hereby agrees to
reimburse the respective Letter of Credit Issuer, by making payment to the Administrative Agent in
U.S. Dollars and immediately available funds at the Administrative Agent’s Office, for any payment
or disbursement made by such Letter of Credit Issuer under any Letter of Credit issued by it (each
such amount so paid until reimbursed, an “Unpaid Drawing”) promptly after, and in any event
within one Business Day after the date of, notice given by such Letter of Credit Issuer to the
Borrower of such payment (which notice each Letter of Credit Issuer hereby agrees to give promptly
after the making of any payment or disbursement under a Letter of Credit, provided that no
such notice shall be required to be given if a Default or an Event of Default under Section 9.05
shall have occurred and be continuing, in which case the Unpaid Drawing shall be due and payable
immediately without presentment, demand, protest or notice of any kind (all of which are hereby
waived by the Borrower)), with interest on the amount so paid or disbursed by such Letter of Credit
Issuer, to the extent not reimbursed prior to 1:00 P.M. (New York time) on the date of such payment
or disbursement, from and including the date paid or disbursed to but excluding the date such
Letter of Credit Issuer is reimbursed therefor, at a rate per annum which shall be the Applicable
Margin for Revolving Loans maintained as Reference Rate Loans plus the Reference Rate as in
effect from time to time (plus an additional 2% per annum if not reimbursed by the second
Business Day following any such notice of payment or disbursement), such interest to be payable on
demand. Notwithstanding the foregoing, to the extent that a Letter of Credit Issuer of a Letter of
Credit denominated in a currency other than U.S. Dollars has agreed in writing to such arrangement
at the time of the issuance of such Letter of Credit, the Borrower shall reimburse any Drawing
thereunder in the currency in which such Letter of Credit is denominated; provided that (x)
if any such Drawing is made at a time when there exists an Event of Default or (y) if such
reimbursement is not made by the close of business two Business Days after the Borrower has
received notice of such Drawing, then, in either such case, such reimbursement shall instead be
made in U.S. Dollars and in immediately available funds (with the amount of such reimbursement to
be calculated as provided in Section 12.07(c)).

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          (b) The Borrower’s obligations under this Section 2.04 to reimburse each Letter of Credit
Issuer with respect to Unpaid Drawings (including, in each case, interest thereon) issued by it
shall be absolute and unconditional under any and all circumstances and irrespective of any setoff,
counterclaim or defense to payment which the Borrower or any other Person may have or have had
against any Lender (including in its capacity as a Letter of Credit Issuer or as a Participant),
including, without limitation, any defense based upon the failure of any drawing under a Letter of
Credit (each, a “Drawing”) to conform to the terms of the Letter of Credit or any
non-application or misapplication by the beneficiary of the proceeds of such Drawing;
provided that the Borrower shall not be obligated to reimburse the respective Letter of
Credit Issuer for any wrongful payment made by such Letter of Credit Issuer under a Letter of
Credit as a result of acts or omissions constituting willful misconduct or gross negligence as
determined by a court of competent jurisdiction on the part of such Letter of Credit Issuer.

          2.05 Increased Costs. If after the Fourth Restatement Effective Date, the adoption of
any applicable law, rule or regulation, or any change therein, or any change in the interpretation
or administration thereof by any governmental authority, central bank or comparable agency charged
with the interpretation or administration thereof, or actual compliance by any Letter of Credit
Issuer or any Participant with any request or directive made or adopted after the Fourth
Restatement Effective Date (whether or not having the force of law), by any such authority, central
bank or comparable agency shall either (i) impose, modify or make applicable any reserve, deposit,
capital adequacy or similar requirement against Letters of Credit issued by such Letter of Credit
Issuer, or such Participant’s participation therein, or (ii) impose on any Letter of Credit Issuer
or any Participant any other conditions affecting its obligations under this Agreement in respect
of Letters of Credit or participations therein or any Letter of Credit or such Participant’s
participation therein; and the result of any of the foregoing is to increase the cost to such
Letter of Credit Issuer or such Participant of issuing, maintaining or participating in any Letter
of Credit, or to reduce the amount of any sum received or receivable by such Letter of Credit
Issuer or such Participant hereunder in respect of Letters of Credit or participations therein,
then, upon demand to the Borrower by such Letter of Credit Issuer or such Participant, as the case
may be (a copy of which notice shall be sent by such Letter of Credit Issuer or such Participant to
the Administrative Agent), the Borrower shall pay to such Letter of Credit Issuer or such
Participant such additional amount or amounts as will compensate such Letter of Credit Issuer or
such Participant for such increased cost or reduction. A certificate submitted to the Borrower by
such Letter of Credit Issuer or such Participant, as the case may be (a copy of which certificate
shall be sent by such Letter of Credit Issuer or such Participant to the Administrative Agent),
setting forth in reasonable detail the basis for the determination of such additional amount or
amounts necessary to compensate such Letter of Credit Issuer or such Participant as aforesaid shall
be conclusive and binding on the Borrower absent manifest error, although the failure to deliver
any such certificate shall not, subject to Section 1.15, release or diminish any of the Borrower’s
obligations to pay additional amounts pursuant to this Section 2.05 upon receipt of such
certificate.

          2.06 Indemnification; Nature of Letter of Credit Issuers’ Duties. (a) In addition to
its other obligations under this Section 2, the Borrower hereby agrees to protect, indemnify, pay
and save each of the Letter of Credit Issuers harmless from and against any and all claims,
demands, liabilities, damages, losses, costs, charges and expenses (including reasonable attorneys’
fees but excluding those taxes excluded from the definition of Taxes in

-18-

 

Section 4.04) that any such
Letter of Credit Issuer may incur or be subject to as a consequence, direct or indirect, of (i) the
issuance of any Letter of Credit or (ii) the failure of any Letter of Credit Issuer to honor a
drawing under a Letter of Credit as a result of any act or omission, whether rightful or wrongful,
of any present or future de jure or de facto government or Governmental Authority (all such acts or
omissions, herein called “Government Acts”).

          (b) As between the Borrower and the Letter of Credit Issuers, the Borrower shall assume all
risks of the acts, omissions or misuse of any Letter of Credit by the beneficiary thereof. Except
as expressly provided in Section 2.06(e), the Letter of Credit Issuers shall not be responsible:
(i) for the form, validity, sufficiency, accuracy, genuineness or legal effect of any document
submitted by any party in connection with the application for and issuance of any Letter of Credit,
even if it should in fact prove to be in any or all respects invalid, insufficient, inaccurate,
fraudulent or forged; (ii) for the validity or sufficiency of any instrument transferring or
assigning or purporting to transfer or assign any Letter of Credit or the rights or benefits
thereunder or proceeds thereof, in whole or in part, that may prove to be invalid or ineffective
for any reason; (iii) for failure of the beneficiary of a Letter of Credit to comply fully with
conditions required in order to draw upon a Letter of Credit; (iv) for errors, omissions,
interruptions or delays in transmission or delivery of any messages, by mail, cable, telegraph,
telex or otherwise, whether or not they be in cipher; (v) for errors in interpretation of technical
terms; (vi) for any loss or delay in the transmission or otherwise of any document required in
order to make a drawing under a Letter of Credit or of the proceeds thereof; and (vii) for any
consequences arising from causes beyond the control of the Letter of Credit Issuers, including,
without limitation, any Government Acts. None of the above shall affect, impair, or prevent the
vesting of any of the Letter of Credit Issuers’ rights or powers hereunder.

          (c) In furtherance and extension and not in limitation of the specific provisions hereinabove
set forth, any action taken or omitted by any Letter of Credit Issuer, under or in connection with
any Letter of Credit or the related certificates, if taken or omitted in good faith, shall not put
such Letter of Credit Issuer under any resulting liability to the Borrower. It is the intention of
the parties that this Agreement shall be construed and applied to protect and indemnify the Letter
of Credit Issuers against any and all risks involved in the issuance of the Letters of Credit
arising from any present or future Government Acts. The Letter of Credit Issuers shall not, in any
way, be liable for any failure by the Letter of Credit Issuers or anyone else to pay any Drawing
under any Letter of Credit as a result of any Government Acts or any other cause beyond the control
of the Letter of Credit Issuers.

          (d) Nothing in this Section 2.06 is intended to limit the reimbursement obligation of the
Borrower contained in Section 2.04 hereof. The obligations of the Borrower under this Section 2.06
shall survive the termination of this Agreement. No act or omission of any current or prior
beneficiary of a Letter of Credit shall in any way affect or impair the rights of the Letter of
Credit Issuers to enforce any right, power or benefit under this Agreement.

          (e) Notwithstanding anything to the contrary contained in this Section 2.06, (i) the Borrower
shall have no obligation to indemnify any Letter of Credit Issuer in respect of any liability
incurred by such Letter of Credit Issuer arising solely out of the gross negligence or willful
misconduct of such Letter of Credit Issuer (as determined by a court of competent jurisdiction in a
final and non-appealable decision) and (ii) the Borrower shall have a claim

-19-

 

against any Letter of
Credit Issuer and such Letter of Credit Issuer shall be liable to the Borrower to the extent, but
only to the extent, of any direct, as opposed to consequential, damages suffered by the Borrower
which the Borrower proves were caused by (x) such Letter of Credit Issuer’s willful misconduct or
gross negligence (as determined by a court of competent jurisdiction in a final and non-appealable
decision) in determining whether the documents presented under its Letter of Credit complied with
the terms of such Letter of Credit or (y) such Letter of Credit
Issuer’s willful or grossly negligent failure to pay under its Letter of Credit after
presentation to it of a drawing certificate and any other documents strictly complying with the
terms and conditions of such Letter of Credit (as determined by a court of competent jurisdiction
in a final and non-appealable decision).

          SECTION 3. Fees; Commitments.

          3.01 Fees. (a) The Borrower agrees to pay the Administrative Agent for the account
of each Non-Defaulting RL Lender a commitment fee (the “Commitment Fee”) for the period
from and including the Fourth Restatement Effective Date to but not including the Revolving Loan
Maturity Date or, if earlier, the date upon which the Total Revolving Loan Commitment has been
terminated, computed for each day at a rate per annum equal to the Applicable Margin for such day
multiplied by the Unutilized Revolving Loan Commitment of such Non-Defaulting RL Lender as in
effect from time to time. Such Commitment Fee shall be due and payable quarterly in arrears on
each Quarterly Payment Date and on the date upon which the Total Revolving Loan Commitment is
terminated.

          (b) The Borrower agrees to pay to the Administrative Agent for the account of the RL Lenders
pro rata on the basis of their respective RL Percentages, a fee in respect of each
Letter of Credit (the “Letter of Credit Fee”), computed for each day at a rate per annum
equal to the Applicable Margin for Revolving Loans maintained as Eurodollar Loans for such day
multiplied by the then Stated Amount of such Letter of Credit. Such Letter of Credit Fees shall be
due and payable quarterly in arrears on each Quarterly Payment Date and on the date upon which the
Total Revolving Loan Commitment is terminated.

          (c) The Borrower agrees to pay to the Administrative Agent for the account of each Letter of
Credit Issuer a fee in respect of each Letter of Credit issued by it (the “Facing Fee”)
computed for each day at a rate per annum equal to 0.25% (or such lesser percentage as may be
agreed by the Borrower and the respective Letter of Credit Issuer in any given case) multiplied by
the average daily Stated Amount of such Letter of Credit. Such Facing Fees shall be due and
payable quarterly in arrears on each Quarterly Payment Date and on the date upon which the Total
Revolving Loan Commitment is terminated.

          (c) The Borrower hereby agrees to pay directly to each Letter of Credit Issuer upon each
issuance of, drawing under, and/or amendment of, a Letter of Credit issued by such Letter of Credit
Issuer such amount as shall at the time of such issuance, drawing or amendment be the
administrative charge which such Letter of Credit Issuer is customarily charging for issuances of,
drawings under or amendments of, letters of credit issued by it.

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          (d) The Borrower shall pay to the Administrative Agent for the account of each Agent and each
other Lender the fees specified in the accepted commitment letter, or related fee letter, executed
by such Agent or such Lender, as the case may be, when and as due.

          (e) All computations of Fees shall be made in accordance with Section 12.07(b).

          3.02 Voluntary Reduction of Revolving Loan Commitments. Upon at least three Business
Days’ prior written notice (or telephonic notice confirmed in writing) to the Administrative Agent
at the Administrative Agent’s Office (which notice the Administrative Agent shall promptly transmit
to each of the Lenders), the Borrower shall have the right, without premium or penalty, to
terminate Revolving Loan Commitments of the RL Lenders, in part or in whole, in an amount equal to
the Total Unutilized Revolving Loan Commitment at such time (or, to the extent that at such time
there are no Revolving Loans or Swingline Loans outstanding and no Letter of Credit Outstandings,
to terminate all Revolving Loan Commitments, in full), provided that (x) any such
termination shall apply to proportionately and permanently reduce the Revolving Loan Commitment of
each of the RL Lenders and (y) any partial reduction pursuant to this Section 3.02 shall be in the
amount of at least $10,000,000.

          3.03 Termination of Commitments. (a) The Total Revolving Loan Commitment shall
terminate on the Revolving Loan Maturity Date.

          (b) The Swingline Lender’s Swingline Commitment shall terminate on the Swingline Maturity
Date.

          (c) The Total Term Loan Commitment (and the Term Loan Commitment of each Lender) shall
terminate in its entirety on the Fourth Restatement Effective Date (after giving effect to the
incurrence of Term Loans on such date).

          SECTION 4. Payments.

          4.01 Voluntary Prepayments. The Borrower shall have the right to prepay Loans of a
given Tranche in whole or in part from time to time on the following terms and conditions: (i) the
Borrower shall give the Administrative Agent at the Administrative Agent’s Office written notice
(or telephonic notice promptly confirmed in writing) of its intent to make such prepayment, whether
such Loans are Term Loans, Revolving Loans or Swingline Loans, the amount of such prepayment and
(in the case of Eurodollar Loans) the specific Borrowing(s) pursuant to which made, which notice
shall be given by the Borrower no later than (x) in the case of Reference Rate Loans, 11:00 A.M.
(New York time) one Business Day prior to, (y) in the case of Eurodollar Loans, 11:00 A.M. (New
York time) three Business Days prior to, and (z) in the case of Swingline Loans, 11:00 A.M. (New
York time) on, the date of such prepayment and shall promptly be transmitted by the Administrative
Agent to each of the relevant Lenders entitled thereto; (ii) each partial prepayment of any
Borrowing shall be in an aggregate principal amount of at least $10,000,000, provided that
no partial prepayment of Eurodollar Loans made pursuant to a single
Borrowing shall reduce the outstanding Loans made pursuant to such Borrowing to an amount less
than the applicable Minimum Borrowing Amount for Eurodollar Loans; (iii) each prepayment in respect
of any Loans of a given Tranche made pursuant to a given Borrowing

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shall be applied pro
rata among such Loans, provided that at the Borrower’s election in connection with
any prepayment pursuant to this Section 4.01, such prepayment shall not be applied to any Revolving
Loan of a Defaulting Lender at any time when the aggregate amount of Revolving Loans of any
Non-Defaulting Lender exceeds such Non-Defaulting Lender’s RL Percentage of all Revolving Loans
then outstanding; and (iv) each prepayment of Term Loans pursuant to this Section 4.01 shall be
applied (I) first, to reduce the four immediately succeeding Scheduled Repayments (after
giving effect to all prior reductions thereto) required to be made after the date of the respective
prepayment pursuant to this Section 4.01 in direct order of maturity and (II) second, to
the extent in excess thereof, to reduce the then remaining Scheduled Repayments on a pro
rata basis (based upon the then remaining principal amount of each such Scheduled Repayment
after giving effect to all prior reductions thereto).

          4.02 Mandatory Prepayments. (a) If on any date the sum of the outstanding principal
amount of all Revolving Loans and Swingline Loans and the aggregate amount of Letter of Credit
Outstandings (all the foregoing, collectively, the “Aggregate RL Outstandings”) exceeds the
Total Revolving Commitment as then in effect, the Borrower shall repay on such date the principal
of Swingline Loans and, after Swingline Loans have been paid in full, Revolving Loans, in an amount
equal to such excess. If, after giving effect to the prepayment of all outstanding Revolving Loans
and Swingline Loans, the Aggregate RL Outstandings exceed the Total Revolving Loan Commitment then
in effect, the Borrower shall pay to the Administrative Agent an amount in cash equal to such
excess and the Administrative Agent shall hold such payment as security for the Obligations of the
Borrower hereunder (including, without limitation, obligations in respect of Letter of Credit
Outstandings) pursuant to a cash collateral agreement to be entered into in form and substance
reasonably satisfactory to the Administrative Agent (which shall permit certain investments in
Marketable Investments reasonably satisfactory to the Administrative Agent, until the proceeds are
applied to the secured obligations).

          (b) In addition to any other mandatory repayments pursuant to this Section 4.02, on each date
set forth below (each, a “Scheduled Repayment Date”), the Borrower shall be required to
repay that principal amount of Term Loans, to the extent then outstanding, as is set forth opposite
each such date below (each such repayment, as the same may be reduced as provided in Section 4.01
or 4.02(f), a “Scheduled Repayment”):

	 	 	 	 	 
	Scheduled Repayment Date	 	Amount	 
	The last Business Day of Borrower’s fiscal quarter ending
September 30, 2006
	 	$	3,875,000	 
	The last Business Day of Borrower’s fiscal quarter ending
December 31, 2006
	 	$	3,875,000	 
	The last Business Day of Borrower’s fiscal quarter ending
March 31, 2007
	 	$	3,875,000	 
	The last Business Day of Borrower’s fiscal quarter ending
June 30, 2007
	 	$	3,875,000	 

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	Scheduled Repayment Date	 	Amount	 
	The last Business Day of Borrower’s fiscal quarter ending
September 30, 2007
	 	$	3,875,000	 
	The last Business Day of Borrower’s fiscal quarter ending
December 31, 2007
	 	$	3,875,000	 
	The last Business Day of Borrower’s fiscal quarter ending
March 31, 2008
	 	$	3,875,000	 
	The last Business Day of Borrower’s fiscal quarter ending
June 30, 2008
	 	$	3,875,000	 
	The last Business Day of Borrower’s fiscal quarter ending
September 30, 2008
	 	$	3,875,000	 
	The last Business Day of Borrower’s fiscal quarter ending
December 31, 2008
	 	$	3,875,000	 
	The last Business Day of Borrower’s fiscal quarter ending
March 31, 2009
	 	$	3,875,000	 
	The last Business Day of Borrower’s fiscal quarter ending
June 30, 2009
	 	$	3,875,000	 
	The last Business Day of Borrower’s fiscal quarter ending
September 30, 2009
	 	$	3,875,000	 
	The last Business Day of Borrower’s fiscal quarter ending
December 31, 2009
	 	$	3,875,000	 
	The last Business Day of Borrower’s fiscal quarter ending
March 31, 2010
	 	$	3,875,000	 
	The last Business Day of Borrower’s fiscal quarter ending
June 30, 2010
	 	$	3,875,000	 
	The last Business Day of Borrower’s fiscal quarter ending
September 30, 2010
	 	$	3,875,000	 

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	Scheduled Repayment Date	 	Amount	 
	The last Business Day of Borrower’s fiscal quarter ending
December 31, 2010
	 	$	3,875,000	 
	The last Business Day of Borrower’s fiscal quarter ending
March 31, 2011
	 	$	3,875,000	 
	The last Business Day of Borrower’s fiscal quarter ending
June 30, 2011
	 	$	3,875,000	 
	The last Business Day of Borrower’s fiscal quarter ending
September 30, 2011
	 	$	3,875,000	 
	The last Business Day of Borrower’s fiscal quarter ending
December 31, 2011
	 	$	3,875,000	 
	The last Business Day of Borrower’s fiscal quarter ending
March 31, 2012
	 	$	3,875,000	 
	Term Loan Maturity Date
	 	$	1,460,875,000	 

          (c) In addition to any other mandatory repayments or commitment reductions pursuant to this
Section 4.02, on each date on or after the Fourth Restatement Effective Date upon which Borrower or
any of its Subsidiaries receives any cash proceeds from any issuance or incurrence by Borrower or
any of its Subsidiaries of Indebtedness (other than Indebtedness permitted to be incurred pursuant
to Section 8.04, except for Additional Non-Acquisition Senior Notes issued pursuant to Section
8.04(k)), an amount equal to 100% of the Net Cash Proceeds of the respective issuance or incurrence
of Indebtedness shall be applied on such date as a mandatory repayment of Term Loans in accordance
with the requirements of Sections 4.02(f) and (g).

          (d) In addition to any other mandatory repayments or commitment reductions pursuant to this
Section 4.02, on each Excess Cash Payment Date, an amount equal to the Applicable ECF Percentage of
the Excess Cash Flow for the related Excess Cash Payment Period
shall be applied as a mandatory repayment of Term Loans in accordance with the requirements of
Sections 4.02(f) and (g).

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          (e) In addition to any other mandatory repayments pursuant to this Section 4.02, all then
outstanding Loans of a respective Tranche shall be repaid in full on the respective Maturity Date
for such Tranche of Loans.

          (f) Each principal repayment of Term Loans made as required by Sections 4.02(c) and (d) shall
be applied to reduce the then remaining Scheduled Repayments of Term Loans on a pro
rata basis (based upon the then remaining principal amounts of the Scheduled Repayments
after giving effect to all prior reductions thereto).

          (g) With respect to each prepayment of Loans required by this Section 4.02, the Borrower may
designate the Types of Loans of the respective Tranche which are to be prepaid and, in the case of
Eurodollar Loans, the specific Borrowing(s) of the respective Tranche pursuant to which made;
provided that: (i) if any prepayment of Eurodollar Loans made pursuant to a single
Borrowing under a given Tranche shall reduce the outstanding Eurodollar Loans made pursuant to such
Borrowing to an amount less than the applicable Minimum Borrowing Amount for such Eurodollar Loans,
such Borrowing shall immediately be converted into a Borrowing of Reference Rate Loans under such
Tranche; and (ii) each prepayment of any Tranche of Loans made pursuant to a Borrowing shall be
applied pro rata among such Tranche of Loans. In the absence of a designation by
the Borrower as described in the preceding sentence, the Administrative Agent shall, subject to the
above, make such designation in its sole discretion with a view, but no obligation, to minimize
breakage costs owing under Section 1.11.

          4.03 Method and Place of Payment. (a) Except as otherwise specifically provided
herein, all payments under this Agreement shall be made to the Administrative Agent for the ratable
account of the Lenders entitled thereto, not later than 1:00 P.M. (New York time) on the date when
due and shall be made in immediately available funds and in lawful money of the United States of
America at the Administrative Agent’s Office, it being understood that written, telex or facsimile
notice by the Borrower to the Administrative Agent to make a payment from the funds in the
Borrower’s account at the Administrative Agent’s Office shall constitute the making of such payment
to the extent of such funds held in such account. The Administrative Agent will thereafter cause
to be distributed on the same day (if payment was actually received by the Administrative Agent
prior to 2:00 P.M. (New York time) on such day) like funds relating to the payment of principal or
interest or Fees ratably to the Lenders entitled thereto. If and to the extent that any such
distribution shall not be so made by the Administrative Agent in full on the same day (if payment
was actually received by the Administrative Agent prior to 2:00 P.M. (New York time) on such day),
the Administrative Agent shall pay to each Lender its ratable amount thereof and each such Lender
shall be entitled to receive from the Administrative Agent, upon demand, interest on such amount at
the overnight Federal Funds Rate for each day from the date such amount is paid to the
Administrative Agent until the date the Administrative Agent pays such amount to such Lender.

          (b) Any payments under this Agreement which are made later than 1:00 P.M. (New York time)
shall be deemed to have been made on the next succeeding Business Day. Whenever any payment to be
made hereunder shall be stated to be due on a day which is not a Business Day, the due date thereof
shall be extended to the next succeeding Business Day and, with respect to payments of principal,
interest shall be payable during such extension at the applicable rate in effect immediately prior
to such extension.

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          4.04 Net Payments. (a) All payments made by the Borrower hereunder will be made
without setoff, counterclaim or other defense. The Borrower will pay, prior to the date on which
penalties attach thereto, all present and future income, stamp and other taxes, levies, or costs
and charges whatsoever imposed, assessed, levied or collected on or in respect of a Loan and/or the
recording, registration, notarization or other formalization thereof and/or any payments of
principal, interest or other amounts made on or in respect of a Loan (all such taxes, levies, costs
and charges being herein collectively called “Taxes”; provided that Taxes shall not
include taxes imposed on or measured by the overall net income of that Lender (or any alternative
tax imposed generally by any relevant jurisdiction in lieu of a tax on net income) by the United
States of America or any political subdivision or taxing authority thereof or therein or taxes on
or measured by the overall net income (or any alternative tax imposed generally by any relevant
jurisdiction in lieu of a tax on net income) of that Lender by any foreign country or subdivision
thereof pursuant to the laws of which such Lender is organized or in which the principal office or
applicable lending office of such Lender is located). The Borrower shall also pay such additional
amounts equal to increases in taxes payable by that Lender described in the foregoing proviso which
increases are attributable to payments made by the Borrower described in the immediately preceding
sentence of this Section. Promptly after the date on which payment of any such Tax is due pursuant
to applicable law, the Borrower will, at the request of that Lender, furnish to that Lender
evidence, in form and substance satisfactory to that Lender, that the Borrower has met its
obligation under this Section 4.04. The Borrower will indemnify each Lender against, and reimburse
each Lender on demand for, any Taxes, as determined by that Lender in its good faith and reasonable
discretion. Such Lender shall provide the Borrower with appropriate receipts for any payments or
reimbursements made by the Borrower pursuant to this Section 4.04.

          (b) Each Lender which is not a United States person (as such term is defined in Section
7701(a)(30) of the Code) for United States federal income tax purposes agrees to provide to the
Borrower on or prior to the Fourth Restatement Effective Date, or in the case of a Lender that is
an assignee or transferee of an interest under this Agreement pursuant to Section 1.14 or Section
12.04 (unless the respective Lender was already a Lender hereunder immediately prior to such
assignment or transfer and such Lender is in compliance with the provisions of this Section
4.04(b)), on the date of such assignment or transfer to such Lender, (i) two accurate and complete
original signed copies of Internal Revenue Service Form W-8ECI or Form W-8BEN (with respect to a
complete exemption under an income tax treaty) (or successor forms) certifying to such Lender’s
entitlement to a complete exemption from United States withholding tax with respect to payments to
be made under this Agreement or any Note or (ii) if the Lender is not a “bank” within the meaning
of Section 881(c)(3)(A) of the Code and cannot deliver either Internal Revenue Service Form W-8ECI
or W-8BEN (with respect to a complete exemption under an income tax treaty) pursuant to clause (i)
above, (x) a certificate substantially in the form
of Exhibit J (any such certificate, a “Section 4.04(b)(ii) Certificate”) and (y) two
accurate and complete original signed copies of Internal Revenue Service Form W-8BEN (with respect
to the portfolio interest exemption) (or successor form) certifying to such Lender’s entitlement as
of such date to a complete exemption from United States withholding tax with respect to payments of
interest to be made under this Agreement or under any Note. Each Lender that is a United States
person (as such term is defined in Section 7701(a)(30) of the Code) for Federal income tax
purposes, but that is not a corporation (as such term is defined in Section 7701(a)(3) of the Code)
for such purposes, agrees to provide to the Borrower on or prior to the Fourth Restatement

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Effective Date, or in the case of a Lender that is an assignee or transferee of an interest under
this Agreement pursuant to Section 1.14 or Section 12.04 (unless the respective Lender was already
a Lender hereunder immediately prior to such assignment or transfer and such Lender is in
compliance with the provisions of this Section 4.04(b)), on the date of such assignment to such
Lender, two accurate and complete original signed copies of Internal Revenue Service Form W-9 (or
successor form). In addition, each such Lender agrees that from time to time after the Fourth
Restatement Effective Date, when a lapse in time or change in circumstances renders the previous
certification obsolete or inaccurate in any material respect, it will deliver to the Borrower two
new accurate and complete original signed copies of Internal Revenue Service Form W-8ECI or W-8BEN
(with respect to a claim for benefits of an income tax treaty) or Form W-8BEN (with respect to the
portfolio interest exemption) and a Section 4.04(b)(ii) Certificate, as the case may be, and such
other forms as may be required in order to confirm or establish the entitlement of such Lender to a
continued exemption from or reduction in United States withholding tax with respect to payments
under this Agreement or any Note, or it shall immediately notify the Borrower and the
Administrative Agent of its inability to deliver any such form. Notwithstanding anything to the
contrary contained in Section 4.04(a), (x) the Borrower shall be entitled, to the extent it is
required to do so by law, to deduct or withhold income or other similar taxes imposed by the United
States (or any political subdivision or taxing authority thereof or therein) from interest, fees or
other amounts payable hereunder for the account of any Lender which is not a United States person
(as such term is defined in Section 7701(a)(30) of the Code) for United States federal income tax
purposes and which has not provided to the Borrower such forms that establish a complete exemption
from such deduction or withholding and (y) the Borrower shall not be obligated pursuant to Section
4.04(a) to pay a Lender in respect of income or similar taxes imposed by the United States or any
additional amounts with respect thereto if such Lender has not provided to the Borrower the
Internal Revenue Service forms required to be provided to the Borrower pursuant to this Section
4.04(b). Notwithstanding anything to the contrary contained in the preceding sentence or elsewhere
in this Section 4.04, the Borrower agrees to pay additional amounts and to indemnify each Lender in
the manner set forth in Section 4.04(a) (without regard to the identity of the jurisdiction
requiring the deduction or withholding) in respect of any amounts deducted or withheld by it as
described in the immediately preceding sentence as a result of any changes after the Fourth
Restatement Effective Date in any applicable law, treaty, governmental rule, regulation, guideline
or order, or in the interpretation thereof, relating to the deducting or withholding of income or
similar taxes.

          (c) If the Borrower pays any additional amount under this Section 4.04 to a Lender and such
Lender determines in its sole discretion that it has actually received or realized in connection
therewith any refund or any reduction of, or credit against, its Tax liabilities in or with respect
to the taxable year in which the additional amount is paid (a “Tax Benefit”), such Lender
shall pay to the Borrower an amount that the Lender shall, in its sole discretion,
determine is equal to the net benefit, after tax, which was obtained by the Lender in such
year as a consequence of such Tax Benefit; provided, however, that (i) any Lender
may determine, in its sole discretion consistent with the policies of such Lender, whether to seek
a Tax Benefit; (ii) any Taxes that are imposed on a Lender as a result of a disallowance or
reduction (including through the expiration of any tax credit carryover or carryback of such Lender
that otherwise would not have expired) of any Tax Benefit with respect to which such Lender has
made a payment to the Borrower pursuant to this Section 4.04(c) shall be treated as a Tax for which
the Borrower is obligated to indemnify such Lender pursuant to this Section 4.04 without any

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exclusions or defenses; (iii) subject to Section 12.15, nothing in this Section 4.04(c) shall
require the Lender to disclose any confidential information to the Borrower (including, without
limitation, its tax returns); and (iv) no Lender shall be required to pay any amounts pursuant to
this Section 4.04(c) at any time when a Default or Event of Default exists. If in the reasonable
opinion of the Borrower, any amount has been paid to, by or on behalf of any Lender pursuant to
this Section 4.04 with respect to Taxes which are not correctly or legally asserted, such Lender
will (subject, however, to the immediately succeeding proviso and the limitations described in the
immediately preceding sentence) cooperate in good faith with the Borrower in identifying any
purported Tax Benefit, provided that the rendering of any such cooperation by such Lender
would not cause such Lender to incur any out of pocket expense (which is not otherwise paid in full
by Borrower prior to or at the time such expense is incurred).

          SECTION 5. Conditions Precedent.

          5.01 Conditions Precedent to the Fourth Restatement Effective Date. This Agreement
shall become effective on the date (the “Fourth Restatement Effective Date”) when each of
the following conditions are first satisfied:

     A. Execution; Notes. The Fourth Restatement Execution Date shall have
occurred as provided in Section 12.10 and there shall have been delivered to the
Administrative Agent for the account of each Lender requesting same the appropriate Note
executed by the Borrower in the amount, maturity and as otherwise provided herein.

     B. Officer’s Certificate. The Administrative Agent shall have received
certificates, dated the Fourth Restatement Effective Date and signed by an appropriate
officer of the Borrower, stating that all of the applicable conditions set forth in Sections
5.01F, G, H, P and S and 5.02 have been satisfied as of such date.

     C. Opinions of Counsel. The Administrative Agent shall have received an
opinion, or opinions, in form and substance satisfactory to each Agent, addressed to each of
the Lenders and dated the Fourth Restatement Effective Date, from (i) McDara P. Folan III,
Senior Vice President, Deputy General Counsel and Secretary of the Borrower, which opinion
shall cover the matters contained in Exhibit C-1 hereto, (ii) Womble Carlyle Sandridge &
Rice, PLLC, special counsel to the Credit Parties, which opinion shall cover the matters
contained in Exhibit C-2 hereto, and (iii) Kilpatrick Stockton LLP, special counsel to the
Credit Parties, which opinion shall cover the matters contained in
Exhibit C-3 hereto, together with such other opinions, if any, covering such matters as
the Agents shall reasonably request, from counsel, and in form and substance, reasonably
satisfactory to the Agents.

     D. Company Proceedings. On the Fourth Restatement Effective Date, all Company
and legal proceedings and all instruments and agreements in connection with the transactions
contemplated by this Agreement and the other Credit Documents shall be reasonably
satisfactory in form and substance to each Agent, and the Administrative Agent shall have
received all information and copies of all certificates, documents and papers, including
records of Company proceedings and governmental approvals, if any, which any Agent
reasonably may have requested in connection therewith, such

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documents and papers where
appropriate to be certified by proper Company or governmental authorities.

     E. Organizational Documentation, etc. The Lenders shall have received copies
of the Certificate of Incorporation and By-Laws or other equivalent organizational documents
of each Credit Party, certified on or recently prior to the Fourth Restatement Effective
Date as true and complete by an appropriate Company officer or Governmental Authority.

     F. Consummation of Transaction. (a) On the Fourth Restatement Effective Date
(and concurrently with the initial incurrence of Loans hereunder), (i) all material
conditions precedent to the consummation of the Acquisition as set forth in the Acquisition
Agreement shall have been satisfied, and not waived, except with the consent of each Agent
and (ii) the Acquisition shall have been consummated in accordance with the terms and
conditions of the Acquisition Agreement and all applicable law.

     (b) On the Fourth Restatement Effective Date (and prior to or concurrently with the
initial incurrence of Loans hereunder), (i) the Borrower shall have received cash proceeds
of $1,650,000,000 (calculated before original issue discount, underwriting discounts and
commissions) from the issuance by it of a like principal amount of Initial New Senior Notes
and (ii) the issuance of the Initial New Senior Notes shall have been consummated in
accordance with the terms and conditions of the Initial New Senior Notes Documents and all
applicable law.

     (c) On the Fourth Restatement Effective Date, (i) the Administrative Agent shall have
received true and correct copies of all Initial New Senior Notes Documents and all
Acquisition Documents, in each case certified as such by an Authorized Officer of the
Borrower and (ii) all such Documents shall be in full force and effect.

     (d) On the Fourth Restatement Effective Date, RJRTH shall have duly authorized,
executed and delivered to the Borrower a promissory note in the form of Exhibit M (the
“RJRTH Intercompany Note”), which RJRTH Intercompany Note shall, in turn, have been
delivered to the Collateral Agent for pledge pursuant to the Pledge Agreement.

     G. Adverse Change. No event, development or circumstance shall have occurred
since December 31, 2005 (or, if such event, development or circumstance has occurred since
December 31, 2005, the Specified Agents had no knowledge thereof prior to April 24, 2006)
that has caused, or could reasonably be expected to cause, a Material Adverse Effect.

     H. Approvals. On or prior to the Fourth Restatement Effective Date, (i) all
governmental, regulatory and third party approvals necessary under the terms of the
Acquisition Agreement to consummate the Acquisition and all material governmental,
regulatory and third party approvals necessary to consummate the financing transactions
contemplated by the Documents and for the continuing operations of the Borrower and its
Subsidiaries taken as a whole, shall have been obtained and remain in full force and effect

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and (ii) all applicable waiting periods shall have expired without any action being taken or
threatened by any competent authority that could reasonably be expected to restrain, prevent
or otherwise impose materially adverse conditions upon the consummation of the Transaction,
the making of the Loans and the transactions contemplated by the Documents or otherwise
referred to herein or therein.

     I. Unaudited Pro Forma Condensed Combined Financial Statements; Pro Forma
Financial Statements. (a) The Agents shall have received (x) the audited (incorporated
by reference from filings with the SEC) and unaudited interim (quarterly) consolidated
financial statements of the Borrower (which shall have been reviewed by the Borrower’s
independent registered public accounting firm as provided in Statement on Auditing Standards
No. 100) and each Subsidiary Guarantor, to the extent any such financial statements would be
required by (including by means of incorporation by reference), and meeting the requirements
of, Regulation S-X for a Form S-3 registration statement under the Securities Act of 1933,
as amended, relating to the offering of debt securities of the Borrower and guarantees
thereof by each of the Subsidiary Guarantors, (y) audited combined historical financial
statements of the Conwood Subsidiaries for the fiscal year ended December 31, 2005 and (z)
pro forma financial statements of the Borrower based on the audited combined
historical financial statements of the Conwood Subsidiaries for the fiscal year ended
December 31, 2005 and on the Borrower’s audited historical financial statements for the
fiscal year ended December 31, 2005 (the “Pro Forma Financial Statements”).

     (b) The Agents shall have received and shall be reasonably satisfied with a schedule
showing a ratio of Consolidated Indebtedness (determined as of the Fourth Restatement
Effective Date, after giving pro forma effect to the Transaction) to
Consolidated EBITDA for the Test Period ended on the date of the most recent available
financial statements of the Borrower as of the Fourth Restatement Effective Date of no more
than 2.25:1:00.

     J. Subsidiary Guaranty. Each Subsidiary Guarantor shall have duly authorized,
executed and delivered an amended and restated Subsidiary Guaranty substantially in the form
of Exhibit D hereto (as so amended and restated and as the same may be further amended,
restated, modified and/or supplemented from time to time in accordance with
the terms hereof and thereof, the “Subsidiary Guaranty”), and the Subsidiary
Guaranty shall be in full force and effect.

     K. Intercompany Subordination Agreement. The Borrower and each of its
Subsidiaries (other than an Insignificant Subsidiary) shall have duly authorized, executed
and delivered an amended and restated Subordination Agreement substantially in the form of
Exhibit G hereto (as so amended and restated and as the same may be further amended,
restated, modified and/or supplemented from time to time in accordance with the terms hereof
and thereof, the “Intercompany Subordination Agreement”), and the Intercompany
Subordination Agreement shall be in full force and effect.

     L. Pledge Agreement. The Borrower, each Subsidiary Guarantor and NA Holding
shall have duly authorized, executed and delivered an amended and restated Pledge

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Agreement
in the form of Exhibit H (as so amended and restated and as the same may be further amended,
restated, modified and/or supplemented from time to time in accordance with the terms hereof
and thereof, the “Pledge Agreement”), and the following other documents shall be, or
shall previously have been, delivered to the Collateral Agent, as Pledgee thereunder:

     (i) all Collateral referred to in the Pledge Agreement then owned by such Credit
Party (including all outstanding shares of Borrower Preferred Stock), (x) endorsed in
blank, or accompanied by executed and undated endorsements for transfer, in the case
of promissory notes constituting Collateral thereunder and (y) together with executed
and undated endorsements for transfer, in the case of Equity Interests constituting
certificated Collateral thereunder;

     (ii) proper Financing Statements (Form UCC-1) and/or Financing Statement
amendments (Form UCC-3) fully executed for filing under the UCC or other appropriate
filing offices of each jurisdiction as may be necessary or, in the opinion of the
Collateral Agent, desirable to perfect the security interests purported to be created
by the Pledge Agreement; and

     (iii) evidence of the completion of all other recordings and filings of, or with
respect to, the Pledge Agreement as may be necessary or, in the reasonable opinion of
the Collateral Agent, desirable to perfect the security interests intended to be
created by the Pledge Agreement;

and the Pledge Agreement shall be in full force and effect.

          M. Security Agreement. The Borrower and each Subsidiary Guarantor
shall have duly authorized, executed and delivered an amended and restated Security
Agreement in the form of Exhibit I (as so amended and restated and as the same may be
further amended, restated, modified and/or supplemented from time to time in accordance with
the terms thereof and hereof, the “Security Agreement”) covering all of the
Collateral referred to therein, and the following other documents shall be, or shall
previously have been, delivered to the Collateral Agent:

     (i) executed copies of financing statements (Form UCC-1) and/or financing
statement amendments (Form UCC-3) (or appropriate local equivalent) in appropriate
form for filing under the UCC or appropriate local equivalent of each jurisdiction as
may be necessary or, in the reasonable opinion of the Collateral Agent, desirable to
perfect the security interests purported to be created by the Security Agreement; and

     (ii) evidence that all other actions necessary or, in the reasonable opinion of
the Collateral Agent, desirable, to perfect the security interests purported to be
created by the Security Agreement have been taken;

and the Security Agreement shall be in full force and effect.

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     N. Mortgages. On the Fourth Restatement Effective Date (but subject to
Section 12.19), the Collateral Agent shall have received:

     (i) fully executed counterparts of amendments to, and/or amendments and
restatements of, each of the Existing Mortgages (the “Mortgage Amendments”),
in form and substance satisfactory to the Collateral Agent, together with evidence
that a counterpart of each such Mortgage Amendment has been delivered to the title
company insuring the Lien on the respective Existing Mortgage for recording in all
places to the extent necessary or desirable, in the reasonable judgment of the
Collateral Agent, effectively to maintain a valid and enforceable first priority
mortgage lien (subject to Permitted Liens) on each Existing Mortgaged Property in
favor of the Collateral Agent for the benefit of the Secured Creditors;

     (ii) endorsements of the authorized issuing agent for title insurers reasonably
satisfactory to the Collateral Agent to each Existing Mortgage Policy assuring the
Collateral Agent that each Existing Mortgage is a valid and enforceable first
priority mortgage lien on the respective Existing Mortgaged Properties, free and
clear of all defects and encumbrances except Permitted Liens;

     (iii) fully executed counterparts of Mortgages in form and substance
satisfactory to the Collateral Agent, which Mortgages shall cover such of the Real
Property (located in the United States or any State or territory thereof) owned or
leased by the Borrower or any of its Subsidiaries (after giving effect to the
Transaction) as are designated on Annex VIII as a “New Mortgaged Property,” together
with evidence that counterparts of the Mortgages have been delivered to the title
insurance company insuring the lien of such Mortgage for recording in all places to
the extent necessary or, in the reasonable opinion of the Collateral Agent,
desirable to effectively create a valid and enforceable first priority mortgage lien
on each such New Mortgaged Property in favor of the Collateral Agent for the benefit
of the Secured Creditors, subject to Permitted Liens;

     (iv) Mortgage Policies on the New Mortgaged Properties issued by such title
insurers reasonably satisfactory to the Collateral Agent in amounts satisfactory to
the Lead Agents assuring the Collateral Agent that the Mortgages on such New
Mortgaged Properties are valid and enforceable first priority mortgage liens on the
respective New Mortgaged Properties, free and clear of all defects and encumbrances
except Permitted Liens and such Mortgage Policies shall otherwise be in form and
substance reasonably satisfactory to the Collateral Agent and shall include, as
appropriate, an endorsement for future advances under this Agreement and the Notes
and for any other matter that the Collateral Agent may reasonably request, shall not
include an exception for mechanics’ liens or creditors’ rights, and shall provide
for affirmative insurance and such reinsurance (including direct access agreements)
as the Collateral Agent may reasonably request;

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     (v) surveys, in form and substance reasonably satisfactory to the Collateral
Agent, of each New Mortgaged Property designated as a “surveyed property” on Annex
VIII, dated a recent date reasonably acceptable to the Collateral Agent and
certified in a manner reasonably satisfactory to the Collateral Agent by a licensed
professional surveyor reasonably satisfactory to the Collateral Agent; and

     (vi) flood certificates covering each Mortgaged Property in form and substance
acceptable to the Administrative Agent, certified to the Collateral Agent in its
capacity as such and whether or not each such Mortgaged Property is located in a
flood hazard area, as determined by designation of each such Mortgaged Property in a
specified flood hazard zone by reference to the applicable FEMA map.

     O. Insurance Certificates. On or before the Fourth Restatement Effective Date,
the Administrative Agent shall have received evidence of insurance complying with the
requirements of Section 7.03 for the business and properties of the Borrower and its
Subsidiaries (including, without limitation, the Acquired Business), in scope, form and
substance reasonably satisfactory to the Lead Agents and naming the Collateral Agent as an
additional insured and/or loss payee, and stating that such insurance shall not be
terminated without at least 30 days’ prior written notice by the insurer to the Collateral
Agent.

     P. Third Amended and Restated Credit Agreement. On the Fourth Restatement
Effective Date (and, except in the case of clause (v) below, concurrently with the initial
incurrence of Loans on such date), (i) all Loans (if any) outstanding pursuant to (and as
defined in) the Third Amended and Restated Credit Agreement shall have been repaid in full
(and the Borrower shall have paid all breakage costs and similar costs resulting therefrom
in accordance with the provisions of Section 1.11 of the Third Amended and Restated Credit
Agreement), (ii) all outstanding Letters of Credit under, and as defined in, the Third
Amended and Restated Credit Agreement shall have been incorporated as Letters of Credit
hereunder pursuant to Section 2.01(c), (iii) all accrued interest on all outstanding
extensions of credit, and all accrued fees, pursuant to the Third Amended and
Restated Credit Agreement shall be paid in full on, and through, the Fourth Restatement
Effective Date (whether or not same would otherwise be then due and payable pursuant to the
Third Amended and Restated Credit Agreement), (iv) all other amounts then due and owing to
each Lender under, and as defined in, the Third Amended and Restated Credit Agreement
pursuant to the Third Amended and Restated Credit Agreement shall have been paid in full and
(v) immediately prior to giving effect thereto, no Default or Event of Default under, and as
defined in, the Third Amended and Restated Credit Agreement shall have occurred and be
continuing.

     Q. Joinders To Tax Sharing Agreement. On or prior to the Fourth Restatement
Effective Date, the Subsidiaries of the Borrower comprising a part of the Acquired Business
shall have duly authorized, executed and delivered joinder agreements in form and substance
satisfactory to the Lead Agents, pursuant to which such Subsidiaries shall

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become party to
the Tax Sharing Agreement, and the Tax Sharing Agreement shall be in full force and effect.

     R. Solvency Certificate. On the Fourth Restatement Effective Date, the
Administrative Agent shall have received a solvency certificate from the chief financial
officer of the Borrower in the form of Exhibit F hereto.

     S. Fees, etc. On the Fourth Restatement Effective Date, the Borrower shall
have paid to each Agent and each Lender all costs, fees and expenses payable to the Agents
or the Lenders, to the extent then due.

     T. RAI Assumption Agreement. On the Fourth Restatement Effective Date (but
immediately prior to giving effect thereto), the Borrower and RJRTH shall have duly
authorized, executed and delivered an Assignment and Assumption Agreement in the form of
Exhibit L (the “RAI Assumption Agreement”), pursuant to which the Borrower shall
assume, and RJRTH shall assign to the Borrower, all of RJRTH’s rights and obligations under
the Third Amended and Restated Credit Agreement and the other Credit Documents (as defined
in the Third Amended and Restated Credit Agreement) to which RJRTH is a party.

     U. RAI Existing Senior Notes Assumption and Indemnificaton Agreement. On the
Fourth Restatement Effective Date (but immediately prior to giving effect thereto), the
Borrower and RJRTH shall have duly authorized, executed and delivered an Assumption and
Indemnification Agreement in the form of Exhibit N (the “RAI Existing Senior Notes
Assumption and Indemnification Agreement”).

          5.02 Conditions Precedent to All Credit Events. The obligation of each Lender to make
any Loans (other than pursuant to a Mandatory Borrowing) and the obligation of each Letter of
Credit Issuer to issue or extend Letters of Credit, is subject, at the time of the making of each
such Loan and/or the issuance or extension of each such Letter of Credit (and after giving effect
thereto), to the satisfaction of the following conditions at such time: (i) there shall exist no
Default or Event of Default and (ii) all representations and warranties contained herein or in the
other Credit Documents shall be true
and correct in all material respects with the same effect as though such representations and
warranties had been made on and as of the date of such Credit Event, unless such representation and
warranty expressly indicates that it is being made as of a specified date, in which case such
representation or warranty shall be true and correct in all material respects only as of such
specified date.

          The acceptance of the benefits of each Credit Event shall constitute a representation and
warranty by each Credit Party to each of the Lenders that all of the applicable conditions
specified above exist as of that time. All of the certificates, legal opinions and other documents
and papers referred to in Section 5.01, unless otherwise specified, shall be delivered to the
Administrative Agent at the Administrative Agent’s Office for the account of each of the Lenders
and shall be reasonably satisfactory in form and substance to each Agent.

          SECTION 6. Representations, Warranties and Agreements. In order to induce the Lenders
to enter into this Agreement, to make the Loans and issue or participate in Letters of

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Credit as
provided for herein, the Borrower makes the following representations and warranties to and
agreements with the Lenders, all of which shall survive the execution and delivery of this
Agreement and the making of the Loans and the issuance (or, in the case of Existing Letters of
Credit, deemed issuance) of the Letters of Credit (with (x) all such representations, warranties
and agreements being first made on the Fourth Restatement Effective Date and (y) the occurrence of
each Credit Event being deemed to constitute a representation and warranty that the matters
specified in this Section 6 are true and correct in all material respects on and as of the date
hereof and as of the date of each such Credit Event, unless such representation and warranty
expressly indicates that it is being made as of any specific date, in which case such
representation or warranty shall be true and correct in all material respects only as of such
specified date):

          6.01 Status. Each Credit Party and each of its Material Subsidiaries (i) is a duly
organized and validly existing Company in good standing under the laws of the jurisdiction of its
organization and has the requisite Company power and authority to own its property and assets and
to transact the business in which it is engaged and (ii) is duly qualified and is authorized to do
business and is in good standing in all jurisdictions where it is required to be so qualified and
where the failure to be so qualified would have a Material Adverse Effect.

          6.02 Power and Authority. Each Credit Party has the requisite Company power and
authority to execute, deliver and carry out the terms and provisions of the Documents to which it
is a party and has taken all necessary Company action to authorize the execution, delivery and
performance of the Documents to which it is a party. Each Credit Party has duly executed and
delivered each Document to which it is a party and each such Document constitutes the legal, valid
and binding obligation of such Credit Party enforceable in accordance with its terms, except as may
be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting the enforcement of creditor’s rights generally or general principles of equity.

          6.03 No Violation. Neither the execution, delivery and performance by any Credit
Party of the Documents to which it is a party nor compliance with the terms and provisions thereof,
nor the consummation of the transactions contemplated therein (i) will contravene any material
provision of any applicable law, statute, rule, regulation, order, writ, injunction or decree of
any Governmental Authority, (ii) will conflict or be inconsistent with or result in any breach of
any of the terms, covenants, conditions or provisions of, or constitute a default under, or result
in the creation or imposition of (or the obligation to create or impose) any Lien (except for the
Liens created pursuant to the Security Documents) upon any of the property or assets of the
Borrower or any of its Subsidiaries pursuant to the terms of any material indenture, mortgage, deed
of trust, agreement or other instrument to which the Borrower or any of its Subsidiaries is a party
or by which it or any of its property or assets is bound or to which it may be subject (including,
without limitation, the New Senior Notes Documents) or (iii) will violate any provision of the
Certificate of Incorporation or By-Laws (or equivalent organizational documents) of the Borrower or
any of its Subsidiaries.

          6.04 Litigation. Except as set forth on Annex IV, there are no actions, suits or
proceedings pending or threatened with respect to the Borrower or any of its Subsidiaries that
would reasonably be expected to have a Material Adverse Effect.

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          6.05 Use of Proceeds; Margin Regulations. (a) All proceeds of the Term Loans will be
used by the Borrower to finance the Acquisition and to pay fees and expenses incurred in connection
with the Transaction.

          (b) The proceeds of all Revolving Loans and Swingline Loans shall be utilized by the Borrower
for general corporate purposes of the Borrower and/or its Subsidiaries (including, without
limitation, the refinancing of Indebtedness and the backing up of commercial paper issued by the
Borrower); provided that (i) no proceeds of Revolving Loans or Swingline Loans may be used
to finance the Acquisition or pay fees and expenses incurred in connection with the Transaction and
(ii) proceeds of Revolving Loans and Swingline Loans to be used for the bonding of litigation may
only be used for Permitted Litigation Bonding.

          (c) Except as otherwise permitted by Section 8.05(b), (c), (d), and (f), no part of any
Credit Event (or the proceeds thereof) will be used to purchase or carry any Margin Stock or to
extend credit for the purpose of purchasing or carrying any Margin Stock. Neither the making of
any Loan nor the use of the proceeds thereof nor the occurrence of any other Credit Event will
violate or be inconsistent with the provisions of Regulation T, U or X of the Board of Governors of
the Federal Reserve System.

          (d) The Fair Market Value of all Margin Stock owned by the Borrower and its Subsidiaries does
not exceed $50,000,000 (for such purposes, determined without regard to the Fair Market Value of
the shares of Excluded Joint Ventures held by the Borrower and its Subsidiaries, to the extent same
shall at any time constitute Margin Stock). At the time of each
Credit Event, not more than 25% of the value of the assets of the Borrower and its
Subsidiaries taken as a whole will constitute Margin Stock.

          (d) Notwithstanding the foregoing provisions of this Section 6.05, no proceeds of any Loan
will be utilized to purchase any Margin Stock in a transaction, or as part of a series of
transactions, the result of which is the ownership by the Borrower and/or its Subsidiaries of 5% or
more of the capital stock of a corporation unless the Board of Directors of such corporation has
approved such transaction prior to any public announcement of the purchase, or the intent to
purchase, any such Margin Stock.

          6.06 Governmental Approvals. No order, consent, approval, license, authorization, or
validation of, or filing, recording or registration with, or exemption by, any Governmental
Authority, or any subdivision thereof, is required to authorize or is required in connection with
(i) the execution, delivery and performance of any Document or (ii) the legality, validity, binding
effect or enforceability of any Document, except for (x) those that have otherwise been obtained or
made on or prior to the Fourth Restatement Effective Date and which remain in full force and effect
on the Fourth Restatement Effective Date and (y) filings which are necessary to perfect the
security interests created under the Security Documents.

          6.07 Investment Company Act. Neither the Borrower nor any of its Subsidiaries is an
“investment company” or a company “controlled” by an “investment company,” within the meaning of
the Investment Company Act of 1940, as amended.

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          6.08 True and Complete Disclosure. All factual information (taken as a whole)
heretofore or contemporaneously furnished by or on behalf of the Credit Parties or any of their
Subsidiaries in writing to any Agent or any Lender for purposes of or in connection with this
Agreement, the other Documents or any transaction contemplated herein or therein is, and all other
such factual information (taken as a whole) hereafter furnished by or on behalf of such Persons in
writing to any Lender will be, true and accurate in all material respects on the date as of which
such information is dated or certified and not incomplete by omitting to state any material fact
necessary to make such information (taken as a whole) not misleading at such time in light of the
circumstances under which such information was provided. The projections and pro
forma financial information contained in such materials were based on good faith estimates
and assumptions believed by such Persons to be reasonable at the time made, it being recognized by
the Lenders that such projections as to future events are not to be viewed as facts and that actual
results during the period or periods covered by any such projections may differ from the projected
results and such differences may be material.

          6.09 Financial Condition; Financial Statements; Solvency. (a) The consolidated
balance sheets of the Borrower and its Subsidiaries, at December 31, 2003, at December 31, 2004 and
at December 31, 2005 and the related consoli
dated statements of income (loss), shareholders’ equity and comprehensive income (loss) and
cash flows for the fiscal years ended as of said dates, which statements have been examined by KPMG
LLP, independent registered public accountants, who delivered an unqualified opinion in respect of
the financial statements examined by them, copies of which have heretofore been furnished to the
Administrative Agent (on behalf of each Lender), present fairly in all material respects the
consolidated financial position of the Borrower at the dates of said statements and the results of
operations for the periods covered thereby in conformity with GAAP.

          (b) The combined balance sheet of the Conwood Subsidiaries at December 31, 2005 and the
related combined statements of income and cash flows for the fiscal year ended as of said date,
which statements have been examined by KPMG LLP, independent auditors, who delivered an unqualified
opinion in respect of the financial statements examined by them, copies of which have heretofore
been furnished to the Administrative Agent (on behalf of each Lender), present fairly in all
material respects the combined financial position of the Conwood Subsidiaries at the date of said
statements and the results of operations for the period covered thereby in conformity with GAAP.

          (c) The Pro Forma Financial Statements present a good faith estimate of the
combined pro forma financial condition of the Borrower and its Subsidiaries and the
pro forma results of operations of the Borrower and its Subsidiaries for the
respective periods covered thereby (after giving effect to the Transaction at the date thereof or
for the period covered thereby).

          (d) Since December 31, 2005 (after giving effect to the Transaction as if same had occurred
immediately prior to such date), nothing has occurred which has had a Material Adverse Effect.

          (e) On and as of the date of each Credit Event, and after giving effect to the Transaction and
to all Indebtedness (including the Loans and the New Senior Notes) being

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incurred or assumed and
Liens created by the Credit Parties in connection therewith, (i) the sum of the assets, at a fair
valuation, of the Borrower (on a stand-alone basis) and of each Credit Party and its Subsidiaries
(taken as a whole) will exceed its or their respective debts, (ii) the Borrower (on a stand-alone
basis) and of each Credit Party and its Subsidiaries (taken as a whole) has or have not incurred
and does or do not intend to incur, and does or do not believe that it or they will incur, debts
beyond its or their respective ability to pay such debts as such debts mature, and (iii) the
Borrower (on a stand-alone basis) and of each Credit Party and its Subsidiaries (taken as a whole)
will have sufficient capital with which to conduct its or their respective businesses. For
purposes of this Section 6.09(e), “debt” means any liability on a claim, and
“claim” means (a) right to payment, whether or not such a right is reduced to judgment,
liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal,
equitable, secured, or unsecured or (b) right to an equitable remedy for breach of performance if
such breach gives rise to a payment, whether or not such right to an equitable remedy is reduced to
judgment, fixed, contingent, matured, unmatured, disputed, undisputed, secured or unsecured. The
amount of contingent liabilities at any time shall be computed as the amount that, in the light of
all the facts and circumstances existing at such time, represents the amount that can reasonably be
expected to become an actual or matured liability.

          6.10 Tax Returns and Payments. Each of the Borrower and its Subsidiaries has timely
filed all federal income tax returns and all other material tax returns, domestic and foreign,
required to be filed by it (the “Returns”). The Returns accurately reflect in all material
respects all liability for taxes of the Borrower and its Subsidiaries as a whole for the periods
covered thereby. Each of the Borrower and each of its Subsidiaries have paid all material taxes
and assessments payable by them other than those contested in good faith and adequately disclosed
and for which adequate reserves have been established in accordance with generally accepted
accounting principles.

          6.11 Compliance with ERISA. Except to the extent that all events described in the
following clauses of this sentence and then in existence could not, in the aggregate, reasonably be
expected to have a Material Adverse Effect, each Plan is in substantial compliance with ERISA and
the Code; no Reportable Event has occurred with respect to any Plan; no Plan is insolvent or in
reorganization, no Plan has an Unfunded Current Liability, and no Plan has an accumulated or waived
funding deficiency or permitted decreases in its funding standard account within the meaning of
Section 412 of the Code; none of the Borrower, any Subsidiary or any ERISA Affiliate has incurred
any material liability to or on account of a Plan pursuant to Section 409, 502(i), 502(1), 515,
4062, 4063, 4064, 4069, 4201 or 4204 of ERISA or Section 4971 or 4975 of the Code; no proceedings
have been instituted to terminate any Plan; no condition exists which presents a material risk to
the Borrower or any Subsidiary of incurring a liability to or on account of a Plan pursuant to the
foregoing provisions of ERISA and the Code. With respect to Plans that are multi-employer plans
(within the meaning of Section 3(37) of ERISA) and Plans which are not currently maintained or
contributed to by the Borrower, any Subsidiary or any ERISA Affiliate, the representations and
warranties in this Section are made to the best knowledge of the Borrower.

          6.12 Subsidiaries. Part A of Annex V hereto lists each Material Subsidiary of the
Borrower (and the direct and indirect ownership interest of the Borrower therein), in each

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case existing on the Fourth Restatement Effective Date. All ownership percentages referred to in Part A
of Annex V are calculated without regard to directors’ or nominees’ qualifying shares.

          6.13 Patents, etc. The Borrower and each of its Subsidiaries have obtained all
material patents, trademarks, servicemarks, trade names, copyrights, licenses and other rights,
free from burdensome restrictions, that are necessary for the operation of their respective
businesses as presently conducted and as proposed to be conducted.

          6.14 Pollution and Other Regulations. The Borrower and each of its Subsidiaries are
in material compliance with all material laws and regulations relating to pollution and
environmental control, equal employment opportunity and employee safety in all domestic
jurisdictions in which the Borrower and each of its Subsidiaries is presently doing business, and
the Borrower will comply, and cause each of its
Subsidiaries to comply, with all such laws and regulations which may be imposed in the future
in jurisdictions in which the Borrower or such Subsidiary may then be doing business other than, in
each case, those the non-compliance with which would not reasonably be expected to have a Material
Adverse Effect.

          6.15 Properties. The Borrower and each of its Subsidiaries have good title to all
properties that are necessary for the operation of their respective businesses as presently
conducted and as proposed to be conducted, free and clear of all Liens, other than as permitted by
this Agreement. All Real Property owned by the Borrower or any of its Subsidiaries, and all
material leaseholds leased by the Borrower or any of its Subsidiaries, in each case as of the
Fourth Restatement Effective Date and after giving effect to the Transaction, and the nature of the
interests therein, are correctly set forth in Annex VIII.

          SECTION 7. Affirmative Covenants. The Borrower hereby covenants and agrees that on
the Fourth Restatement Effective Date and thereafter, for so long as this Agreement is in effect
and until the Commitments and each Letter of Credit have terminated and the Loans and Unpaid
Drawings, together with interest, Fees and all other Obligations incurred hereunder, are paid in
full:

          7.01 Information Covenants. The Borrower will furnish to the Administrative Agent
(for further delivery to each Lender):

     (a) Annual Financial Statements. Within 100 days after the close of each
fiscal year of the Borrower, to the extent prepared to comply with SEC requirements, a copy
of the SEC Form 10-Ks filed by the Borrower with the SEC for such fiscal year, or, if no
such Form 10-K was so filed by the Borrower for such fiscal year, the consolidated balance
sheet of the Borrower and its Subsidiaries, as at the end of such fiscal year and the
related consolidated statements of income and of cash flows for such fiscal year, setting
forth comparative consolidated figures as of the end of and for the preceding fiscal year,
and examined by independent certified public accountants of recognized national standing
whose opinion shall not be qualified as to the scope of audit or as to the status of the
Borrower or any of its Subsidiaries as a going concern, together in any event with a
certificate of such accounting firm stating that in the course of its regular audit of the
business of the Borrower, which audit was conducted in accordance with generally accepted
auditing standards, such accounting firm has obtained no knowledge of any

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Default or Event
of Default which has occurred and is continuing or, if in the opinion of such accounting
firm such a Default or Event of Default has occurred and is continuing, a statement as to
the nature thereof.

     (b) Quarterly Financial Statements. As soon as available and in any event
within 55 days after the close of each of the first three quarterly accounting periods in
each fiscal year of the Borrower to the extent prepared to comply with SEC requirements, a
copy of the SEC Form 10-Qs filed by the Borrower with the SEC for each such
quarterly period, or, if no such Form 10-Q was so filed by the Borrower with respect to
any such quarterly period, the consolidated condensed balance sheet of the Borrower and its
Subsidiaries as at the end of such quarterly period and the related consolidated condensed
statements of income for such quarterly period and for the elapsed portion of the fiscal
year ended with the last day of such quarterly period, and the related consolidated
condensed statement of cash flows for the elapsed portion of the fiscal year ended with the
last day of such quarterly period, and in each case setting forth comparative consolidated
figures for the related periods in the prior fiscal year or, in the case of such
consolidated condensed balance sheet, for the last day of the prior fiscal year, all of
which shall be certified by an Authorized Officer of the Borrower, subject to changes
resulting from audit and normal year-end adjustments.

     (c) Officer’s Certificates. At the time of the delivery of the financial
statements provided for in Sections 7.01(a) and (b), a certificate of an Authorized Officer
of the Borrower to the effect that no Default or Event of Default exists or, if any Default
or Event of Default does exist, specifying the nature and extent thereof, which certificate
shall set forth the calculations required to establish whether the Borrower and its
Subsidiaries were in compliance with the provisions of (x) Sections 8.07, 8.08 and 8.13 as
at the end of such fiscal period or year, as the case may be, and (y) if furnished in
connection with the delivery of the financial statements provided for in Section 7.01(a),
Sections 8.02(d), 8.02(k), 8.03(j), 8.03(v), 8.04(d), 8.04(e), 8.04(k), 8.04(l), 8.04(m),
8.04(o), 8.05(c), 8.05(d), 8.09(b), 8.09(e), 8.09(i), 8.09(j), 8.09(l) and 8.09(n) as at the
end of such fiscal year.

     (d) Notice of Default or Litigation. Promptly, and in any event within three
Business Days after any senior financial or legal officer of the Borrower obtains knowledge
thereof, notice of (x) the occurrence of any event which constitutes a Default or Event of
Default, which notice shall specify the nature thereof, the period of existence thereof and
what action the Borrower and/or the relevant Subsidiary proposes to take with respect
thereto and (y) any litigation or governmental proceeding pending against or affecting the
Borrower or any of its Subsidiaries which has had, or could reasonably be expected to have,
a material adverse effect on the business, properties, assets, financial condition or
prospects of the Borrower and its Subsidiaries taken as a whole, the rights and remedies of
the Agents and the Lenders or the ability of any Credit Party to perform its obligations
hereunder or under any other Credit Document to which it is a party.

     (e) Credit Rating Changes. Promptly after any senior financial or legal
officer of the Borrower obtains knowledge thereof, notice of any change in the Applicable

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Facilities Credit Rating or the Applicable Corporate Credit Rating assigned by either Rating
Agency.

     (f) Other Information. Promptly upon transmission thereof, copies of any
filings and registrations with, and reports to, the Securities and Exchange Commission or
any successor thereto (the “SEC”) by the Borrower or any of its Subsidiaries (other
than amendments to any registration statement (to the extent such registration statement, in
the form it becomes effective, is delivered to the Administrative Agent), exhibits to any
registration statement, any registration statements on Form S-8 and Forms 3, 4 and 5 and
any annual report on Form 11-K) and copies of all financial statements, proxy
statements, notices and reports that the Borrower or any of its Subsidiaries shall send to
analysts or the holders of any publicly issued debt of the Borrower and/or any of its
Subsidiaries in their capacity as such holders (in each case, to the extent not theretofore
delivered to the Administrative Agent pursuant to this Agreement) and, with reasonable
promptness, such other information or documents (financial or otherwise) as any Agent on its
own behalf or on behalf of the Required Lenders may reasonably request from time to time.

          7.02 Books, Records and Inspections. The Borrower will, and will cause each of its
Subsidiaries to, permit, upon reasonable notice to an Authorized Officer of the Borrower, officers
and designated representatives of any Lead Agent or the Required Lenders to visit and inspect any
of the properties or assets of the Borrower and any of its Subsidiaries in whomsoever’s possession,
and to examine the books of account of the Borrower and any of its Subsidiaries and discuss the
affairs, finances and accounts of the Borrower and of any of its Subsidiaries with, and be advised
as to the same by, its and their officers and independent accountants, all at such reasonable times
and intervals and to such reasonable extent as any Lead Agent or the Required Lenders may desire;
provided that, the Borrower and its Subsidiaries shall only be required to use their
commercially reasonably efforts to permit access to their respective assets not in the possession
of the Borrower or any Subsidiary; and provided further that, unless a Default or
Event of Default is in existence at the time of a given request for inspection or visit pursuant to
this Section 7.02 (in which case this proviso shall not be applicable to such inspection or visit),
the Borrower shall only be responsible for fees, costs and expenses relating to only one such visit
and inspection in each fiscal year of the Borrower.

          7.03 Insurance. The Borrower will, and will cause each of its Subsidiaries to, at all
times maintain in full force and effect insurance in such amounts, covering such risks and
liabilities and with such deductibles or self-insured retentions as are in accordance with normal
industry practice.

          7.04 Payment of Taxes. The Borrower will pay and discharge, and will cause each of
its Subsidiaries to pay and discharge, all Federal, state and other material taxes, assessments and
governmental charges or levies imposed upon it or upon its income or profits, or upon any
properties belonging to it, in each case on a timely basis, and all material lawful claims which,
if unpaid, might become a Lien or charge upon any properties of the Borrower or any of its
Subsidiaries; provided that neither the Borrower nor any of its Subsidiaries shall be
required to pay any such tax, assessment, charge, levy or claim which is being contested in good
faith and by proper proceedings if it has maintained adequate reserves (in the good faith judgment
of the management of the Borrower) with respect thereto in accordance with GAAP.

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          7.05 Consolidated Corporate Franchises. The Borrower will do, and will cause each Subsidiary Guarantor and each of its Material
Subsidiaries to do, or cause to be done, all things necessary to preserve and keep in full force
and effect its existence, rights and authority; provided that any transaction permitted by
Section 8.02 will not constitute a breach of this Section 7.05.

          7.06 Compliance with Statutes, etc. The Borrower will, and will cause each Subsidiary
to, comply with all applicable statutes, regulations and orders of, and all applicable restrictions
imposed by, all Governmental Authorities in respect of the conduct of its business and the
ownership of its property (including applicable statutes, regulations, orders and restrictions
relating to environmental standards and controls) other than those the non-compliance with which
would not reasonably be expected to have a Material Adverse Effect.

          7.07 ERISA. As soon as possible and, in any event, within 10 days after the Borrower
or any Subsidiary knows or has reason to know of the occurrence of any of the following, the
Borrower will deliver to the Administrative Agent a certificate of an Authorized Officer of the
Borrower setting forth details as to such occurrence and the action, if any, which the Borrower,
such Subsidiary or an ERISA Affiliate is required or proposes to take, together with any notices
required or proposed to be given to or filed with or by the Borrower, such Subsidiary, such ERISA
Affiliate, the PBGC, a Plan participant (other than notices relating to an individual participant’s
benefits) or the Plan administrator with respect thereto: that a Reportable Event has occurred
(except to the extent that the Borrower has previously delivered to the Administrative Agent a
certificate and notices (if any) concerning such event pursuant to the next clause hereof), that a
contributing sponsor (as defined in Section 4001(a)(13) of ERISA) of a Plan subject to Title IV of
ERISA is subject to the advance reporting requirement of PBGC Regulation Section 4043.61 (without
regard to subparagraph (b)(1) thereof), that an accumulated funding deficiency has been incurred or
an application may be or has been made to the Secretary of the Treasury for a waiver or
modification of the minimum funding standard (including any required installment payments) or an
extension of any amortization period under Section 412 of the Code with respect to a Plan, that a
Plan which has an Unfunded Current Liability has been or may be terminated, reorganized,
partitioned or declared insolvent under Title IV of ERISA, that a Plan has an Unfunded Current
Liability giving rise to a lien under ERISA or the Code, that proceedings may be or have been
instituted to terminate a Plan which has an Unfunded Current Liability, that a proceeding has been
instituted pursuant to Section 515 of ERISA to collect a delinquent contribution to a Plan, or that
the Borrower, any Subsidiary or any ERISA Affiliate will or may incur any liability (including any
contingent or secondary liability) to or on account of the termination of or withdrawal from a Plan
under Section 4062, 4063, 4064, 4069, 4201 or 4204 of ERISA or with respect to a Plan under Section
4971 or 4975 of the Code or Section 409 or 502(i) or 502(l) of ERISA. Upon request of the
Administrative Agent or the Required Lenders, the Borrower will deliver to the Administrative Agent
a complete copy of the annual report (Form 5500) of each Plan required to be filed with the
Internal Revenue Service. In addition to any certificates or notices delivered to the
Administrative Agent pursuant to the first sentence hereof, copies of any notices received by the
Borrower or any Subsidiary shall be delivered to the Administrative Agent no later than 10 days
after the later of the date such notice has been filed
with the Internal Revenue Service or the PBGC, given to Plan participants (other than notices
relating to an individual participant’s benefits) or received by the Borrower or such Subsidiary.

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          7.08 Good Repair. The Borrower will, and will cause each of its Subsidiaries to,
ensure that its properties and equipment used or useful in its business in whomsoever’s possession
they may be, are kept in good repair, working order and condition, normal wear and tear excepted
and subject to the occurrence of casualty events, and that from time to time there are made in such
properties and equipment all needful and proper repairs, renewals, replacements, extensions,
additions, betterments and improvements thereto, to the extent and in the manner customary for
companies in similar businesses.

          7.09 End of Fiscal Years; Fiscal Quarters. The Borrower will, for financial reporting
purposes, cause (i) each of its fiscal years to end on December 31 of each year, (ii) each of its
fiscal quarters to end on March 31, June 30, September 30 and December 31 of each year and (iii)
each of the Subsidiaries to maintain the accounting periods maintained by such Subsidiary on the
Fourth Restatement Effective Date, consistent with the past practice and procedures of each such
Subsidiary; provided that any of the foregoing fiscal or reporting periods may be changed
if (x) the Borrower gives the Administrative Agent 30 days’ prior written notice of such proposed
change and (y) prior to effecting such change, the Borrower and the Lead Agents shall have agreed
upon adjustments, if any, to Sections 8.05, 8.07, 8.08 and 8.13 (and the definitions used therein)
the sole purpose of which shall be to give effect to the proposed change in fiscal or accounting
periods (it being understood and agreed that to the extent that the Borrower and the Lead Agents
cannot agree on appropriate adjustments to such Sections (or that no adjustments are necessary),
the proposed change may not be effected).

          7.10 Subsidiary Guaranty; Collateral. (a) No later than 15 days after the date on
which a Guaranty Event occurs after the Fourth Restatement Effective Date, each Material Subsidiary
not then a Subsidiary Guarantor shall (i) authorize the execution of, and execute and deliver to
the Administrative Agent on behalf of the Lenders, a Subsidiary Guaranty and (ii) cause to be
delivered such opinions of counsel as are reasonably requested by, and are reasonably satisfactory
to, the Lead Agents in respect of such Subsidiary Guaranty.

          (b) No later than 15 days after the date on which a Trigger Event occurs after the Fourth
Restatement Effective Date, each Credit Party (including each Subsidiary which is required to
become a Subsidiary Guarantor pursuant to Section 7.10(a)) shall (i) authorize, execute and deliver
to the Collateral Agent on behalf of the Secured Creditors pledge agreements, security agreements
and/or mortgages substantially in the form of the respective Security Documents entered into on the
Fourth Restatement Effective Date (with such modifications thereto as may be reasonably required by
the Lead Agents), which agreements and mortgages shall be effective to create in favor of the
Collateral Agent on behalf of the Secured Creditors a pledge of and/or a lien on substantially all
of its assets (other than Excluded Collateral and
subject to such other exceptions as are reasonably satisfactory to the Lead Agents) with such
priority as is provided for in the representations contained in the respective Security Documents,
(ii) deliver in pledge thereunder all securities, notes, instruments and transfer powers required
to be delivered by the terms of the respective Security Documents, (iii) execute and cause to be
filed such financing statements and mortgages as are required to perfect the pledges and Liens
created under the Security Documents and to obtain the priority of such perfection required by the
respective Security Documents and (iv) cause to be delivered such opinions of counsel as are
reasonably requested by, and as are reasonably satisfactory to, the Lead Agents with respect to the
Security Documents and the pledges and Liens created thereunder.

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          (c) At any time (i) a Guaranty Event has occurred and is continuing and (ii) a Material
Subsidiary Threshold Event occurs, then on or prior to the 45th day following the date
of the occurrence of such Material Subsidiary Threshold Event, the Borrower shall cause one or more
Subsidiaries not then a Subsidiary Guarantor to take the actions described in Section 7.10(a) such
that, after giving effect to such actions, such Material Subsidiary Threshold Event shall cease to
exist. At any time (i) a Trigger Event has occurred and is continuing and (ii) a Material
Subsidiary Threshold Event occurs, then on or prior to the 45th day following the date
of the occurrence of such Material Subsidiary Threshold Event, the Borrower shall cause one or more
Subsidiaries not then a party to Security Documents to take the actions described in Section
7.10(b) such that, after giving effect to such actions, such Material Subsidiary Threshold Event
shall cease to exist.

          (d) At any time a Trigger Event has occurred and is continuing, the Borrower will, and will
cause each of the other Credit Parties that are Subsidiaries of the Borrower to, grant to the
Collateral Agent for the benefit of the Secured Creditors security interests and mortgages in such
assets and properties of the Borrower and such other Credit Parties as are not covered by the
original Security Documents (excluding Excluded Collateral) and as may be reasonably requested from
time to time by the Collateral Agent or the Required Lenders (collectively, the “Additional
Security Documents”). All such security interests and mortgages shall be granted pursuant to
documentation reasonably satisfactory in form and substance to the Collateral Agent and shall
constitute valid and enforceable perfected security interests and mortgages superior to and prior
to the rights of all third Persons and subject to no other Liens except for Permitted Liens. The
Additional Security Documents or instruments related thereto shall have been duly recorded or filed
in such manner and in such places as are required by law to establish, perfect, preserve and
protect the Liens in favor of the Collateral Agent required to be granted pursuant to the
Additional Security Documents and all taxes, fees and other charges payable in connection therewith
shall have been paid in full.

          (e) At any time a Trigger Event has occurred and is continuing, the Borrower will, and will
cause each of the other Credit Parties to, at the expense of the Borrower, make, execute, endorse,
acknowledge, file and/or deliver to the Collateral Agent from time to time such vouchers, invoices,
schedules, confirmatory assignments, conveyances, financing statements, transfer endorsements,
powers of attorney, certificates, real property surveys, reports, landlord waivers, bailee
agreements, control agreements and other assurances or instruments and take such further steps
relating to the Collateral covered by any of the Security Documents as the Collateral Agent may
reasonably require. Furthermore, the Borrower will, and will cause the other Credit Parties to,
deliver to the Collateral Agent such opinions of counsel, title insurance
and other related documents as may be reasonably requested by the Collateral Agent to assure
itself that this Section 7.10 has been complied with.

          (f) If the Administrative Agent or the Required Lenders reasonably determine that they are
required by law or regulation to have appraisals prepared in respect of any Real Property of the
Borrower and its Subsidiaries constituting Collateral, the Borrower will, at its own expense,
provide to the Administrative Agent appraisals which satisfy the applicable requirements of the
Real Estate Appraisal Reform Amendments of the Financial Institution Reform, Recovery and
Enforcement Act of 1989, as amended, and which shall otherwise be in form and substance reasonably
satisfactory to the Administrative Agent.

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          (g) The Borrower agrees that each action required by clauses (d) through (f) of this Section
7.10 shall be completed as soon as possible, but in no event later than 60 days after such action
is requested to be taken by the Administrative Agent, the Collateral Agent or the Required Lenders,
as the case may be; provided that in no event will the Borrower or any of its Subsidiaries
be required to take any action, other than using its commercially reasonable efforts, to obtain
consents from third parties with respect to its compliance with this Section 7.10.

          (h) Promptly (and in any event within five business days) after repayment or defeasance in
full of the Macon-Bibb Industrial Authority Taxable Industrial Development Revenue Bonds (Brown &
Williamson Tobacco Corporation Project), Series 1993A in the original aggregate principal amount of
$25,000,000, the Borrower shall give notice of the same to the Administrative Agent and, if
requested by the Collateral Agent at such time, take such actions with respect to such Real
Property as may be required pursuant to Section 7.10(d), (e), (f) and (g), unless the Borrower has
theretofore disposed of such Real Property in accordance with the terms hereof.

          (i) Notwithstanding anything to the contrary in this Section 7.10, all Collateral shall be
released in accordance with the release provisions of the Security Documents (subject to
reinstatement upon the occurrence of a new Trigger Event) if at any time subsequent to the Fourth
Restatement Effective Date or any reinstatement of the requirements of Section 7.10(b) after the
Fourth Restatement Effective Date as a result of the occurrence of a new Trigger Event, both (i)
all outstanding Term Loans shall have been repaid in full and (ii) the Applicable Corporate Credit
Rating issued by each Rating Agency shall, after giving effect to such release and subject to the
completion of such release, if applicable, each be the Minimum Investment Grade Rating or higher
(with at least a stable outlook).

          7.11 Margin Stock. The Borrower will take all actions so that at all times the Fair
Market Value of all Margin Stock owned by the Borrower and its Subsidiaries shall not exceed
$50,000,000 (for such purposes, determined without regard to the Fair Market Value of the shares of
the Excluded Joint Ventures held by the Borrower and its Subsidiaries, to the extent same shall at
any time constitute Margin Stock). So long as the covenant contained in the immediately preceding
sentence is complied with, all Margin Stock at any time owned by the Borrower and its Subsidiaries
will not constitute Collateral and no security interest shall be granted therein pursuant to any
Credit Document. Without excusing any violation of the first sentence of this
Section 7.11, if at any time the Fair Market Value of all Margin Stock owned by the Borrower
and its Subsidiaries exceeds the amount permitted pursuant to the first sentence of this Section
7.11, then (x) all Margin Stock owned by the Credit Parties shall be pledged, and delivered for
pledge, pursuant to the Pledge Agreement and (y) the Borrower will execute and deliver to the
Lenders appropriate completed forms (including, without limitation, Forms G-3 and U-1, as
appropriate) establishing compliance with Regulations T, U and X of the Board of Governors of the
Federal Reserve System. If at any time any Margin Stock is required to be pledged as a result of
the provisions of the immediately preceding sentence, repayments of outstanding Obligations shall
be required, and subsequent Credit Events shall be permitted, only in compliance with the
applicable provisions of Regulations T, U and X of the Board of Governors of the Federal Reserve
System.

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          7.12 Ownership Structure. The Borrower shall cause (i) the Equity Interests of each
Subsidiary Guarantor at all times to be owned directly by the Borrower or another Subsidiary
Guarantor, (ii) the Equity Interests of Reynolds Tobacco at all times to be directly owned by RJRTH
and (iii) the Conwood Subsidiaries, Santa Fe and Lane to be Subsidiaries of the Borrower but not
Subsidiaries of RJRTH; provided that the preceding clause (i) shall not prohibit the sale
of any such Subsidiary to a Person that is not a Subsidiary pursuant to a transaction permitted by
Section 8.02.

          7.13 Tax Sharing Agreement. The Borrower shall cause each new direct Subsidiary
formed or acquired after the Fourth Restatement Effective Date (other than an Insignificant
Subsidiary) to execute a counterpart to the Tax Sharing Agreement (or a joinder agreement therefor
in form and substance reasonably satisfactory to the Administrative Agent) within 5 days following
such formation or acquisition.

          7.14 Post Closing Liquidation. Within one Business Day following the Fourth
Restatement Effective Date, (i) NA Holdings shall have liquidated all of its assets (including all
of the Equity Interests of the Conwood Subsidiaries) into Conwood Holdings and (ii) immediately
after such liquidation, dissolved.

          SECTION 8. Negative Covenants. The Borrower hereby covenants and agrees that on the
Fourth Restatement Effective Date and thereafter, for so long as this Agreement is in effect and
until the Commitments and each Letter of Credit have terminated and the Loans and Unpaid Drawings,
together with interest, Fees and all other Obligations incurred hereunder, are paid in full:

          8.01 Changes in Business. Except as otherwise permitted by Section 8.02, the Borrower
and its Subsidiaries, taken as a whole, will not substantively alter the character of their
business from
that conducted by the Borrower and its Subsidiaries taken as a whole on the Fourth Restatement
Execution Date.

          8.02 Consolidation, Merger, Sale of Assets, etc. The Borrower will not, and will not
permit any of its Subsidiaries to, wind up, liquidate or dissolve its affairs or enter into any
transaction of merger or consolidation, or convey, sell, lease (as lessor) or otherwise dispose of
all or any part of its property or assets (other than sales of inventory to customers in the
ordinary course of business) or agree to do any of the foregoing at any future time, except that:

     (a) any Subsidiary of the Borrower may from time to time sell or otherwise dispose of
inventory, equipment, raw materials and other assets (other than Equity Interests) to
another Subsidiary of the Borrower in the ordinary course of business, so long as (x) cash
in an amount equal to at least the Fair Market Value of the assets so transferred is
received by the respective transferor or (y) no Default or Event of Default then exists or
would result therefrom, intercompany indebtedness owing by the respective transferor to the
respective transferee in an amount equal to at least the Fair Market Value of the assets so
transferred is forgiven by such transferee;

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     (b) each Subsidiary of the Borrower may sell or otherwise transfer obsolete,
uneconomic or worn-out equipment, materials or other assets in the ordinary course of
business;

     (c) Permitted Acquisitions may be consummated in accordance with the requirements of
Section 8.09(l);

     (d) any Subsidiary of the Borrower may transfer or otherwise dispose of any of its
respective assets (including cash, fixed assets and intellectual property but excluding
Equity Interests of a Subsidiary Guarantor owned or held by such Person) to any of their
respective Subsidiaries not otherwise permitted by this Section 8.02, so long as (i) no
Default or Event of Default is then in existence or would result therefrom and (ii) the
aggregate amount of all such transfers and dispositions made pursuant to this clause (d) on
and after the Fourth Restatement Effective Date (taking the Fair Market Value of any
non-cash assets so transferred or disposed of) shall not exceed, when aggregated with (I)
the aggregate amount of all Investments made by Subsidiaries of the Borrower in reliance on
Section 8.09(n) (taking the Fair Market Value of any non-cash assets so invested and
determined without regard to any write-downs or write-offs thereof and net of any returns of
capital), (II) the aggregate amount of contributions, capitalizations and forgiveness
theretofore made by Credit Parties pursuant to Section 8.09(j) to (or in respect of)
Wholly-Owned Subsidiaries that are not Credit Parties and (III) the aggregate outstanding
principal amount of all Intercompany Loans made pursuant to Section 8.09(i) by Credit
Parties to Wholly-Owned Subsidiaries that are not Credit Parties (determined without regard
to any write-downs or write-offs thereof), $300,000,000;

     (e) each Subsidiary of the Borrower may sell or discount, in each case without
recourse and in the ordinary course of business, accounts receivable arising in the
ordinary course of business, but only in connection with the compromise or collection
thereof and not as part of any financing transaction;

     (f) each Subsidiary of the Borrower may grant licenses, sublicenses, leases or
subleases to other Persons not materially interfering with the conduct of the business of
any Subsidiary of the Borrower or any other, in each case so long as no such grant otherwise
affects any security interest of the Collateral Agent in the asset or property subject
thereto;

     (g) any Subsidiary of the Borrower may merge with and into, or be dissolved or
liquidated into, or transfer assets to, any Subsidiary Guarantor, so long as (x) in the case
of any merger, dissolution or liquidation, a Subsidiary Guarantor is the surviving Company
of any such merger, dissolution or liquidation, and (y) if a Trigger Event has occurred and
is continuing, any security interests granted to the Collateral Agent for the benefit of the
Secured Creditors pursuant to the Security Documents in the assets of such surviving
Subsidiary Guarantor or so transferred are in full force and effect and perfected and
enforceable (to at least the same extent as in effect immediately prior to such merger,
dissolution, liquidation or transfer) and all actions (if any) then required to maintain
said perfected status have been taken;

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     (h) any Domestic Subsidiary of the Borrower that is not a Credit Party may merge with
and into, or be dissolved or liquidated into, or transfer assets to, any other Wholly-Owned
Domestic Subsidiary of the Borrower that is not a Credit Party, so long as (x) in the case
of any merger, dissolution or liquidation, such Wholly-Owned Domestic Subsidiary is the
surviving Company of any such merger, dissolution or liquidation, and (y) if a Guaranty
Event has occurred and is continuing and either (I) the Person that is the survivor of any
such merger, dissolution or liquidation is (after giving effect thereto) a Material
Subsidiary or (II) the Person that is the transferee of such assets is a Material Subsidiary
after giving effect thereto, such new Material Subsidiary shall have executed (A) a
counterpart of the Subsidiary Guaranty and (B) if a Trigger Event has occurred and is
continuing at such time, such Security Documents as the Lead Agents shall reasonably
request, with, in the case of this clause (B), such actions having been taken to perfect the
pledge of, and Liens on, the stock and substantially all of the assets of such new
Subsidiary as would have been taken if such new Subsidiary had been a Subsidiary Guarantor
on the Fourth Restatement Effective Date, all to the reasonable satisfaction of the Lead
Agents;

     (i) the Borrower may consumate the Acquisition in accordance with the requirements of
Section 5.01F;

     (j) any Foreign Subsidiary of the Borrower may merge with and into, or be dissolved or
liquidated into, or transfer any of its assets to, any Wholly-Owned Foreign Subsidiary of
the Borrower, so long as (i) in the case of any such merger, dissolution or liquidation, a
Wholly-Owned Foreign Subsidiary of the Borrower is the survivor of such merger, dissolution
or liquidation, and (ii) any security interests granted to the Collateral Agent for the
benefit of the Secured Creditors pursuant to the Security Documents in the Equity Interests
of such Wholly-Owned Foreign Subsidiary shall remain in full force and
effect and perfected (to at least the same extent as in effect immediately prior to
such merger, dissolution or liquidation);

     (k) any Subsidiary of the Borrower may sell assets (other than the Equity Interests of
any Wholly-Owned Subsidiary, unless all of the Equity Interests of such Wholly-Owned
Subsidiary are sold in accordance with this clause (k)) to a Person other than a Subsidiary,
so long as (x) no Default or Event of Default then exists or would result therefrom, (y)
each such sale is in an arm’s-length transaction and the respective Subsidiary receives at
least Fair Market Value, and (z) the aggregate amount of the proceeds received from all
assets sold pursuant to this clause (k) after the Fourth Restatement Effective Date shall
not exceed $500,000,000; and;

     (l) any Subsidiary of the Borrower may dispose of (by means of donation) any of the
designated properties listed on Annex XI hereto owned by it to any other Person, so long as
no Default or Event of Default then exists or would result therefrom; and

     (m) the Borrower and its Subsidiaries may sell, liquidate and/or dispose of Marketable
Investments in the ordinary course of business.

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          To the extent the Required Lenders waive the provisions of this Section 8.02 with respect to
the sale of any Collateral, or any Collateral is sold as permitted by this Section 8.02 (other than
to the Borrower or a Subsidiary thereof), such Collateral shall be sold free and clear of the Liens
created by the Security Documents, and the Administrative Agent and the Collateral Agent shall be
authorized to take any actions deemed appropriate in order to effect the foregoing.

          8.03 Liens . The Borrower will not, and will not permit any of its Subsidiaries to,
create, incur, assume or suffer to exist any Lien upon or with respect to any property or assets of
any kind (whether real or personal, tangible or intangible) of the Borrower or any of its
Subsidiaries, whether now owned or hereafter acquired, or sell any such property or assets subject
to an understanding or agreement, contingent or otherwise, to repurchase such property or assets
(including sales of accounts receivable with recourse to the Borrower or any of its Subsidiaries),
or assign any right to receive income; provided that the provisions of this Section 8.03
shall not prevent the creation, incurrence, assumption or existence of the following (Liens
described below are herein referred to as “Permitted Liens”):

     (a) Liens encumbering customary initial deposits and margin deposits, and other Liens
incurred in the ordinary course of business and which are within the general parameters
customary in the industry, securing obligations under Commodities Agreements;

     (b) Liens securing Indebtedness permitted by Section 8.04(c), provided that (x)
such Liens are granted in the ordinary course of business and (y) in the case of Liens
securing indebtedness described in sub-clause (x) of Section 8.04(c), such Liens shall
attach only to documents or other property relating to such letters of credit and the
products and proceeds thereof;

     (c) Liens arising pursuant to purchase money mortgages or security agreements securing
Indebtedness of any Subsidiary of the Borrower representing the purchase price (or financing
of the purchase price within 180 days after the respective purchase) of assets acquired,
provided that (i) any such Liens attach only to the assets so purchased, (ii) the
Indebtedness secured by any such Lien is not less than 70% of the purchase price of the
property being purchased, and (iii) the Indebtedness secured thereby is permitted pursuant
to Section 8.04(d);

     (d) Liens on specific tangible assets at the time acquired by any Subsidiary of the
Borrower (including pursuant to a Permitted Acquisition) or on the property or assets of a
Person at the time such Person first becomes a Subsidiary of the Borrower, provided
that (i) any such Liens were not created at the time of or in contemplation of the
acquisition of such assets or Person by the respective Subsidiary, (ii) in the case of any
such acquisition of a Person, any such Lien attaches only to a specific tangible asset of
such Person and not assets of such Person generally, (iii) the Indebtedness secured by any
such Lien does not exceed 100% of the Fair Market Value of the asset to which such Lien
attaches, determined at the time of the acquisition of such asset or at the time such Person
first becomes a Subsidiary, as the case may be, and (iv) the Indebtedness that is secured by
such Liens is permitted to exist under Section 8.04(e);

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     (e) Liens created pursuant to the Security Documents, including Liens created pursuant
thereto for the benefit of the holders of New Senior Notes, Existing Senior Notes and
Refinancing Senior Notes;

     (f) Liens resulting from the Borrower or Reynolds Tobacco cash collateralizing
Litigation Bonds or judgments not constituting an Event of Default under Section 9.08, or
providing cash collateral directly to courts to satisfy such courts’ requirements for a stay
to appeal verdicts, orders and/or judgments, provided that Permanent Surplus Cash
shall be applied for such purposes before proceeds of Loans are used for such purpose;

     (g) Existing Liens (and any extensions or renewals of such Liens (to the extent
included in the definition of Existing Liens), to the extent such Liens do not attach to any
additional properties and the Indebtedness secured thereby is not increased);

     (h) Liens securing the performance of bids, tenders, leases and contracts in the
ordinary course of business, surety bonds, performance bonds and other obligations of a like
nature incurred in the ordinary course of business and consistent with past practices
(exclusive of obligations in respect of the payment for borrowed money and Litigation
Bonds);

     (i) Liens encumbering the Borrower Common Stock repurchased in accordance with the
requirements of Section 8.05(c) or (d), to the extent that such Liens (x) are created for
the sole purpose of securing obligations of the Borrower to the agent brokering any such
repurchase incurred in connection with such repurchase and (y) terminate upon the payment of
such obligations;

     (j) Liens encumbering cash deposits securing obligations under Permitted Interest Rate
Agreements and Permitted Currency Agreements, so long as the aggregate amount of the cash
pledged to secure such obligations pursuant to this clause (j) does not exceed $500,000,000;

     (k) Liens in respect of property or assets of the Borrower or any of its Subsidiaries
imposed by law which were incurred in the ordinary course of business and which have not
arisen to secure Indebtedness for borrowed money, such as carriers’, materialmen’s,
warehousemen’s and mechanics’ Liens, statutory and common law landlord’s Liens, and other
similar Liens arising in the ordinary course of business, and which either (x) do not in the
aggregate materially detract from the value of the Borrower’s or such Subsidiary’s property
or assets or materially impair the use thereof in the operation of the business of the
Borrower or such Subsidiary or (y) are being contested in good faith by appropriate
proceedings, which proceedings have the effect of preventing the forfeiture or sale of the
property or asset subject to such Lien;

     (l) Liens arising from or related to precautionary UCC financing statements regarding
operating leases entered into by any Subsidiary of the Borrower in the ordinary course of
business;

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     (m) easements, rights-of-way, restrictions, encroachments and other similar charges or
encumbrances, and minor title deficiencies, in each case not securing Indebtedness and not
materially interfering with the conduct of the business of the Borrower or any of its
Subsidiaries;

     (n) Permitted Encumbrances;

     (o) inchoate Liens for taxes, assessments or governmental charges or levies not yet due
or Liens for taxes, assessments or governmental charges or levies being contested in good
faith and by appropriate proceedings for which adequate reserves have been established in
accordance with generally accepted accounting principles;

     (p) licenses, sublicenses, leases or subleases granted by the Borrower or any of its
Subsidiaries to other Persons not materially interfering with the conduct of the business of
the Borrower or any of its Subsidiaries;

     (q) any interest or title of a lessor, sublessor or licensor under any lease or license
agreement permitted by this Agreement to which the Borrower or any of its Subsidiaries is a
party;

     (r) statutory and common law landlords’ liens under leases to which the Borrower or any
of its Subsidiaries is a party;

     (s) Liens arising out of any conditional sale, title retention, consignment or other
similar arrangements for the sale of goods entered into by the Borrower or any of its
Subsidiaries in the ordinary course of business to the extent such Liens do not attach to
any assets other than the goods subject to such arrangements;

     (t) Liens (x) incurred in the ordinary course of business in connection with the
purchase or shipping of goods or assets (or the related assets and proceeds thereof), which
Liens are in favor of the seller or shipper of such goods or assets and only attach to such
goods or assets, and (y) in favor of customs and revenue authorities arising as a matter of
law to secure payment of customs duties in connection with the importation of goods;

     (u) bankers’ Liens, rights of setoff and other similar Liens existing solely with
respect to cash and Marketable Investments on deposit in one or more accounts maintained by
the Borrower or any Subsidiary, in each case granted in the ordinary course of business in
favor of the bank or banks with which such accounts are maintained, securing amounts owing
to such bank or banks with respect to cash management and operating account arrangements;
and

     (v) Liens not otherwise permitted by the foregoing clauses (a) through (u) above,
provided that the aggregate amount of Indebtedness and other obligations secured by
Liens permitted by this clause (v) shall not exceed $250,000,000 at any time.

          8.04 Indebtedness. The Borrower will not, and will not permit any of its Subsidiaries
to, contract create, incur, assume or suffer to exist any Indebtedness, except:

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     (a) Indebtedness incurred pursuant to this Agreement and the other Credit Documents;

     (b) Intercompany Loans by and among the Borrower and its Subsidiaries, to the extent
permitted by Section 8.09(i);

     (c) Indebtedness of the Borrower or any of its Subsidiaries with respect to (x) trade
letters of credit incurred in the ordinary course of business (which are to be repaid in
full not more than one year after the date originally incurred) to finance the purchase of
tobacco or other products or goods for use in the day-to-day operations of the Subsidiaries
of the Borrower consistent with such Subsidiaries’ past practices or then current industry
practices and (y) letters of credit incurred in the ordinary course of business in
connection with payments of foreign excise taxes in respect of tobacco sales;

     (d) Indebtedness of the Borrower and its Subsidiaries evidenced by purchase money
Indebtedness described in Section 8.03(c), provided that in no event shall the
aggregate principal amount of all such Indebtedness permitted pursuant to this clause (d)
exceed $200,000,000 at any time outstanding;

     (e) Indebtedness of (x) a Subsidiary of the Borrower assumed in connection with the
acquisition of a specific tangible asset that is secured by such Indebtedness or (y) a
Person at the time such Person first becomes a Subsidiary of the Borrower (including
pursuant to a Permitted Acquisition), provided that (i) such Indebtedness was not
incurred in connection with, or in anticipation or contemplation of, such acquisition, and
(ii) the aggregate outstanding principal amount of all Indebtedness pursuant to this clause
(e) shall not exceed $100,000,000 at any time;

     (f) Indebtedness of Reynolds Tobacco constituting reimbursement obligations in respect
of Litigation Bonds, and of the Subsidiary Guarantors as guarantors of Reynolds Tobacco’s
obligations in respect of Litigation Bonds;

     (g) Existing Debt (and any extensions, renewals or refinancings of such Indebtedness to
the extent not increasing the outstanding principal amount thereof); provided that
any intercompany Indebtedness among the Borrower or any of its Subsidiaries shall be subject
to the requirements applicable to Intercompany Loans as set forth in clauses (iii), (iv) and
(v) of the proviso appearing in Section 8.09(i) as if such intercompany Indebtedness was an
Intercompany Loan and shall be subject to extensions, renewals or refinancings only to the
extent the obligor and obligee of such intercompany Indebtedness are not altered;

     (h) Indebtedness of the Borrower and its Subsidiaries with respect to performance
bonds, surety bonds or customs bonds required in the ordinary course of business (but
excluding any Contingent Obligations in respect of, or reimbursement obligations relating
to, Litigation Bonds);

     (i) (x) Indebtedness of the Borrower and any of its Subsidiaries under, or under any
guaranty of, Permitted Currency Agreements and Permitted Interest Rate

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Agreements and (y)
Indebtedness of the Borrower under guaranties of RJRTH’s obligations in respect of the Stub
Notes;

     (j) Indebtedness of (x) the Borrower in respect of the Initial New Senior Notes and the
Subsidiary Guarantors under their guaranties of the Borrower’s obligations in respect of the
Initial New Senior Notes, (y) RJRTH in respect of the Existing Senior Notes and the
Subsidiary Guarantors that are Subsidiaries of RJRTH under their guaranties of RJRTH’s
obligations in respect of the Existing Senior Notes and (z) the Borrower in respect of
Exchange Senior Notes and the Subsidiary Guarantors under their guaranties of the Borrower’s
obligations in respect of the Exchange Senior Notes; provided that that aggregate
outstanding principal amount of all Indebtedness permitted by this clause (j) shall not
exceed $3,100,000,000 (as reduced by any principal repayments of Initial New Senior Notes,
Existing Senior Notes or Exchange Senior Notes but excluding, for avoidance of doubt, any
reduction of the outstanding principal amount of the Existing Senior Notes as a result of
any exchange thereof for Exchange Senior Notes as contemplated by the definition of
“Exchange Senior Notes”);

     (k) Indebtedness of the Borrower in respect of Additional Senior Notes and the
Subsidiary Guarantors under their guaranties of the Borrower’s obligations in respect of
Additional Senior Notes; provided that (i) the aggregate outstanding principal
amount of all Additional Acquisition Senior Notes, when aggregated with the aggregate
outstanding principal amount of all Refinancing Senior Notes issued to refinance Additional
Acquisition Senior Notes (and any other Refinancing Senior Notes subsequently issued to
refinance the same), shall not exceed $500,000,000 at any time,
and (ii) in the case of any issuance of Additional Non-Acquisition Senior Notes, 100%
of the Net Cash Proceeds therefrom shall be applied to repay Term Loans in accordance with
the requirements of Section 4.02(c);

     (l) Indebtedness of the Borrower in respect of Refinancing Senior Notes and the
Subsidiary Guarantors under their guaranties of the Borrower’s obligations in respect of
Refinancing Senior Notes; provided that (i) the aggregate outstanding principal
amount of all Refinancing Senior Notes issued to refinance Additional Acquisition Senior
Notes (and any other Refinancing Senior Notes subsequently issued to refinance the same),
when aggregated with the aggregate outstanding principal amount of all Additional
Acquisition Senior Notes, shall not exceed $500,000,000 at any time, and (ii) the aggregate
outstanding principal amount of all Refinancing Senior Notes issued to Refinance (within the
meaning of clause (ii) of the definition of “Refinance”) New Senior Notes and other
Refinancing Senior Notes shall be limited as provided in the definition of “Refinancing
Senior Notes”;

     (m) Indebtedness of the Borrower or any of its Subsidiaries in any manner guaranteeing
or intended to guarantee, whether directly or indirectly, any leases, dividends or other
monetary obligations of any Person in which the Borrower or such Subsidiary has an ownership
interest, provided that the aggregate maximum stated or determinable amount (or, if
not stated or determinable, the maximum reasonably anticipated liability in respect of such
Indebtedness as determined in good faith by the

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Borrower or such Subsidiary) of all
Indebtedness permitted pursuant to this clause (m) shall not exceed at any time an amount in
excess of $150,000,000;

     (n) unsecured Contingent Obligations of the Borrower as a guarantor of any contractual
obligations of any Wholly-Owned Subsidiary of the Borrower (which contractual obligations do
not themselves constitute Indebtedness); and

     (o) Indebtedness of the Borrower and its Subsidiaries not otherwise permitted by any of
the foregoing clauses (a) through (n), provided that the aggregate outstanding
principal amount of Indebtedness pursuant to this clause (o) shall not exceed $250,000,000
at any time.

          8.05 Limitation on Dividends. The Borrower will not, and will not permit any of its
Subsidiaries to, declare, pay or otherwise authorize any dividends (other than dividends payable
solely in non-redeemable common stock or comparable common Equity Interests of the Borrower or any
such Subsidiary, as the case may be) or return any equity capital to, its stockholders, partners,
members or other equityholders or declare, authorize or make any other distribution, payment or
delivery of property or cash to its stockholders, partners, members or other equity holders as
such, or redeem, retire, purchase or otherwise acquire, directly or indirectly, for a
consideration, any shares of any class of its capital stock or other Equity Interests, now or
hereafter outstanding (or any warrants for or options or stock appreciation rights in respect of
any of such shares or other Equity Interests), or set aside any funds for any of the foregoing
purposes, and the Borrower will not and will not permit any of its Subsidiaries to purchase or
otherwise acquire for consideration
any shares of any class of the capital stock or other Equity Interests of the Borrower or any
other Subsidiary, as the case may be, now or hereafter outstanding (or any options or warrants or
stock appreciation rights issued by such Person with respect to its capital stock or other Equity
Interests) (all of the foregoing “Dividends”), except that:

     (a) (i) any Subsidiary of the Borrower may pay Dividends to the Borrower or any
Wholly-Owned Subsidiary of the Borrower, and (ii) any non-Wholly-Owned Subsidiary of the
Borrower may pay cash Dividends to its shareholders generally so long as the Borrower or its
respective Subsidiary which owns the Equity Interest in the Subsidiary paying such Dividends
receives at least its proportionate share thereof (based upon its relative holding of the
Equity Interests in the Subsidiary paying such Dividends and taking into account the
relative preferences, if any, of the various classes of Equity Interests of such
Subsidiary);

     (b) the Borrower may issue shares of Borrower Common Stock upon the exercise of any
warrants or options or upon the conversion or redemption of any convertible or redeemable
preferred or preference stock, and in connection with any such exercise, conversion or
redemption, the Borrower may, so long as no Event of Default then exists or would result
therefrom, pay cash in lieu of issuing fractional shares of Borrower Common Stock;

     (c) so long as no Event of Default then exists or would result therefrom, the Borrower
may repurchase Borrower Common Stock (and/or options or warrants in

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respect thereof)
pursuant to, and in accordance with the terms of, management and/or employee stock plans,
provided that the aggregate amount of cash paid in respect of all such repurchases
in any calendar year pursuant to this clause (c) does not exceed $40,000,000;

     (d) so long as no Event of Default then exists or would result therefrom, the Borrower
may declare and pay, or otherwise pay or make, any other Dividend, provided that, at
the time it is, in the case of a Non-Declared Dividend, paid or made and, in the case of any
other Dividend, declared or otherwise authorized, the aggregate amount of such Dividend,
when added to all Non-Declared Dividends theretofore paid or made and any other Dividends
theretofore declared or otherwise authorized (or paid) pursuant to this Section 8.05(d)
after the Fourth Restatement Effective Date shall not exceed an amount equal to the sum of
(x) $625,000,000 plus (y) (if positive) 75% of Cumulative Adjusted Net Income
plus (z) the aggregate cash proceeds (net of underwriting discounts and commissions)
received by the Borrower after the Fourth Restatement Effective Date from issuances of its
common equity securities (provided that the aggregate amount of such aggregate net
cash proceeds received in any twelve-month period shall be deemed not to exceed $250,000,000
for purposes of this Section 8.05(d)), in each case determined at, in the case of a
Non-Declared Dividend, the date paid or made and, in the case of any other Dividend, the
date declared or otherwise authorized, provided that such Dividend (other than a
Dividend that is a Non-Declared Dividend) is paid within 90 days of the making of such
declaration or other authorization, provided, further, that Dividends may
only be paid or made by the Borrower under this Section 8.05(d) if at the time of, in the
case of a Non-Declared Dividend, the date paid or made and, in the case of any other
Dividend, the date declared or otherwise authorized, the excess of (i) the sum of the
Total Unutilized Revolving Loan Commitment and Permanent Surplus Cash, in each case at such
time, over (ii) the sum of the amount of, in the case of a Non-Declared Dividend, the
aggregate amount of such Non-Declared Dividend plus any other Dividends theretofore
declared or otherwise authorized but then unpaid and, in the case of any other Dividend, the
amount thereof so declared or otherwise authorized, shall equal at least $200,000,000;

     (e) the Borrower may issue and exchange shares of any class or series of its common
stock now or hereafter outstanding for shares of any other class or series of its common
stock now or hereafter outstanding; and

     (f) the Borrower may, in connection with any reclassification of its common stock and
any exchange permitted by clause (e) above, pay cash in lieu of issuing fractional shares of
any class or series of its common stock.

          8.06 Transactions with Affiliates . The Borrower will not, and will not permit any
of its Subsidiaries to, enter into any transaction or series of transactions, whether or not in the
ordinary course of business, with any Affiliate (other than any Wholly-Owned Subsidiary of the
Borrower) other than on terms and conditions substantially as favorable to the Borrower or such
Subsidiary as would be obtainable by the Borrower or such Subsidiary at the time in a comparable
arm’s-length transaction with a Person other than an Affiliate; provided that the foregoing
restrictions shall not apply to: (i) customary fees paid to members of the Board of Directors of
the Borrower and of its Subsidiaries; (ii) the Transaction; (iii) Dividends permitted

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to be paid
pursuant to Section 8.05; and (iv) the entering into, and making of payments under, employment
agreements, employee benefits plans, stock option plans, indemnification provisions, severance
arrangements, and other similar compensatory arrangements with officers, employees and directors of
the Borrower and its Subsidiaries in the ordinary course of business.

          8.07 Consolidated Total Leverage Ratio. The Borrower will not permit the Consolidated
Total Leverage Ratio at any time during a period set forth below to be greater than the ratio set
forth opposite such period below:

	 	 	 	 	 
	Period
	 	Ratio	 
	Fourth Restatement Effective Date through and including December
31, 2007
	 	 	3.00:1.00	 
	From January 1, 2008 through the Maturity Date
	 	 	2.50:1.00	 

          8.08 Consolidated Fixed Charge Coverage Ratio. The Borrower will not permit the
Consolidated Fixed Charge Coverage Ratio for any Test Period ending after June 30, 2006 to be less
than 1.00:1.00.

          8.09 Investments. The Borrower will not, and will not permit any of its Subsidiaries
to, directly or indirectly, lend money or credit or make advances to any Person, or purchase or
acquire any stock, obligations or securities of, or any other interest in, or make any capital
contribution to, any other Person, or purchase or acquire (in one transaction or a series of
related transactions) all or substantially all of the property and assets or business of another
Person or assets constituting a business unit, line of business or division of such Person
(including by way of consolidation or merger), or purchase or own a futures contract or otherwise
become liable for the purchase or sale of currency or other commodities at a future date in the
nature of a futures contract, or hold any cash or Marketable Investments (each of the foregoing an
“Investment” and, collectively, “Investments”), except that the following shall be
permitted:

     (a) any Subsidiary of the Borrower may acquire and hold accounts receivables owing to
any of them, if created or acquired in the ordinary course of business and payable or
dischargeable in accordance with customary trade terms of such Subsidiary;

     (b) the Borrower and its Subsidiaries may acquire and hold cash, Marketable Investments
and Investment Equities; provided however that the aggregate amount of cash,
Marketable Investments and Investment Equities permitted to be held by (i) Non-Guarantor
Subsidiaries that are Domestic Subsidiaries shall not exceed $50,000,000 for any period of
five consecutive Business Days and (ii) Non-Guarantor Subsidiaries that are not Domestic
Subsidiaries shall not exceed $150,000,000 for any period of five consecutive Business Days;

     (c) the Borrower and its Subsidiaries may hold the Investments held by them on the
Fourth Restatement Effective Date and described on Annex IX, provided that any

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additional Investments made with respect thereto shall be permitted only if independently
justified under the other provisions of this Section 8.09;

     (d) any Subsidiary of the Borrower may acquire and own investments (including debt
obligations) received in connection with the bankruptcy or reorganization of suppliers and
customers or in good faith settlement of delinquent obligations of, and other disputes with,
customers and suppliers arising in the ordinary course of business;

     (e) any Subsidiary of the Borrower may make loans and advances to their officers and
employees for moving, relocation and travel expenses and other similar expenditures, in each
case in the ordinary course of business in an aggregate principal amount not to exceed
$5,000,000 at any time outstanding (determined without regard to any write-downs or
write-offs of such loans and advances);

     (f) the Borrower may acquire and hold obligations of one or more officers, directors or
other employees of the Borrower or any of its Subsidiaries in connection with such
officers’, directors’ or employees’ acquisition of shares of capital stock of the Borrower,
so long as no cash is paid by the Borrower or any of its Subsidiaries to such officers,
directors or employees in connection with the acquisition of any such obligations;

     (g) the Borrower and any of its Subsidiaries may enter into Permitted Interest Rate
Agreements and Permitted Currency Agreements;

     (h) any Subsidiary of the Borrower may acquire and hold promissory notes and other
non-cash consideration issued by the purchaser of assets in connection with a sale or other
disposition of such assets permitted by Sections 8.02(d) and (k);

     (i) the Borrower and its Wholly-Owned Subsidiaries may make intercompany loans and
advances between and among one another (collectively, “Intercompany Loans”),
provided that (i) at no time shall the aggregate outstanding principal amount of all
Intercompany Loans made pursuant to this clause (i) by Credit Parties to Wholly-Owned
Subsidiaries that are not Credit Parties (determined without regard to any write-downs or
write-offs thereof), when added to (I) the aggregate amount of contributions,
capitalizations and forgiveness theretofore made by Credit Parties pursuant to Section
8.09(j) to (or in respect of) Wholly-Owned Subsidiaries that are not Credit Parties, (II)
the aggregate amount of all Investments made pursuant to Section 8.09(n) (taking the Fair
Market Value of any non-cash assets so invested and determined without regard to any
write-downs or write-offs thereof and net of any returns of capital), and (III) the
aggregate amount of all transfers and dispositions made by Subsidiaries of the Borrower in
reliance on Section 8.02(d) (taking the Fair Market Value of any non-cash assets so
transferred or disposed of), exceed $300,000,000, (ii) no Intercompany Loans may be made by
a Credit Party to a Wholly-Owned Subsidiary that is not a Credit Party at a time that an
Event of Default exists and is continuing, (iii) if any such Intercompany Loan made by a
Credit Party is evidenced by a promissory note, such note shall be in form and substance
reasonably satisfactory to the Administrative Agent and shall be pledged to the Collateral
Agent as, and to the extent required by, the Pledge Agreement (if then in effect), (iv) each

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Intercompany Loan made pursuant to this clause (i) shall be subject to subordination as, and
to the extent required by, the Intercompany Subordination Agreement and (v) any Intercompany
Loan made pursuant to this clause (i) shall cease to be permitted hereunder if the obligor
or obligee thereunder ceases to be the Borrower or a Wholly-Owned Subsidiary of the Borrower
as contemplated above;

     (j) the Borrower and its Wholly-Owned Subsidiaries may make cash capital contributions
to their respective Wholly-Owned Subsidiaries, and may capitalize or forgive any
Indebtedness owed to them by a Wholly-Owned Subsidiary outstanding under clause (i) of this
Section 8.09, provided that (i) the aggregate amount of such contributions,
capitalizations and forgiveness made by Credit Parties to Wholly-Owned Subsidiaries that are
not Credit Parties, when added to (I) the aggregate outstanding principal amount of
Intercompany Loans made by Credit Parties to Wholly-Owned Subsidiaries that are not Credit
Parties pursuant to Section 8.09(i) (determined without regard to any write-downs or
write-offs thereof), (II) the aggregate amount of all Investments made pursuant to Section
8.09(n) (taking the Fair Market Value of any non-cash assets so invested and determined
without regard to any write-downs or write-offs and net of any returns of capital), and
(III) the aggregate amount of all transfers and dispositions made by Subsidiaries of the
Borrower in reliance on Section 8.02(d) (taking the Fair Market Value of any non-cash assets
so transferred or disposed of), shall not exceed an amount equal to $300,000,000 at any
time, and (ii) no such contributions, capitalizations or
forgivenesses may be made by a Credit Party to a Wholly-Owned Subsidiary that is not a
Credit Party at any time that an Event of Default exists and is continuing;

     (k) the Borrower and any of its Subsidiaries may acquire the stock or other Equity
Interests of any Person (other than the Borrower) owned by the Borrower or another
Subsidiary of the Borrower by way of the dividend of such stock or Equity Interest by such
other Subsidiary to the Borrower or such Subsidiary of the Borrower, so long as, in the
event any such stock or other Equity Interests are held by the Borrower or a Subsidiary
Guarantor immediately prior to the respective dividend, such stock or other Equity Interests
are held by the Borrower or another Subsidiary Guarantor after giving effect to such
dividend;

     (l) the Borrower and each Wholly-Owned Domestic Subsidiary of the Borrower which is a
Subsidiary Guarantor may from time to time effect Permitted Acquisitions, so long as:

     (i) no Default or Event of Default shall have occurred and be continuing at the
time of the consummation of the proposed Permitted Acquisition or immediately after
giving effect thereto;

     (ii) the Borrower shall have given to the Administrative Agent and the Lenders
at least 10 Business Days’ prior written notice of any Permitted Acquisition (or
such shorter period of time as may be reasonably acceptable to the Administrative
Agent), which notice shall describe in reasonable detail the principal terms and
conditions of such Permitted Acquisition;

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     (iii) calculations are made by the Borrower with respect to the financial
covenants contained in Sections 8.07 and 8.08, for the respective Calculation Period
on a Pro Forma Basis as if the respective Permitted Acquisition (as
well as all other Permitted Acquisitions theretofore consummated after the first day
of such Calculation Period) had occurred on the first day of such Calculation
Period, and such calculations shall show that such financial covenants would have
been complied with if the Permitted Acquisition had occurred on the first day of
such Calculation Period;

     (iv) all representations and warranties contained herein and in the other
Credit Documents shall be true and correct in all material respects with the same
effect as though such representations and warranties had been made on and as of the
date of such Permitted Acquisition (both before and after giving effect thereto),
unless stated to relate to a specific earlier date, in which case such
representations and warranties shall be true and correct in all material respects as
of such earlier date;

     (v) the Aggregate Consideration payable for the proposed Permitted Acquisition,
when added to the Aggregate Consideration paid or payable for all other Permitted
Acquisitions theretofore consummated after the Fourth Restatement Effective Date,
does not exceed $600,000,000; and

     (vi) if the Aggregate Consideration payable in connection with the proposed
Permitted Acquisition equals or exceeds $25,000,000, the Borrower shall have
delivered to the Administrative Agent and each Lender a certificate executed by its
chief financial officer, certifying to the best of such officer’s knowledge,
compliance with the requirements of preceding clauses (i) through (v), inclusive,
and containing the calculations (in reasonable detail) required by preceding clauses
(iii) and (v);

     (m) the Borrower and its Subsidiaries may make loans or advances to salespersons
employed by them for purposes of enabling such salespersons to purchase “car stock” and for
other ordinary course purposes, all on a basis consistent with the past practices of the
Borrower and its Subsidiaries as in effect on the Fourth Restatement Effective Date; and

     (n) the Borrower and any of its Subsidiaries may make Investments not otherwise
permitted by clauses (a) through (m) of this Section 8.09 (including by way of a capital
contribution by the Borrower or any of its Subsidiaries to any other Person of cash, fixed
assets and intellectual property but excluding capital stock or other equity interests of
any Subsidiary Guarantor), so long as (x) no Default or Event of Default then exists or
would result therefrom, and (y) the aggregate amount of all Investments made pursuant to
this clause (n) (taking the Fair Market Value of any non-cash assets so invested and
determined without regard to any write-downs or write-offs thereof and net of any returns of
capital), when aggregated with (I) the aggregate amount of all transfers and dispositions
made by Subsidiaries of the Borrower in reliance on Section 8.02(d) (taking the Fair Market
Value of any non-cash assets so transferred or disposed of), (II)

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the aggregate amount of
contributions, capitalizations and forgiveness theretofore made by Credit Parties pursuant
to Section 8.09(j) to (or in respect of) Wholly-Owned Subsidiaries that are not Credit
Parties and (III) the aggregate outstanding principal amount of all Intercompany Loans made
pursuant to Section 8.09(i) by Credit Parties to Wholly-Owned Subsidiaries that are not
Credit Parties (determined without regard to any write-downs or write-offs thereof), shall
not exceed $300,000,000; and

     (o) the Acquisition may be consummated in accordance with the requirements of Section
5.01F.

          8.10 No Negative Pledge. (a) The Borrower shall not, and shall not permit any of its
Subsidiaries to, enter into any agreement or arrangement that prohibits or restricts (including by
requiring ratable sharing of Liens) any Credit Party from entering into the Security Documents
and/or granting any Lien in favor of the Collateral Agent for the benefit of the Secured Creditors
other than (i) any ratable sharing of Liens provisions governing any of the New Senior Notes, the
Existing Senior Notes or the Refinancing Senior Notes, in each case, to the extent such provisions
shall be satisfied by the entering into of the Security Documents and the granting of Liens
thereunder in favor of the Collateral Agent for the benefit of the Secured Creditors and (ii) any
prohibition created in connection with any Lien permitted by Section 8.03 to the extent applicable
only to the property subject to such Lien.

          (b) The Borrower will not, and will not permit any of its Subsidiaries to, directly or
indirectly, create or otherwise cause or suffer to exist or become effective any encumbrance or
restriction on the ability of any such Subsidiary to (i) pay dividends or make any other
distributions on its capital stock or any other Equity Interest or participation in its profits
owned by the Borrower or any of its Subsidiaries, or pay any Indebtedness owed to the Borrower or
any of its Subsidiaries, (ii) make loans or advances to the Borrower or any of its Subsidiaries or
(iii) transfer any of its properties or assets to the Borrower or any of its Subsidiaries, except
for such encumbrances or restrictions existing under or by reason of (1) applicable law, (2) this
Agreement and the other Credit Documents, (3) customary provisions restricting subletting or
assignment of any lease governing any leasehold interest of the Borrower or any of its
Subsidiaries, (4) customary provisions restricting assignment of any licensing agreement (in which
the Borrower or any of its Subsidiaries is the licensee) or other contract entered into by the
Borrower or any of its Subsidiaries in the ordinary course of business, (5) restrictions on the
transfer of any asset pending the close of the sale of such asset, (6) restrictions on the transfer
of any asset subject to a Lien permitted by Section 8.03, and (7) the New Senior Notes, the
Existing Senior Notes, the Refinancing Senior Notes and the indentures governing the same.

          8.11 Modifications of Acquisition Documents and Certain Other Agreements; Limitations on
Voluntary Payments, etc.. The Borrower will not, and will not permit any of its Subsidiaries
to:

     (a) amend, modify, change or waive any term or provision of any Acquisition Document or
the Tax Sharing Agreement, or enter into any new tax sharing agreement, other than any
amendments, modifications or changes to any Acquisition Document or the Tax Sharing
Agreement which do not adversely affect the interests of the Lenders in any material
respect;

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     (b) make (or give any notice in respect of) any voluntary or optional payment or
prepayment on or voluntary or optional redemption, repurchase or acquisition for value of,
or any prepayment or redemption as a result of any asset sale, change of control or similar
event of (including, in each case without limitation, by way of depositing with the trustee
with respect thereto or any other Person money or securities before due for the purpose of
paying when due), any New Senior Note, any Existing Senior Note and any Refinancing Senior
Note; provided that, so long as no Default or Event of Default then exists or would
result therefrom, (i) Exchange Senior Notes may be issued in exchange for Existing Senior
Notes in accordance with the definition of “Exchange Senior Notes”, and (ii) Refinancing
Senior Notes may be issued to Refinance any New Senior Notes, any Existing Senior Notes or
any Refinancing Senior Notes theretofore issued to refinance New Senior Notes, Existing
Senior Notes or other Refinancing Senior Notes in accordance with the requirements of the
definition of “Refinancing Senior Notes”; and

     (c) amend or modify, or permit the amendment or modification of, any provision of any
New Senior Note, any Existing Senior Note, any Refinancing Senior Note or any indenture or
other agreement governing the foregoing, other than any
amendments, modifications or changes which do not adversely affect the interests of the
Lenders in any material respect.

          8.12 Maintenance of Company Separateness. The Borrower will, and will cause each of
its Subsidiaries to, satisfy customary Company formalities, including the holding of regular board
of directors’ and shareholders’ meetings or action by directors or shareholders without a meeting
and the maintenance of Company records. Neither the Borrower nor any other Credit Party shall make
any payment to a creditor of any Non-Guarantor Subsidiary in respect of any liability of any
Non-Guarantor Subsidiary, and no bank account of any Non-Guarantor Subsidiary shall be commingled
with any bank account of the Borrower or any other Credit Party. Finally, neither the Borrower nor
any of its Subsidiaries shall take any action, or conduct its affairs in a manner, which is likely
to result in the Company existence of the Borrower, any other Credit Party or any Non-Guarantor
Subsidiary being ignored, or in the assets and liabilities of the Borrower or any other Credit
Party being substantively consolidated with those of any other such Person or any Non-Guarantor
Subsidiary in a bankruptcy, reorganization or other insolvency proceeding.

          8.13 Capital Expenditures. (a) The Borrower will not, and will not permit any of its
Subsidiaries to, make any Capital Expenditures, except that (i) during the period from the Fourth
Restatement Effective Date through and including December 31, 2006, the Borrower and its
Subsidiaries may make Capital Expenditures, so long as the aggregate amount of all such Capital
Expenditures during such period does not exceed $175,000,000, and (ii) during any fiscal year of
the Borrower ended after December 31, 2006 (taken as one accounting period), the Borrower and its
Subsidiaries may make Capital Expenditures, so long as the aggregate amount of all such Capital
Expenditures does not exceed $200,000,000 in such fiscal year.

          (b) In addition to the foregoing, in the event that the amount of Capital Expenditures
permitted to be made by the Borrower and its Subsidiaries pursuant to Section 8.13(a) above in any
period or fiscal year of the Borrower, as the case may be (before giving effect to any increase in
such permitted Capital Expenditure amount pursuant to this clause (b))

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is greater than the amount
of Capital Expenditures actually made by the Borrower and its Subsidiaries during such period or
fiscal year, as the case may be, the lesser of (x) such excess and (y) 50% of the applicable
permitted scheduled Capital Expenditure amount as set forth in Section 8.13(a)(i) or (ii), as the
case may be, above, may be carried forward and utilized to make Capital Expenditures in the
immediately succeeding fiscal year, provided that no amounts once carried forward pursuant
to this Section 8.13(b) may be carried forward to any fiscal year of the Borrower thereafter.

          (c) In addition to the foregoing, the Borrower and its Subsidiaries may make additional
Capital Expenditures (which Capital Expenditures will not be included in any determination under
Section 8.13(a) or (b)) constituting Permitted Acquisitions effected in accordance with the
requirements of Section 8.09.

          SECTION 9. Events of Default . Upon the occurrence of any of the following specified
events (each, an “Event of Default”):

          9.01 Payments. The Borrower shall (i) default in the payment when due of any
principal of the Loans or (ii) default, and such default shall continue for five or more days, in
the payment when due of any interest on the Loans or any Fees or any Unpaid Drawings or any other
amounts owing hereunder or under any other Credit Document; or

          9.02 Representations, etc. Any representation, warranty or statement made or deemed
made by any Credit Party herein or in any other Credit Document or in any statement or certificate
delivered or required to be delivered pursuant hereto or thereto shall prove to be untrue in any
material respect on the date as of which made or deemed made; or

          9.03 Covenants. The Borrower or any of its Subsidiaries shall (a) default in the due
performance or observance by it of any term, covenant or agreement contained in Section 7.09, 7.10,
7.12 or 8, or (b) default in the due performance or observance by it of any term, covenant or
agreement (other than those referred to in Section 9.01, 9.02 or clause (a) of this Section 9.03)
contained in this Agreement and such default shall continue unremedied for a period of at least 30
days after notice to the Borrower by any Lead Agent or the Required Lenders; or

          9.04 Default Under Other Agreements. (a) The Borrower or any of its Subsidiaries
shall (i) default in any payment with respect to any Indebtedness (other than the Obligations) in
excess of $200,000,000, individually or in the aggregate, for the Borrower and its Subsidiaries,
beyond the period of grace, if any, provided in the instrument or agreement under which such
Indebtedness was created or (ii) default in the observance or performance of any agreement or
condition relating to any such Indebtedness or contained in any instrument or agreement evidencing,
securing or relating thereto, or any other event shall occur or condition exist, the effect of
which default or other event or condition is to cause, or to permit the holder or holders of such
Indebtedness (or a trustee or agent on behalf of such holder or holders) to cause (determined
without regard to whether any notice or lapse of time is required), any such Indebtedness to become
due prior to its stated maturity; or (b) any such Indebtedness shall be declared to be due and
payable, or required to be prepaid other than by a regularly scheduled required prepayment or as a
mandatory prepayment (unless such required prepayment or

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mandatory prepayment results from a
default or an event of the type that constitutes an Event of Default), prior to the stated maturity
thereof; or

          9.05 Bankruptcy, etc.
Any Credit Party or any of its Material Subsidiaries shall commence a voluntary case
concerning itself under Title 11 of the United States Code entitled “Bankruptcy,” as now or
hereafter in effect, or any successor thereto (the “Bankruptcy Code”); or an involuntary
case under the Bankruptcy Code is commenced against any Credit Party or any of its Material
Subsidiaries and the petition therefor is not controverted within 10 days after service of notice
of such case on such Credit Party or such Material Subsidiary, or is not dismissed within 60 days
after commencement of the case; or a custodian (as defined in the Bankruptcy Code) is appointed
for, or takes charge of, all or substantially all of the property of any Credit Party or any of its
Material Subsidiaries; or any Credit Party or any of its Material Subsidiaries commences any other
proceeding under any reorganization, arrangement, adjustment of debt, relief of debtors,
dissolution, insolvency or liquidation or similar law of any jurisdiction whether now or hereafter
in effect relating to any Credit Party or any of its Material Subsidiaries; or there is commenced
against any Credit Party or any of its Material Subsidiaries any such proceeding which remains
undismissed for a period of 60 days; or any Credit Party or any of its Material Subsidiaries is
adjudicated insolvent or bankrupt; or any order of relief or other order approving any such case or
proceeding is entered; or any Credit Party or any of its Material Subsidiaries suffers any
appointment of any custodian or the like for it or any substantial part of its property to continue
undischarged or unstayed for a period of 60 days; or any Credit Party or any of its Material
Subsidiaries makes a general assignment for the benefit of creditors; or any corporate action is
taken by any Credit Party or any of its Material Subsidiaries for the purpose of effecting any of
the foregoing; or

          9.06 ERISA. (a) A single-employer plan (as defined in Section 4001 of ERISA)
maintained or contributed to by any Credit Party or any of its Subsidiaries or any ERISA Affiliate
shall fail to maintain the minimum funding standard required by Section 412 of the Code for any
plan year or part thereof or a waiver of such standard or extension of any amortization period is
sought or granted under Section 412 of the Code or shall provide security to induce the issuance of
such waiver or extension, (b) any Plan is or shall have been terminated or the subject of
termination proceedings under ERISA or an event has occurred entitling the PBGC to terminate a Plan
under Section 4042(a) of ERISA, (c) any Plan shall have an Unfunded Current Liability, (d) the
Borrower or any Subsidiary or any ERISA Affiliate has incurred or is likely to incur a material
liability to or on account of a termination of or a withdrawal from a Plan under Section 515, 4062,
4063, 4064, 4069, 4201 or 4204 of ERISA, (e) the Borrower or any Subsidiary has incurred after the
Fourth Restatement Effective Date liabilities (after giving effect to any reserves applicable
thereto and maintained on the Fourth Restatement Effective Date) pursuant to one or more employee
welfare benefit plans (as defined in Section 3(1) of ERISA) which provide benefits to retired
employees (other than as required by Section 601 of ERISA) or employee pension benefit plans (as
defined in Section 3(2) of ERISA) (except in each case solely as a result of a change in estimate
or adjustment of liabilities existing on the Fourth Restatement Effective Date upon the adoption or
implementation of Financial Accounting Statement 106), or (f) the Borrower or any Subsidiary or any
ERISA Affiliate has incurred a liability under Section 409, 502(i) or 502(l) of ERISA or Section
4971 or 4975 of the Code; and there shall result from any such event or events described in the
preceding clauses of this Section 9.06 the imposition of a Lien upon the assets of the Borrower or
any Subsidiary, the granting of a

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security interest, or a
liability or a material risk of incurring a liability, which Lien, security interest or
liability would reasonably be expected to have a Material Adverse Effect; or

          9.07 Guaranties. (i) Any Guaranty or any provision thereof shall cease to be in
full force or effect, (ii) any Guarantor or any Person acting by or on behalf thereof shall deny or
disaffirm such Guarantor’s obligations under its Guaranty or (iii) any Guarantor shall default in
the due performance or observance of any term, covenant or agreement on its part to be performed or
observed pursuant to its Guaranty and, in the case of a default in the performance of the covenant
therein not to violate the provisions of Section 7 hereof, such default shall continue unremedied
for a period of at least 30 days after written notice to the Borrower from the Administrative
Agent; or

          9.08 Judgments. One or more judgments or decrees shall be entered against any Credit
Party or any of its Material Subsidiaries involving a liability of $200,000,000 or more in the
aggregate for all such judgments and decrees for the Credit Parties and their Material Subsidiaries
(to the extent not paid or fully covered by insurance) and any such judgments or decrees shall not
have been vacated, discharged or stayed or bonded pending appeal within 60 days from the entry
thereof; or

          9.09 Security Documents. At any time the Security Documents are in effect (or
required to be in effect pursuant to Section 7.10), (a) any Security Document shall cease to be in
full force and effect, or shall cease to give the Collateral Agent the Liens or any of the material
rights, powers and privileges purported to be created thereby in favor of the Collateral Agent, or
(b) any Credit Party shall default in the due performance or observance of any material term,
covenant or agreement on its part to be performed or observed pursuant to any such Security
Document and such default (other than a default arising from the failure to deliver Collateral)
shall continue unremedied for a period of at least 30 days after written notice to the Borrower by
the Collateral Agent; provided, however, that the failure to have a perfected Lien
on Collateral in favor of the Collateral Agent shall not give rise to an Event of Default under
this Section 9.09, unless the aggregate fair market value of all Collateral over which the
Collateral Agent fails to have a perfected Lien equals or exceeds $1,000,000; or

          9.10 Change of Control. A Change of Control shall occur;

then, and in any such event, and at any time thereafter, if any Event of Default shall then be
continuing, the Administrative Agent shall, upon the written request of the Required Lenders, by
written notice to the Borrower, take any or all of the following actions, without prejudice to the
rights of any Lead Agent or any Lender to enforce its claims against the Borrower, except as
otherwise specifically provided for in this Agreement (provided that, if an Event of
Default specified in Section 9.05 shall occur with respect to the Borrower, the result which would
occur upon the giving of written notice by the Administrative Agent as specified in clauses (i) and (ii)
below shall occur automatically without the giving of any such notice): (i) declare the Total
Commitment terminated, whereupon all Commitments of each Lender shall forthwith terminate
immediately and any Commitment Fee theretofore accrued shall forthwith become due and payable
without any other notice of any kind; (ii) declare the principal of and any accrued interest in
respect of all Loans and all other Obligations owing hereunder and thereunder to be, whereupon the
same shall become, forthwith due and payable without presentment, demand,

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protest or other notice
of any kind, all of which are hereby waived by the Borrower; (iii) terminate any Letter of Credit
which may be terminated in accordance with its terms; (iv) direct the Borrower to pay (and the
Borrower agrees that upon receipt of such notice, or upon the occurrence of an Event of Default
specified in Section 9.05 with respect to the Borrower, it will pay) to the Administrative Agent at
the Administrative Agent’s Office such additional amounts of cash, to be held as security for the
Borrower’s reimbursement obligations for Drawings that may subsequently occur thereunder, equal to
the aggregate Stated Amount of all Letters of Credit issued and then outstanding; and/or (v) direct
the Collateral Agent to enforce any or all of the Security Documents then in effect.

Notwithstanding anything contained in the foregoing paragraph, if at any time within 60 days after
an acceleration of the Loans pursuant to the preceding paragraph, the Borrower shall pay all
arrears of interest and all payments on account of principal which shall have become due otherwise
than by acceleration (with interest on principal and, to the extent permitted by law, on overdue
interest, at the rates specified in this Agreement) and all Events of Default and Defaults (other
than non-payment of the principal of and accrued interest on the Loans, in each case which is due
and payable solely by virtue of acceleration) shall be remedied or waived pursuant to Section
12.12, then Non-Defaulting Lenders holding at least 66-2/3% of the Aggregate Exposure at such time
(which Lenders shall include in any event each Lead Agent) by written notice to the Borrower, may
at their option rescind and annul the acceleration and its consequences; but such action shall not
affect any subsequent Event of Default or Default or impair any right consequent thereon. The
provisions of this paragraph are intended merely to bind the Lenders to a decision which may be
made at the election of the aforesaid percentage of the Lenders and are not intended to benefit the
Borrower and do not grant the Borrower the right to require the Lenders to rescind or annul any
acceleration hereunder, even if the conditions set forth herein are met.

          SECTION 10. Definitions. As used herein, the following terms shall have the meanings
herein specified unless the context otherwise requires. Defined terms in this Agreement shall
include in the singular number the plural and in the plural the singular:

          “Acquired Business” shall mean NA Holdings, the Conwood Subsidiaries and their
respective Subsidiaries.

          “Acquired Entity or Business” shall mean either (x) the assets constituting a
business, division or product line of any Person not already a Subsidiary of the Borrower or (y)
100% of the Equity Interests of any such Person, which Person shall, as a result of the acquisition
of such Equity Interests, become a Wholly-Owned Domestic Subsidiary of the Borrower (or shall
be merged with and into the Borrower or another Wholly-Owned Domestic Subsidiary of the
Borrower, with the Borrower or such Wholly-Owned Domestic Subsidiary being the surviving or
continuing Person).

          “Acquisition” shall mean the acquisition by the Borrower of the Acquired Business in
accordance with the terms of the Acquisition Agreement.

          “Acquisition Agreement” shall mean the Purchase Agreement, dated as of April 24,
2006, by and among Karl J. Breyer, Marshall E. Eisenberg and Thomas J. Pritzker, as

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trustees, GP
Investors, L.L.C. and the Borrower, as the same may be amended, modified and/or supplemented from
time to time in accordance with the terms hereof and thereof.

          “Acquisition Corp.” shall mean RJR Acquisition Corp., a Delaware corporation.

          “Acquisition Documents” shall mean the Acquisition Agreement and all other agreements
and documents relating to the Acquisition, as the same may be amended, modified and/or supplemented
from time to time in accordance with the terms hereof and thereof.

          “Additional Acquisition Senior Notes” shall mean Additional Senior Notes issued to
finance a Permitted Acquisition and designated as “Additional Acquisition Senior Notes” by the
Borrower in writing to the Administrative Agent at the time of the issuance thereof.

          “Additional Non-Acquisition Senior Notes” shall mean Additional Senior Notes other
than Additional Acquisition Senior Notes.

          “Additional Security Documents” shall have the meaning provided in Section 7.10(d).

          “Additional Senior Notes” shall mean one or more issuances of senior notes issued by
the Borrower, the Net Cash Proceeds of which are used to (x) finance a Permitted Acquisition or (y)
repay principal of Term Loans and accrued but unpaid interest thereon, all of the terms and
conditions of which (and of the indenture governing the same) are substantially identical to (or,
from the perspective of the Lenders, more favorable than) those applicable to the Initial New
Senior Notes (and the New Senior Notes Indenture), without giving effect to any repayment of such
Initial New Senior Notes; provided that (i) the final stated maturity of any such senior
notes may differ from that of the Initial New Senior Notes, so long as the final stated maturity of
any such senior notes shall be no shorter than that the date occurring one year after the Term Loan
Maturity Date, (ii) the interest rate and principal amount of any such senior notes may differ from
that of the Initial New Senior Notes and (iii) in the case of any issuance of Additional
Non-Acquisition Senior Notes, 100% of the Net Cash Proceeds therefrom are applied to repay Term
Loans in accordance with the requirements of Section 4.02(c).

          “Adjusted Consolidated Net Income” shall mean, for any period, Consolidated Net Income
for such period plus the sum of the tax adjusted amount of all net non-cash charges
(including, without limitation, depreciation, amortization, deferred tax expense and non-cash
interest expense) and net non-cash losses which were included in arriving at Consolidated Net
Income for such period, less the tax adjusted amount of all net non-cash gains and non-cash
credits which were included in arriving at Consolidated Net Income for such period.

          “ Adjusted Consolidated Working Capital” shall mean, at any time,
Consolidated Current Assets (but excluding therefrom all cash and Marketable Investments)
less Consolidated Current Liabilities at such time.

          “Administrative Agent” shall mean JPMCB, in its capacity as administrative agent for
the Lenders hereunder, and shall include any successor thereto appointed pursuant to Section 11.09.

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          “Administrative Agent’s Office” shall mean the office of the Administrative Agent
located at 270 Park Avenue, New York, New York 10017, or such other office in New York City as the
Administrative Agent may hereafter designate in writing as such to the other parties hereto.

          “Administrative Questionnaire” means an Administrative Questionnaire in a form
supplied by the Administrative Agent.

          “Affiliate” shall mean, with respect to any Person, any other Person directly or
indirectly controlling, controlled by, or under direct or indirect common control with such Person.
A Person shall be deemed to control a corporation if such Person possesses, directly or
indirectly, the power (i) to vote 20% or more of the securities having ordinary voting power for
the election of directors of such corporation or (ii) to direct or cause the direction of the
management and policies of such corporation, whether through the ownership of voting securities, by
contract or otherwise.

          “Agent” shall mean the Administrative Agent, each Syndication Agent and each
Documentation Agent (other than Mizuho Corporate Bank. Ltd.).

          “Aggregate Consideration” shall mean, with respect to any Permitted Acquisition, the
sum (without duplication) of (i) the aggregate amount of all cash paid (or to be paid) by the
Borrower or any of its Subsidiaries in connection with such Permitted Acquisition (including,
without limitation, payments of fees and costs and expenses in connection therewith) and all
contingent cash purchase price, earn-out and other similar obligations of the Borrower and its
Subsidiaries (including payments for non-compete agreements benefiting the Borrower or its
Subsidiaries) incurred and reasonably expected to be incurred in connection therewith (as
determined in good faith by the Borrower), (ii) the aggregate principal amount of all Indebtedness
assumed, incurred, refinanced and/or issued in connection with such Permitted Acquisition to the
extent permitted by Section 8.04, and (iii) the Fair Market Value of all other consideration
payable in connection with such Permitted Acquisition; provided that the Fair Market Value
of shares of common stock of the Borrower issued (or to be issued) as consideration in connection
with such Permitted Acquisition shall be excluded from any determination of “Aggregate
Consideration”.

          “Aggregate RL Outstandings” shall have the meaning provided in Section 4.02(a).

          “Aggregate Exposure” shall mean, at any time, the sum of the Aggregate RL Outstandings
at such time plus the aggregate outstanding principal amount of Term Loans at such time.

          “Agreement” shall mean the Original Credit Agreement as amended and restated pursuant
to the First Amended and Restated Credit Agreement, further amended and restated pursuant to the
Second Amended and Restated Credit Agreement, further amended and restated pursuant to the Third
Amended and Restated Credit Agreement and further amended and restated pursuant to this Fourth
Amended and Restated Credit Agreement, as so amended and restated and as the same may be further
amended, restated, modified and/or supplemented from time to time.

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          “Applicable Corporate Credit Rating” shall mean, at any time, the corporate
rating level (a rating level being, e.g., each of BBB-, BBB and BBB+, in the case of S&P)
assigned by a given Rating Agency to the Borrower.

          “Applicable Facilities Credit Rating” shall mean, at any time, the rating
level (a rating level being, e.g., each of BBB-, BBB and BBB+, in the case of S&P) assigned
by a given Rating Agency to the Facilities.

          “Applicable Margin” shall mean, at any time:

     (i) in the case of Term Loans, maintained (x) as Eurodollar Loans, 1.875% per annum and
(y) Reference Rate Loans, 0.875% per annum; provided that from and after each day of
delivery (each, a “Pricing Start Date”) of a Quarterly Pricing Certificate after
September 30, 2006 demonstrating a Consolidated Total Leverage Ratio of less than 2.00:1.00
as at the last day of the Test Period ended immediately prior to the relevant Pricing Start
Date (but determined on a Pro Forma Basis solely to give effect to all
Permitted Acquisitions (if any) and all Significant Asset Sales (if any) consummated on or
prior to (but not after) the date of delivery of such certificate and any Indebtedness
incurred, assumed or permanently repaid in connection therewith) to and including the
applicable Pricing End Date, the Applicable Margins for Term Loans shall instead be (x) in
the case of Term Loans maintained as Eurodollar Loans, 1.75% per annum and (y) in the case
of Term Loans maintained Reference Rate Loans, 0.75% per annum; provided
further, that, notwithstanding the foregoing, the Applicable Margins shall be those
set forth above (without regard to the immediately preceding proviso) at all times during
which there shall exist any Default or any Event of Default; and

     (ii) in the case of Revolving Loans and the Commitment Fee, the respective percentage
per annum set forth below under the respective Type of Revolving Loan or the Commitment Fee,
as the case may be, and opposite the respective Applicable Facilities Credit Ratings
indicated to have been achieved at such time:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Applicable	 	 	 	 	 	“Applicable Margin”	 	 	 	 
	Facilities Credit	 	“Applicable Margin”	 	 	for Reference Rate	 	 	“Applicable Margin”	 
	Ratings Levels	 	for Eurodollar Loans	 	 	Loans	 	 	for Commitment Fee	 
	Greater than or
equal to Baa2 and
BBB
	 	 	1.50	%	 	 	0.50	%	 	 	0.75	%
	Baa3 and BBB-
	 	 	1.75	%	 	 	0.75	%	 	 	0.875	%
	Ba1 and BB+
	 	 	2.00	%	 	 	1.00	%	 	 	1.00	%
	Ba2 and BB
	 	 	2.25	%	 	 	1.25	%	 	 	1.25	%
	Equal to or less
than Ba3 and BB-
(or no Applicable
Facilities Credit
Rating is available
from either Rating
Agency)
	 	 	2.50	%	 	 	1.50	%	 	 	1.50	%

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; provided that (i) for purposes of the preceding pricing grid, if at any time the
Applicable Facilities Credit Ratings assigned by the Rating Agencies are “split” (i.e., are
not at the same corresponding level on the pricing grid above), then the Applicable Margins shall
be determined by reference to the lower Applicable Facilities Credit Rating assigned by the
relevant Rating Agency and (ii) at all times during which there shall exist any Default or any
Event of Default, the Applicable Margins shall be determined pursuant to the pricing grid above on
the same basis as if no Applicable Facilities Credit Rating were available from either Rating
Agency.

          “Applicable ECF Percentage” shall mean 50%; provided, however, that if
at any time the Applicable Corporate Credit Rating issued by each Rating Agency shall each be the
Minimum Investment Grade Rating or higher (with at least a stable outlook), the Applicable ECF
Percentage shall instead be 0%.

          “Approved Alternate Currency” shall mean Euros and Pounds Sterling.

          “Approved Fund” means (a) a CLO and (b) with respect to any Lender that is a fund
which invests in bank loans and similar extensions of credit, any other fund that invests in bank
loans and similar extensions of credit and is managed by the same investment advisor as such Lender
or by an Affiliate of such investment advisor.

          “Assignment Agreement” shall have the meaning provided in Section 12.04(b)(A).

          “Authorized Officer” shall mean, with respect to (i) delivering Notices of Borrowing,
Notices of Conversion, Letter of Credit Requests and similar administrative notices, any person or
persons that has or have been (x) authorized by the board of directors of the Borrower or (y)
designated by a person authorized by the board of directors of the Borrower, in each case, to
deliver such notices pursuant to this Agreement and that has or have appropriate
signature cards on file with the Administrative Agent and the respective Letter of Credit
Issuer; (ii) delivering financial information and officer’s certificates pursuant to this
Agreement, the chief financial officer, chief accounting officer, controller or other senior
financial officer of the Borrower designated as such in writing to the Administrative Agent by the
Borrower, in each case to the extent acceptable to the Administrative Agent; and (iii) any other
matter in connection with this Agreement or any other Credit Document, any officer (or a person or
persons so designated by any two officers) of the Borrower.

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          “B&W Parent” shall mean Brown & Williamson Holdings, Inc. (f/k/a Brown & Williamson
Tobacco Corporation), a Delaware corporation.

          “Bankruptcy Code” shall have the meaning provided in Section 9.05.

          “Base Rate” shall mean, for any day, the publicly announced prime rate on such date of
JPMCB.

          “Borrower” shall have the meaning provided in the first paragraph of this Agreement.

          “Borrower Common Stock” shall mean the common stock, par value $0.0001 per share, of
the Borrower.

          “Borrower Guaranty” shall mean, collectively, the guaranty of the Borrower pursuant to
Section 13 of this Agreement.

          “Borrower Preferred Stock” shall mean the Series B preferred stock, par value $0.01
per share, of the Borrower, having the terms set forth in the Articles of Incorporation of the
Borrower.

          “Borrowing” shall mean and include the incurrence of one Type of Loan of a single
Tranche by the Borrower from all of the Lenders having Commitments of the respective Tranche (or
from the Swingline Lender in the case of Swingline Loans) on a pro rata basis on a
given date (or resulting from conversions on a given date), having in the case of Eurodollar Loans
the same Interest Period, provided that Reference Rate Loans incurred pursuant to Section
1.10(b) shall be considered part of any related Borrowing of Eurodollar Loans.

          “Business Day” shall mean (i) for all purposes other than as covered by clause (ii)
below, any day excluding Saturday, Sunday and any day which shall be in the City of New York a
legal holiday or a day on which banking institutions are authorized by law or other governmental
actions to close and (ii) with respect to all notices and determinations in connection with, and
payments of principal and interest on, Eurodollar Loans, any day which is a Business Day described
in clause (i) and which is also a day for trading by and between banks in U.S. dollar deposits in
the interbank Eurodollar market.

          “Calculation Period” shall mean, with respect to any Permitted Acquisition, any
Significant Asset Sale or any other event expressly required to be calculated on a Pro
Forma Basis pursuant to the terms of this Agreement, the Test Period most recently ended
prior to the
date of such Permitted Acquisition, Significant Asset Sale or other event for which financial
statements have been delivered to the Administrative Agent pursuant to this Agreement.

          “Calyon” shall mean Calyon New York Branch and any successor corporation thereto by
merger, consolidation or otherwise.

          “Capital Expenditures” shall mean, with respect to any Person, all expenditures by
such Person which should be capitalized in accordance with GAAP and, without duplication, the
amount of Capitalized Lease Obligations incurred by such Person; provided that the term

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“Capital Expenditures” shall in any event exclude (A) expenditures made by such Person in
connection with the replacement, substitution or restoration of assets (i) to the extent financed
from insurance proceeds paid on account of the loss of or damage to the assets being replaced or
restored, (ii) with awards of compensation arising from the taking by eminent domain or
condemnation of the assets being replaced or (iii) with proceeds of asset sales made in accordance
with Section 8.02 and (B) the purchase price paid by such Person in connection with any Investment
Equities.

          “Capital Lease”, as applied to any Person, shall mean any lease of any property
(whether real, personal or mixed) by that Person as lessee which, in conformity with GAAP, is, or
is required to be, accounted for as a capital lease on the balance sheet of that Person.

          “Capitalized Lease Obligations” shall mean all obligations under Capital Leases of the
Borrower or any of its Subsidiaries in each case taken at the amount thereof accounted for as
liabilities in accordance with GAAP.

          “Change of Control” shall mean and include (a) at any time Continuing Directors shall
not constitute a majority of the Board of Directors of the Borrower; (b) any Person or “group”
(within the meaning of Rule 13d-3 and 13d-5 of the of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”)) (other than B&W Parent), shall acquire, directly or
indirectly, beneficial ownership (within the meaning of Rule 13d-3 and 13d-5 of the Exchange Act)
of 30% or more, on a fully diluted basis, of the economic or voting interest in the Borrower’s
capital stock, and (c) B&W Parent and/or any other Person or “group” (within the meaning of Rules
13d-3 and 13d-5 of the Exchange Act) shall have obtained and exercised the power to elect or
designate a majority of the Board of Directors of the Borrower.

          “CLO” shall mean any entity (whether a corporation, partnership, trust or otherwise)
that is engaged in making, purchasing, holding or otherwise investing in loans and similar
extensions of credit in the ordinary course of its business and is administered or managed by a
Lender or an Affiliate of such Lender.

          “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time, and
the regulations promulgated and rulings issued thereunder. Section references to the Code are to
the Code, as in effect at the date of this Agreement and any subsequent provisions of the Code,
amendatory thereof, supplemental thereto or substituted therefor.

          “Collateral” shall mean all property (whether real, personal or otherwise) with
respect to which any security interests have been granted (or purported to be granted) pursuant to
any Security Document (including, without limitation, all Mortgaged Properties and all cash,
Marketable Investments and other cash equivalents delivered as collateral pursuant to Section
4.02(a) or 9).

          “Collateral Agent” shall mean the Administrative Agent acting as Collateral Agent
under the Security Documents.

          “Commitment” shall mean any of the commitments of any Lender to extend credit to the
Borrower pursuant to this Agreement, i.e., a Term Loan Commitment or a Revolving Loan
Commitment.

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          “Commitment Fee” shall have the meaning provided in Section 3.01(a).

          “Commodities Agreement” shall mean any forward contract, futures contract, option
contract or similar agreement or arrangement, in each case intended to protect the Persons entering
into same from fluctuations in the price of, or shortage of supply of, commodities.

          “Company” shall mean any corporation, limited liability company, partnership or other
business entity (or the adjectival form thereof, where appropriate).

          “Consolidated Cash Interest Expense” shall mean, for any period, the sum of (x) the
remainder of (i) consolidated interest expense of the Borrower and its Subsidiaries (excluding,
however, to the extent included in such consolidated interest expense, (I) non-cash interest
expense and (II) amortization of debt issuance cost) minus (ii) consolidated cash interest
income of the Borrower and its Subsidiaries, plus (y) the product of (i) the amount of all
cash Dividend requirements to Persons other than Borrower or any of its Subsidiaries (whether or
not declared or paid) on Disqualified Preferred Stock of the Borrower and any Preferred Equity
Interests of any of its Subsidiaries paid, accrued or scheduled to paid or accrued during such
period multiplied by (ii) a fraction, the numerator of which is one and the denominator of which is
one minus the then current effective consolidated Federal, state, local and foreign income tax rate
(expressed as a decimal number between one and zero) of the Borrower as reflected in the audited
consolidated financial statements of the Borrower for its most recently completed fiscal year,
which amounts described in preceding clause (y) shall be treated as interest expense of the
Borrower and its Subsidiaries for purposes of this definition regardless of the treatment of such
amounts under GAAP, it being understood that the determination of the amounts specified in clauses
(x)(i)(I) and (x)(i)(II) shall be made on a basis consistent with the methodology utilized by the
Borrower to determine such amounts on the Fourth Restatement Effective Date.

          “Consolidated Current Assets” shall mean, at any time, the consolidated current
assets of the Borrower and its Subsidiaries at such time.  

          “Consolidated Current Liabilities” shall mean, at any time, the consolidated
current liabilities of the Borrower and its Subsidiaries at such time, but excluding the current
portion of any Indebtedness under this Agreement and the current portion of any other long-term
Indebtedness which would otherwise be included therein.  

          “Consolidated EBITDA” shall mean, for any period, Consolidated Net Income for such
period (without giving effect to (x) any extraordinary gains or extraordinary losses, (y) any
non-cash income or charges (to the extent such non-cash income or charges, as the case may be,
do not give rise to any cash receipt or payment, as the case may be, in a future period), and
(z) any gains or losses from sales of assets other than inventory sold in the ordinary course of
business) adjusted by (I) adding thereto (in each case to the extent deducted in determining
Consolidated Net Income for such period), without duplication, the amount of (i) total interest
expense (inclusive of amortization of deferred financing fees and other original issue discount and
banking fees, charges and commissions (e.g., letter of credit fees and commitment fees)) of
the Borrower and its Subsidiaries determined on a consolidated basis for such period, (ii)
provision for taxes based on income and foreign withholding taxes for the Borrower and its
Subsidiaries determined on a consolidated basis for such period, (iii) all depreciation and

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amortization expense of the Borrower and its Subsidiaries determined on a consolidated basis for
such period, (iv) in the case of any period which includes any portion of any fiscal quarter ended
after the Fourth Restatement Effective Date and on or prior to December 31, 2007, an amount equal
to the Post-Closing Integration Charges actually recorded or accrued during such period, and (v) in
the case of any period including the fiscal quarters of the Borrower ended June 30, 2006 and
September 30, 2006, the amount of all fees and expenses incurred in connection with the Transaction
during such fiscal quarter and (II) subtracting therefrom the amount of all cash payments made by
the Borrower and its Subsidiaries during such period pursuant to any settlement with respect to
tobacco liability which otherwise did not reduce Consolidated Net Income for such period or a prior
period. For the avoidance of doubt, it is understood and agreed that, to the extent any amounts
are excluded from Consolidated Net Income by virtue of the proviso to the definition thereof
contained herein, any add backs to Consolidated Net Income in determining Consolidated EBITDA as
provided above shall be limited (or denied) in a fashion consistent with the proviso to the
definition of Consolidated Net Income contained herein. Notwithstanding anything to the contrary
contained above, for purposes of determining Consolidated EBITDA for any Test Period which ends
prior to the first anniversary of the Fourth Restatement Effective Date, Consolidated EBITDA for
all portions of such period occurring prior to the Fourth Restatement Effective Date shall be
calculated in accordance with the definition of Test Period contained herein.

          “Consolidated Fixed Charge Coverage Ratio” shall mean, for any period, the ratio of
(a) Consolidated EBITDA for such period to (b) Consolidated Fixed Charges for such period;
provided that for purposes of any calculation of the Consolidated Fixed Charge Coverage
Ratio pursuant to Section 8.09(l) and the definition of “Incremental Commitment Requirements” only,
Consolidated EBITDA and Consolidated Indebtedness shall be determined on a Pro
Forma Basis in accordance with the requirements of the definition of “Pro
Forma Basis” contained herein.

          “Consolidated Fixed Charges” shall mean, for any period, the sum, without duplication,
of (i) Consolidated Cash Interest Expense for such period, (ii) the scheduled principal amount of
all amortization payments on all Indebtedness of the Borrower and its Subsidiaries for such period
(including the principal component of all Capitalized Lease Obligations) as determined on the first
day of such period (or, with respect to a given issue of Indebtedness incurred thereafter, on the
date of the incurrence thereof), (iii) the amount of all cash payments made by the Borrower and its
Subsidiaries in respect of income taxes or income tax liabilities during such period (net of cash
tax refunds received by the Borrower and its Subsidiaries during such period and excluding taxes
related to asset sales not in the ordinary course of business), (iv) the aggregate amount of all
Capital Expenditures made by the Borrower and its Subsidiaries during such period (other than
Capital Expenditures, to the extent financed
with equity proceeds, asset sale proceeds, insurance proceeds or Indebtedness), and (v) the
aggregate amount of all cash Dividends (including stock repurchases) made or paid by the Borrower
pursuant to Sections 8.05(c), (d) and (f) during such period. Notwithstanding anything to the
contrary contained above, to the extent Consolidated Fixed Charges are to be determined for any
period which includes any fiscal quarter of Borrower (or portion thereof) occurring prior to the
Fourth Restatement Effective Date, Consolidated Fixed Charges for such fiscal quarter shall be
calculated in accordance with the definition of Test Period contained herein.

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          “Consolidated Indebtedness” shall mean, at any time, the sum of (without duplication)
(i) all indebtedness of Borrower and its Subsidiaries for borrowed money (including obligations
evidenced by bonds, notes or similar instruments), (ii) the aggregate amount of all Capitalized
Lease Obligations of Borrower, (iii) all Indebtedness of the types described in clause (i), (ii),
(iii), (iv), or (v) of this definition secured by any Lien on any property owned by Borrower or any
of its Subsidiaries, whether or not such Indebtedness has been assumed by such Person
(provided that, if the Person has not assumed or otherwise become liable in respect of such
Indebtedness, such Indebtedness shall be deemed to be in an amount equal to the lesser of (x) the
amount of such Indebtedness that is secured by such Lien or (y) the fair market value of the
property to which such Lien relates as determined in good faith by such Person), (iv) all
Contingent Obligations of Borrower and any of its Subsidiaries for Indebtedness of another Person
(regardless of any contrary treatment under GAAP), and (v) all Indebtedness of Borrower and its
Subsidiaries of the type described in clauses (ii), (iii), (iv) and (viii) of the definition of
Indebtedness contained herein; provided that for purposes of this definition, (x) the
amount of Indebtedness in respect of Hedging Agreements shall be at any time the unrealized net
loss position, if any, of Borrower and/or its Subsidiaries thereunder on a marked-to-market basis
determined no more than one month prior to such time, (y) Indebtedness (including Contingent
Obligations) in respect of surety bonds issued in the ordinary course of business and consistent
with the past practices of Borrower and its Subsidiaries as in effect on the Fourth Restatement
Effective Date (excluding, however, for avoidance of doubt, any Litigation Bond) shall be excluded
in any determination of “Consolidated Indebtedness” and (z) to the extent issued to any Person
other than Borrower or any of its Subsidiaries, any Disqualified Preferred Stock of the Borrower
and any Preferred Equity Interests of any of its Subsidiaries shall be treated as Indebtedness,
with an amount equal to the greater of the liquidation preference or the maximum mandatory fixed
repurchase price of any such outstanding Preferred Equity Interests deemed to be a component of
Consolidated Indebtedness.

          “Consolidated Net Income” shall mean, for any period, the net income (or loss) of the
Borrower and its Subsidiaries determined on a consolidated basis for such period (taken as a single
accounting period) in accordance with GAAP, provided that the following items shall be
excluded in computing Consolidated Net Income (without duplication): (i) the net income (or loss)
of any Person in which a Person or Persons other than the Borrower and its Wholly-Owned
Subsidiaries has an Equity Interest or Equity Interests to the extent of such Equity Interests held
by Persons other than the Borrower and its Wholly-Owned Subsidiaries in such Person, (ii) except
for determinations expressly required to be made on a Pro Forma Basis, the net
income (or loss) of any Person accrued prior to the date it becomes a Subsidiary or all or
substantially all of the property or assets of such Person are acquired by a Subsidiary and (iii)
the net income of any Subsidiary to the extent that the declaration or payment of cash dividends or
similar cash distributions by such Subsidiary of such net income is not at the time permitted by
the operation
of the terms of its charter or any agreement, instrument, judgment, decree, order, statute,
rule or governmental regulation applicable to such Subsidiary.

          “Consolidated Total Leverage Ratio” shall mean, at any time, the ratio of (x)
Consolidated Indebtedness at such time to (y) Consolidated EBITDA for the Test Period then most
recently ended; provided that (i) for purposes of any calculation of the Consolidated Total
Leverage Ratio pursuant to this Agreement, Consolidated EBITDA shall be determined on a Pro
Forma Basis in accordance with clause (iii) of the definition of “Pro Forma
Basis” contained

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herein and (ii) for purposes of any calculation of the Consolidated Total Leverage
Ratio pursuant to Section 8.09(l) and the definition of “Incremental Commitment Requirements” only,
Consolidated Indebtedness shall be determined on a Pro Forma Basis in accordance
with the requirements of the definition of “Pro Forma Basis” contained herein.

          “Contingent Obligations” shall mean, as to any Person, any obligation of such Person
guaranteeing or intended to guarantee any Indebtedness, leases, dividends or other monetary
obligations including reimbursement obligations in respect of litigation bonds (the “primary
obligations”) of any other Person (the “primary obligor”) in any manner, whether
directly or indirectly, including, without limitation, any obligation of such Person, whether or
not contingent, (a) to purchase any such primary obligation or any property constituting direct or
indirect security therefor, (b) to advance or supply funds (i) for the purchase or payment of any
such primary obligation or (ii) to maintain working capital or equity capital of the primary
obligor or otherwise to maintain the net worth or solvency of the primary obligor, (c) to purchase
property, securities or services primarily for the purpose of assuring the owner of any such
primary obligation of the ability of the primary obligor to make payment of such primary obligation
or (d) otherwise to assure or hold harmless the owner of such primary obligation against loss in
respect thereof; provided, however, that the term Contingent Obligation shall not
include endorsements of instruments for deposit or collection in the ordinary course of business.
The amount of any Contingent Obligation shall be deemed to be an amount equal to the lesser of (x)
the maximum stated or determinable amount of such Contingent Obligation and (y) the stated or
determinable amount of the primary obligation in respect of which such Contingent Obligation is
made or, if not stated or determinable, the maximum reasonably anticipated liability in respect
thereof (assuming such Person is required to perform thereunder) as determined by such Person in
good faith.

          “Continuing Director” shall mean, at any date, an individual (x) who is a member of
the Board of Directors of Borrower on the Fourth Restatement Effective Date, (y) who, as at such
date, has been a member of such Board of Directors for at least the twelve preceding months, or (z)
who has been nominated, or designated by B&W Parent pursuant to a governance agreement, to be a
member of such Board of Directors by a majority of the other Continuing Directors then in office.

          “Conwood Holdings” shall mean Conwood Holdings, Inc. (f/k/a Pinch Acquisition Corp.),
a Wholly-Owned Subsidiary of the Borrower formed to acquire all of the capital stock of NA
Holdings, Inc. pursuant to the Acquisition.

          “Conwood Subsidiaries” shall mean, collectively, (i) Conwood Company, L.P., (ii)
Conwood Sales Co., L.P., (iii) Rosswil LLC and (iv) Scott Tobacco LLC.

          “Credit Card Issuer” shall mean JPMCB or any of its affiliates (even if JPMCB ceases
to be a Lender under the Credit Agreement for any reason) and their respective successors or
assigns.

          “Credit Documents” shall mean this Agreement, the Notes, the Subsidiary Guaranty, the
Intercompany Subordination Agreement and (if then in effect) the Security Documents.

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          “Credit Event” shall mean and include the making of a Loan and/or the issuance of a
Letter of Credit.

          “Credit Party” shall mean each of the Borrower, each Subsidiary Guarantor and, prior
to its dissolution as contemplated by Section 7.14, NA Holdings.

          “Cumulative Adjusted Net Income” shall mean, at any time for any determination
thereof, the sum of (i) Consolidated Net Income for the period (taken as one accounting period)
commencing on July 1, 2006 and ending on the last day of the last fiscal quarter of the Borrower
then ended plus (ii) all losses from debt retirement deducted in determining Consolidated
Net Income for the period referred to in clause (i) above plus (iii) all trademark and
goodwill amortization and all non-cash impairments of goodwill and trademarks (if any) of the
Borrower and its Subsidiaries for the period referred to in clause (i) above, in each case to the
extent deducted in determining such Consolidated Net Income for such period, less (iv) any
tax benefit relating to the losses described in preceding clause (ii) and included in determining
Consolidated Net Income for the period referred to in clause (i) above.

          “Currency Agreement” shall mean any foreign exchange contract, currency swap
agreement, futures contract, option contract, synthetic cap or other similar agreement designed to
protect the Persons entering into same against fluctuations in currency values.

          “Default” shall mean any event, act or condition which with notice or lapse of time,
or both, would constitute an Event of Default.

          “Defaulting Lender” shall mean any Lender with respect to which a Lender Default is in
effect.

          “Disqualified Preferred Stock” shall mean any Preferred Equity Interests of the
Borrower other than Qualified Preferred Stock.

          “Dividends” shall have the meaning provided in Section 8.05.

          “Documentation Agent” shall mean each of General Electric Capital Corporation and
Mizuho Corporate Bank. Ltd. and any successor to any such Person, by merger, consolidation or
otherwise.

          “Documents” shall mean and include (i) the Credit Documents, (ii) the Initial New
Senior Notes Documents, (iii) the Acquisition Documents and (iv) all other material documents,
agreements and instruments executed in connection with the Transaction.

          “Domestic Subsidiary” shall mean, as to any Person, any Subsidiary of such Person
incorporated or organized in the United States or any State or territory thereof.

          “Drawing” shall have the meaning provided in Section 2.04(b).

          “Eligible Transferee” shall mean and include a commercial bank, financial institution
or other “accredited investor” (as defined in SEC Regulation D); provided that Eligible

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Transferee shall not include any Person (or any Affiliate thereof) who competes with the Borrower
and its Subsidiaries in the tobacco business.

          “Environmental Laws” means all laws, rules, regulations, codes, ordinances, orders,
decrees, judgments, injunctions, notices or binding agreements issued, promulgated or entered into
by any Governmental Authority, relating in any way to the environment, preservation or reclamation
of natural resources, the management, release or threatened release of any Hazardous Material or to
health and safety matters.

          “Environmental Liability” means any liability, contingent or otherwise (including any
liability or damages, costs or environmental remediation, fines or penalties or indemnities), of
the Borrower or any Subsidiary directly or indirectly resulting from or based upon (a) violation of
any Environmental Law, (b) the generation, use, handling, transportation, storage, treatment or
disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the release or
threatened release of any Hazardous Materials into the environment or (e) any contract, agreement
or other consensual arrangement pursuant to which liability is assumed or imposed with respect to
any of the foregoing.

          “Equity Interests” of any Person shall mean any and all shares, interests, rights to
purchase, warrants, options, participation or other equivalents of or interest in (however
designated) equity of such Person, including any common stock, preferred stock, any limited or
general partnership interest and any limited liability company membership interest.

          “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended
from time to time, and the regulations promulgated and rulings issued thereunder. Section
references to ERISA are to ERISA, as in effect at the date of this Agreement and any subsequent
provisions of ERISA, amendatory thereof, supplemental thereto or substituted therefor.

          “ERISA Affiliate” shall mean each person (as defined in Section 3(9) of ERISA) which
together with the Borrower, any Subsidiary or any Credit Party would be deemed to be a “single
employer” within the meaning of Section 414(b), (c), (m) or (o) of the Code.

          “Eurodollar Loans” shall mean each Term Loan or Revolving Loan bearing interest at the
rates provided in Section 1.08(b).

          “Eurodollar Rate” shall mean, with respect to each Interest Period for a Eurodollar
Loan, (i) the rate per annum that appears on page 3750 of the Dow Jones Telerate Screen (or any
successor page) for Dollar deposits with maturities comparable to such Interest Period as of 11:00
A.M. (London time) on the date which is two (2) Business Days prior to the commencement of such
Interest Period or, if such a rate does not appear on page 3750 of the Dow Jones Telerate Screen
(or any successor page), the offered quotations to first-class banks in
the London interbank market by JPMCB for Dollar deposits of amounts in same day funds
comparable to the outstanding principal amount of such Dollar denominated Loan with maturities
comparable to such Interest Period determined as of 11:00 A.M. (London time) on the date which is
two Business Days prior to the commencement of such Interest Period divided (and rounded upward to
the next whole multiple of 1/16 of 1%) by (ii) a percentage equal to 100% minus the then stated
maximum rate of all reserve requirements (including, without limitation,

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any marginal, emergency,
supplemental, special or other reserves) applicable to any member bank of the Federal Reserve
System in respect of Eurocurrency liabilities as defined in Regulation D (or any successor category
of liabilities under Regulation D).

          “Event of Default” shall have the meaning provided in Section 9.

          “Excess Cash Flow” shall mean, for any period, the remainder of (a) the sum of,
without duplication, (i) Adjusted Consolidated Net Income for such period and (ii) the decrease, if
any, in Adjusted Consolidated Working Capital from the first day to the last day of such period,
minus (b) the sum of, without duplication, (i) the aggregate amount of all Capital
Expenditures made by the Borrower and its Subsidiaries during such period (other than Capital
Expenditures to the extent financed with equity proceeds, Equity Interests, asset sale proceeds,
insurance proceeds or Indebtedness), (ii) the aggregate amount of permanent principal payments of
Indebtedness for borrowed money of the Borrower and its Subsidiaries and the permanent repayment of
the principal component of Capitalized Lease Obligations of the Borrower and its Subsidiaries
during such period (other than (1) repayments made with the proceeds of asset sales, sales or
issuances of Equity Interests, insurance or Indebtedness and (2) payments of Loans and/or other
Obligations, provided that repayments of Loans shall be deducted in determining Excess Cash
Flow to the extent such repayments were (x) required as a result of a Scheduled Repayment pursuant
to Section 4.02(b) or (y) made as a voluntary prepayment pursuant to Section 4.01 with internally
generated funds), (iii) the increase, if any, in Adjusted Consolidated Working Capital from the
first day to the last day of such period, (iv) the aggregate amount of cash Dividends (including
stock repurchases) made or paid by the Borrower pursuant to Section 8.05(d) during such period and
(v) the aggregate amount of cash payments actually made by the Borrower and its Subsidiaries during
such period to fund pension liabilities of the Borrower and its Subsidiaries (whether made on a
voluntary basis or to comply with minimum contribution requirements of the applicable provisions of
the Code), to the extent the amount of such cash payments are not otherwise deducted in determining
Adjusted Consolidated Net Income; provided that in no event shall the aggregate amount
deducted from the calculation of “Excess Cash Flow” pursuant to this clause (v) as a result of a
voluntary funding of pension liabilities exceed $150,000,000.

          “Excess Cash Payment Date” shall mean the date occurring 110 days after the last day
of each fiscal year of the Borrower (commencing with the fiscal year of the Borrower ended December
31, 2007).

          “Excess Cash Payment Period” shall mean, with respect to the repayment required on
each Excess Cash Payment Date, the immediately preceding fiscal year of the Borrower.

          “Exchange Senior Notes” shall mean, collectively, the senior notes issued by the
Borrower pursuant to the New Senior Notes Indenture in exchange for Existing Senior Notes
pursuant to the “Note Exchange Offer” described in that certain Offer to Exchange and Consent
Solicitation Statement, dated May 19, 2006, having terms (other than interest rate and tenor)
identical to the Initial New Senior Notes, in each case as the same may be amended, modified,
and/or supplemented from time to time in accordance with the terms hereof and thereof.

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          “Excluded Collateral” shall mean (i) the Equity Interests of each Subsidiary of RJRTH
(other than Reynolds Tobacco) and the Excluded Joint Ventures, (ii) the leasehold interest and
rights of Reynolds Tobacco in and to property located at the Zachary Smith Reynolds Airport, under
a certain lease agreement with the Airport Commission of Forsyth County, dated January 1, 1980,
recorded in Book 1298, Page 1365, Forsyth County Registry, and assigned and transferred to Reynolds
Tobacco by its former parent company pursuant to an Assignment of Lease, dated April 27, 1989, to
the extent the grant of a leasehold mortgage in such leasehold is prohibited by the terms thereof,
(iii) any property or asset of Santa Fe or Lane other than (x) intellectual property and (y) any
property or asset a security interest in which can be perfected by the filing of a UCC financing
statement in any relevant jurisdiction, and (iv) at any time prior to the exchange of at least 51%
in aggregate principal amount of each series of Existing Senior Notes for Exchange Senior Notes
(and the elimination of the lien covenant in the indentures governing the same as consented to by
the requisite holders of the Existing Senior Notes), all indebtedness and other obligations owing
by a Subsidiary of RJRTH to RJRTH or any of its Subsidiaries.

          “Excluded Joint Ventures” shall mean and include Targacept, Inc., Large Scale Biology
Corporation and Technology Concepts and Design, Inc.

          “Existing Debt” shall mean the Indebtedness of the Subsidiaries of the Borrower
outstanding on the Fourth Restatement Effective Date and set forth in Annex VII (other than
Indebtedness evidenced by Initial New Senior Notes and Existing Senior Notes), provided
that such Indebtedness (excluding intercompany Indebtedness among the Borrower and its
Subsidiaries) shall not exceed $89,000,000 in aggregate outstanding principal amount.

          “Existing Interest Rate Swap Agreement” shall mean that certain Interest Rate Swap,
dated as of May 16, 2002, between the Borrower and Calyon (Ref #32834), as in effect on the Fourth
Restatement Effective Date.

          “Existing Letter of Credit” shall have the meaning provided in Section 2.01(c).

          “Existing Liens” shall mean the Liens on the assets and properties of the
Subsidiaries of the Borrower outstanding on the Fourth Restatement Effective Date and set forth in
Annex VI, provided that the Indebtedness secured by all such Liens shall not exceed
$3,000,000 in aggregate outstanding principal amount.

          “Existing Mortgage Policies” shall mean the Mortgage Policies for each Existing
Mortgaged Property pursuant to the Third Amended and Restated Credit Agreement.

          “Existing Mortgaged Properties” shall mean all real property of the Borrower and its
Subsidiaries listed on Annex VIII and designated as “Existing Mortgaged Properties” therein.

          “Existing Mortgages” shall mean all Mortgages granted by the Borrower and its
Subsidiaries pursuant to the Third Amended and Restated Credit Agreement and which have not been
released prior to the Fourth Restatement Effective Date.

          “Existing Senior Notes” shall mean, collectively, (i) RJRTH’s 6.50% Notes due June 1,
2007 in an initial aggregate principal amount equal to $300,000,000 (ii) RJRTH’s

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7.875% Notes due
May 15, 2009 in an initial aggregate principal amount equal to $200,000,000, (iii) RJRTH’s 6.50%
Notes due July 15, 2010 in an initial aggregate principal amount equal to $300,000,000, (iv)
RJRTH’s 7.25% Notes due June 1, 2012 in an initial aggregate principal amount equal to
$450,000,000, and (v) RJRTH’s 7.30% Notes due July 15, 2015 in an initial aggregate principal
amount equal to $200,000,000, in each case as the same may be amended, modified and/or supplemented
from time to time in accordance with the terms hereof and thereof.

          “Facilities” shall mean the credit facilities evidenced by the Agreement.

          “Facing Fee” shall have the meaning provided in Section 3.01(c).

          “Fair Market Value” shall mean, with respect to any asset (including any Equity
Interests of any Person), the price at which a willing buyer, not an Affiliate of the seller, and a
willing seller who does not have to sell, would agree to purchase and sell such asset, as
determined in good faith by senior management of the Borrower or its respective Subsidiary making
such sale.

          “Federal Funds Rate” shall mean for any period, a fluctuating interest rate equal for
each day during such period to the weighted average of the rates on overnight Federal Funds
transactions with members of the Federal Reserve System arranged by Federal Funds brokers, as
published for such day (or, if such day is not a Business Day, for the next preceding Business Day)
by the Federal Reserve Bank of New York, or, if such rate is not so published for any day which is
a Business Day, the average of the quotations for such day on such transactions received by the
Administrative Agent from three Federal Funds brokers of recognized standing selected by the
Administrative Agent.

          “Fees” shall mean all amounts payable pursuant to, or referred to in, Section 3.01.

          “FHS” shall mean FHS, Inc., a Delaware corporation, and any successor thereto by
merger, consolidation, reincorporation or otherwise.

          “First Amended and Restated Credit Agreement” shall have the meaning provided in the
first recital of this Agreement.

          “First Restatement Effective Date” shall mean the Restatement Effective Date under,
and as defined in, the First Amended and Restated Credit Agreement.

          “Fitch” shall mean Fitch Ratings.

          “Fourth Restatement Effective Date” shall have the meaning provided in Section 5.01.

          “Fourth Restatement Execution Date” shall have the meaning provided in Section 12.10.

          “GAAP” shall mean generally accepted accounting principles in the United States of
America as in effect from time to time; it being understood and agreed that determinations in

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accordance with GAAP for purposes of Section 8, including defined terms as used therein, shall be
made pursuant to Section 12.07(a).

          “GMB” shall mean GMB, Inc., a North Carolina corporation.

          “Government Acts” shall have the meaning provided in Section 2.06(a).

          “Governmental Authority” means the government of the United States of America, any
other nation or any political subdivision thereof, whether state or local, and any agency,
authority, instrumentality, regulatory body, court, central bank or other entity exercising
executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or
pertaining to government.

          “Granting Lender” shall have the meaning provided in Section 12.04.

          “Guaranteed Creditors” shall mean and include the Administrative Agent, the Collateral
Agent, each Lead Agent, each Lender, the Swingline Lender, each Letter of Credit Issuer, each
Credit Card Issuer, each party (other than any Credit Party) party to (or participating in) a
Hedging Agreement to the extent such party is a Lender or an affiliate thereof (even if such Lender
subsequently ceases to be a Lender under this Agreement for any reason) and their subsequent
assigns and Calyon, as counterparty to the Existing Interest Rate Swap Agreement.

          “Guaranteed Obligations” shall mean (x) all obligations (including obligations which,
but for the automatic stay under Section 362(a) of the Bankruptcy Code, would become due) and
liabilities of each Guaranteed Party owing under any Secured Credit Card Agreement entered into by
such Guaranteed Party with any Credit Card Issuer, whether now in existence or hereafter arising,
and the due performance and compliance by each Guaranteed Party with all terms, conditions and
agreements contained therein and (y) all obligations (including obligations which, but for the
automatic stay under Section 362(a) of the Bankruptcy Code, would become due) and liabilities of
each Guaranteed Party owing under any Hedging Agreement entered into by such Guaranteed Party with
any Guaranteed Creditor, whether now in existence or hereafter arising, and the due performance and
compliance by each Guaranteed Party with all terms, conditions and agreements contained therein.

          “Guaranteed Party” shall mean the Borrower and each other Subsidiary of the Borrower
(other than any Non-Guarantor Subsidiary) party to a Secured Credit Card Agreement with any Credit
Card Issuer or a Hedging Agreement with any Guaranteed Creditor.

          “Guarantor” shall mean the Borrower and each Subsidiary Guarantor.

          “Guaranty” shall mean and include the Subsidiary Guaranty and the Borrower Guaranty.

          “Guaranty Event” shall mean that the Applicable Corporate Credit Rating issued by at
least one Rating Agency is at least one level below the Minimum Investment Grade Rating.

          “Hazardous Materials” means all explosive or radioactive substances or wastes and all
hazardous or toxic substances, wastes or other pollutants, including petroleum or

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petroleum distillates, asbestos or asbestos containing materials, polychlorinated biphenyls, radon gas,
infectious or medical wastes and all other substances or wastes of any nature regulated pursuant to
any Environmental Law.

          “Hedging Agreements” shall mean and include Commodities Agreements, Currency
Agreements, Interest Rate Agreements and all other similar hedging arrangements.

          “Incremental Commitment Requirements” shall mean, with respect to any provision of an
Incremental RL Commitment on a given Incremental RL Commitment Date, the satisfaction of each of
the following conditions on or prior to the effective date of the respective Incremental RL
Commitment Agreement: (1) no Default or Event of Default then exists or would result therefrom,
(2) all of the representations and warranties contained herein and in the other Credit Documents
are true and correct in all material respects at such time (unless stated to relate to a specific
earlier date, in which case such representations and warranties shall be true and correct in all
material respects as of such earlier date); (3) calculations are made by the Borrower demonstrating
compliance with the covenants contained in Sections 8.07 and 8.08 for the Test Period most recently
ended prior to such date of effectiveness, on a Pro Forma Basis, as if the
Revolving Loans to be made pursuant to such Incremental RL Commitments (assuming the full
utilization thereof) had been incurred on the first day of such Test Period; (4) the delivery by
the Borrower to the Administrative Agent of an officer’s certificate executed by an Authorized
Officer of the Borrower and certifying as to compliance with preceding clauses (1), (2) and (3) and
containing the calculations (in reasonable detail) required by preceding clause (3); (5) the
delivery by the Borrower to the Administrative Agent of an acknowledgement in form and substance
reasonably satisfactory to the Administrative Agent and executed by each Subsidiary Guarantor,
acknowledging that such Incremental RL Commitment and all credit extensions subsequently made
pursuant to such Incremental RL Commitment shall constitute (and be included in the definition of)
“Guaranteed Obligations” under the Subsidiary Guaranty; (6) the delivery by the Borrower to the
Administrative Agent of an opinion or opinions, in form and substance reasonably satisfactory to
the Administrative Agent, from counsel to the Credit Parties reasonably satisfactory to the
Administrative Agent and dated such date, covering such of the matters set forth in the opinions of
counsel delivered to the Administrative Agent on the Fourth Restatement Effective Date pursuant to
Section 5.01 as may be reasonably requested by the Administrative Agent, and such other matters
incident to the transactions contemplated thereby as the Administrative Agent may reasonably
request, (7) the delivery by the Borrower and the other Credit Parties to the Administrative Agent
of such other officers’ certificates, board of director resolutions and evidence of good standing
as the Administrative Agent shall reasonably request and (8) the completion by the Borrower and the
other Credit Parties of such other actions as the Administrative Agent may reasonably request in
connection with the provision of such Incremental RL Commitment.

          “Incremental RL Commitment” shall mean, for any Lender, any commitment by such Lender
to make Revolving Loans pursuant to Section 1.16(b) as agreed to by such Lender
in the respective Incremental RL Commitment Agreement delivered pursuant to Section 1.16; it
being understood, however, that on each date upon which an Incremental RL Commitment of any Lender
becomes effective, such Incremental RL Commitment of such Lender shall be added to (and thereafter
become a part of) the Revolving Loan Commitment of such Lender for all purposes of this Agreement
as contemplated by Section 1.16.

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          “Incremental RL Commitment Agreement” shall mean each Incremental RL Commitment
Agreement in the form of Exhibit K (appropriately completed) executed in accordance with Section
1.16.

          “Incremental RL Commitment Date” shall mean each date upon which an Incremental RL
Commitment under an Incremental RL Commitment Agreement becomes effective as provided in Section
1.16(b).

          “Incremental RL Lender” shall have the meaning specified in Section 1.16(b).

          “Indebtedness” of any Person shall mean (i) all indebtedness of such Person for
borrowed money, (ii) the deferred purchase price of assets or services which in accordance with
GAAP would be shown on the liability side of the balance sheet of such Person, (iii) the maximum
amount available to be drawn or paid under all letters of credit, bankers’ acceptances, bank
guaranties issued for the account of such Person and all unpaid drawings and unreimbursed payments
in respect of such letters of credit, bankers’ acceptances and bank guaranties, (iv) 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, (v) all Indebtedness of a second
Person secured by any Lien on any property owned by such first Person, whether or not such
Indebtedness has been assumed, (vi) all Capitalized Lease Obligations of such Person, (vii) all
obligations of such Person to pay a specified purchase price for goods or services whether or not
delivered or accepted, i.e., take-or-pay and similar obligations, (viii) all obligations of
such Person under Hedging Agreements and (ix) all Contingent Obligations of such Person,
provided that Indebtedness shall not include (x) trade payables and accrued expenses, in
each case arising in the ordinary course of business and (y) 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; and provided, further, that (a) for the purposes of Section 9.04, the
amount of Indebtedness represented by any Hedging Agreement shall be at any time the unrealized net
loss position, if any, of the Borrower and/or its Subsidiaries thereunder on a marked-to-market
basis determined no more than one month prior to such time and (b) for the purposes of determining
the Indebtedness permitted to be secured pursuant to Section 8.03(j) or outstanding under Section
8.04(o), the amount of Indebtedness included in such determination that is attributable to all
Hedging Agreements secured or permitted thereunder, as the case may be, shall be an amount equal to
the Net Termination Value, if any, of all such Hedging Agreements (less, in the case of any
determination of Indebtedness permitted to be outstanding under Section 8.04(o) only, the aggregate
amount of cash and cash equivalents pledged to secure obligations under all such Hedging Agreements
pursuant to customary cash collateral arrangements).

          “Indemnitee” shall have the meaning provided in Section 12.01.

          “Information” shall have the meaning provided in Section 12.15.

          “Initial New Senior Notes” shall mean, collectively, (i) the Borrower’s 7.25% Senior
Secured Notes due 2013 in an initial aggregate principal amount equal to $625,000,000,

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(ii) the Borrower’s 7.625% Senior Secured Notes due 2016 in an initial aggregate principal amount equal to
$775,000,000 and (iii) the Borrower’s 7.75% Senior Secured Notes due 2018 in an initial aggregate
principal amount equal to $250,000,000, in each case issued pursuant to the New Senior Notes
Indenture, as in effect on the Fourth Restatement Effective Date and as the same may be amended,
modified and/or supplemented from time to time in accordance with the terms hereof and thereof.

          “Initial New Senior Notes Documents” shall mean (i) the Initial New Senior Notes, (ii)
the New Senior Notes Indenture and (iii) all other documents executed and delivered in connection
with the issuance of the Initial New Senior Notes, as in effect on the Fourth Restatement Effective
Date and as the same may be amended, modified and/or supplemented from time to time in accordance
with the terms hereof and thereof.

          “Insignificant Subsidiary” shall mean, at any time, any Subsidiary of the Borrower
(other than any Subsidiary Guarantor) the gross book value of the assets of which does not exceed
$10,000,000.

          “Intercompany Loans” shall have the meaning provided in Section 8.09(i).

          “Intercompany Subordination Agreement” shall have the meaning provided in Section
5.01K.

          “Interest Period” shall mean, with respect to any Loan, the interest period applicable
thereto, as determined pursuant to Section 1.09.

          “Interest Rate Agreement” shall mean any interest rate swap agreement, interest rate
cap agreement, interest rate collar agreement, interest rate futures contract, interest rate option
contract or other similar agreement or arrangement.

          “Investment Equities” shall mean and include (x) equity securities (i) of any entity
in which the Borrower and its Subsidiaries do not collectively own more than 5% of the outstanding
equity securities of such entity, (ii) which are listed and regularly traded on a nationally
recognized U.S. stock exchange or market and (iii) which are not restricted as to resale by the
Borrower or its Subsidiaries (whether by contract, law or otherwise), (y) preferred stock and/or
“income notes” of any investment vehicle owned by the Borrower or any of its Subsidiaries, so long
as (i) such investment vehicle invests solely in debt securities and (ii) the aggregate amount of
cash used to acquire such preferred stock after the Fourth Restatement Effective Date does not
exceed $35,000,000 and (z) the Equity Interests of the Excluded Joint Ventures owned by the
Borrower or any of its Subsidiaries.

          “Investments” shall have the meaning provided in Section 8.09.

          “JPMCB” shall mean JPMorgan Chase Bank, N.A. and any successor corporation thereto by
merger, consolidation or otherwise.

          “Lane” shall mean Lane Limited, a New York corporation.

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          “LCPI” shall mean Lehman Commercial Paper Inc. and any successor corporation thereto
by merger, consolidation or otherwise.

          “L/C Termination Date” shall mean the fifth Business Day preceding the Revolving Loan
Maturity Date.

          “Lead Agent” shall mean and include JPMCB and LCPI and any successor to either thereof
appointed pursuant to Section 11.09, it being understood that such term, when used herein, shall
include JPMCB or LCPI, as the case may be, acting in its capacity as Administrative Agent,
Collateral Agent or Syndication Agent, as applicable.

          “Lender” shall have the meaning provided in the first paragraph of this Agreement.

          “Lender Default” shall mean (i) the refusal (which has not been retracted) of a Lender
to make available its portion of any Borrowing or to fund its portion of any unreimbursed payment
under Section 2.03(c) or (ii) a Lender having notified any Lead Agent and/or the Borrower that it
does not intend to comply with its obligations under Section 1.01(a) or 1.01(c) or under Section
2.03(c), in the case of either (i) or (ii) as a result of the appointment of a receiver or
conservator with respect to such Lender at the direction or request of any regulatory agency or
authority.

          “Letter of Credit” shall mean each standby letter of credit issued pursuant to Section
2.01.

          “Letter of Credit Fee” shall have the meaning provided in Section 3.01(b).

          “Letter of Credit Issuer” shall mean and include (i) JPMCB, (ii) each other Lender
requested by the Borrower to issue Letters of Credit to the extent consented to by such Lender and
(iii) with respect to the Existing Letters of Credit, the Lender designated as the issuer thereof
on Annex III.

          “Letter of Credit Outstandings” shall mean, at any time, the sum of, without
duplication, (i) the aggregate Stated Amount of all outstanding Letters of Credit and (ii) the
aggregate amount of all Unpaid Drawings in respect of all Letters of Credit (in the case of Letters
of Credit denominated in a currency other than U.S. Dollars, calculating the Stated Amount and
Unpaid Drawings with respect thereto in accordance with the requirements of Section 12.07(c)).

          “Letter of Credit Request” shall have the meaning provided in Section 2.02.

          “Lien” shall mean any mortgage, pledge, security interest, encumbrance, lien or charge
of any kind (including any agreement (other than customary negative pledge clauses) to
give any of the foregoing, any conditional sale or other title retention agreement or any
lease in the nature thereof).

          “Litigation Bond” shall mean any surety bond, supersedeas bond, judgment bond or other
bond or insurance policy issued for bonding litigation judgments for appeal.

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          “Loan” shall mean any Term Loan, Revolving Loan or Swingline Loan.

          “Mandatory Borrowing” shall have the meaning provided in Section 1.01(c).

          “Margin Stock” shall have the meaning provided in Regulation U.

          “Marketable Investments” shall mean, as to any Person, (i) securities issued or
directly and fully guaranteed or insured by the United States or any agency or instrumentality
thereof having maturities of not more than two years from the date of acquisition, (ii) marketable
direct obligations issued by any state of the United States or any political subdivision of any
such state or any public instrumentality thereof maturing within two years from the date of
acquisition thereof and, at the time of acquisition, having one of the two highest ratings
obtainable from S&P, Moody’s or Fitch, (iii) Dollar denominated domestic and Eurodollar time
deposits, domestic and Yankee certificates of deposit and bank obligations and bankers acceptances
of any Lender or any commercial bank having, or which is the principal banking subsidiary of a bank
holding company having, a long-term unsecured debt rating of at least “A” or the equivalent thereof
from S&P or Fitch or “A2” or the equivalent thereof from Moody’s with maturities of not more than
two years from the date of acquisition by such Person, (iv) repurchase obligations with a term of
not more than one year and collateralized with US Treasury, US Government Agency or other permitted
investments consistent with the Borrower’s corporate guidelines and which have a collateral margin
of at least 102%, marked to market daily, (v) commercial paper, extendable commercial notes and
master notes issued by any Person incorporated in the United States and euro-commercial paper of
domestic and foreign companies rated at least A-1 or the equivalent thereof by S&P or at least P-1
or the equivalent thereof by Moody’s or at least F-1 by Fitch and in each case maturing not more
than 397 days after the date of acquisition by such Person, (vi) U.S. dollar denominated commercial
paper or Canadian dollar commercial paper and government obligations of Canada, fully hedged, of
Canadian companies whose commercial paper is rated R-1 by Dominion Bond Rating Service, (vii)
investments in 2a-7 money market funds, (viii) corporate bonds and medium term notes rated at least
“A” by S&P and/or Fitch and/or “A2” by Moody’s with maturities of not more than two years from the
date of acquisition by such Person, (ix) asset-backed securities and mortgage-backed securities
rated “A” or better by any of S&P, Moody’s or Fitch with maturities or rate reset dates of not more
than two years from the date of acquisition by such Person, (x) taxable money market preferred
(including but not limited to taxable auction debt) instruments rated at least “A” by S&P and/or
Moody’s and/or Fitch and redeemable at par with a rollover period no longer than six months, (xi)
tax exempt debt and par value preferred instruments rate at least “A” or the equivalent by S&P
and/or Moody’s and/or Fitch and redeemable at par with a rollover period no longer than six months,
(xii) domestic and international equity and bond funds (including indexed funds) with a “market
capitalization” or “assets under management” of not less than $500,000,000, (xiii) separate account
portfolios managed by registered investment advisors with guidelines adhering substantially to the
securities above (it being understood, however, that, for purposes of clause
(viii) above, a bond portfolio that holds corporate bonds and medium term notes rated at least
“BBB” by S&P and/or Fitch and/or “Baa2” by Moody’s (and with maturities of not more than two years
from the date of acquisition) shall be considered to adhere “substantially to the guidelines” in
clause (viii) above, so long as such bond portfolio holds securities that (on a blended basis)
satisfy the rating requirements for securities of the type described in clause (viii) above), and
(xiv) separate account portfolios which (x) constitute “current assets” within the

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meaning of the definition of “Consolidated Current Assets”, (y) are managed by a registered investment advisor and
(z) invest in securities of the type described in clauses (i) and (ii) above, except that the
underlying securities may have maturities in excess of two years, so long as the underlying
securities held in such account portfolio have an average duration of not more than five years;
provided that the fair market value of all funds of the type described in this clause (xiv)
owned or held by the Borrower and its Subsidiaries shall not exceed $500,000,000.

          “Material Adverse Effect” shall mean (A) as such term is used in any representation or
warranty to be made, any covenant to be undertaken, any condition to be satisfied or any Default or
Event of Default to be determined, in any such case on the Fourth Restatement Effective Date, a
material adverse condition or material adverse change in or affecting the business, financial
condition, results of operations, assets or liabilities of the Borrower and its Subsidiaries, taken
as a whole, after giving effect to the Acquisition; provided, however, that any
adverse event, development or circumstance attributable to the following shall, in each case, be
excluded from such determination to the extent any such event, development or circumstance does not
have a disproportionate adverse effect on the Borrower and its Subsidiaries, taken as a whole,
after giving effect to the Acquisition, as compared to other entities engaged in the industry in
which the Borrower and its Subsidiaries, taken as a whole, after giving effect to the Acquisition
operates in general: (1) any adoption, implementation, promulgation, repeal, modification,
reinterpretation or proposal of any rule, regulation, ordinance, order, guidance, protocol or any
other law of or by any governmental authority; and (2) any change or development in financial or
securities markets or the economy in general or relating to the industry in which the Borrower and
its Subsidiaries, taken as a whole, after giving effect to the Acquisition, operates in general
(including any legal action against any entities (other than the Borrower and its Affiliates)
engaged in the industry in which the Borrower and its Subsidiaries, taken as a whole, after giving
effect to the Acquisition operates in general) and (B) as such term is used in any representation
or warranty to be made, any covenant to be undertaken, any condition to be satisfied or any Default
or Event of Default to be determined, in any such case at any time after the Fourth Restatement
Effective Date, a material adverse effect on (i) the operations, business, property, assets or
financial condition of the Borrower and its Subsidiaries taken as a whole, (ii) the rights or
remedies of the Agents and the Lenders or the ability of any Credit Party to perform its
obligations to the Agents or the Lenders hereunder or under any other Credit Document to which it
is party, and/or (iii) in the case of Section 5.01G and Section 6.04, on the prospects of the
Borrower and its Subsidiaries taken as a whole, provided that (x) the existence of, or the
rendering of any verdict or entry of any order, injunction or judgment in, any action, suit,
proceeding or inquiry listed on Annex IV will not have a “Material Adverse Effect” for purposes of
Section 6.04 and (y) (I) the existence of, or the rendering of, any verdict or entry of any order,
injunction or judgment that in each case can be stayed pending appeal (but only for so long as such
stay can still be obtained) or that is stayed pending appeal and (II) the posting of a supersedeas
or other appeal bond in respect of any verdict, order or judgment shall not, in each case, in and
of itself have a “Material Adverse
Effect” for purposes of Section 5.01G or Section 6.09(d), even if such verdict, order or
judgment could be viewed as having a material adverse effect on future litigation prospects, unless
such verdict, order or judgment results in an actual material adverse effect on the operations,
business, property, assets or financial condition of the Borrower and its Subsidiaries taken as a
whole. It is understood and agreed that for purposes of any condition to be satisfied, or
representation or

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warranty to be made, on the Fourth Restatement Effective Date references in this
definition to “Borrower and its Subsidiaries” shall include the Acquired Business.

          “Material Subsidiary” shall mean and include RJRTH, each of the Conwood Subsidiaries
referred to in clauses (i), (ii) and (iii) of the definition of “Conwood Subsidiary”, Santa Fe,
Lane, Reynolds Tobacco, Acquisition Corp., each of the Specified Subsidiaries and each other
Subsidiary of the Borrower (including any Person first becoming a Subsidiary upon consummation of a
Permitted Acquisition) to the extent that (x) the aggregate book value of the assets of such other
Subsidiary, determined on a consolidating basis, is equal to or more than $100,000,000 or (y) the
net sales of such other Subsidiary during its then most recently ended fiscal year, determined on a
consolidating basis, were equal to or more than $100,000,000, provided that such net sales
shall be determined on a pro forma basis for the 12 months last ended when
determining whether any Person that is the survivor of any merger or consolidation or that is the
transferee of any property or assets from other Subsidiaries of the Borrower is a Material
Subsidiary.

          “Material Subsidiary Threshold Event” shall mean the occurrence of either of the
following events: (i) the aggregate book value of the assets of all Subsidiaries of the Borrower
which (x) do not constitute Material Subsidiaries in accordance with the definition thereof or (y)
are not then party to the Subsidiary Guaranty (and, if a Trigger Event is then in existence, the
relevant Security Documents), exceeds $250,000,000 or (ii) the net sales of all Subsidiaries of the
Borrower which (x) do not constitute Material Subsidiaries in accordance with the definition
thereof or (y) are not then party to the Subsidiary Guaranty (and, if a Trigger Event is then in
existence, the relevant Security Documents), exceeds $200,000,000.

          “Maturity Date” shall mean, with respect to the relevant Tranche of Loans, the Term
Loan Maturity Date, the Revolving Loan Maturity Date or the Swingline Maturity Date, as the case
may be.

          “Minimum Borrowing Amount” shall mean (i) with respect to a Borrowing of Term Loans,
$10,000,000, (ii) with respect to a Borrowing of Revolving Loans, $10,000,000 and (iii) with
respect to a Borrowing of Swingline Loans, $5,000,000.

          “Minimum Investment Grade Rating” shall mean the lowest rating level established as
investment grade by each Rating Agency; it being understood that, as of the Fourth Restatement
Effective Date, the “Minimum Investment Grade Rating” of S&P is BBB- and the “Minimum Investment
Grade Rating” of Moody’s is Baa3.

          “Moody’s” shall mean Moody’s Investors Service, Inc., or any successor corporation
thereto.

          “Mortgage” shall mean each mortgage, deed of trust or deed to secure debt required to
be delivered with respect to any real property pursuant to the terms of this Agreement (including,
after the execution and delivery thereof, each Mortgage required pursuant to Section 7.10),
together with any assignment of leases and rents to be executed in connection therewith (as
amended, modified or supplemented from time to time in accordance with the terms hereof and
thereof).

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          “Mortgage Amendment” shall have the meaning provided in Section 5.01N.

          “Mortgage Policy” shall mean each mortgage title insurance policy (and all
endorsements thereto) for each Mortgaged Property required to be delivered pursuant to this
Agreement.

          “Mortgaged Properties” shall mean the Existing Mortgaged Properties and the New
Mortgaged Properties and shall include any real property mortgaged pursuant to Section 7.10.

          “NA Holdings” shall mean NA Holdings, Inc., a Delaware corporation formed to hold all
of the Equity Interests of the Conwood Subsidiaries to be acquired in connection with the
Acquisition.

          “Net Cash Proceeds” shall mean for any event requiring a repayment of Term Loans
pursuant to Section 4.02, the gross cash proceeds (including any cash received by way of deferred
payment pursuant to a promissory note, receivable or otherwise, but only as and when received)
received from such event, net of reasonable transaction costs (including, as applicable, any
underwriting, brokerage or other customary commissions and reasonable legal, advisory and other
fees and expenses associated therewith) paid or incurred in connection with any such event.

          “Net Termination Value” shall mean at any time, with respect to all Hedging Agreements
for which a Net Termination Value is being determined, the excess, if positive, of (i) the
aggregate of the unrealized net loss position of the Borrower and/or its Subsidiaries under each of
such Hedging Agreements on a marked-to-market basis determined no more than one month prior to such
time less (ii) the aggregate of the unrealized net gain position of the Borrower and/or its
Subsidiaries under each of such Hedging Agreements on a marked-to-market basis determined no more
than one month prior to such time.

          “New Senior Notes” shall mean (i) the Initial New Senior Notes, (ii) the Exchange
Senior Notes and (iii) the Additional Senior Notes, in each case as the same may be amended,
modified and/or supplemented from time to time in accordance with the terms hereof and thereof.

          “New Senior Notes Documents” shall mean (i) the New Senior Notes, (ii) the New Senior
Notes Indenture and (iii) all other documents executed and delivered in connection with any
issuance of the New Senior Notes, in each case as the same may be amended, modified and/or
supplemented from time to time in accordance with the terms hereof and thereof.

          “New Senior Notes Indenture” shall mean the Indenture, dated as of May 31, 2006, among
the Borrower, the Subsidiary Guarantors and The Bank of New York, as trustee, as
in effect on the Fourth Restatement Effective Date and as the same may be amended, modified
and/or supplemented from time to time in accordance with the terms hereof and thereof.

          “New Mortgaged Properties” shall mean each Mortgaged Property designated as such on
Annex VIII hereto.

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          “Non-Declared Dividend” shall mean and include, as to any Person, (i) the redemption,
retirement, purchase, or other acquisition, directly or indirectly, for a consideration, of any
shares of any class of its capital stock or of any other Equity Interests of such Person
outstanding on the Fourth Restatement Effective Date or thereafter (or any warrants for or options
or stock or similar appreciation rights in respect of any such shares or Equity Interests but not
including any convertible debt) or the setting aside of any funds for any of the foregoing purposes
and (ii) the making or payment of any other Dividend on or after the Fourth Restatement Effective
Date by such Person which does not require or involve a declaration or authorization by such
Person.

          “Non-Defaulting Lender” shall mean and include each Lender other than a Defaulting
Lender.

          “Non-Defaulting RL Lender” shall mean each RL Lender which is not a Defaulting Lender.

          “Non-Guarantor Subsidiary” shall mean (i) on the Fourth Restatement Effective Date,
each Subsidiary of the Borrower listed on Part B of Annex V and (ii) after the Fourth Restatement
Effective Date, any Subsidiary of the Borrower that is not at such time a Subsidiary Guarantor.

          “Non-Wholly Owned Subsidiary” shall mean, as to any Person, each Subsidiary of such
Person which is not a Wholly-Owned Subsidiary of such Person.

          “Note” shall have the meaning provided in Section 1.05(a).

          “Notice of Borrowing” shall have the meaning provided in Section 1.03(a).

          “Notice of Conversion” shall have the meaning provided in Section 1.06.

          “Obligations” shall mean all amounts, direct or indirect, contingent or absolute, of
every type or description, and at any time existing, owing to any Lead Agent, the Administrative
Agent, the Collateral Agent, any Letter of Credit Issuer, the Swingline Lender or any Lender
pursuant to the terms of this Agreement or any other Credit Document.

          “Original Credit Agreement” shall mean the Credit Agreement, dated as of May 7, 1999,
among the Borrower and certain financial institutions, as in effect on the First Restatement
Effective Date (immediately prior to giving effect thereto).

          “Original Effective Date” shall mean the “Closing Date” under, and as defined in, the
Original Credit Agreement.

          “Original Execution Date” shall mean the “Execution Date” under, and as defined in,
the Original Credit Agreement.

          “Participant” shall have the meaning provided in Section 2.03(a).

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          “PBGC” shall mean the Pension Benefit Guaranty Corporation established pursuant to
Section 4002 of ERISA, or any successor thereto.

          “Permanent Surplus Cash” shall mean cash on hand and Marketable Investments at the
Borrower and its Domestic Subsidiaries that has not been designated to be used to pay income,
excise or other taxes or to make settlement payments in respect of tobacco liability,
provided that the lesser of (i) $100,000,000 and (ii) the total amount of cash on hand in
the cash management systems of the Borrower and its Domestic Subsidiaries, shall be excluded from
Permanent Surplus Cash.

          “Permitted Acquisition” shall mean the acquisition by the Borrower or a Wholly-Owned
Domestic Subsidiary of the Borrower of an Acquired Entity or Business (including by way of merger
of such Acquired Entity or Business with and into the Borrower (so long as the Borrower is the
surviving corporation) or a Wholly-Owned Domestic Subsidiary of the Borrower (so long as if such
Wholly-Owned Domestic Subsidiary is a Subsidiary Guarantor, such Subsidiary Guarantor is the
surviving corporation)), provided that (in each case) (A) the consideration paid or to be
paid by the Borrower or such Wholly-Owned Domestic Subsidiary consists solely of cash (including
proceeds of Revolving Loans or Swingline Loans), Borrower Common Stock, contingent earn-outs to be
paid in cash or Borrower Common Stock, the issuance or incurrence of Indebtedness (including
earn-outs) otherwise permitted by Section 8.04 and the assumption/acquisition of any Indebtedness
(calculated at face value) which is permitted to remain outstanding in accordance with the
requirements of Section 8.04, (B) in the case of the acquisition of 100% of the Equity Interests of
any Acquired Entity or Business (including by way of merger), such Acquired Entity or Business
shall own no Equity Interests of any other Person unless either (x) such Acquired Entity or
Business owns 100% of the Equity Interests of such other Person or (y) if such Acquired Entity or
Business owns Equity Interests in any other Person which is a Non-Wholly Owned Subsidiary of such
Acquired Entity or Business, (1) such Acquired Entity or Business shall not have been created or
established in contemplation of, or for purposes of, the respective Permitted Acquisition, (2) any
such Non-Wholly Owned Subsidiary of the Acquired Entity or Business shall have been a Non-Wholly
Owned Subsidiary of such Acquired Entity or Business prior to the date of the respective Permitted
Acquisition and shall not have been created or established in contemplation thereof and (3) such
Acquired Entity or Business and/or its Wholly-Owned Subsidiaries own at least 90% of the total
value of all the assets owned by such Acquired Entity or Business and its subsidiaries (for
purposes of such determination, excluding the value of the Equity Interests of Non-Wholly Owned
Subsidiaries held by such Acquired Entity or Business and its Wholly-Owned Subsidiaries), (C) all
of the business, division or product line acquired pursuant to the respective Permitted
Acquisition, or the business of the Person acquired pursuant to the respective Permitted
Acquisition and its Subsidiaries taken as a whole, is in the United States, provided,
however, the respective proposed Permitted Acquisition shall not be required to meet the
requirements set forth above in this clause (C) if the Aggregate Consideration payable in
connection with the portion of the Acquired Business or Entity acquired pursuant to such Permitted
Acquisition that does not meet the
requirements of clause (C) (as determined in good faith by the Borrower), when aggregated with
the Aggregate Consideration payable in connection with the portions of all other Acquired
Businesses or Entities acquired pursuant to Permitted Acquisitions consummated after the Fourth
Restatement Effective Date that do not meet the foregoing requirements of this clause (C) (as
determined in good faith by the Borrower), does not exceed $100,000,000, (D) after giving effect

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to the respective Permitted Acquisition, the Borrower and its Subsidiaries are in compliance with
Section 8.01, (E) in the case of the acquisition of 100% of the Equity Interests of any Acquired
Entity or Business, if the respective Acquired Entity or Business so acquired would be a Material
Subsidiary after giving effect to such Permitted Acquisition, such Acquired Entity or Business
shall become a Subsidiary Guarantor upon the consummation of such Permitted Acquisition and takes
all of the actions specified in Section 8.02(h)(y)(II), (F) in the case of a Permitted Acquisition
by a Wholly-Owned Domestic Subsidiary that is not a Material Subsidiary but that, after giving
effect to such Permitted Acquisition, will become a Material Subsidiary, such Wholly-Owned Domestic
Subsidiary shall become a Subsidiary Guarantor upon the consummation of such Permitted Acquisition
and take all of the actions specified in Section 8.02(h)(y)(II), and (G) in the case of a Permitted
Acquisition by any Credit Party while a Trigger Event is in effect, take all other actions
specified in Section 7.10(b) as may be requested by the Administrative Agent. Notwithstanding
anything to the contrary contained in the immediately preceding sentence, an acquisition which does
not otherwise meet the requirements set forth above in the definition of “Permitted Acquisition”
shall constitute a Permitted Acquisition if, and to the extent, the Required Lenders agree in
writing, prior to the consummation thereof, that such acquisition shall constitute a Permitted
Acquisition for purposes of this Agreement.

          “Permitted Currency Agreement” shall mean any Currency Agreement entered into in the
ordinary course of business by the Borrower and/or any Subsidiary of the Borrower with any Lender
or Lenders (and/or their affiliates) to the extent consistent with the practices of the Borrower
and its Subsidiaries prior to the Fourth Restatement Effective Date or with then current practices
in the industry and so long as the entering into of any such Currency Agreement is a bona fide
hedging activity and not for speculative purposes.

          “Permitted Encumbrance” shall mean, with respect to any Mortgaged Property, such
exceptions to title as are set forth in the Mortgage Policy delivered with respect thereto, all of
which exceptions must be acceptable to the Administrative Agent in its reasonable discretion.

          “Permitted Interest Rate Agreements” shall mean, collectively, (i) Interest Rate
Agreements entered into in the ordinary course of business by the Borrower and/or any Subsidiary
Guarantor with any financial institution that is a Lender (and/or an affiliate of any Lender) at
the time of the entering into of any such Interest Rate Agreement, so long as the entering into of
any such Interest Rate Agreement is a bona fide hedging activity and not for speculative purposes
and (ii) the Existing Interest Rate Swap Agreement.

          “Permitted Liens” shall have the meaning provided in Section 8.03.

          “Permitted Litigation Bonding” shall mean the making of deposits with the proceeds of
Loans and/or the issuance of Letters of Credit, in each case for the purposes of bonding litigation
judgments entered against any Credit Party after the Fourth Restatement Effective Date,
provided that, at the time of the making of any such Loan or issuance of any such Letter of
Credit, and after deducting any usage by the Credit Parties of Permanent Surplus Cash in
accordance with Section 8.03(f) to effect such bonding of litigation judgments, the amount of
Permanent Surplus Cash shall be zero, provided, further, however, that, in
the event a bonding company requires its bond to be supported by a letter of credit instead of
cash, Letters of Credit will be available for bonding litigation judgments before all such
Permanent Surplus Cash has

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been utilized for such purpose, if and only if the Letters of Credit so
issued are cash collateralized with the Permanent Surplus Cash otherwise required to be used for
such purpose pursuant to cash collateral arrangements in form and substance satisfactory to the
Lead Agents.

          “Permitted Obligations” shall mean and include obligations (i) to pay taxes, (ii) to
pay import duties, to post customs bonds and otherwise in connection with customs and trade laws,
(iii) to purchase equipment or fixtures and otherwise in connection with capital expenditures, (iv)
in connection with the importation or purchase of tobacco or other products or goods for use in the
day-to-day operations of the Borrower and any Subsidiary of the Borrower consistent with the
practices of the Borrower and its Subsidiaries in effect prior to the Fourth Restatement Effective
Date or with then current practices in the industry, (v) to make utility payments, (vi) in
connection with worker’s compensation obligations or other employee disability obligations, (vii)
to provide credit support for any of the foregoing, (viii) in respect of employee loans made in
connection with transfers, (ix) to provide credit support for suppliers and distributors in the
ordinary course of business, and (x) to support Indebtedness supported by Existing Letters of
Credit on the Fourth Restatement Effective Date.

          “Person” shall mean any individual, partnership, limited liability company, joint
venture, firm, corporation, association, trust or other enterprise or any government or political
subdivision or any agency, department or instrumentality thereof.

          “Plan” shall mean any multiemployer or single-employer plan as defined in Section 4001
of ERISA, which is maintained or contributed to by (or to which there is an obligation to
contribution of), or at any time during the five calendar years preceding the date of this
Agreement was maintained or contributed to by (or to which there is an obligation to contribution
of), the Borrower, any Subsidiary of the Borrower or an ERISA Affiliate.

          “Pledge Agreement” shall have the meaning provided in Section 5.01L.

          “Post-Closing Integration Charges” shall mean integration charges actually accrued or
recorded by the Borrower and its Subsidiaries during the period commencing on the Fourth
Restatement Effective Date and ending on December 31, 2007 in connection with the severance of
employees, the relocation of offices, equipment and employees, the payment of professional fees,
other Acquisition related integration costs and the amortization of related intangibles following
the consummation of the Acquisition; provided that the aggregate amount of such charges (to
the extent provided for as an add-back pursuant to the definitions of “Consolidated EBITDA”) shall
not exceed $45,000,000 in the aggregate (determined on a pre-tax basis).

          “Pounds Sterling” shall mean freely transferable lawful money of the United Kingdom
(expressed in Pounds Sterling).

          “Preferred Equity Interests” as applied to the Equity Interests of any Person, means
capital stock of such Person (other than common Equity Interests of such Person) of any class or
classes (however designated) that ranks prior, as to the payment of dividends or as to the
distribution of assets upon any voluntary or involuntary liquidation, dissolution or winding up of

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such Person, to Equity Interests of any other class of Equity Interests of such Person, and shall
include any Qualified Preferred Stock and any Disqualified Preferred Stock.

          “Pricing End Date” shall mean, with respect to any Pricing Start Date for a given
Quarterly Pricing Certificate, the earlier to occur of (x) the date on which the next Quarterly
Pricing Certificate is delivered to the Administrative Agent or (y) the date which is 45 days
following the last day of the Test Period in which such Pricing Start Date occurred.

          “Pricing Start Date” shall have the meaning provided in the definition of “Applicable
Margin”.

          “Pro Forma Basis” shall mean, in connection with any calculation of compliance with
any financial covenant or financial term, the calculation thereof after giving effect on a
pro forma basis to (x) the incurrence of any Indebtedness (other than revolving
Indebtedness, except to the extent same is incurred to refinance other outstanding Indebtedness or
to finance a Permitted Acquisition) after the first day of the relevant Calculation Period or Test
Period, as the case may be, as if such Indebtedness had been incurred (and the proceeds thereof
applied) on the first day of such Test Period or Calculation Period, as the case may be, (y) the
permanent repayment of any Indebtedness (other than revolving Indebtedness, except to the extent
accompanied by a corresponding permanent commitment reduction) after the first day of the relevant
Test Period or Calculation Period, as the case may be, as if such Indebtedness had been retired or
repaid on the first day of such Test Period or Calculation Period, as the case may be, and (z) any
Permitted Acquisition or any Significant Asset Sale then being consummated as well as any other
Permitted Acquisition or any other Significant Asset Sale if consummated after the first day of the
relevant Test Period or Calculation Period, as the case may be, and on or prior to the date of the
respective Permitted Acquisition or Significant Asset Sale, as the case may be, then being
effected, with the following rules to apply in connection therewith:

     (i) all Indebtedness (x) (other than revolving Indebtedness, except to the extent same
is incurred to refinance other outstanding Indebtedness or to finance Permitted
Acquisitions) incurred or issued after the first day of the relevant Test Period or
Calculation Period (whether incurred to finance a Permitted Acquisition, to refinance
Indebtedness or otherwise) shall be deemed to have been incurred or issued (and the proceeds
thereof applied) on the first day of such Test Period or Calculation Period, as the case may
be, and remain outstanding through the date of determination and (y) (other than revolving
Indebtedness, except to the extent accompanied by a corresponding permanent commitment
reduction) permanently retired or redeemed after the first day of the relevant Test Period
or Calculation Period, as the case may be, shall be deemed to have been retired or redeemed
on the first day of such Test Period or Calculation Period, as the case may be, and remain
retired through the date of determination;

     (ii) all Indebtedness assumed to be outstanding pursuant to preceding clause (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 period when same was deemed outstanding, in the case of floating rate
Indebtedness (although interest expense with respect to any Indebtedness for periods while
same was actually outstanding during the respective period shall be calculated

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using the actual rates applicable thereto while same was actually outstanding); provided that
all Indebtedness (whether actually outstanding or deemed outstanding) bearing interest at a
floating rate of interest shall be tested on the basis of the rates applicable at the time
the determination is made pursuant to said provisions; and

     (iii) in making any determination of Consolidated EBITDA on a Pro Forma
Basis, pro forma effect shall be given to any Permitted Acquisition or any
Significant Asset Sale if effected during the respective Calculation Period or Test Period
(or thereafter, for purposes of determinations pursuant to Sections 8.09(l) and the
definition of “Incremental Commitment Requirements” only) as if same had occurred on the
first day of the respective Calculation Period or Test Period, as the case may be, taking
into account, in the case of any Permitted Acquisition, factually supportable and
identifiable cost savings and expenses which would otherwise be accounted for as an
adjustment pursuant to Article 11 of Regulation S-X under the Securities Act, as if such
cost savings or expenses were realized on the first day of the respective period.

          “Pro Forma Financial Statements” shall have the meaning provided in Section 5.01I.

          “Qualified Preferred Stock” shall mean any Preferred Equity Interests of the Borrower,
so long as the terms of any such Preferred Equity Interests (v) do not contain any mandatory put,
redemption, repayment, sinking fund or other similar provision prior to the second anniversary of
the Term Loan Maturity Date, (w) do not require the cash payment of dividends or distributions, (x)
do not contain any covenants (other than periodic reporting requirements), (y) do not grant the
holders thereof any voting rights except for (I) voting rights required to be granted to such
holders under applicable law and (II) limited customary voting rights on fundamental matters such
as mergers, consolidations, sales of all or substantially all of the assets of the Borrower, or
liquidations involving the Borrower, and (z) are otherwise reasonably satisfactory to the Lead
Agents.

          “Quarterly Payment Date” shall mean the third Business Day following the last day
occurring in each of March, June, September and December.

          “Quarterly Pricing Certificate” shall mean a certificate of the Borrower given by an
Authorized Officer of the Borrower to the Administrative Agent within 45 days of the last day of
any fiscal quarter of the Borrower.

          “RAI Assumption Agreement” shall have the meaning provided in Section 5.01T.

          “RAI Existing Senior Notes Assumption and Indemnification Agreement” shall have the
meaning provided in Section 5.01U.

          “Rating Agency” shall mean each of S&P and Moody’s.

          “Real Property” of any Person shall mean all the right, title and interest of such
Person in and to land, improvements and fixtures, including leaseholds.

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          “Reference Rate” shall mean, at any time, the higher of (x) the rate which is 1/2 of
1% in excess of the Federal Funds Rate and (y) the Base Rate as in effect from time to time.

          “Reference Rate Loan” shall mean each Term Loan, Revolving Loan or Swingline Loan
bearing interest at the rates provided in Section 1.08(a).

          “Refinance” shall mean, as used in relation to any refinancing of outstanding New
Senior Notes, Existing Senior Notes or Refinancing Senior Notes, that (i) principal of New Senior
Notes, Existing Senior Notes or Refinancing Senior Notes, as the case may be, shall have been
refinanced, in whole or in part, with the proceeds of Refinancing Senior Notes or (ii) the Borrower
has at all times cash and/or Marketable Investments on its balance sheet (representing cash
proceeds from an issuance of Refinancing Senior Notes) (x) which are specifically set aside for
purposes of repaying, and are sufficient in amount to repay, the principal of such outstanding New
Senior Notes, Existing Senior Notes or Refinancing Senior Notes, as the case may be, deemed
“refinanced” with the proceeds of such Refinancing Senior Notes (as indicated by way of a footnote
in its financial statements included in the then most recent public filing with the SEC) and (y) if
a Trigger Event is in effect, in which the Collateral Agent (on behalf of the Secured Creditors)
has a first-priority perfected security interest, subject to Permitted Liens.

          “Refinancing Senior Notes” shall mean one or more issuances of senior notes issued by
the Borrower to Refinance New Senior Notes, Existing Senior Notes or any other senior notes
theretofore issued as “Refinancing Senior Notes” in reliance on this definition, all of the terms
and conditions of which (and of the indenture governing the same) are substantially identical to
(or, from the perspective of the Lenders, more favorable than) those applicable to the Initial New
Senior Notes (and the New Senior Notes Indenture), without giving effect to any repayment of such
Initial New Senior Notes; provided that (i) the final stated maturity of any such senior
notes may differ from that of the Initial New Senior Notes, so long as the final stated maturity of
any such senior notes shall be no shorter than the date occurring one year after the Term Loan
Maturity Date, (ii) the interest rate and principal amount of any such senior notes may differ from
that of the Initial New Senior Notes and (iii) the aggregate principal amount of any such senior
notes issued at any time to refinance New Senior Notes, Existing Senior Notes or any other senior
notes theretofore issued as “Refinancing Senior Notes” in reliance on this definition shall not
exceed the aggregate principal amount of the Indebtedness so refinanced; provided,
however, that in the case of any such senior notes issued to Refinance (within the meaning
of clause (ii) of the definition of “Refinance”) New Senior Notes, Existing Senior Notes or any
other senior notes theretofore issued as “Refinancing Senior Notes” in reliance on this definition,
the aggregate principal amount of such senior notes may exceed the aggregate principal amount of
the Indebtedness so Refinanced, so long as the aggregate principal amount of all senior notes
issued in reliance on this proviso to Refinance (within the meaning of clause (ii) of the
definition of “Refinance”) New Senior Notes or any other senior notes theretofore issued as
“Refinancing Senior Notes” in reliance on this definition (but excluding Existing Senior Notes)
does not exceed $500,000,000 at any time outstanding.

          “Register” shall have the meaning provided in Section 12.04(f).

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          “Regulation D” shall mean Regulation D of the Board of Governors of the Federal
Reserve System as from time to time in effect and any successor to all or a portion thereof
establishing reserve requirements.

          “Regulation U” shall mean Regulation U of the Board of Governors of the Federal
Reserve System as from time to time in effect and any successor to all or a portion thereof
establishing margin requirements.

          “Related Parties” means, with respect to any specified Person, such Person’s
Affiliates and the respective directors, officers, employees, agents and advisors of such Person
and such Person’s Affiliates.

          “Replaced Lender” shall have the meaning provided in Section 1.14.

          “Replacement Lender” shall have the meaning provided in Section 1.14.

          “Reportable Event” shall mean an event described in Section 4043(c) of ERISA with
respect to a Plan as to which the 30-day notice requirement has not been waived by the PBGC.

          “Required Lenders” shall mean, at any time, Non-Defaulting Lenders the sum of whose
outstanding Term Loans and Revolving Loan Commitments at such time (or, after the termination
thereof, outstanding Revolving Loans and RL Percentages of (x) outstanding Swingline Loans at such
time and (y) Letter of Credit Outstandings at such time) represents an amount greater than 50% of
the sum of (i) all outstanding Term Loans of Non-Defaulting Lenders and (ii) the Total Revolving
Loan Commitment in effect at such time less the Revolving Loan Commitments of all
Defaulting Lenders at such time (or, after the termination thereof, the sum of then total
outstanding Revolving Loans of Non-Defaulting Lenders and the aggregate RL Percentages of all
Non-Defaulting Lenders of the total outstanding Swingline Loans and Letter of Credit Outstandings
at such time).

          “Returns” shall have the meaning provided in Section 6.10.

          “Revolving Loan” shall have the meaning provided in Section 1.01(a).

          “Revolving Loan Commitment” shall mean, with respect to each Lender, the amount set
forth opposite such Lender’s name in Annex I hereto, as the same may be reduced and/or adjusted
from time to time pursuant to Section 1.14, 3.02, 3.03, 9 and/or 12.04(b)(A).

          “Revolving Loan Maturity Date” shall mean May 31, 2011.

          “Revolving Note” shall have the meaning provided in Section 1.05(a).

          “Reynolds Tobacco” shall mean R.J. Reynolds Tobacco Company, a North Carolina
corporation.

          “RJR Packaging” shall mean RJR Packaging, LLC.

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          “RJRTH” shall have the meaning provided in the recitals of this Agreement.

          “RJRTH Intercompany Note” shall have the meaning provided in Section 5.01F.

          “RL Lender” shall mean each Lender with a Revolving Loan Commitment or with
outstanding Revolving Loans.

          “RL Percentage” shall mean, at any time, for each Lender, the percentage obtained by
dividing such Lender’s Revolving Loan Commitment at such time by the Total Revolving Loan
Commitment at such time, provided that at any time when the Total Revolving Loan Commitment
shall have been terminated, each Lender’s RL Percentage shall be the percentage obtained by
dividing such Lender’s outstanding Revolving Loans at such time by the aggregate outstanding
Revolving Loans of all Lenders at such time.

          “S&P” shall mean Standard & Poor’s Ratings Services, a division of McGraw-Hill, Inc.,
or any successor thereto.

          “Santa Fe” shall mean Santa Fe Natural Tobacco Company, Inc., a New Mexico
corporation.

          “Scheduled Repayment” shall have the meaning provided in Section 4.02(b).

          “Scheduled Repayment Date” shall have the meaning provided in Section 4.02(b).

          “SEC” shall have the meaning provided in Section 7.01(f).

          “SEC Regulation D” shall mean Regulation D as promulgated under the Securities Act of
1933, as amended, as the same may be in effect from time to time.

          “Secured Credit Card Agreement” shall have the meaning provided in the Security
Agreement.

          “Secured Creditors” shall mean and include, with respect to any Collateral, (i) all
Lenders (including in their capacity as Letter of Credit Issuers, the Swingline Lender, Credit Card
Issuers or parties to Hedging Agreements) and their affiliates and other Hedging Agreement parties
as provided in the Security Documents and (ii) all holders of New Senior Notes, Existing Senior
Notes and Refinancing Senior Notes, in each case, to the extent the Lien sharing provisions of the
indenture(s) governing the New Senior Notes, the Existing Senior Notes or the Refinancing Senior
Notes, as the case may be, require them to be secured by such Collateral.

          “Security Agreement” shall have the meaning provided in Section 5.01M.

          “Security Document” shall mean and include (i) each of the Security Agreement and the
Pledge Agreement entered into on the Fourth Restatement Effective Date (or, thereafter, pursuant to
Section 12.19) until the same are terminated in accordance with their terms, (ii) each Mortgage,
until the same is terminated in accordance with its terms, (iii) after the execution and delivery
thereof, each Additional Security Document, until the same is terminated in accordance

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with its terms and (iii) upon the occurrence of a new Trigger Event after the Fourth
Restatement Effective Date, the pledge agreements, security agreements and mortgages entered into
(or required to be entered into) pursuant to Section 7.10(b).

          “Significant Asset Sale” shall mean each Asset Sale which generates Net Sale Proceeds
of at least $50,000,000.

          “Significant Letter of Credit Issuer” shall mean JPMCB and any other Letter of Credit
Issuer which has issued Letters of Credit in an aggregate Stated Amount for all such Letters of
Credit equal to at least $5,000,000.

          “SPC” shall have the meaning provided in Section 12.04.

          “Specified Subsidiaries” shall mean GMB and FHS.

          “Specified Agents” shall mean the Administrative Agent and the Syndication Agents.

          “Stated Amount” of any Letter of Credit shall mean the maximum amount available to be
drawn thereunder, determined without regard to whether any conditions to drawing could then be met.
The Stated Amount of any Letter of Credit denominated in a currency other than U.S. Dollars shall
be calculated in accordance with the requirements of Section 12.07(c).

          “Stub Notes” shall mean, collectively, (i) RJRTH’s 8.50% Notes due July 1, 2007 in an
initial aggregate principal amount equal to $7,093,000, (ii) RJRTH’s 8.75% Notes due July 15, 2007
in an initial aggregate principal amount equal to $21,814,000 and (iii) RJRTH’s 9.25% Notes due
August 15, 2013 in an initial aggregate principal amount equal to $60,077,000, in each case as the
same may be amended, modified and/or supplemented from time to time.

          “Subsidiary” of any Person shall mean and include (i) any corporation more than 50% of
whose stock of any class or classes having by the terms thereof ordinary voting power to elect a
majority of the directors of such corporation (irrespective of whether or not at the time stock of
any class or classes of such corporation shall have or might have voting power by reason of the
happening of any contingency) is at the time owned by such Person directly or indirectly through
Subsidiaries and (ii) any partnership, association, joint venture or other entity in which such
Person directly or indirectly through Subsidiaries has more than a 50% Equity Interest at the time.
Unless otherwise expressly provided, all references herein to “Subsidiary” shall mean a Subsidiary
of the Borrower.

          “Subsidiary Guarantor” shall mean (i) each Material Subsidiary of the Borrower as of
the Fourth Restatement Effective Date (other than NA Holdings) and (ii) each other Subsidiary of
the Borrower created, established or acquired after the Fourth Restatement Effective Date which
executes and delivers the Subsidiary Guaranty, unless and until such time as the respective
Subsidiary ceases to constitute a Subsidiary or is released from all of its obligations under the
Subsidiary Guaranty in accordance with the terms and provisions thereof.

          “Subsidiary Guaranty” shall have the meaning provided in Section 5.01J.

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          “Swingline Commitment” shall mean the commitment of the Swingline Lender to make
Swingline Loans in aggregate principal amount not to exceed $75,000,000 (as the same may be reduced
as provided in Section 3.03(b)).

          “Swingline Lender” shall mean JPMCB, in its capacity as a swingline lender hereunder.

          “Swingline Loans” shall have the meaning provided in Section 1.01(b).

          “Swingline Maturity Date” shall mean the date which is five Business Days prior to the
Revolving Loan Maturity Date.

          “Swingline Note” shall have the meaning provided in Section 1.05(a).

          “Syndication Agents” shall mean each of LCPI and Citicorp USA, Inc. acting in its
capacity as syndication agent hereunder.

          “Tax Benefit” shall have the meaning provided in Section 4.04(c).

          “Tax Sharing Agreement” shall mean that certain Tax Sharing Agreement, dated as of
July 30, 2004, among the Borrower and various of its Subsidiaries, as the same may be amended,
modified and/or supplemented from time to time in accordance with the terms hereof and thereof.

          “Taxes” shall have the meaning provided in Section 4.04(a).

          “Term Loan” shall have the meaning provided in Section 1.01(d).

          “Term Loan Commitment” shall mean, for each Lender, the amount set forth opposite such
Lender’s name in Annex I directly below the column entitled “Term Loan Commitment,” as the same may
be terminated pursuant to Sections 3.03 and/or 9.

          “Term Loan Maturity Date” shall mean May 31, 2012.

          “Term Note” shall have the meaning provided in Section 1.05(a).

          “Test Period” shall mean each period of four consecutive fiscal quarters then last
ended, in each case taken as one accounting period. Notwithstanding anything to the contrary
contained above or in Section 13.07 or otherwise required by GAAP, in the case of any Test Period
ending prior to the first anniversary of the Fourth Restatement Effective Date, such period shall
be a one-year period ending on the last day of the fiscal quarter last ended, with any calculations
of Consolidated Fixed Charges and Consolidated EBITDA required in determining compliance with
Section 8.07 or 8.08 to be made on a pro forma basis in accordance with, and to the
extent provided in, the immediately succeeding sentences. To the extent the respective Test Period
(i) includes the fiscal quarter of the Borrower ended June 30, 2005, Consolidated EBITDA for such
fiscal quarter shall be deemed to be $661,000,000, (ii) includes the fiscal quarter of the Borrower
ended September 30, 2005, Consolidated EBITDA for such fiscal quarter shall be deemed to be
$583,000,000, (iii) includes the fiscal quarter of the Borrower

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ended December 31, 2005, Consolidated Fixed Charges and Consolidated EBITDA for such fiscal
quarter shall be deemed to be $446,000,000 and $670,000,000, respectively, (iv) includes the fiscal
quarter of the Borrower ended March 31, 2006, Consolidated Fixed Charges and Consolidated EBITDA
for such fiscal quarter shall be deemed to be $494,000,000 and $665,000,000, respectively and (v)
includes the fiscal quarter ended June 30, 2006, Consolidated Fixed Charges and Consolidated EBITDA
shall be determined by taking actual Consolidated Fixed Charges or Consolidated EBITDA, as the case
may be, determined in accordance with the respective definition therefor for such fiscal quarter
(determined on a pro forma basis (in a manner satisfactory to the Lead Agents), as
if the Transaction had been consummated prior to the first day of such fiscal quarter);
provided that any additional adjustments required by the definition of Pro
Forma Basis for occurrences after the Fourth Restatement Effective Date shall also be made.

          “Third Amended and Restated Credit Agreement” shall have the meaning provided in the
first recital of this Agreement.

          “Total Commitment” shall mean, at any time, the sum of the Commitments of each Lender
at such time.

          “Total Revolving Loan Commitment” shall mean, at any time, the sum of the Revolving
Loan Commitments of each of the Lenders at such time.

          “Total Term Loan Commitment” shall mean, at any time, the sum of the Term Loan
Commitments of each of the Lenders at such time.

          “Total Unutilized Revolving Loan Commitment” shall mean, at any time, the portion of
the Total Revolving Loan Commitment equal to the excess of (x) the Total Revolving Loan Commitment
at such time over (y) the sum of (i) the aggregate outstanding principal amount of all Revolving
Loans and Swingline Loans at such time and (ii) the Letter of Credit Outstandings at such time.

          “Tranche” shall mean the respective facility and commitments utilized in making Loans
hereunder, with there being three separate Tranches, i.e., Term Loans, Revolving Loans and
Swingline Loans; provided that for purposes of Sections 1.14, 12.04(b) and 12.12(a) and
(b), Revolving Loans and Swingline Loans shall be deemed to constitute part of a single “Tranche.”

          “Transaction” shall mean, collectively, (i) the consummation of the Acquisition and
the other transactions contemplated by the Acquisition Documents, (ii) the execution, delivery and
performance by each Credit Party of the Initial New Senior Notes Documents to which it is a party,
the issuance of the Initial New Senior Notes and the use of proceeds thereof, (iii) the execution,
delivery and performance by each Credit Party of the Credit Documents to which it is a party, (iv)
the occurrence of the Fourth Restatement Effective Date and the incurrence of Term Loans and other
extensions of credit hereunder on such date, (v) the execution and delivery of the RAI Assumption
Agreement and the RAI Existing Senior Notes Assumption and Indemnification Agreement, (vi) the
issuance of, and the making of any intercompany loans evidenced by, the RJRTH Intercompany Note,
and (vii) the payment of all fees and expenses in connection with the foregoing.

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          “Trigger Event” shall mean that the Applicable Corporate Credit Rating issued by each
Rating Agency is at least one level below the Minimum Investment Grade Rating or that the
Applicable Corporate Credit Rating issued by either Rating Agency is at least two levels below the
Minimum Investment Grade Rating.

          “Type” shall mean any type of Loan determined with respect to the interest option
applicable thereto, i.e., a Reference Rate Loan or Eurodollar Loan.

          “UCC” shall mean the Uniform Commercial Code.

          “Unfunded Current Liability” of any Plan shall mean the amount, if any, by which the
present value of the accrued benefits under such Plan as of the close of its most recent plan year,
determined in accordance with Statement of Financial Accounting Standards No. 35, based upon the
actuarial assumptions used by such Plan’s actuary in the most recent annual valuation of such Plan,
exceeds the fair market value of the assets allocable thereto, determined in accordance with
Section 412 of the Code.

          “Unpaid Drawing” shall have the meaning provided in Section 2.04(a).

          “Unutilized Revolving Loan Commitment” shall mean, with respect to any Lender at any
time, such Lender’s Revolving Loan Commitment at such time less the sum of (i) the
aggregate outstanding principal amount of all Revolving Loans made by such Lender at such time and
(ii) such Lender’s RL Percentage of the Letter of Credit Outstandings at such time.

          “U.S. Dollars” shall mean freely transferable lawful money of the United States of
America.

          “Wholly-Owned Domestic Subsidiary” shall mean, as to any Person, any Wholly-Owned
Subsidiary of such Person that is a Domestic Subsidiary of such Person.

          “Wholly-Owned Subsidiary” of any Person shall mean any Subsidiary of such Person to
the extent all of the capital stock or other ownership interests in such Subsidiary, other than
directors’ or nominees’ qualifying shares, is owned directly or indirectly by such Person.

          “Written” or “in writing” shall mean any form of written communication or a
communication by means of telex, telecopier device, telegraph or cable.

          SECTION 11. The Lead Agents.

          11.01 Appointment. Each Lender hereby irrevocably designates and appoints JPMCB and
LCPI, as Lead Agents (such term as used in this Section 11 to include each Lead Agent acting as
Administrative Agent or Syndication Agent, as applicable, and the Administrative Agent acting as
Collateral Agent) for such Lender to act as specified herein and in the other Credit Documents, and
each such Lender hereby irrevocably authorizes JPMCB and LCPI, as the Lead
Agents for such Lender, to take such action on its behalf under the provisions of this
Agreement and the other Credit Documents and to exercise such powers and perform such duties as are
expressly delegated to the respective Lead Agents by the terms of this Agreement and the other
Credit Documents, together with such other powers as are reasonably incidental

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thereto. Each Lead
Agent agrees to act as such upon the express conditions contained in this Section 11.
Notwithstanding any provision to the contrary elsewhere in this Agreement, no Lead Agent shall have
any duties or responsibilities, except those expressly set forth herein or in the other Credit
Documents, or any fiduciary relationship with any Lender, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into this Agreement or any other
Credit Document or otherwise exist against any Lead Agent. The provisions of this Section 11 are
solely for the benefit of the Lead Agents and the Lenders, and no Credit Party shall have any
rights as a third party beneficiary of any of the provisions hereof, provided that the
Borrower shall have the rights granted to it pursuant to Section 11.09. In performing its
functions and duties under this Agreement and each other Credit Document, each Lead Agent shall act
solely as agent of the Lenders and does not assume and shall not be deemed to have assumed any
obligation or relationship of agency or trust with or for either Credit Party. No Lender which is
a Syndication Agent (other than LCPI), Documentation Agent, Managing Agent, Co-Agent, Participant,
Joint Lead Arranger or Joint Bookrunner (as such Lender may be designated in such capacity pursuant
to the signature pages hereto or otherwise) shall have any duties or obligations in its capacity as
such under this Agreement.

          11.02 Delegation of Duties. Each Lead Agent may execute any of its duties under this
Agreement or any other Credit Document by or through agents or attorneys-in-fact and shall be
entitled to advice of counsel concerning all matters pertaining to such duties. No Lead Agent
shall be responsible for the negligence or misconduct of any agents or attorneys-in-fact selected
by it with reasonable care except to the extent otherwise required by Section 11.03.

          11.03 Exculpatory Provisions. No Lead Agent nor any of its officers, directors,
employees, agents, attorneys-in-fact or affiliates shall be (i) liable for any action lawfully
taken or omitted to be taken by it or such Person under or in connection with this Agreement or any
other Credit Document (except for its or such Person’s own gross negligence or willful misconduct
as determined by a court of competent jurisdiction in a final and non-appealable decision) or (ii)
responsible in any manner to any of the Lenders for any recitals, statements, representations or
warranties made by the Borrower, any Subsidiary or any of their respective officers contained in
this Agreement, any other Credit Document or in any certificate, report, statement or other
document referred to or provided for in, or received by any Lead Agent under or in connection with,
this Agreement or any other Credit Document or for any failure of the Borrower or any Subsidiary or
any of their respective officers to perform its obligations hereunder or thereunder. No Lead Agent
shall be under any obligation to any Lender to ascertain or to inquire as to the observance or
performance of any of the agreements contained in, or conditions of, this Agreement, or to inspect
the properties, books or records of the Borrower or any Subsidiary. No Lead Agent shall be
responsible to any Lender for the effectiveness, genuineness, validity, enforceability,
collectibility or sufficiency of this Agreement or any Credit Document or for any representations,
warranties, recitals or statements made herein or therein or made in any written or oral
statement or in any financial or other statements, instruments, reports, certificates or any other
documents in connection herewith or therewith furnished or made by any Lead Agent to the Lenders or
by or on behalf of the Borrower or any Subsidiary to any Lead Agent or any Lender or be required to
ascertain or inquire as to the performance or observance of any of the terms, conditions,
provisions, covenants or agreements contained herein or therein or as to the use of the proceeds of
the Loans or Letters of Credit or of the existence or possible existence of any Default or Event of
Default.

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          11.04 Reliance by Lead Agents. Each Lead Agent shall be entitled to rely, and shall
be fully protected in relying, upon any note, writing, resolution, notice, consent, certificate,
affidavit, letter, cablegram, telegram, facsimile transmission, telex or teletype message,
statement, order or other document or conversation believed by it to be genuine and correct and to
have been signed, sent or made by the proper Person or Persons and upon advice and statements of
legal counsel (including, without limitation, counsel to the Credit Parties), independent
accountants and other experts selected by such Lead Agent. Each Lead Agent shall be fully
justified in failing or refusing to take any action under this Agreement or any other Credit
Document unless it shall first receive such advice or concurrence of the Required Lenders as it
deems appropriate or it shall first be indemnified to its satisfaction by the Lenders against any
and all liability and expense which may be incurred by it by reason of taking or continuing to take
any such action. Each Lead Agent shall in all cases be fully protected in acting, or in refraining
from acting, under this Agreement and the other Credit Documents in accordance with a request of
the Required Lenders (or to the extent specifically provided in Section 12.12(a), all the Lenders),
and such request and any action taken or failure to act pursuant thereto shall be binding upon all
the Lenders.

          11.05 Notice of Default. No Lead Agent shall be deemed to have knowledge or notice of
the occurrence of any Default or Event of Default hereunder unless such Lead Agent has received
notice from a Lender or the Borrower referring to this Agreement, describing such Default or Event
of Default and stating that such notice is a “notice of default”. In the event that any Lead Agent
receives such a notice, such Lead Agent shall give prompt notice thereof to the Lenders. The
Administrative Agent shall take such action with respect to such Default or Event of Default as
shall be reasonably directed by the Required Lenders; provided that, unless and until the
Administrative Agent shall have received such directions, the Administrative Agent may (but shall
not be obligated to) take such action, or refrain from taking such action, with respect to such
Default or Event of Default as it shall deem advisable in the best interests of the Lenders.

          11.06 Non-Reliance on Lead Agents and Other Lenders. Each Lender expressly
acknowledges that no Lead Agent nor any of its officers, directors, employees, agents,
attorneys-in-fact or affiliates have made any representations or warranties to it and that no act
by any Lead Agent hereafter taken, including any review of the affairs of the Borrower or any
Subsidiary, shall be deemed to constitute any representation or warranty by any Lead Agent to any
Lender. Each Lender represents to each Lead Agent that it
has, independently and without reliance upon any Lead Agent or any other Lender, and based on
such documents and information as it has deemed appropriate, made its own appraisal of and
investigation into the business, assets, operations, property, financial and other conditions,
prospects and creditworthiness of the Borrower and its Subsidiaries and made its own decision to
make its Loans hereunder and enter into this Agreement. Each Lender also represents that it will,
independently and without reliance upon any Lead Agent or any other Lender, and based on such
documents and information as it shall deem appropriate at the time, continue to make its own credit
analysis, appraisals and decisions in taking or not taking action under this Agreement, and to make
such investigation as it deems necessary to inform itself as to the business, assets, operations,
property, financial and other condition, prospects and creditworthiness of the Borrower and its
Subsidiaries. Except for notices, reports and other documents expressly required to be furnished
to the Lenders by the Administrative Agent hereunder, no Lead Agent shall have any duty or
responsibility to provide

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any Lender with any credit or other information concerning the business,
operations, assets, property, financial and other conditions, prospects or creditworthiness of the
Borrower or any of its Subsidiaries which may come into the possession of such Lead Agent or any of
its officers, directors, employees, agents, attorneys-in-fact or affiliates.

          11.07 Indemnification. The Lenders agree to indemnify each Lead Agent in its capacity
as such ratably according to the sum of their outstanding Term Loans and their aggregate Revolving
Loan Commitments (or, if the Total Revolving Loan Commitment has been terminated, their aggregate
Revolving Loan Commitments as in effect immediately prior to such termination), from and against
any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs,
reasonable expenses or disbursements of any kind whatsoever which may at any time (including,
without limitation, at any time following the payment of the Obligations) be imposed on, incurred
by or asserted against such Lead Agent in its capacity as such in any way relating to or arising
out of this Agreement or any other Credit Document, or any documents contemplated by or referred to
herein or therein or the transactions contemplated hereby or thereby or any action taken or omitted
to be taken by any Lead Agent under or in connection with any of the foregoing, but only to the
extent that any of the foregoing is not paid by the Borrower or any of its Subsidiaries;
provided that no Lender shall be liable to any Lead Agent for the payment of any portion of
such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements resulting solely from such Lead Agent’s gross negligence or willful
misconduct (as determined by a court of competent jurisdiction in a final and non-appealable
decision). If any indemnity furnished to any Lead Agent for any purpose shall, in the opinion of
such Lead Agent, be insufficient or become impaired, such Lead Agent may call for additional
indemnity and cease, or not commence, to do the acts indemnified against until such additional
indemnity is furnished. The agreements in this Section 11.07 shall survive the payment of all
Obligations.

          11.08 Lead Agents in Their Individual Capacities. Each Lead Agent and its affiliates
may make loans to, accept deposits from and generally engage in any kind of business with the
Borrower and/or any of its Subsidiaries as though such Lead Agent were not a Lead Agent hereunder.
With respect to the Loans made by
it, Letters of Credit issued by it and all Obligations owing to it, each Lead Agent shall have
the same rights and powers under this Agreement and each other Credit Document as any Lender and
may exercise the same as though it were not a Lead Agent, and the terms “Lender” and “Lenders”
shall include each Lead Agent in its individual capacity.

          11.09 Successor Lead Agents, etc. (a) Each Lead Agent may resign from the
performance of all its functions and duties hereunder and/or under the other Credit Documents
(including, without limitation, its functions and duties as Collateral Agent) at any time by giving
30 Business Days’ prior written notice to the Lenders and, unless a Default or an Event of Default
under Section 9.05 then exists, the Borrower. Any such resignation by a Lead Agent hereunder shall
also constitute its resignation (if applicable) as a Letter of Credit Issuer and the Swingline
Lender, in which case the resigning Lead Agent (x) shall not be required to issue any further
Letters of Credit or make any additional Swingline Loans hereunder and (y) shall maintain all of
its rights as Letter of Credit Issuer or Swingline Lender, as the case may be, with respect to any
Letter of Credit issued by it, or Swingline Loans made by it, prior to the date of such
resignation. Such resignation shall take effect upon (i) in the case of the Lead Agent serving

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as Administrative Agent and/or Collateral Agent, the appointment of a successor Administrative Agent
and/or Collateral Agent pursuant to clauses (b) and (c) below or as otherwise provided below and
(ii) in the case of any other Lead Agent, on such 30th Business Day following delivery
of the notice described above.

          (b) Upon any such notice of resignation by a Lead Agent then serving as Administrative Agent
and Collateral Agent, the Required Lenders shall appoint a successor Lead Agent hereunder and/or
under the other Credit Documents to act in such capacities which shall be a commercial bank or
trust company acceptable to the Borrower, which acceptance shall not be unreasonably withheld or
delayed (provided that the Borrower’s approval shall not be required if an Event of Default
then exists).

          (c) If a successor Lead Agent shall not have been so appointed within such 30 Business Day
period as contemplated by preceding clause (b), the Administrative Agent, with the consent of the
Borrower (which consent shall not be unreasonably withheld or delayed, provided that the
Borrower’s consent shall not be required if an Event of Default then exists), shall then appoint a
successor Lead Agent who shall serve as Administrative Agent and Collateral Agent hereunder and/or
under the other Credit Documents until such time, if any, as the Required Lenders appoint a
successor Lead Agent to act in such capacities as provided above.

          (d) If no successor Lead Agent has been appointed pursuant to clause (b) or (c) above by the
30th Business Day after the date such notice of resignation was given by such Lead Agent, such Lead
Agent’s resignation shall become effective and the Required Lenders shall thereafter perform all
the duties of such Lead Agent hereunder and/or under any other Credit Document until such time, if
any, as the Lenders appoint a successor Lead Agent as provided above.

          (e) Upon a resignation of any Lead Agent pursuant to this Section 11.09, such Lead Agent shall
remain indemnified to the extent provided in this Agreement and the other
Credit Documents and the provisions of this Section 11 shall continue in effect for the
benefit of such Lead Agent for all of its actions and inactions while serving as such Lead Agent.

          SECTION 12. Miscellaneous.

          12.01 Payment of Expenses, etc. (a) The Borrower agrees to: (i) pay all reasonable
out-of-pocket costs and expenses of (x) the Agents, whether or not the transactions herein
contemplated are consummated, in connection with the negotiation, preparation, execution and
delivery of the Credit Documents and the documents and instruments referred to therein and any
amendment, waiver or consent relating thereto (including, without limitation, the reasonable fees
and disbursements of White & Case LLP), (y) each Letter of Credit Issuer incurred in connection
with the issuance, amendment, renewal or extension of any Letter of Credit or any demand for
payment thereunder and (z) each Lead Agent, each Letter of Credit Issuer, the Swingline Lender and
each of the Lenders in connection with the enforcement of or protection of its rights under the
Credit Documents and the documents and instruments referred to therein (including, without
limitation, the reasonable fees and disbursements of counsel for each Lead Agent and for each of
the Lenders incurred during any workout, restructuring or

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negotiations in respect of any Credit
Event); (ii) pay and hold each of the Lenders harmless from and against any and all present and
future stamp and other similar taxes with respect to the foregoing matters and save each of the
Lenders harmless from and against any and all liabilities with respect to or resulting from any
delay or omission (other than to the extent attributable to such Lender) to pay such taxes; and
(iii) indemnify each Agent, the Collateral Agent, each Letter of Credit Issuer, the Swingline
Lender and each Lender, and each Related Party of any of the foregoing Persons (each such Person
being called an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all
losses, claims, damages, liabilities and related expenses, including the reasonable fees, charges
and disbursements of any counsel for any Indemnitee, incurred by or asserted against any Indemnitee
arising out of, in connection with, or as a result of (i) the execution or delivery of this
Agreement, any other Credit Document or any agreement or instrument contemplated hereby or thereby,
the performance by the parties hereto of their respective obligations hereunder or thereunder or
the consummation of the Transaction or any other transactions contemplated hereby or thereby, (ii)
any Loan or Letter of Credit or the use of the proceeds therefrom (including any refusal by any
Letter of Credit Issuer to honor a demand for payment under a Letter of Credit if the documents
presented in connection with such demand do not strictly comply with the terms of such Letter of
Credit), (iii) any actual or alleged presence or release of Hazardous Materials on or from any
property owned, leased or operated by the Borrower or any of its Subsidiaries, or any Environmental
Liability related in any way to the Borrower or any of its Subsidiaries, or (iv) any actual or
prospective claims, litigation, investigation or proceeding relating to any of the foregoing,
whether based on contract, tort or any other theory and regardless of whether any Indemnitee is a
party thereto; provided that such indemnity shall not, as to any Indemnitee, be available
to the extent that such losses, claims, damages, liabilities or related expenses are determined by
a court of competent jurisdiction by final and nonappealable judgment to have resulted from the
gross negligence or willful misconduct of such Indemnitee. To the extent that the undertaking to
indemnify, pay or hold harmless any Agent, the Collateral
Agent, any Letter of Credit Issuer, the Swingline Lender or any Lender set forth in the
preceding sentence may be unenforceable because it is violative of any law or public policy, the
Borrower shall make the maximum contribution to the payment and satisfaction of each of the
indemnified liabilities which is permissible under applicable law.

          (b) To the extent that the Borrower fails to pay any amount required to be paid by it to any
Agent, the Collateral Agent, any Letter of Credit Issuer or the Swingline Lender under paragraph
(a) of this Section, each Lender severally agrees to pay to such Agent, the Collateral Agent, such
Letter of Credit Issuer or the Swingline Lender, as the case may be, such Lender’s proportional
share (determined (x) using such Lender’s respective “percentage” as used in determining the
Required Lenders as if there were no Defaulting Lenders and (y) as of the time that the applicable
unreimbursed expense or indemnity payment is sought) of such unpaid amount; provided that
the unreimbursed expense or indemnified loss, claims, damage, liability or related expense, as the
case may be, was incurred by or asserted against such Agent, the Collateral Agent, such Letter of
Credit Issuer or the Swingline Lender in its capacity as such.

          (c) To the extent permitted by applicable law, the Borrower shall not assert, and hereby
waives, any claim against any Indemnitee, on any theory of liability, for special, indirect,
consequential or punitive damages (as opposed to direct or actual damages) arising out of, in
connection with, or as a result of, any Credit Document or any agreement or instrument

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contemplated
thereby, the Transaction, any Loan or Letter of Credit or the use of the proceeds thereof.

          (d) All amounts due under this Section shall be payable promptly after written demand
therefor.

          12.02 Right of Setoff. In addition to any rights now or hereafter granted under
applicable law or otherwise, and not by way of limitation of any such rights, upon the occurrence
of an Event of Default, each Lender and each of its Affiliates is hereby authorized at any time or
from time to time, to the fullest extent permitted by law, without presentment, demand, protest or
other notice of any kind to any Credit Party or to any other Person, any such notice being hereby
expressly waived, to set off and to appropriate and apply any and all deposits (general or special,
time or demand, provisional or final) and any other obligations at any time held or owing by such
Lender of Affiliate (including, without limitation, by branches and agencies of such Lender
wherever located) to or for the credit or the account of any Credit Party against and on account of
the Obligations and liabilities of such Credit Party to such Lender under this Agreement or under
any of the other Credit Documents, including, without limitation, all interests in Obligations of
such Credit Party purchased by such Lender pursuant to Section 12.06(b), and all other claims of
any nature or description arising out of or connected with this Agreement or any other Credit
Document, irrespective of whether or not such Lender shall have made any demand hereunder and
although said Obligations, liabilities or claims, or any of them, shall be contingent or unmatured.
The rights of each Lender under this Section are in addition to other rights and remedies
(including other rights of setoff) which such Lender may have.

          12.03 Notices. (a) Except as otherwise expressly provided herein (including Section 12.03(b) below), all
notices and other communications provided for hereunder shall be in writing (including telegraphic,
telex, facsimile transmission or cable communication) and mailed, telegraphed, telexed, telecopied,
cabled or delivered, if to a Credit Party, at the address specified opposite its signature below or
in the other relevant Credit Documents, as the case may be; if to any Lender, at its address
specified for such Lender on Annex II hereto or its Administrative Questionnaire; or, at such other
address as shall be designated by any party in a written notice to the other parties hereto. All
such notices and communications shall be telegraphed, telexed, telecopied, or cabled or sent by
overnight courier, and shall be effective when received.

          (b) Notices and other communications to the Lenders hereunder may be delivered or furnished by
electronic communications pursuant to procedures approved by the Administrative Agent;
provided that the foregoing shall not apply to notices pursuant to Sections 1, 2, 3 or 4
unless otherwise agreed by the Administrative Agent and the applicable Lender. The Administrative
Agent or the Borrower may, in its discretion, agree to accept notices and other communications to
it hereunder by electronic communications pursuant to procedures approved by it; provided
that approval of such procedures may be limited to particular notices or communications.

          12.04 Benefit of Agreement. (a) This Agreement shall be binding upon and inure to
the benefit of and be enforceable by the respective successors and assigns of the parties hereto,
provided that (i) the Borrower may not assign or transfer any of its interests hereunder,

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except to the extent any such assignment results from the consummation of a transaction permitted
under Section 8.02, without the prior written consent of each of the Lenders (and any attempted
assignment or transfer by the Borrower without such consent shall be null and void) and (ii) the
rights of each Lender to transfer, assign or grant participations in its rights and/or obligations
hereunder shall be limited as set forth below in this Section 12.04. Notwithstanding the foregoing
or anything else in this Section 12.04, any Lender may at any time pledge or assign a security
interest in all or any portion of its rights under this Agreement to secure obligations of such
Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank, and
including further, in the case of any Lender that is a fund, all or any portion of its Notes of
Loans to its trustee or to a collateral agent or to another creditor providing credit or credit
support to such Lender in support of its obligations to such trustee, such collateral agent or a
holder of, or any other representative of a holder of, such obligations, or such other creditor, as
the case may be, and this Section shall not apply to any such pledge or assignment of a security
interest; provided however that no such pledge or assignment of a security interest shall
release a Lender from any of its obligations hereunder or substitute any such pledgee or assignee
for such Lender as a party hereto.

          (b) Each Lender shall have the right to transfer, assign or grant participations in all or any
part of its remaining rights and obligations hereunder on the basis set forth below in this clause
(b).

          (A) Assignments. At any time, each Lender may assign pursuant to an Assignment
Agreement substantially in the form of Exhibit E hereto (each, an “Assignment Agreement”)
all or a portion of its rights and obligations hereunder (including all or a portion of
any of its Commitments and the Loans at the time owing to it) pursuant to this clause (b)(A)
to one or more Lenders and/or their affiliates and/or one or more Eligible Transferees, in any such
case with the prior written consent (such consent not to be unreasonably withheld or delayed) of
the Borrower, the Administrative Agent and each Significant Letter of Credit Issuer,
provided that (x) the consent of the Borrower shall not be required for an assignment to a
Lender, an Affiliate of a Lender, an Approved Fund or, if an Event of Default has occurred and is
continuing, any other assignee and (y) no consent of the Administrative Agent, any Significant
Letter of Credit Issuer or the Borrower shall be required for any assignment of Term Loans. Each
assignment shall be subject to the following additional conditions:

     (I) except in the case of an assignment to a Lender, an Affiliate of a Lender or an
Approved Fund of a Lender, or an assignment of the entire remaining amount of the assigning
Lender’s Revolving Loan Commitment or Loans of any Tranche, the amount of the Revolving Loan
Commitment or Loans of each Tranche of the assigning Lender subject to each such assignment
(determined as of the date the Assignment and Assumption with respect to such assignment is
delivered to the Administrative Agent) shall not be less than (x) $1,000,000 in the case of
Term Loans and (y) $5,000,000 in the case of Revolving Loan Commitments (and related
Obligations), unless each of the Borrower and the Administrative Agent otherwise consent,
provided that no such consent of the Borrower shall be required if an Event of
Default has occurred and is continuing;

     (II) each partial assignment shall be made as an assignment of a proportionate part of
all the assigning Lender’s rights and obligations under this Agreement, provided

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that this clause shall not be construed to prohibit the assignment of a proportionate part
of all the assigning Lender’s rights and obligations in respect of one Tranche of
Commitments or Loans; and

     (III) the assignee, if it shall not be a Lender, shall deliver to the Administrative
Agent an Administrative Questionnaire.

          Any assignment to another Lender pursuant to this clause (b)(A) will become effective upon the
payment to the Administrative Agent by (I) either the assigning or the assignee Lender or (II) in
the case of an assignment pursuant to Section 1.14, the Replacement Lender, of a nonrefundable
assignment fee of $3,500, the satisfaction of clause (III) of the preceding sentence (if
applicable), the receipt of any written consents to such assignment required above and the
recording by the Administrative Agent of such assignment, and the resultant effects thereof on the
Commitments and outstanding Loans of the assigning Lender and the assignee Lender, in the Register,
the Administrative Agent hereby agreeing to effect such recordation no later than five Business
Days after its receipt of a written notification by the assigning Lender and the assignee Lender of
the proposed assignment, provided that the Administrative Agent shall not be required to
(but may if it so elects) so record any assignment in the Register on or after the date on which
any proposed amendment, modification or supplement in respect of this Agreement has been circulated
to the Lenders for approval until the earlier of (x) the effectiveness of such amendment,
modification or supplement in accordance with Section 12.12(a) or (y) 30 days following the date on
which such proposed amendment, modification or supplement was circulated to the Lenders. Upon the
effectiveness of any assignment pursuant to this clause (b)(A), (x) the assignee will become a
“Lender” for all
purposes of this Agreement and the other Credit Documents with a Commitment and/or outstanding
Loans as so recorded by the Administrative Agent in the Register, and to the extent of such
assignment, the assigning Lender shall be relieved of its obligations hereunder with respect to the
portion of its Commitment and/or Loans being assigned, (y) Annex I shall be deemed to be amended to
reflect the Commitment and outstanding Loans of the respective assignee and of the other Lenders
and (z) the Borrower shall issue new Notes (in exchange for the Note of the assigning Lender) to
the assigning Lender (to the extent such Lender’s Commitment or outstanding Loans, as the case may
be, are not reduced to zero as a result of such assignment) and to the assignee Lender, in each
case to the extent requested by the assigning Lender or assignee Lender, as the case may be, in
conformity with the requirements of Section 1.05 to the extent needed to reflect the revised
Commitments and/or outstanding Loans of such Lenders. The Administrative Agent will (x) notify
each Letter of Credit Issuer within 5 Business Days of the effectiveness of any assignment
hereunder and (y) prepare on the last Business Day of each calendar quarter during which an
assignment has become effective pursuant to this clause (b)(A) a new Annex I giving effect to all
such assignments effected during such quarter and will promptly provide same to the Borrower and
each of the Lenders. No assignment shall be effective for purposes of this Agreement unless it has
been recorded in the Register as provided in this paragraph.

          (B) Participations. Each Lender may transfer, grant or assign participations in all
or any part of such Lender’s interests and obligations hereunder pursuant to this clause (b)(B) to
any Eligible Transferee, provided that (i) such Lender shall remain a “Lender” for all
purposes of this Agreement and the transferee of such participation shall not constitute a Lender
hereunder

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and (ii) no participant under any such participation shall have rights to approve any
amendment to or waiver of this Agreement or any other Credit Document except to the extent such
amendment or waiver would (u) extend the scheduled final maturity of any Loan, Commitment or Note,
or any portion thereof, in which such participant is participating, (v) reduce the interest rate or
extend the time of payment of interest (other than as a result of waiving the applicability of any
post-default increase in interest rates) or Fees applicable to any of the Loans, Commitments or
Letters of Credit or reduce the principal amount thereof, (w) release Reynolds Tobacco from its
Guaranty, (x) at any time Collateral is pledged pursuant to the Security Documents release (other
than pursuant to the automatic release provided for in Section 7.10 or as otherwise expressly
permitted by the Security Documents) all or substantially all of the Collateral, (y) amend, modify
or waive any provision of this clause (B) (other than technical amendments which do not adversely
affect the rights of any Lender) or (z) consent to the assignment or transfer by the Borrower of
any of its rights and obligations under this Agreement. In the case of any such participation, the
participant shall not have any rights under this Agreement or any of the other Credit Documents
(the participant’s rights against the granting Lender in respect of such participation to be those
set forth in the agreement with such Lender creating such participation) and all amounts payable by
the Borrower hereunder shall be determined as if such Lender had not sold such participation,
provided that such participant shall be entitled to receive additional amounts under
Sections 1.10, 1.11, 2.05 and 4.04 on the same basis as if it were a Lender. In addition, each
agreement creating any participation must include an agreement by the participant to be bound by
the provisions of Section 12.15.

          (c) Notwithstanding any other provisions of this Section 12.04, no transfer or assignment of
the interests or obligations of any Lender hereunder or any grant of participations
therein shall be permitted if such transfer, assignment or grant would require the Borrower or
any Guarantor to file a registration statement with the SEC or to qualify the Loans under the “Blue
Sky” laws of any State.

          (b) Each Lender initially party to this Agreement hereby represents, and each Person that
becomes a Lender pursuant to an assignment permitted by the preceding clause (b)(A) will upon its
becoming party to this Agreement represent, that it is an Eligible Transferee which makes loans in
the ordinary course of its business and that it will make or acquire Loans for its own account in
the ordinary course of such business, provided that, subject to the preceding clauses (a)
through (c), the disposition of any promissory notes or other evidences of or interests in
Indebtedness held by such Lender shall at all times be within its exclusive control.

          (e) Notwithstanding anything to the contrary contained herein, any Lender (a “Granting
Lender”) may grant to a special purpose funding vehicle (each, an “SPC”) of such
Granting Lender, identified as such in writing from time to time by the respective Granting Lender
to the Administrative Agent and the Borrower, the option to provide to the Borrower all or any part
of any Revolving Loan that such Granting Lender would otherwise be obligated to make to the
Borrower pursuant to Section 1.01(a), provided that (i) nothing herein shall constitute a
commitment to make any Revolving Loan by any SPC and (ii) if an SPC elects not to exercise such
option or otherwise fails to provide all or any part of such Loan, the respective Granting Lender
shall be obligated to make such Revolving Loan pursuant to the terms hereof. The making of a
Revolving Loan by an SPC hereunder shall utilize the Revolving Loan Commitment of the respective
Granting Lender to the same extent, and as if, such Revolving

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Loan were made by such Granting
Lender. Each party hereto hereby agrees that (x) no SPC shall be liable for any payment under this
Agreement for which a Lender would otherwise be liable and (y) the Granting Lender for any SPC
shall be (and hereby agrees that it is) liable for any payment under this Agreement for which the
SPC would be liable in the absence of preceding clause (x). In furtherance of the foregoing, each
party hereto hereby agrees that, prior to the date that is one year and one day after the payment
in full of all outstanding senior indebtedness of any SPC, it will not institute against, or join
any other person in instituting against, such SPC any bankruptcy, reorganization, arrangement,
insolvency or liquidation proceedings or similar proceedings under the laws of the United States or
any State thereof. In addition, notwithstanding anything to the contrary contained in this Section
12.04, any SPC may (i) with notice to, but without the prior written consent of, the Borrower or
the Administrative Agent and without paying any processing fee therefor, assign all or a portion of
its interests in any Loans to its Granting Lender or to any financial institutions (if consented to
by the Borrower and the Administrative Agent) providing liquidity and/or credit facilities to or
for the account of such SPC to fund the Revolving Loans made by such SPC or to support the
securities (if any) issued by such SPC to fund such Revolving Loans and (ii) disclose on a
confidential basis any non-public information relating to its Loans to any rating agency,
commercial paper dealer or provider of a surety, guarantee or credit or liquidity enhancement to
such SPC.

          (f) The Administrative Agent, acting for this purpose as an agent of the Borrower, shall
maintain at one its offices a copy of each Assignment Agreement delivered to it and a register for
the recordation of the names and addresses of the Lenders, and the Commitment of, and principal
amount of the Loans and Unpaid Drawings owing to, each Lender pursuant to the terms hereof from
time to time (the “Register”). The entries in the Register shall
be conclusive, and the Borrower, the Administrative Agent, each Letter of Credit Issuer and
the Lenders may treat each Person whose name is recorded in the Register pursuant to the terms
hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the
contrary. The Register shall be available for inspection by the Borrower, any Letter of Credit
Issuer and any Lender, at any reasonable time and from time to time upon reasonable prior notice.

          12.05 No Waiver; Remedies Cumulative. No failure or delay on the part of any Lead
Agent, the Administrative Agent, any Letter of Credit Issuer or any Lender in exercising any right,
power or privilege hereunder or under any other Credit Document and no course of dealing between
any Credit Party and any Lead Agent, the Collateral Agent, the Swingline Lender, any Letter of
Credit Issuer or any Lender shall operate as a waiver thereof; nor shall any single or partial
exercise of any right, power or privilege hereunder or under any other Credit Document preclude any
other or further exercise thereof or the exercise of any other right, power or privilege hereunder
or thereunder. The rights and remedies herein expressly provided are cumulative and not exclusive
of any rights or remedies which any Lead Agent, the Collateral Agent, the Swingline Lender, any
Letter of Credit Issuer or any Lender would otherwise have. No notice to or demand on any Credit
Party in any case shall entitle such Credit Party to any other or further notice or demand in
similar or other circumstances or constitute a waiver of the rights of the Lead Agents, the
Collateral Agent, the Swingline Lender, the Letter of Credit Issuers or the Lenders to any other or
further action in any circumstances without notice or demand. No waiver of any provision of this
Agreement or consent to any departure by the Borrower therefrom shall in any event be effective
unless the same shall be permitted by Section

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12.12(a), and then such waiver or consent shall be
effective only in the specific instance and for the purpose for which given. Without limiting the
generality for the foregoing, the making of a Loan or issuance of a Letter of Credit shall not be
construed as a waiver of any Default or Event of Default, regardless of whether the Administrative
Agent, any Lender or any Letter of Credit Issuer may have had notice or knowledge of such Default
or Event of Default at the time.

          12.06 Payments Pro Rata. (a) The Administrative Agent agrees that promptly after its
receipt of each payment from or on behalf of any Credit Party in respect of any Obligations of such
Credit Party, it shall, except as otherwise provided in this Agreement or any other Credit
Document, distribute such payment to the Lenders pro rata based upon their
respective shares, if any, of the Obligations with respect to which such payment was received.

          (b) Each of the Lenders agrees that, if it should receive any amount hereunder (whether by
voluntary payment, by realization upon security, by the exercise of the right of setoff or Lender’s
lien, by counterclaim or cross action, by the enforcement of any right under the Credit Documents,
or otherwise) which is applicable to the payment of the principal of, or interest on, the Loans or
Fees, of a sum which with respect to the related sum or sums received by other Lenders is in a
greater proportion than the total of such Obligations then owed and due to such Lender bears to the
total of such Obligations then owed and due to all of the Lenders immediately prior to such
receipt, then such Lender receiving such excess payment shall
purchase for cash (without recourse or warranty) from the other Lenders an interest in the
Obligations of the respective Credit Party to such Lenders in such amount as shall result in a
proportional participation by all of the Lenders in such amount; provided that if all or
any portion of such excess amount is thereafter recovered from such Lender, such purchase shall be
rescinded and the purchase price restored to the extent of such recovery, but without interest.

          12.07 Calculations; Computations. (a) The financial statements to be furnished to
the Administrative Agent (for the benefit of the Lenders) pursuant hereto shall be made and
prepared in accordance with GAAP consistently applied throughout the periods involved (except as
set forth in the notes thereto or as otherwise disclosed in writing by the Borrower to the
Administrative Agent); provided that, except as otherwise specifically provided herein, all
computations determining compliance with Section 8, including definitions used therein, shall
utilize accounting principles and policies in effect at the time of the preparation of, and in
conformity with those used to prepare, the financial statements for the fiscal year of the Borrower
ended December 31, 2005 delivered to the Administrative Agent pursuant to Section 7.01(b),
provided that in the event GAAP shall be modified from that in effect at the time of the
preparation of such financial statements, the Borrower shall be entitled to utilize GAAP, as so
modified, for purposes of such computations to the extent that (x) the Borrower gives the
Administrative Agent 30 days’ prior written notice of such proposed modification and (y) prior
thereto the Borrower and the Lead Agents shall have agreed upon adjustments, if any, to Sections
8.05, 8.07, 8.08 and 8.13 (and the definitions used therein), the sole purpose of which shall be to
give effect to such proposed change (it being understood and agreed that to the extent that the
Borrower and the Lead Agents cannot agree on appropriate adjustments to such Sections (or that no
adjustments are necessary), the proposed change may not be effected); and provided,
further, that if at any time the computations determining compliance with Section 8 (and
the definitions used therein) utilize accounting principles different from those utilized in the
financial statements furnished to the Administrative Agent pursuant to this Agreement, such

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financial statements shall be accompanied by reconciliation work-sheets. Notwithstanding the
foregoing, for purposes of the computations determining compliance with Section 8, all expenses and
other charges arising from any settlement of tobacco liability which are required by GAAP to be
retroactively applied to a previous fiscal quarter of the Borrower shall instead be accrued in the
fiscal quarter in which such expenses and charges occur.

          (b) All computations of interest and Fees hereunder shall be made on the actual number of days
elapsed over a year of 360 days (or in the case of Reference Rate Loans determined by reference to
the Base Rate, 365/366 days).

          (c) All determinations of the Stated Amount of Letters of Credit and of the principal amount
of Unpaid Drawings, in each case to the extent denominated in a currency other than U.S. Dollars,
shall be made by converting same into U.S. Dollars at (x) if a Currency Agreement has been entered
into by the Borrower and/or any of its Subsidiaries in connection with such Indebtedness, and is in
effect at the time of such determination, the rate provided in such Currency Agreement,
provided that this clause (x) shall not be applicable (I) unless the Administrative Agent
has received sufficient information from the Borrower to determine the exchange rate established by
such Currency Agreement and the duration thereof, or (II) to any
determination of the Borrower’s obligation to reimburse in U.S. Dollars a Drawing under a
Letter of Credit denominated in a currency other than U.S. Dollars, (y) in the case of a
determination of the Borrower’s obligation to reimburse in U.S. Dollars a Drawing under a Letter of
Credit denominated in a currency other than U.S. Dollars, the spot exchange rate for the currency
in question of the Letter of Credit Issuer on the date of such Drawing or (z) if the provisions of
the foregoing clauses (x) and (y) are not applicable, the “official” exchange rate, if applicable,
or the spot exchange rate for the currency in question calculated by the Administrative Agent on
the last Business Day of the month then last ended preceding the date on which any such
determination is being made and at such other times as the Administrative Agent elects to make such
determination, it being understood that the Administrative Agent shall have no obligation to make
any such other determinations. The Administrative Agent will promptly notify the Borrower and each
Letter of Credit Issuer of its determinations hereunder.

          12.08 Governing Law; Submission to Jurisdiction; Venue. (a) THIS AGREEMENT AND THE
OTHER CREDIT DOCUMENTS (OTHER THAN CERTAIN SECURITY DOCUMENTS EXPRESSLY PROVIDING OTHERWISE) AND
THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER AND THEREUNDER SHALL BE CONSTRUED IN ACCORDANCE
WITH AND BE GOVERNED BY THE LAW OF THE STATE OF NEW YORK. The Borrower hereby irrevocably and
unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of the
Supreme Court of the State of New York sitting in New York County and of the United States District
Court of the Southern District of New York, and any appellate court from any thereof, in any action
or proceeding arising out of or relating to this Agreement or any other Credit Document, or for
recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and
unconditionally agrees that all claims in respect of any such action or proceeding may be heard and
determined in such New York State or, to the extent permitted by law, in such Federal court. Each
of the parties hereto agrees that a final judgment in any such action or proceeding shall be
conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other
manner provided by law. Nothing in this Agreement shall affect any right that any Lead Agent, the
Collateral Agent, any

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Letter of Credit Issuer, the Swingline Lender or any Lender may otherwise
have to bring any action or proceeding relating to this Agreement against the Borrower or its
properties in the courts of any jurisdiction.

          (b) The Borrower hereby irrevocably and unconditionally waives, to the fullest extent it may
legally and effectively do so, any objection which it may now or hereafter have to the laying of
venue of any suit, action or proceeding arising out of or relating to this Agreement in any court
referred to in paragraph (b) of this Section. Each of the parties hereto hereby irrevocably
waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the
maintenance of such action or proceeding in any such court.

          (c) Each party to this Agreement irrevocably consents to service of process in the manner
provided for notices in Section 12.03. Nothing in this Agreement will affect the right of any
party to this Agreement to serve process in any other manner permitted by law.

          12.09 Counterparts; Severability. (a) This Agreement may be executed in counterparts (and by different parties hereto on
different counterparts), each of which shall constitute an original, but all of which when taken
together shall constitute a single contract. This Agreement and any separate letter agreements
with respect to fees payable to the Administrative Agent constitute the entire contract among the
parties relating to the subject matter hereof and supersede any and all previous agreements and
understandings, oral or written, relating to the subject matter hereof. Delivery of an executed
counterpart of a signature page of this Agreement by telecopy shall be effective as delivery of a
manually executed counterpart of this Agreement. A set of counterparts executed by all the parties
hereto shall be lodged with the Borrower and the Administrative Agent.

          (b) Any provision of this Agreement held to be invalid, illegal or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity,
illegality or unenforceability without affecting the validity, legality and enforceability of the
remaining provisions hereof; and the invalidity of a particular provision in a particular
jurisdiction shall not invalidate such provision in any jurisdiction.

          12.10 Execution. The Fourth Amended and Restated Credit Agreement shall be fully
executed on the date (the “Fourth Restatement Execution Date”) on which the Borrower, each
Lender (as defined in the Third Amended and Restated Credit Agreement) and each Lender shall have
signed a copy thereof (whether the same or different copies) and shall have delivered the same to
the Administrative Agent at the Administrative Agent’s Office or, in the case of the Lenders, shall
have given to the Administrative Agent telephonic (confirmed in writing), written, telex or
facsimile notice (actually received) at such office that the same has been signed and mailed to it.
The Administrative Agent will give the Borrower and each Lender prompt written notice of the
occurrence of the Fourth Restatement Execution Date.

          12.11 Headings Descriptive. The headings of the several sections and subsections of
this Agreement are inserted for convenience only and shall not in any way affect the meaning or
construction of any provision of this Agreement.

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          12.12 Amendment or Waiver. (a) Neither this Agreement nor any other Credit Document
nor any terms hereof or thereof may be changed, waived, discharged or terminated unless such
change, waiver, discharge or termination is in writing signed by the Required Lenders;
provided that (x) no such change, waiver, discharge or termination shall, without the
consent of each Lender (other than a Defaulting Lender) with Obligations being directly affected
thereby, (i) extend any Scheduled Repayment or the scheduled final maturity of any Loan or Note, or
any portion thereof, or reduce the rate or extend the time of payment of interest (other than as a
result of waiving the applicability of any post-default increase in interest rates) thereon or Fees
(it being understood that any amendment or modification to the financial definitions in this
Agreement or to Section 12.07(a) shall not constitute a reduction in the rate of interest or Fees
for the purposes of this clause (i)) or reduce the principal amount thereof, or increase the
Commitment of any Lender
over the amount thereof then in effect (it being understood that waivers or modifications of
conditions precedent, covenants, Defaults or Events of Default, mandatory repayments or a mandatory
reduction in the Total Commitment shall not constitute an increase of the Commitment of any Lender,
and that an increase in the available portion of any Commitment of any Lender shall not constitute
an increase of the Commitment of such Lender), (ii) release any Subsidiary from the Subsidiary
Guaranty, except in connection with a sale or other disposition of such Subsidiary permitted by
this Agreement, (iii) at any time Collateral is pledged pursuant to the Security Documents release
(other than pursuant to the automatic release provided for in Section 7.10 or as otherwise
expressly permitted by the Security Documents) all or substantially all of the Collateral, (iv)
amend, modify or waive any provision of this Section (other than technical amendments which do not
adversely affect the rights of any Lender), or Section 12.06 in a manner that would alter the
pro rata sharing of payments required thereby, (v) reduce the percentage specified
in the definition of Required Lenders or (vi) consent to the assignment or transfer by the Borrower
of any of its rights and obligations under this Agreement; and (y) the financial covenants set
forth in Sections 8.05, 8.07, 8.08 and 8.13 (and the defined terms used therein) may be adjusted
with the consent of the Borrower and the Lead Agents to the extent provided in Sections 7.09 and
12.07(a). No provision of Section 11 may be amended or modified without the consent of any Lead
Agent adversely affected thereby. The obligations of the Swingline Lender to make Swingline Loans,
the terms of any such Swingline Loans and the obligations of the other Lenders to fund Mandatory
Borrowings shall not be amended or modified without the consent of the Swingline Lender. The terms
of Section 2 shall not be amended or modified without the consent of any Letter of Credit Issuer
adversely affected thereby.

          (b) If, in connection with any proposed change, waiver, discharge or termination of or to any
of the provisions of this Agreement as contemplated by clause (x) of the proviso appearing in the
first sentence of Section 12.12(a), the consent of the Required Lenders is obtained but the consent
of one or more of such other Lenders whose consent is required is not obtained, then the Borrower
shall have the right to replace each such non-consenting Lender or Lenders with one or more
Replacement Lenders pursuant to Section 1.14, so long as (i) at the time of such replacement, each
such Replacement Lender consents to the proposed change, waiver, discharge or termination, and (ii)
all non-consenting Lenders whose individual consent is required are treated the same.

          12.13 Survival. All covenants, agreements, representations and warranties made by the
Borrower herein and in the certificates or other instruments delivered in connection with

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or pursuant to this Agreement shall be considered to have been relied upon by the other parties hereto
and shall survive the execution and delivery of this Agreement and the making of any Loans and
issuance of any Letters of Credit, regardless of any investigation by any such other party or in
its behalf and notwithstanding that any Lead Agent, the Administrative Agent, the Collateral Agent,
any Letter of Credit Issuer, the Swingline Lender or any Lender may have had notice or knowledge of
any Default or Event of Default or incorrect representation or warranty at the time any credit is
extended hereunder, and shall continue in full force and effect as long as the principal of any
accrued interest on any Loan or any fee or any other amount payable under this Agreement is
outstanding and unpaid or any Letter of Credit is outstanding and so long as
the Revolving Loan Commitments have not expired or terminated. All indemnities set forth
herein including, without limitation, in Section 1.10, 1.11, 2.05, 4.04, 11.07 or 12.01 shall
survive the execution and delivery of this Agreement and the making of the Loans, the issuances of
Letters of Credit, the repayment of the Obligations and the termination of the Total Commitment.

          12.14 Domicile of Loans. Subject to Section 12.04, each Lender may transfer and carry
its Loans at, to or for the account of any branch office, subsidiary or affiliate of such Lender;
provided that the Borrower shall not be responsible for costs arising under Section 1.10,
1.11, 2.05 or 4.04 resulting from any such transfer (other than a transfer pursuant to Section
1.12) to the extent not otherwise applicable to such Lender prior to such transfer.

          12.15 Confidentiality. (a) Each of the Administrative Agent, the Letter of Credit
Issuer and the Lenders agrees to maintain the confidentiality of the Information (as defined
below), except that Information may be disclosed (a) to its and its Affiliates’ directors,
officers, employees and agents, including accountants, legal counsel and other advisors (it being
understood that the Persons to whom such disclosure is made will be informed of the confidential
nature of such Information and instructed to keep such Information confidential), (b) to the extent
requested by any regulatory authority, (c) to the extent required by applicable laws or regulations
or by any subpoena or similar legal process, (d) to any other party to this Agreement, (e) in
connection with the exercise of any remedies hereunder or any suit, action or proceeding relating
to this Agreement or the enforcement of rights hereunder, (f) subject to an agreement containing
provisions substantially the same as those of this Section, to (i) any assignee of or participant
in, or any prospective assignee of or participant in (which shall be an Eligible Transferee), any
of its rights or obligations under this Agreement or (ii) any actual or prospective counterparty
(or its advisors) to any swap or derivative transaction relating to the Borrower and its
obligations, (g) with the consent of the Borrower or (h) to the extent such Information (i) becomes
publicly available other than as a result of a breach of this Section 12.15 or (ii) becomes
available to the Administrative Agent, the Letter of Credit Issuer or any Lender on a
non-confidential basis from a source other than the Borrower. For the purposes of this Section,
“Information” means all information received from the Borrower or any of its Subsidiaries
relating to the Borrower, its Subsidiaries or their businesses, other than any such information
that is available to the Administrative Agent, the Letter of Credit Issuer or any Lender on a
non-confidential basis prior to disclosure by the Borrower or any of its Subsidiaries;
provided that, in the case of information received from the Borrower or any of its
Subsidiaries after the date hereof, such information is clearly identified at the time of delivery
as confidential. Any Person required to maintain the confidentiality of Information as provided in
this Section shall be considered to have complied with its obligation to do so if such Person has
exercised the

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same degree of care to maintain the confidentiality of such Information as such
Person would accord to its own confidential information.

          (b) EACH LENDER ACKNOWLEDGES THAT THE INFORMATION AS DEFINED IN SECTION 12.15(a)
FURNISHED TO IT PURSUANT TO THIS AGREEMENT
MAY INCLUDE MATERIAL NON-PUBLIC INFORMATION CONCERNING THE BORROWER AND ITS RELATED PARTIES
OR THEIR RESPECTIVE SECURITIES, AND CONFIRMS THAT IT HAS DEVELOPED COMPLIANCE PROCEDURES REGARDING
THE USE OF MATERIAL NON-PUBLIC INFORMATION AND THAT IT WILL HANDLE SUCH MATERIAL NON-PUBLIC
INFORMATION IN ACCORDANCE WITH THOSE PROCEDURES AND APPLICABLE LAW, INCLUDING FEDERAL AND STATE
SECURITIES LAWS.

          (c) ALL INFORMATION, INCLUDING REQUESTS FOR WAIVERS AND AMENDMENTS, FURNISHED BY THE BORROWER
OR THE ADMINISTRATIVE AGENT PURSUANT TO, OR IN THE COURSE OF ADMINISTERING, THIS AGREEMENT WILL BE
SYNDICATE-LEVEL INFORMATION, WHICH MAY CONTAIN MATERIAL NON-PUBLIC INFORMATION ABOUT THE BORROWER
AND ITS AFFILIATES, THE OTHER CREDIT PARTIES AND THEIR RELATED PARTIES OR THEIR RESPECTIVE
SECURITIES) AND ITS SECURITIES. ACCORDINGLY, EACH LENDER REPRESENTS TO THE BORROWER AND THE
ADMINISTRATIVE AGENT THAT IT HAS IDENTIFIED IN ITS ADMINISTRATIVE QUESTIONNAIRE A CREDIT CONTACT
WHO MAY RECEIVE INFORMATION THAT MAY CONTAIN MATERIAL NON-PUBLIC INFORMATION IN ACCORDANCE WITH ITS
COMPLIANCE PROCEDURES AND APPLICABLE LAW.

          12.16 Waiver of Jury Trial. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL
PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY OTHER CREDIT
DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY
OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY
OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT
OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER
PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL
WAIVERS AND CERTIFICATIONS IN THIS SECTION.

          12.17 USA Patriot Act. Each Lender hereby notifies the Borrower that pursuant to the
requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26,
2001)) (the “Act”), it is required to obtain, verify and record information that identifies
the Borrower, which information includes the name and address of the Borrower and other information
that will allow such Lender to identify the Borrower in accordance with the Act.

          12.18 Interest Rate Limitation. Notwithstanding anything herein to the contrary, if
any time the interest rate applicable to any Loan, together with all fees, charges and other
amounts which are treated as interest on such Loan under applicable law (collectively, the
“Charges”), shall exceed the maximum lawful rate (the “Maximum Rate”) which may be
contracted for, charged, taken, received or reserved by the Lender holding such Loan in

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accordance with applicable law, the rate
of interest payable in respect of such Loan hereunder, together with all Charges payable in
respect thereof, shall be limited to the Maximum Rate and, to the extent lawful, the interest and
Charges that would have been payable in respect of such Loan but were not payable as a result of
the operation of this Section shall be cumulated and the interest and Charges payable to such
Lender in respect of other Loans or periods shall be increased (but not above the Maximum Rate
therefor) until such cumulated amount, together with interest thereon at the Federal Funds Rate to
the date of repayment, shall have been received by such Lender.

          12.19 Post-Closing Actions. Notwithstanding anything to the contrary contained in
this Agreement or the other Credit Documents, the parties hereto acknowledge and agree that the
actions relating to the Mortgages and Real Property of the Borrower and its Subsidiaries and such
other matters described on Annex X shall be completed in accordance with Annex X. The provisions
of Annex X shall be deemed incorporated herein by reference as fully as if set forth herein in its
entirety.

          All provisions of this Credit Agreement and the other Credit Documents (including, without
limitation, all conditions precedent, representations, warranties, covenants, events of default and
other agreements herein and therein) shall be deemed modified to the extent necessary to effect the
foregoing (and to permit the taking of the actions described above within the time periods required
above, rather than as otherwise provided in the Credit Documents). The parties hereto acknowledge
and agree that the failure to take any of the actions required above, within the relevant time
periods required above, shall give rise to an immediate Event of Default pursuant to this
Agreement.

          12.20 Special Provisions Relating to Amendment and Restatement. (a) The Required
Lenders under, and as defined in, the Third Amended and Restated Credit Agreement hereby consent to
the “refinancing indebtedness” under this Agreement being treated as “indebtedness pursuant to the
Credit Agreement” for purposes of the Pledge Agreement, the Security Agreement, the Intercompany
Subordination Agreement and the Mortgages. The Borrower, for its part, hereby gives notice that
the refinancing indebtedness under this Agreement shall be treated as “issued under the Credit
Agreement” for purposes of the Pledge Agreement, Security Agreement, the Intercompany Subordination
Agreement and the Mortgages.

          (b) The parties hereto acknowledge and agree that:

     (i) the Borrower and its Subsidiaries (as defined in the Third Amended and Restated
Credit Agreement) executed and delivered the Security Documents (as defined in the Third
Amended and Restated Credit Agreement) in favor of the Collateral Agent on behalf of the
Secured Creditors (as defined in the Third Amended and Restated Credit Agreement) to secure
the payment and performance of, inter alia, the Obligations (as defined in
the Third Amended and Restated Credit Agreement);

     (ii) the security interests granted to the Collateral Agent on behalf of the Secured
Creditors pursuant to the Security Documents (as defined in the Third Amended
and Restated Credit Agreement) shall remain outstanding and in full force and effect,

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without interruption or impairment of any kind, in accordance with the terms of such
Security Documents and shall continue to secure the Obligations (as defined in such Security
Documents);

     (iii) the Obligations represent, among other things, the amendment, restatement,
renewal, extension, consolidation and modification of the Obligations (as defined in the
Third Amended and Restated Credit Agreement) arising in connection with the Third Amended
and Restated Credit Agreement and other Credit Documents (as defined in the Third Amended
and Restated Credit Agreement) executed in connection therewith;

     (iv) (a) the Third Amended and Restated Credit Agreement and the other Credit Documents
(as defined in the Third Amended and Restated Credit Agreement) executed in connection
therewith and the collateral pledged thereunder shall secure, without interruption or
impairment of any kind, all existing Indebtedness (as defined in the Third Amended and
Restated Credit Agreement) under the Third Amended and Restated Credit Agreement and the
other Credit Documents (as defined in the Third Amended and Restated Credit Agreement)
executed in connection therewith, as they may be amended, restated, renewed, extended,
consolidated and modified hereunder, together with all other Obligations hereunder; (b) all
Liens evidenced by the Credit Documents (as defined in the Third Amended and Restated Credit
Agreement) executed in connection therewith are hereby ratified, confirmed and continued;
and (c) the Credit Documents are intended to restate, renew, extend, consolidate, amend and
modify the Third Amended and Restated Credit Agreement and the other Credit Documents (as
defined in the Third Amended and Restated Credit Agreement) executed in connection
therewith; and

     (v) (a) the provisions of the Third Amended and Restated Credit Agreement and the other
Credit Documents (as defined in the Third Amended and Restated Credit Agreement) executed in
connection therewith, to the extent restated, renewed, extended, consolidated, amended and
modified hereby or the other corresponding Credit Documents, are hereby superseded and
replaced by the provisions hereof and of the corresponding other Credit Documents; (b) the
Notes restate, renew, extend, consolidate, amend, modify, replace, are substituted for and
supersede, but do not extinguish, the Indebtedness (as defined in the Third Amended and
Restated Credit Agreement) arising under the Notes (as defined in the Third Amended and
Restated Credit Agreement) issued pursuant to the Third Amended and Restated Credit
Agreement; and (c) the execution and delivery of the Credit Documents, and the performance
by Credit Parties of their respective obligations thereunder shall not constitute a
novation.

          (c) By its execution and delivery of this Agreement, each of the Lenders hereby (i) consents
to the execution and delivery of the RAI Assumption Agreement by the Borrower and RJRTH and the
assignment by RJRTH to the Borrower, and the Borrower’s assumption, of all of RJRTH’s rights and
obligations under the Third Amended and Restated Credit Agreement and the other Credit Documents
(as defined in the Third Amended and Restated Credit Agreement) to which RJRTH is a party, effected
thereby, (ii) authorizes the Administrative Agent (on behalf of such Lender) to execute and
acknowledge the RAI Assumption Agreement on its behalf, (iii) consents to the release of the pledge of the capital

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stock of RJRTH held by the Borrower pursuant to the Pledge Agreement (as defined in the Third
Amended and Restated Credit Agreement and as in effect immediately prior to the Fourth Restatement
Effective Date) (it being understood that the capital stock of RJRTH held by the Borrower shall be
re-pledged in favor of the Collateral Agent pursuant to the Pledge Agreement on the Fourth
Restatement Effective Date in accordance with the terms of the Pledge Agreement) and (iv) consents
to the release of the pledge of the capital stock of Reynolds Tobacco held by RJRTH pursuant to the
Pledge Agreement (as defined in the Third Amended and Restated Credit Agreement and as in effect
immediately prior to the Fourth Restatement Effective Date) (it being understood that the capital
stock of Reynolds Tobacco held by RJRTH shall be re-pledged in favor of the Collateral Agent to
secure the RJRTH Intecompany Note Obligations (as defined in the Pledge Agreement) on the Fourth
Restatement Effective Date, all as more particularly set forth in the Pledge Agreement).

          SECTION 13. Borrower Guaranty.

          13.01 The Guaranty. In order to induce the Lenders to enter into this Agreement and
to extend credit hereunder, to induce the Credit Card Issuers to enter into and/or maintain Secured
Credit Card Agreements, to induce the Lenders or any of their respective affiliates to enter into
Hedging Agreements and to induce Calyon to maintain the Existing Interest Rate Swap Agreement and,
in recognition of the direct benefits to be received by the Borrower from the proceeds of the
Loans, the issuance of the Letters of Credit and the entering into and/or maintenance of Secured
Credit Card Agreements and Hedging Agreements, the Borrower hereby agrees as follows: the Borrower
hereby unconditionally and irrevocably guarantees, as primary obligor and not merely as surety the
full and prompt payment when due, whether upon maturity, acceleration or otherwise, of any and all
of the Guaranteed Obligations to the Guaranteed Creditors. If any or all of the Guaranteed
Obligations to the Guaranteed Creditors becomes due and payable hereunder, the Borrower
unconditionally promises to pay such indebtedness to the Guaranteed Creditors, or order, on demand,
together with any and all expenses which may be incurred by the Guaranteed Creditors in collecting
any of the Guaranteed Obligations. This Borrower Guaranty is a guaranty of payment and not of
collection. This Borrower Guaranty is a continuing one and all liabilities to which it applies or
may apply under the terms hereof shall be conclusively presumed to have been created in reliance
hereon. If claim is ever made upon any Guaranteed Creditor for repayment or recovery of any amount
or amounts received in payment or on account of any of the Guaranteed Obligations and any of the
aforesaid payees repays all or part of said amount by reason of (i) any judgment, decree or order
of any court or administrative body having jurisdiction over such payee or any of its property or
(ii) any settlement or compromise of any such claim effected by such payee with any such claimant
(including any Guaranteed Party), then and in such event the Borrower agrees that any such
judgment, decree, order, settlement or compromise shall be binding upon the Borrower,
notwithstanding any revocation of this Borrower Guaranty or any other instrument evidencing any
liability of any other Guaranteed Party, and the Borrower shall be and remain liable to the
aforesaid payees hereunder for the
amount so repaid or recovered to the same extent as if such amount had never originally been
received by any such payee.

          13.02 Bankruptcy. Additionally, the Borrower unconditionally and irrevocably
guarantees the payment of any and all of the Guaranteed Obligations to the Guaranteed Creditors
whether or not due or payable by any Guaranteed Party upon the occurrence of any of the events

-121-

 

specified in Section 9.05, and unconditionally promises to pay such indebtedness to the Guaranteed
Creditors, or order, on demand.

          13.03 Nature of Liability. The liability of the Borrower hereunder is exclusive and
independent of any guaranty of the Guaranteed Obligations whether executed by the Borrower, any
other guarantor or by any other party, and the liability of the Borrower hereunder is not affected
or impaired by (a) any direction as to application of payment by any Guaranteed Party or by any
other party, or (b) any other continuing or other guaranty, undertaking or maximum liability of a
guarantor or of any other party as to the Guaranteed Obligations, or (c) any payment on or in
reduction of any such other guaranty or undertaking, or (d) any dissolution, termination or
increase, decrease or change in personnel by any Guaranteed Party, or (e) any payment made to the
Guaranteed Creditors on the Guaranteed Obligations which any such Guaranteed Creditor repays to any
Guaranteed Party pursuant to court order in any bankruptcy, reorganization, arrangement, moratorium
or other debtor relief proceeding, and the Borrower waives any right to the deferral or
modification of its obligations hereunder by reason of any such proceeding, or (f) any action or
inaction of the type described in Section 13.05, or (g) the lack of validity or enforceability of
any Credit Document or any other instrument relating thereto.

          13.04 Independent Obligation. No invalidity, irregularity or unenforceability of all
or any part of the Guaranteed Obligations shall affect, impair or be a defense to this Borrower
Guaranty, and this Borrower Guaranty shall be primary, absolute and unconditional notwithstanding
the occurrence of any event or the existence of any other circumstances which might constitute a
legal or equitable discharge of a surety or guarantor except payment in full of the Guaranteed
Obligations of the Borrower. The obligations of the Borrower hereunder are independent of the
obligations of any Guaranteed Party, any other guarantor or any other Person and a separate action
or actions may be brought and prosecuted against the Borrower whether or not action is brought
against any Guaranteed Party, any other guarantor or any other Person and whether or not any
Guaranteed Party, any other guarantor or any other Person be joined in any such action or actions.
The Borrower waives, to the full extent permitted by law, the benefit of any statute of limitations
affecting its liability hereunder or the enforcement thereof. Any payment by any Guaranteed Party
with respect to any Guaranteed Obligations or other circumstance which operates to toll any statute
of limitations as to such Guaranteed Party shall operate to toll the statute of limitations as to
the Borrower.

          13.05 Authorization. The Borrower authorizes the Guaranteed Creditors without notice or demand (except as shall
be required by applicable statute and cannot be waived), and without affecting or impairing its
liability hereunder, from time to time to:

     (i) change the manner, place or terms of payment of, and/or change or extend the time
of payment of, renew, increase, accelerate or alter, any of the Guaranteed Obligations
(including any increase or decrease in the rate of interest thereon) or any liability
incurred directly or indirectly in respect thereof, and this Borrower Guaranty made shall
apply to the Guaranteed Obligations as so changed, extended, renewed, increased or altered;

-122-

 

     (ii) take and hold security for the payment of the Guaranteed Obligations and sell,
exchange, release, impair, surrender, realize upon or otherwise deal with in any manner and
in any order any property by whomsoever at any time pledged or mortgaged to secure, or
howsoever securing, the Guaranteed Obligations or any liabilities (including any of those
hereunder) incurred directly or indirectly in respect thereof or hereof, and/or any offset
thereagainst;

     (iii) exercise or refrain from exercising any rights against any Guaranteed Party or
others or otherwise act or refrain from acting;

     (iv) release or substitute any one or more endorsers, guarantors, any Guaranteed Party
or other obligors;

     (v) settle or compromise any of the Guaranteed Obligations or any liability (including
any of those hereunder) incurred directly or indirectly in respect thereof or hereof, and
may subordinate the payment of all or any part thereof to the payment of any liability
(whether due or not) of any Guaranteed Party to their respective creditors other than the
Guaranteed Creditors;

     (vi) apply any sums by whomsoever paid or howsoever realized to any liability or
liabilities of any Guaranteed Party to the Guaranteed Creditors regardless of what liability
or liabilities of such Guaranteed Party remain unpaid;

     (vii) consent to or waive any breach of, or any act, omission or default under, this
Agreement, any other Credit Document, any Secured Credit Card Agreement, any Hedging
Agreement or any of the instruments or agreements referred to herein or therein, or
otherwise amend, modify or supplement this Agreement, any other Credit Document, any Secured
Credit Card Agreement, any Hedging Agreement or any of such other instruments or agreements;
and/or

     (viii) take any other action which would, under otherwise applicable principles of
common law, give rise to a legal or equitable discharge of the Borrower from its liabilities
under this Borrower Guaranty.

          13.06 Reliance. It is not necessary for the Guaranteed Creditors to inquire into the capacity or powers of
any Party or the officers, directors, partners or agents acting or purporting to act on their
behalf, and any Guaranteed Obligations made or created in reliance upon the professed exercise of
such powers shall be guaranteed hereunder by the Borrower.

          13.07 Subordination. Any of the indebtedness of any Guaranteed Party now or hereafter
owing to the Borrower is hereby subordinated to the Guaranteed Obligations of such Guaranteed Party
owing to the Guaranteed Creditors; and if the Administrative Agent so requests at a time when an
Event of Default exists, all such indebtedness of such Guaranteed Party to the Borrower shall be
collected, enforced and received by the Borrower for the benefit of the Guaranteed Creditors and be
paid over to the Administrative Agent on behalf of the Guaranteed Creditors on account of the
Guaranteed Obligations of such Guaranteed Party to the Guaranteed Creditors, but without affecting
or impairing in any manner the liability of the Borrower under the other provisions of this
Borrower Guaranty. Prior to the transfer by the Borrower to any

-123-

 

Person (other than a Subsidiary
Guarantor) of any note or negotiable instrument evidencing any of the indebtedness of any
Guaranteed Party to the Borrower, the Borrower shall mark such note or negotiable instrument with a
legend that the same is subject to this subordination. Without limiting the generality of the
foregoing, the Borrower hereby agrees with the Guaranteed Creditors that it will not exercise any
right of subrogation which it may at any time otherwise have as a result of this Borrower Guaranty
(whether contractual, under Section 509 of the Bankruptcy Code or otherwise) until all Guaranteed
Obligations have been irrevocably paid in full in cash.

          13.08 Waiver. (a) Each Borrower waives any right (except as shall be required by
applicable statute and cannot be waived) to require any Guaranteed Creditor to (i) proceed against
any Guaranteed Party, any other guarantor or any other party, (ii) proceed against or exhaust any
security held from any Party, any other guarantor or any other party or (iii) pursue any other
remedy in any Guaranteed Creditor’s power whatsoever. The Borrower waives any defense based on or
arising out of any defense of any Guaranteed Party, any other guarantor or any other party, other
than payment in full in cash of the Guaranteed Obligations, based on or arising out of the
disability of any Guaranteed Party, any other guarantor or any other party, or the unenforceability
of the Guaranteed Obligations or any part thereof from any cause, or the cessation from any cause
of the liability of any Guaranteed Party other than payment in full in cash of the Guaranteed
Obligations. The Guaranteed Creditors may, at their election, foreclose on any security held by
the Administrative Agent or any other Guaranteed Creditor by one or more judicial or nonjudicial
sales, whether or not every aspect of any such sale is commercially reasonable (to the extent such
sale is permitted by applicable law), or exercise any other right or remedy the Guaranteed
Creditors may have against any Guaranteed Party or any other party, or any security, without
affecting or impairing in any way the liability of the Borrower hereunder except to the extent the
Guaranteed Obligations of the Borrower have been paid in full in cash. The Borrower waives any
defense arising out of any such election by the Guaranteed Creditors, even though such election
operates to impair or extinguish any right of reimbursement or subrogation or other right or remedy
of the Borrower against any Guaranteed Party or any other party or any security.

          (b) The Borrower waives all presentments, demands for performance, protests and notices,
including, without limitation, notices of nonperformance, notices of protest, notices of dishonor,
notices of acceptance of this Borrower Guaranty, and notices of the existence, creation,
modification or incurring of new or additional Guaranteed Obligations. The Borrower assumes all
responsibility for being and keeping itself informed of each Guaranteed Party’s financial condition
and assets, and of all other circumstances bearing upon the risk of nonpayment of the Guaranteed
Obligations and the nature, scope and extent of the risks which the Borrower assumes and incurs
hereunder, and agrees that the Guaranteed Creditors shall have no duty to advise the Borrower of
information known to it regarding such circumstances or risks.

          (c) Until such time as the Guaranteed Obligations have been paid in full in cash, the Borrower
hereby waives all rights of subrogation which it may at any time otherwise have as a result of this
Borrower Guaranty (whether contractual, under Section 509 of the Bankruptcy Code, or otherwise) to
the claims of the Guaranteed Creditors against any other guarantor of the Guaranteed Obligations
and all contractual, statutory or common law rights of

-124-

 

reimbursement, contribution or indemnity
from any Guaranteed Party or any other guarantor which it may at any time otherwise have as a
result of this Borrower Guaranty.

          13.09 Payments. All payments made by the Borrower pursuant to this Section 13 shall
be made in U.S. Dollars. All payments made by the Borrower pursuant to this Section 13 will be
made without setoff, counterclaim or other defense, and shall be subject to the payment provisions
applicable to the Borrower in Sections 4.03 and 4.04.

* * *

-125-

 

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

	 	 	 	 	 
	 	REYNOLDS AMERICAN INC.

 	 
	 	By:  	/s/ Daniel A. Fawley	 
	 	 	Name:  	Daniel A. Fawley	 
	 	 	Title:  	Senior Vice President & Treasurer	 
	 

Credit Agreement

 

 

	 	 	 	 	 
	 	JPMORGAN CHASE BANK, N.A., 

Individually and as Administrative Agent, 

Lead Agent, Joint Lead Arranger and Joint 

Bookrunner

 	 
	 	By:  	/s/ Robert T. Sacks	 
	 	 	Name 	Robert T. Sacks	 
	 	 	Title:  	Managing Director	 
	 

Credit Agreement

 

 

	 	 	 	 	 
	 	LEHMAN BROTHERS INC., as a Joint Lead 

Arranger and Joint Bookrunner

 	 
	 	By:  	/s/
Jeffrey Abt	 
	 	 	Name 	Jeffrey Abt	 
	 	 	Title:  	Managing Director	 
	 
	 	LEHMAN COMMERCIAL PAPER INC., 

Individually and as Syndication Agent

 	 
	 	By:  	/s/
Jeffrey Abt	 
	 	 	Name 	Jeffrey Abt	 
	 	 	Title:  	Authorized Signatory	 
	 

Credit Agreement

 

 

	 	 	 	 	 
	 

	 	SIGNATURE PAGE TO THE FOURTH AMENDED AND RESTATED CREDIT
AGREEMENT, DATED AS OF MAY 31, 2006, AMONG REYNOLDS
AMERICAN INC., THE VARIOUS LENDING INSTITUTIONS FROM TIME
TO TIME PARTY THERETO, JPMORGAN CHASE BANK, N.A., AS
ADMINISTRATIVE AGENT, LEHMAN COMMERCIAL PAPER INC. AND
CITICORP USA, INC., AS SYNDICATION AGENTS, GENERAL
ELECTRIC CAPITAL CORPORATION, AS DOCUMENTATION AGENT,
LEHMAN BROTHERS INC., J.P. MORGAN SECURITIES INC.,
CITIGROUP GLOBAL MARKETS INC. AND GENERAL ELECTRIC CAPITAL
CORPORATION, AS JOINT LEAD ARRANGERS AND LEHMAN BROTHERS
INC., J.P. MORGAN SECURITIES INC. AND CITIGROUP GLOBAL
MARKETS INC., AS JOINT BOOKRUNNERS
	 
	 	 	 	 
	 

	 	Name of Institution:
	 
	 	 	 	 
	 

	 	BAYERISCHE HYPO- UND VEREINSBANK AG,

New York Branch
	 
	 	 	 	 
	 

	 	By:
	 	/s/Marianne Weinzinger
	 

	 	 	 	 
	 

	 	 	 	Name: Marianne Weinzinger

Title: Director
	 
	 	 	 	 
	 

	 	By:
	 	/s/Richard Cordover
	 

	 	 	 	 
	 

	 	 	 	Name: Richard Cordover

Title: Director

 

	 	 	 	 	 
	 

	 	SIGNATURE PAGE TO THE FOURTH AMENDED AND RESTATED CREDIT
AGREEMENT, DATED AS OF MAY 31, 2006, AMONG REYNOLDS
AMERICAN INC., THE VARIOUS LENDING INSTITUTIONS FROM TIME
TO TIME PARTY THERETO, JPMORGAN CHASE BANK, N.A., AS
ADMINISTRATIVE AGENT, LEHMAN COMMERCIAL PAPER INC. AND
CITICORP USA, INC., AS SYNDICATION AGENTS, GENERAL
ELECTRIC CAPITAL CORPORATION, AS DOCUMENTATION AGENT,
LEHMAN BROTHERS INC., J.P. MORGAN SECURITIES INC.,
CITIGROUP GLOBAL MARKETS INC. AND GENERAL ELECTRIC CAPITAL
CORPORATION, AS JOINT LEAD ARRANGERS AND LEHMAN BROTHERS
INC., J.P. MORGAN SECURITIES INC. AND CITIGROUP GLOBAL
MARKETS INC., AS JOINT BOOKRUNNERS
	 
	 	 	 	 
	 

	 	Name of Institution:
	 
	 	 	 	 
	 

	 	CITICORP USA, INC.

As Syndication Agent and as Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/Carolyn A. Kee
	 

	 	 	 	 
	 

	 	 	 	Name: Carolyn A. Kee

Title: Vice President
	 
	 	 	 	 
	 

	 	CITIBANK, N.A.,

as Letter of Credit Issuer
	 
	 	 	 	 
	 

	 	By:
	 	/s/Carolyn A. Kee
	 

	 	 	 	 
	 

	 	 	 	Name: Carolyn A. Kee

Title: Vice President

 

	 	 	 	 	 
	 

	 	SIGNATURE PAGE TO THE FOURTH AMENDED AND RESTATED CREDIT
AGREEMENT, DATED AS OF MAY 31, 2006, AMONG REYNOLDS
AMERICAN INC., THE VARIOUS LENDING INSTITUTIONS FROM TIME
TO TIME PARTY THERETO, JPMORGAN CHASE BANK, N.A., AS
ADMINISTRATIVE AGENT, LEHMAN COMMERCIAL PAPER INC. AND
CITICORP USA, INC., AS SYNDICATION AGENTS, GENERAL
ELECTRIC CAPITAL CORPORATION, AS DOCUMENTATION AGENT,
LEHMAN BROTHERS INC., J.P. MORGAN SECURITIES INC.,
CITIGROUP GLOBAL MARKETS INC. AND GENERAL ELECTRIC CAPITAL
CORPORATION, AS JOINT LEAD ARRANGERS AND LEHMAN BROTHERS
INC., J.P. MORGAN SECURITIES INC. AND CITIGROUP GLOBAL
MARKETS INC., AS JOINT BOOKRUNNERS
	 
	 	 	 	 
	 

	 	Name of Institution:
	 
	 	 	 	 
	 

	 	City National Bank of New Jersey
	 
	 	 	 	 
	 

	 	By:
	 	/s/Louis E. Prezeau
	 

	 	 	 	 
	 

	 	 	 	Name: Louis E. Prezeau

Title: President & CEO

 

	 	 	 	 	 
	 

	 	SIGNATURE PAGE TO THE FOURTH AMENDED AND RESTATED CREDIT
AGREEMENT, DATED AS OF MAY 31, 2006, AMONG REYNOLDS
AMERICAN INC., THE VARIOUS LENDING INSTITUTIONS FROM TIME
TO TIME PARTY THERETO, JPMORGAN CHASE BANK, N.A., AS
ADMINISTRATIVE AGENT, LEHMAN COMMERCIAL PAPER INC. AND
CITICORP USA, INC., AS SYNDICATION AGENTS, GENERAL
ELECTRIC CAPITAL CORPORATION, AS DOCUMENTATION AGENT,
LEHMAN BROTHERS INC., J.P. MORGAN SECURITIES INC.,
CITIGROUP GLOBAL MARKETS INC. AND GENERAL ELECTRIC CAPITAL
CORPORATION, AS JOINT LEAD ARRANGERS AND LEHMAN BROTHERS
INC., J.P. MORGAN SECURITIES INC. AND CITIGROUP GLOBAL
MARKETS INC., AS JOINT BOOKRUNNERS
	 
	 	 	 	 
	 

	 	Name of Institution:
	 
	 	 	 	 
	 

	 	Farm Credit Bank of Texas
	 
	 	 	 	 
	 

	 	By:
	 	/s/Isaac E. Bennett
	 

	 	 	 	 
	 

	 	 	 	Name: Isaac E. Bennett

Title: Vice President

 

	 	 	 	 	 
	 

	 	SIGNATURE PAGE TO THE FOURTH AMENDED AND RESTATED CREDIT
AGREEMENT, DATED AS OF MAY 31, 2006, AMONG REYNOLDS
AMERICAN INC., THE VARIOUS LENDING INSTITUTIONS FROM TIME
TO TIME PARTY THERETO, JPMORGAN CHASE BANK, N.A., AS
ADMINISTRATIVE AGENT, LEHMAN COMMERCIAL PAPER INC. AND
CITICORP USA, INC., AS SYNDICATION AGENTS, GENERAL
ELECTRIC CAPITAL CORPORATION, AS DOCUMENTATION AGENT,
LEHMAN BROTHERS INC., J.P. MORGAN SECURITIES INC.,
CITIGROUP GLOBAL MARKETS INC. AND GENERAL ELECTRIC CAPITAL
CORPORATION, AS JOINT LEAD ARRANGERS AND LEHMAN BROTHERS
INC., J.P. MORGAN SECURITIES INC. AND CITIGROUP GLOBAL
MARKETS INC., AS JOINT BOOKRUNNERS
	 
	 	 	 	 
	 

	 	Name of Institution:
	 
	 	 	 	 
	 

	 	Farm Credit Services of Minnesota Valley, PCA

dba
	 
	 	 	 	 
	 

	 	FCS Commercial Finance Group
	 
	 	 	 	 
	 

	 	By:
	 	/s/Daniel J. Best
	 

	 	 	 	 
	 

	 	 	 	Name: Daniel J. Best

Title: Commercial Loan Officer

 

	 	 	 	 	 
	 

	 	SIGNATURE PAGE TO THE FOURTH AMENDED AND RESTATED CREDIT
AGREEMENT, DATED AS OF MAY 31, 2006, AMONG REYNOLDS
AMERICAN INC., THE VARIOUS LENDING INSTITUTIONS FROM TIME
TO TIME PARTY THERETO, JPMORGAN CHASE BANK, N.A., AS
ADMINISTRATIVE AGENT, LEHMAN COMMERCIAL PAPER INC. AND
CITICORP USA, INC., AS SYNDICATION AGENTS, GENERAL
ELECTRIC CAPITAL CORPORATION, AS DOCUMENTATION AGENT,
LEHMAN BROTHERS INC., J.P. MORGAN SECURITIES INC.,
CITIGROUP GLOBAL MARKETS INC. AND GENERAL ELECTRIC CAPITAL
CORPORATION, AS JOINT LEAD ARRANGERS AND LEHMAN BROTHERS
INC., J.P. MORGAN SECURITIES INC. AND CITIGROUP GLOBAL
MARKETS INC., AS JOINT BOOKRUNNERS
	 
	 	 	 	 
	 

	 	Name of Institution:
	 
	 	 	 	 
	 

	 	GENERAL ELECTRIC CAPITAL CORPORATION
	 
	 	 	 	 
	 

	 	By:
	 	/s/Peter DiBiasi
	 

	 	 	 	 
	 

	 	 	 	Name: Peter DiBiasi

Title: Duly Authorized Signatory

 

	 	 	 	 	 
	 

	 	SIGNATURE PAGE TO THE FOURTH AMENDED AND RESTATED CREDIT
AGREEMENT, DATED AS OF MAY 31, 2006, AMONG REYNOLDS
AMERICAN INC., THE VARIOUS LENDING INSTITUTIONS FROM TIME
TO TIME PARTY THERETO, JPMORGAN CHASE BANK, N.A., AS
ADMINISTRATIVE AGENT, LEHMAN COMMERCIAL PAPER INC. AND
CITICORP USA, INC., AS SYNDICATION AGENTS, GENERAL
ELECTRIC CAPITAL CORPORATION, AS DOCUMENTATION AGENT,
LEHMAN BROTHERS INC., J.P. MORGAN SECURITIES INC.,
CITIGROUP GLOBAL MARKETS INC. AND GENERAL ELECTRIC CAPITAL
CORPORATION, AS JOINT LEAD ARRANGERS AND LEHMAN BROTHERS
INC., J.P. MORGAN SECURITIES INC. AND CITIGROUP GLOBAL
MARKETS INC., AS JOINT BOOKRUNNERS
	 
	 	 	 	 
	 

	 	Name of Institution:
	 
	 	 	 	 
	 

	 	Goldman Sachs Credit Partners
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	 
	 
	 	 	 	 
	 

	 	By:
	 	/s/William Archer
	 

	 	 	 	 
	 

	 	 	 	Name: William Archer

Title: Authorized Signatory

 

	 	 	 	 	 
	 

	 	SIGNATURE PAGE TO THE FOURTH AMENDED AND RESTATED CREDIT
AGREEMENT, DATED AS OF MAY 31, 2006, AMONG REYNOLDS
AMERICAN INC., THE VARIOUS LENDING INSTITUTIONS FROM TIME
TO TIME PARTY THERETO, JPMORGAN CHASE BANK, N.A., AS
ADMINISTRATIVE AGENT, LEHMAN COMMERCIAL PAPER INC. AND
CITICORP USA, INC., AS SYNDICATION AGENTS, GENERAL
ELECTRIC CAPITAL CORPORATION, AS DOCUMENTATION AGENT,
LEHMAN BROTHERS INC., J.P. MORGAN SECURITIES INC.,
CITIGROUP GLOBAL MARKETS INC. AND GENERAL ELECTRIC CAPITAL
CORPORATION, AS JOINT LEAD ARRANGERS AND LEHMAN BROTHERS
INC., J.P. MORGAN SECURITIES INC. AND CITIGROUP GLOBAL
MARKETS INC., AS JOINT BOOKRUNNERS
	 
	 	 	 	 
	 

	 	Name of Institution:
	 
	 	 	 	 
	 

	 	LEHMAN COMMERCIAL PAPER INC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/Janine M. Shugan
	 

	 	 	 	 
	 

	 	 	 	Name: Janine M. Shugan

Title: Authorized Signatory

 

	 	 	 	 	 
	 

	 	SIGNATURE PAGE TO THE FOURTH AMENDED AND RESTATED CREDIT
AGREEMENT, DATED AS OF MAY 31, 2006, AMONG REYNOLDS
AMERICAN INC., THE VARIOUS LENDING INSTITUTIONS FROM TIME
TO TIME PARTY THERETO, JPMORGAN CHASE BANK, N.A., AS
ADMINISTRATIVE AGENT, LEHMAN COMMERCIAL PAPER INC. AND
CITICORP USA, INC., AS SYNDICATION AGENTS, GENERAL
ELECTRIC CAPITAL CORPORATION, AS DOCUMENTATION AGENT,
LEHMAN BROTHERS INC., J.P. MORGAN SECURITIES INC.,
CITIGROUP GLOBAL MARKETS INC. AND GENERAL ELECTRIC CAPITAL
CORPORATION, AS JOINT LEAD ARRANGERS AND LEHMAN BROTHERS
INC., J.P. MORGAN SECURITIES INC. AND CITIGROUP GLOBAL
MARKETS INC., AS JOINT BOOKRUNNERS
	 
	 	 	 	 
	 

	 	MIZUHO CORPORATE BANK, LTD.
	 
	 	 	 	 
	 

	 	By:
	 	/s/James Fayen
	 

	 	 	 	 
	 

	 	 	 	Name: James Fayen

Title: Deputy General Manager

 

	 	 	 	 	 
	 

	 	SIGNATURE PAGE TO THE FOURTH AMENDED AND RESTATED CREDIT
AGREEMENT, DATED AS OF MAY 31, 2006, AMONG REYNOLDS
AMERICAN INC., THE VARIOUS LENDING INSTITUTIONS FROM TIME
TO TIME PARTY THERETO, JPMORGAN CHASE BANK, N.A., AS
ADMINISTRATIVE AGENT, LEHMAN COMMERCIAL PAPER INC. AND
CITICORP USA, INC., AS SYNDICATION AGENTS, GENERAL
ELECTRIC CAPITAL CORPORATION, AS DOCUMENTATION AGENT,
LEHMAN BROTHERS INC., J.P. MORGAN SECURITIES INC.,
CITIGROUP GLOBAL MARKETS INC. AND GENERAL ELECTRIC CAPITAL
CORPORATION, AS JOINT LEAD ARRANGERS AND LEHMAN BROTHERS
INC., J.P. MORGAN SECURITIES INC. AND CITIGROUP GLOBAL
MARKETS INC., AS JOINT BOOKRUNNERS
	 
	 	 	 	 
	 

	 	Name of Institution:
	 
	 	 	 	 
	 

	 	MORGAN STANLEY BANK
	 
	 	 	 	 
	 

	 	By:
	 	/s/Daniel Twenge
	 

	 	 	 	 
	 

	 	 	 	Name: Daniel Twenge

Title: Vice President

 

	 	 	 	 	 
	 

	 	SIGNATURE PAGE TO THE FOURTH AMENDED AND RESTATED CREDIT
AGREEMENT, DATED AS OF MAY 31, 2006, AMONG REYNOLDS
AMERICAN INC., THE VARIOUS LENDING INSTITUTIONS FROM TIME
TO TIME PARTY THERETO, JPMORGAN CHASE BANK, N.A., AS
ADMINISTRATIVE AGENT, LEHMAN COMMERCIAL PAPER INC. AND
CITICORP USA, INC., AS SYNDICATION AGENTS, GENERAL
ELECTRIC CAPITAL CORPORATION, AS DOCUMENTATION AGENT,
LEHMAN BROTHERS INC., J.P. MORGAN SECURITIES INC.,
CITIGROUP GLOBAL MARKETS INC. AND GENERAL ELECTRIC CAPITAL
CORPORATION, AS JOINT LEAD ARRANGERS AND LEHMAN BROTHERS
INC., J.P. MORGAN SECURITIES INC. AND CITIGROUP GLOBAL
MARKETS INC., AS JOINT BOOKRUNNERS
	 
	 	 	 	 
	 

	 	Name of Institution:
	 
	 	 	 	 
	 

	 	NATIONAL CITY BANK
	 
	 	 	 	 
	 

	 	By:
	 	/s/Nina Myers
	 

	 	 	 	 
	 

	 	 	 	Name: NINA MYERS

Title: ACCOUNT OFFICER

 

	 	 	 	 	 
	 

	 	SIGNATURE PAGE TO THE FOURTH AMENDED AND RESTATED CREDIT
AGREEMENT, DATED AS OF MAY 31, 2006, AMONG REYNOLDS
AMERICAN INC., THE VARIOUS LENDING INSTITUTIONS FROM TIME
TO TIME PARTY THERETO, JPMORGAN CHASE BANK, N.A., AS
ADMINISTRATIVE AGENT, LEHMAN COMMERCIAL PAPER INC. AND
CITICORP USA, INC., AS SYNDICATION AGENTS, GENERAL
ELECTRIC CAPITAL CORPORATION, AS DOCUMENTATION AGENT,
LEHMAN BROTHERS INC., J.P. MORGAN SECURITIES INC.,
CITIGROUP GLOBAL MARKETS INC. AND GENERAL ELECTRIC CAPITAL
CORPORATION, AS JOINT LEAD ARRANGERS AND LEHMAN BROTHERS
INC., J.P. MORGAN SECURITIES INC. AND CITIGROUP GLOBAL
MARKETS INC., AS JOINT BOOKRUNNERS
	 
	 	 	 	 
	 

	 	Name of Institution:
	 
	 	 	 	 
	 

	 	Raymond James Bank, FSB
	 
	 	 	 	 
	 

	 	By:
	 	/s/Thomas F. Macina
	 

	 	 	 	 
	 

	 	 	 	Name: Thomas F. Macina

Title: Senior Vice President

 

	 	 	 	 	 
	 

	 	SIGNATURE PAGE TO THE FOURTH AMENDED AND RESTATED CREDIT
AGREEMENT, DATED AS OF MAY 31, 2006, AMONG REYNOLDS
AMERICAN INC., THE VARIOUS LENDING INSTITUTIONS FROM TIME
TO TIME PARTY THERETO, JPMORGAN CHASE BANK, N.A., AS
ADMINISTRATIVE AGENT, LEHMAN COMMERCIAL PAPER INC. AND
CITICORP USA, INC., AS SYNDICATION AGENTS, GENERAL
ELECTRIC CAPITAL CORPORATION, AS DOCUMENTATION AGENT,
LEHMAN BROTHERS INC., J.P. MORGAN SECURITIES INC.,
CITIGROUP GLOBAL MARKETS INC. AND GENERAL ELECTRIC CAPITAL
CORPORATION, AS JOINT LEAD ARRANGERS AND LEHMAN BROTHERS
INC., J.P. MORGAN SECURITIES INC. AND CITIGROUP GLOBAL
MARKETS INC., AS JOINT BOOKRUNNERS
	 
	 	 	 	 
	 

	 	Scotiabanc Inc.
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	 
	 
	 	 	 	 
	 

	 	By:
	 	/s/William Zarrett
	 

	 	 	 	 
	 

	 	 	 	Name: William Zarrett

Title: Managing Director

 

	 	 	 	 	 
	 

	 	SIGNATURE PAGE TO THE FOURTH AMENDED AND RESTATED CREDIT
AGREEMENT, DATED AS OF MAY 31, 2006, AMONG REYNOLDS
AMERICAN INC., THE VARIOUS LENDING INSTITUTIONS FROM TIME
TO TIME PARTY THERETO, JPMORGAN CHASE BANK, N.A., AS
ADMINISTRATIVE AGENT, LEHMAN COMMERCIAL PAPER INC. AND
CITICORP USA, INC., AS SYNDICATION AGENTS, GENERAL
ELECTRIC CAPITAL CORPORATION, AS DOCUMENTATION AGENT,
LEHMAN BROTHERS INC., J.P. MORGAN SECURITIES INC.,
CITIGROUP GLOBAL MARKETS INC. AND GENERAL ELECTRIC CAPITAL
CORPORATION, AS JOINT LEAD ARRANGERS AND LEHMAN BROTHERS
INC., J.P. MORGAN SECURITIES INC. AND CITIGROUP GLOBAL
MARKETS INC., AS JOINT BOOKRUNNERS
	 
	 	 	 	 
	 

	 	The Bank of Nova Scotia:
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	 
	 
	 	 	 	 
	 

	 	By:
	 	/s/Dana Maloney
	 

	 	 	 	 
	 

	 	 	 	Name: Dana Maloney

Title: Managing Director

 

	 	 	 	 	 
	 

	 	SIGNATURE PAGE TO THE FOURTH AMENDED AND RESTATED CREDIT
AGREEMENT, DATED AS OF MAY 31, 2006, AMONG REYNOLDS
AMERICAN INC., THE VARIOUS LENDING INSTITUTIONS FROM TIME
TO TIME PARTY THERETO, JPMORGAN CHASE BANK, N.A., AS
ADMINISTRATIVE AGENT, LEHMAN COMMERCIAL PAPER INC. AND
CITICORP USA, INC., AS SYNDICATION AGENTS, GENERAL
ELECTRIC CAPITAL CORPORATION, AS DOCUMENTATION AGENT,
LEHMAN BROTHERS INC., J.P. MORGAN SECURITIES INC.,
CITIGROUP GLOBAL MARKETS INC. AND GENERAL ELECTRIC CAPITAL
CORPORATION, AS JOINT LEAD ARRANGERS AND LEHMAN BROTHERS
INC., J.P. MORGAN SECURITIES INC. AND CITIGROUP GLOBAL
MARKETS INC., AS JOINT BOOKRUNNERS
	 
	 	 	 	 
	 

	 	Name of Institution:
	 
	 	 	 	 
	 

	 	The Bank of New York
	 
	 	 	 	 
	 

	 	By:
	 	/s/David C. Siegel
	 

	 	 	 	 
	 

	 	 	 	Name: David C. Siegel

Title: Vice President

 

	 	 	 	 	 
	 

	 	SIGNATURE PAGE TO THE FOURTH AMENDED AND RESTATED CREDIT
AGREEMENT, DATED AS OF MAY 31, 2006, AMONG REYNOLDS
AMERICAN INC., THE VARIOUS LENDING INSTITUTIONS FROM TIME
TO TIME PARTY THERETO, JPMORGAN CHASE BANK, N.A., AS
ADMINISTRATIVE AGENT, LEHMAN COMMERCIAL PAPER INC. AND
CITICORP USA, INC., AS SYNDICATION AGENTS, GENERAL
ELECTRIC CAPITAL CORPORATION, AS DOCUMENTATION AGENT,
LEHMAN BROTHERS INC., J.P. MORGAN SECURITIES INC.,
CITIGROUP GLOBAL MARKETS INC. AND GENERAL ELECTRIC CAPITAL
CORPORATION, AS JOINT LEAD ARRANGERS AND LEHMAN BROTHERS
INC., J.P. MORGAN SECURITIES INC. AND CITIGROUP GLOBAL
MARKETS INC., AS JOINT BOOKRUNNERS
	 
	 	 	 	 
	 

	 	Name of Institution:
	 
	 	 	 	 
	 

	 	Wachovia Bank, National Association
	 
	 	 	 	 
	 

	 	By:
	 	/s/Denis Waltrich
	 

	 	 	 	 
	 

	 	 	 	Name: Denis Waltrich

Title: Associate

 

ANNEX I

LENDERS AND COMMITMENTS

	 	 	 	 	 	 	 	 	 
	 	 	Revolving Loan	 	 	Term	 
	Lender	 	Commitment	 	 	Loan Commitment	 
	JPMorgan Chase Bank, N.A.
	 	$	50,000,000	 	 	$	516,666,666.67	 
	Lehman Commercial Paper Inc.
	 	$	50,000,000	 	 	$	516,666,666.67	 
	Citicorp USA, Inc.
	 	$	50,000,000	 	 	$	516,666,666.66	 
	General Electric Capital Corporation
	 	$	50,000,000	 	 	 	 	 
	Mizuho Corporate Bank, Ltd.
	 	$	50,000,000	 	 	 	 	 
	AG First Farm Credit
	 	$	45,000,000	 	 	 	 	 
	Farm Credit Bank of Texas
	 	$	45,000,000	 	 	 	 	 
	Morgan Stanley
	 	$	30,000,000	 	 	 	 	 
	The Bank of Nova Scotia
	 	$	30,000,000	 	 	 	 	 
	Wachovia Bank, National Association
	 	$	30,000,000	 	 	 	 	 
	Bank of New York
	 	$	30,000,000	 	 	 	 	 
	HVB
	 	$	20,000,000	 	 	 	 	 
	National City Bank
	 	$	15,000,000	 	 	 	 	 
	Goldman Sachs
	 	$	15,000,000	 	 	 	 	 
	Raymond James Bank, FSB
	 	$	15,000,000	 	 	 	 	 
	City National Bank of New Jersey
	 	$	15,000,000	 	 	 	 	 
	Farm Credit Services of Minnesota
Vally, PCA dba FCS Commercial
Finace Group
	 	$	10,000,000	 	 	 	 	 
	Total:
	 	$	550,000,000	 	 	$	1,550,000,000	 

 

 

ANNEX II

LENDER ADDRESSES

	 	 	 
	Lender	 	Address
	JPMorgan Chase Bank, N.A.

	 	270 Park Avenue, Floor 4
	 

	 	New York, NY 10017
	 

	 	Attn: Robert T. Sacks
	 

	 	Tel: 212-270-42118
	 

	 	Fax: 212-270-6637
	 

	 	e-mail: robert.sacks@jpmorgan.com
	 
	 	 
	 

	 	with a copy to:
	 
	 	 
	 

	 	270 Park Avenue, Floor 15
	 

	 	New York, NY 10017
	 

	 	Attn: Raju Nanoo
	 
	 

	 	with a copy to:
	 
	 

	 	1111 Fannin Street, Floor 10
	 

	 	Houston, TX 77002-6925
	 

	 	Attn: Jennifer A. Anyingbo
	 

	 	Tel: 713-750-2110
	 

	 	Fax: 713-750-2782
	 

	 	e-mail: Jennifer.anyigbo@jpmorgan.com
	 
	 	 
	Lehman Commercial Paper Inc.

	 	745 Seventh Avenue
	 

	 	New York, NY 10019
	 

	 	Attention: Joylynn A. Jarvis/Janine Shugan
	 

	 	Telephone: 212-526-6560/212-526-8625
	 

	 	Facsimile: 212-520-0450/917-522-0139
	 

	 	E-mail: JJarvis@lehman.com
	 

	 	jshugan@lehman.com
	 
	 	 
	Citicorp USA, Inc.

	 	400 Perimeter Center Terrace, NE
	 

	 	Suite 600
	 

	 	Atlanta, GA 30346
	 

	 	Attention: Kirk Lakeman
	 

	 	Telephone: 770-668-8120
	 

	 	Facsimile: 404-935-9831
	 

	 	E-mail: kirk.p.lakeman@citigroup.comEX-10.2

 

EXHIBIT 10.2

SECOND AMENDED AND RESTATED PLEDGE AGREEMENT

PLEDGE AGREEMENT, dated as of July 15, 2003, as amended and restated as of July 30, 2004, and as
further amended and restated as of May 31, 2006 (as so amended and restated and as the same may be
further amended, restated, supplemented and/or otherwise modified from time to time, this
“Agreement”), made by each of the undersigned in its capacity as a pledgor (together with
any other entity that becomes a party hereto pursuant to Section 23 hereof, each, a
“Pledgor” and, collectively, the “Pledgors”), in favor of JPMORGAN CHASE BANK,
N.A., as Collateral Agent (including any successor collateral agent, the “Pledgee”) for the
benefit of the Secured Creditors (as defined below). Except as otherwise defined herein, terms
used herein and defined in the Credit Agreement referred to below shall be used herein as therein
defined.

W I T N E S S E T H:

WHEREAS, Reynolds American Inc. (the “Borrower”), the various lending institutions from
time to time party thereto (the “Lenders”), and JPMORGAN CHASE BANK, N.A., as
Administrative Agent (the “Administrative Agent”) have entered into a Credit Agreement,
dated as of May 7, 1999, as amended and restated as of November 17, 2000, as further amended and
restated as of May 10, 2002, as further amended and restated as of July 30, 2004, and as further
amended and restated as of May 31, 2006, providing for the making of Loans to the Borrower and the
issuance of, and participation in, Letters of Credit for the account of the Borrower, all as
contemplated therein (with (i) the Lenders, the Swingline Lender, each Letter of Credit Issuer, the
Administrative Agent, the Lead Agents, the Pledgee and the Collateral Agent being herein called the
“Lender Creditors” and (ii) the term “Credit Agreement” as used herein to mean the
Credit Agreement described above in this paragraph, as the same may be further amended, modified,
extended, renewed, replaced, restated, supplemented and/or refinanced from time to time, and
including any agreement extending the maturity of, or refinancing or restructuring (including, but
not limited to, the inclusion of additional borrowers or guarantors thereunder or any increase in
the amount borrowed) all or any portion of, the indebtedness under such agreement or any successor
agreement, whether or not with the same agent, trustee, representative, lenders or holders;
provided that, with respect to any agreement providing for the refinancing or replacement
of indebtedness under the Credit Agreement, such agreement shall only be treated as, or as part of,
the Credit Agreement hereunder if (x) either (A) all obligations under the Credit Agreement being
refinanced or replaced shall be paid in full at the time of such refinancing or replacement, and
all commitments and letters of credit issued pursuant to the refinanced or replaced Credit
Agreement shall have terminated in accordance with their terms or (B) the Required Lenders shall
have consented in writing to the refinancing or replacement indebtedness being treated as
indebtedness pursuant to the Credit Agreement, and (y) a notice to the effect that the refinancing
or replacement indebtedness shall be treated as issued under the Credit Agreement shall be
delivered by the Borrower to the Collateral Agent);

WHEREAS, the Borrower and/or one or more of its Subsidiaries has from time to time entered into,
and/or may in the future from time to time enter into, one or more agreements or arrangements with
JPMCB or any of its affiliates (even if JPMCB ceases to be a Lender under

 

 

the Credit Agreement for any reason (JPMCB, any such affiliate and their respective successors and
assigns, each, a “Credit Card Issuer”)) providing for credit card loans made available to
certain employees of the Borrower and/or one or more of its Subsidiaries (each such agreement or
arrangement with a Credit Card Issuer, a “Secured Credit Card Agreement”);

WHEREAS, the Borrower and/or one or more of its Subsidiaries has from time to time entered into,
and/or may in the future from time to time enter into, one or more (i) interest rate protection
agreements (including, without limitation, interest rate swaps, caps, floors, collars and similar
agreements), and/or (ii) foreign exchange contracts, currency swap agreements, commodity agreements
or other similar agreements or arrangements designed to protect against the fluctuations in
currency or commodity values (each such agreement or arrangement with a Hedging Creditor (as
hereinafter defined), together with the Existing Interest Rate Swap Agreement, a “Secured
Hedging Agreement”), with any Lender, any affiliate thereof or a syndicate of financial
institutions organized by a Lender or an affiliate of a Lender (even if any such Lender ceases to
be a Lender under the Credit Agreement for any reason) (any such Lender, affiliate or other such
financial institution that participates therein, together with Calyon (as counterparty to the
Existing Interest Rate Swap Agreement), and in each case their subsequent successors and assigns,
collectively, the “Hedging Creditors”, and together with the Lender Creditors and each
Credit Card Issuer, the “Lender Secured Creditors”);

WHEREAS, R.J. Reynolds Tobacco Holdings, Inc., a Wholly-Owned Subsidiary of the Borrower
(“RJRTH”) and the Existing Senior Notes Trustee, on behalf of the holders of the Existing
Senior Notes, have entered into the Existing Senior Notes Indenture, providing for the issuance of
Existing Senior Notes by RJRTH;

WHEREAS, the Borrower and the New Senior Notes Trustee, on behalf of the holders of the New Senior
Notes, have entered into the New Senior Notes Indenture, providing for the issuance from time to
time of New Senior Notes by the Borrower;

WHEREAS, the Borrower and the Refinancing Senior Notes Trustee, on behalf of the holders of the
Refinancing Senior Notes, may from time to time enter into the Refinancing Senior Notes Indenture,
providing for the issuance from time to time of Refinancing Senior Notes by the Borrower;

WHEREAS, pursuant to the Subsidiary Guaranty, each Pledgor (other than the Borrower and NA
Holdings) has jointly and severally guaranteed to the Lender Secured Creditors the payment when due
of the Guaranteed Obligations (as defined in the Subsidiary Guaranty);

WHEREAS, pursuant to the Borrower Guaranty, the Borrower has guaranteed to the Hedging Creditors
and the Credit Card Issuers the payment when due of the Guaranteed Obligations;

WHEREAS, each Specified Existing Senior Notes Pledgor (other than RJRTH) has jointly and severally
guaranteed to the Existing Senior Notes Creditors the payment when due of principal and interest on
the Existing Senior Notes;

WHEREAS, each Specified RAI Senior Notes Pledgor (other than the Borrower) has jointly and
severally guaranteed to the New Senior Notes Creditors the payment when due of principal and
interest on the New Senior Notes;

 

 

WHEREAS, each Specified RAI Senior Notes Pledgor (other than the Borrower) may from time to time
jointly and severally guarantee to the Refinancing Senior Notes Creditors the payment when due of
principal and interest on the Refinancing Senior Notes;

WHEREAS, RJRTH has issued the RJRTH Intercompany Note in favor of the Borrower as consideration
for, inter alia, (i) the loan by the Borrower to RJRTH in an aggregate principal
amount of $1,650,000,000 made on the Fourth Restatement Effective Date with the proceeds of the
issuance of the Initial New Senior Notes, (ii) the loan by the Borrower to RJRTH in an aggregate
principal amount of $1,550,000,000 made on the Fourth Restatement Effective Date with the proceeds
of the incurrence of Term Loans under the Credit Agreement, (iii) the guaranty by the Borrower of
all amounts owing by RJRTH to the Existing Senior Notes Creditors in respect of the Existing Senior
Notes, (iv) the assumption by the Borrower of all indebtedness, liabilities and obligations of
RJRTH under the Third Amended and Restated Credit Agreement and the other Credit Documents to which
it is a party pursuant to the RAI Assumption Agreement and (v) the Borrower’s agreements in favor
of RJRTH under the RAI Existing Senior Notes Assumption and Indemnification Agreement;

WHEREAS, the capital stock of Reynolds Tobacco is being pledged pursuant to this Agreement to
secure the RJRTH Intercompany Note Obligations;

WHEREAS, certain of the Pledgors have heretofore entered into a Pledge Agreement, dated as of July
15, 2003, and amended and restated as of July 30, 2004 (as so amended and restated and as the same
may be further amended, restated, modified and/or supplemented from time to time to, but not
including, the date hereof, the “First Amended and Restated Pledge Agreement”);

WHEREAS, the Pledgors desire to further amend and restate the First Amended and Restated Pledge
Agreement in the form of this Agreement;

WHEREAS, the Credit Agreement requires this Agreement be executed and delivered to the Pledgee by
the Pledgors and the Secured Credit Card Agreements, the Secured Hedging Agreements, the Existing
Senior Notes Indenture, the New Senior Notes Indenture and the RJRTH Intercompany Note require that
this Agreement secure the respective Obligations as provided herein;

WHEREAS, each Pledgor desires to execute this Agreement to satisfy the requirements described in
the preceding paragraph;

NOW, THEREFORE, in consideration of the benefits accruing to each Pledgor, the receipt and
sufficiency of which are hereby acknowledged, each Pledgor hereby makes the following
representations and warranties to the Pledgee and hereby covenants and agrees with the Pledgee as
follows:

1. SECURITY FOR OBLIGATIONS. This Agreement is made by each Pledgor for the benefit of
the relevant Secured Creditors to secure:

     (i) the full and prompt payment when due (whether at the stated maturity, by
acceleration or otherwise) of all obligations (including obligations which, but for the

 

 

automatic stay under Section 362(a) of the Bankruptcy Code, would become due) and
liabilities of each Pledgor, now existing or hereafter incurred under, arising out of or in
connection with each Credit Document to which such Pledgor is a party (including, without
limitation, indemnities, fees and interest (including all interest that accrues after the
commencement of any case, proceeding or other action relating to the bankruptcy, insolvency,
reorganization or similar proceeding of the Borrower or any other Credit Party at the rate
provided for in the respective documentation, whether or not a claim for post-petition
interest is allowed in any such proceeding)) and the due performance of and compliance by
each Pledgor with the terms of each such Credit Document (all such obligations and
liabilities under this clause (i), except to the extent consisting of obligations or
liabilities with respect to Secured Credit Card Agreements and Secured Hedging Agreements,
being herein collectively called the “Credit Document Obligations”);

     (ii) the full and prompt payment when due (whether at the stated maturity, by
acceleration or otherwise) of all obligations (including obligations which, but for the
automatic stay under Section 362(a) of the Bankruptcy Code, would become due) and
liabilities of each Pledgor, now existing or hereafter incurred under, arising out of or in
connection with each Secured Credit Card Agreement, including, all obligations, if any, of
each Pledgor under its Guaranty in respect of Secured Credit Card Agreements (all such
obligations and liabilities under this clause (ii) being herein collectively called the
“Credit Card Obligations”);

     (iii) the full and prompt payment when due (whether at the stated maturity, by
acceleration or otherwise) of all obligations (including obligations which, but for the
automatic stay under Section 362(a) of the Bankruptcy Code, would become due) and
liabilities of each Pledgor, now existing or hereafter incurred under, arising out of or in
connection with each Secured Hedging Agreement, including, all obligations, if any, of each
Pledgor under its Guaranty in respect of Secured Hedging Agreements (all such obligations
and liabilities under this clause (iii) being herein collectively called the “Hedging
Obligations”);

     (iv) the full and prompt payment when due (whether at the stated maturity, by
acceleration or otherwise) of all obligations (including obligations which, but for the
automatic stay under Section 362(a) of the Bankruptcy Code, would become due) and
liabilities of each Pledgor, now existing or hereafter incurred under, arising out of or in
connection with each Existing Senior Notes Document to which it is a party (including all
interest that accrues after the commencement of any case, proceeding or other action
relating to the bankruptcy, insolvency, reorganization or similar proceeding of the Borrower
or any other Credit Party at the rate provided for in the respective documentation, whether
or not a claim for post-petition interest is allowed in any such proceeding) and the due
performance and compliance by each Pledgor with the terms of each such Existing Senior Notes
Document (all such obligations and liabilities under this clause (iv), being herein
collectively called the “Existing Senior Notes Obligations”);

     (v) the full and prompt payment when due (whether at the stated maturity, by
acceleration or otherwise) of all obligations (including obligations which, but for the

 

 

automatic stay under Section 362(a) of the Bankruptcy Code, would become due) and
liabilities of each Pledgor, now existing or hereafter incurred under, arising out of or in
connection with each New Senior Note Document to which it is a party (including all interest
that accrues after the commencement of any case, proceeding or other action relating to the
bankruptcy, insolvency, reorganization or similar proceeding of the Borrower or any other
Credit Party at the rate provided for in the respective documentation, whether or not a
claim for post-petition interest is allowed in any such proceeding) and the due performance
and compliance by each Pledgor with the terms of each such New Senior Notes Document (all
such obligations and liabilities under this clause (v) being herein collectively called the
“New Senior Notes Obligations”);

     (vi) the full and prompt payment when due (whether at stated maturity, by acceleration
or otherwise) of all obligations (including obligations which, but for the automatic stay
under Section 362(a) of the Bankruptcy Code, would become due) and liabilities of each
Pledgor, now existing or hereafter incurred under, arising out of or in connection with each
Refinancing Senior Notes Document to which it is a party (including all interest that
accrues after the commencement of any case, proceeding or other action relating to the
bankruptcy, insolvency, reorganization or similar proceeding of the Borrower or any other
Credit Party at the rate provided for in the respective documentation, whether or not a
claim for post-petition interest is allowed in any such proceeding) and the due performance
and compliance by each Pledgor with the terms of each such Refinancing Senior Notes Document
(all such obligations and liabilities under this clause (vi), being herein collectively
called the “Refinancing Senior Notes Obligations”);

     (vii) if such Pledgor is RJRTH (but, for avoidance of doubt, without limiting the
Obligations of RJRTH arising under any other sub-clause of this Section 1), the full and
prompt payment when due (whether at the stated maturity, by acceleration or otherwise) of
all principal and accrued but unpaid interest (including obligations which, but for the
automatic stay under Section 362(a) of the Bankruptcy Code, would become due) owing by
RJRTH, now existing or hereafter incurred under, arising out of or in connection with the
RJRTH Intercompany Note (including, without limitation, all interest that accrues after the
commencement of any case, proceeding or other action relating to the bankruptcy, insolvency,
reorganization or similar proceeding of RJRTH at the rate provided for in the respective
documentation, whether or not a claim for post-petition interest is allowed in any such
proceeding) and the due performance of and compliance by RJRTH with the terms of the RJRTH
Intercompany Note (all such obligations under this clause (vii) being herein collectively
called the “RJRTH Intercompany Note Obligations”);

     (viii) any and all sums advanced by the Pledgee in order to preserve the Collateral
and/or its security interest therein;

     (ix) in the event of any proceeding for the collection of the Obligations (as defined
below) or the enforcement of this Agreement, after an Event of Default shall
have occurred and be continuing, the reasonable expenses of retaking, holding, preparing for
sale or lease, selling or otherwise disposing of or realizing on the Collateral, or of any

 

 

exercise by the Pledgee of its rights hereunder, together with reasonable attorneys’ fees
and court costs; and

     (x) all amounts paid by any Secured Creditor as to which such Secured Creditor has the
right to reimbursement under Section 11 of this Agreement;

all such obligations, liabilities, sums and expenses set forth in clauses (i) through (x) of this
Section 1 being herein collectively called the “Obligations”.

2. DEFINITIONS; REPRESENTATIONS. (a) The following capitalized terms used herein shall
have the definitions specified below:

“Additional Senior Notes” shall have the meaning provided in the Credit Agreement.

“Adverse Claim” has the meaning given such term in Section 8-102(a)(1) of the UCC.

“Agreement” shall have the meaning set forth in the first paragraph of this Agreement.

“Applicable Obligations” shall mean (i) for each Pledgor that is a Specified RAI Senior
Notes Pledgor but not a Specified Existing Senior Notes Pledgor, all the Obligations other than the
Existing Senior Notes Obligations and the RJRTH Intercompany Note Obligations, (ii) for RJRTH
(unless and until it becomes a Specified RAI Senior Notes Pledgor), all the Obligations other than
the New Senior Notes Obligations and the Refinancing Senior Notes Obligations, (iii) for each
Pledgor that is both a Specified RAI Senior Notes Pledgor and a Specified Existing Senior Notes
Pledgor, all the Obligations other than the RJRTH Intercompany Note Obligations, and (iv) for each
Pledgor (other than RJRTH) that is neither a Specified RAI Senior Notes Pledgor nor a Specified
Existing Senior Notes Pledgor, all the Obligations other than the Existing Senior Notes
Obligations, the New Senior Notes Obligations, the Refinancing Senior Notes Obligations and the
RJRTH Intercompany Note Obligations, provided that (x) the Existing Senior Notes
Obligations shall be excluded from the Applicable Obligations of a Specified Existing Senior Notes
Pledgor, to the extent the Existing Senior Notes Documents do not require the Existing Senior Notes
Obligations to be secured pursuant to this Agreement (or, in the case of the Applicable Obligations
of the Borrower, to the same extent the Existing Senior Notes Obligations are excluded from the
Applicable Obligations of RJRTH as provided above in this clause (x)), (y) the New Senior Notes
Obligations shall be excluded from the Applicable Obligations of a Specified RAI Senior Notes
Pledgor, to the extent the New Senior Notes Documents do not require the New Senior Notes
Obligations to be secured pursuant to this Agreement, and (z) the Refinancing Senior Notes
Obligations shall be excluded from the Applicable Obligations of a Specified RAI Senior Notes
Pledgor, to the extent the Refinancing Senior Notes Documents do not require the Refinancing Senior
Notes Obligations to be secured pursuant to this Agreement.

“Borrower” shall have the meaning provided in the recitals to this Agreement.

          “CA Termination Date” shall have the meaning set forth in Section 18 hereof.

          “Certificated Security” has the meaning given such term in Section 8-102(a)(4) of the
UCC.

 

 

          “Class” shall have the meaning provided in Section 20 hereof.

          “Clearing Corporation” has the meaning given such term in Section 8-102(a)(5) of the
UCC.

          “Collateral” shall have the meaning provided in Section 3.1 hereof.

          “Collateral Accounts” means any and all accounts established and maintained by the
Pledgee in the name of any Pledgor to which Collateral may be credited.

          “Collateral Proceeds” shall have the meaning provided in Section 9 hereof.

“Credit Agreement” shall have the meaning provided in the recitals to this Agreement.

“Credit Card Issuer” shall have the meaning provided in the recitals to this Agreement.

“Credit Card Obligations” shall have the meaning provided in Section 1 hereof.

“Credit Document Obligations” shall have the meaning provided in Section 1 hereof.

“Designated Existing Senior Notes Collateral” shall mean, with respect to any Specified
Existing Senior Notes Pledgor, Collateral owned by such Specified Existing Senior Notes Pledgor
consisting of (i) any shares of stock, indebtedness or other obligations of a Subsidiary of RJRTH
held by or owing to such Specified Existing Senior Notes Pledgor (other than the Borrower), (ii)
any Principal Property of such Specified Existing Senior Notes Pledgor (other than the Borrower),
or (iii) in the case of the Borrower, at any time prior to the time RJRTH becomes a Specified RAI
Senior Notes Pledgor, the RJRTH Intercompany Note and all of the Borrower’s rights under this
Agreement in its capacity as the RJRTH Intercompany Note Creditor (including its right to receive
proceeds from any sale or other disposition of the capital stock of Reynolds Tobacco to repay
amounts owing under the RJRTH Intercompany Note).

“Designated RAI Senior Notes Collateral” shall mean, with respect to any Specified RAI
Senior Notes Pledgor, Collateral owned by such Specified RAI Senior Notes Pledgor consisting of (i)
any Principal Property of such Specified RAI Senior Notes Pledgor, (ii) in the case of RJRTH, at
any time on or after the time RJRTH becomes a Specified RAI Senior Notes Pledgor, the capital stock
of Reynolds Tobacco, (iii) at any time on or after the time RJRTH becomes a Specified RAI Senior
Notes Pledgor, all indebtedness and other obligations owing by Reynolds Tobacco owned or held by
such Specified RAI Senior Notes Pledgor or (iv) in the case of the Borrower, at any time prior to
the time RJRTH becomes a Specified RAI Senior Notes Pledgor, the RJRTH Intercompany Note and all of
the Borrower’s rights under this Agreement in its capacity as the RJRTH Intercompany Note Creditor
(including its right to receive proceeds from any sale or other disposition of the capital stock of
Reynolds Tobacco to repay amounts owing under the RJRTH Intercompany Note).

          “Event of Default” shall mean and include (i) any Event of Default under the Credit
Agreement, (ii) any “event of default” under the Existing Senior Notes Documents, the New Senior
Notes Documents or the Refinancing Senior Notes Documents and (iii) any payment

 

 

default (after the
expiration of any applicable grace period) under any Secured Credit Card Agreement or any Secured
Hedging Agreement.

          “Exchange Senior Notes” shall have the meaning provided in the Credit Agreement.

“Excluded Domestic Entities” shall mean and include each Subsidiary of RJRTH (other than
Reynolds Tobacco).

“Excluded Foreign Entities” shall mean and include one or more direct Subsidiaries of any
Pledgor that is not a Domestic Subsidiary and is (x) a Subsidiary of RJRTH or (y) designated as an
“Excluded Foreign Entity” by the Borrower pursuant to a written notice delivered to the Pledgee;
provided that if at the time of the delivery (or required delivery) of the financial
statements of the Borrower pursuant to Section 7.01(a) or (b) of the Credit Agreement, either (i)
the aggregate book value of the assets of any Excluded Foreign Entity (determined on a
consolidating basis) as at the last day of the fiscal quarter or fiscal year, as the case may be,
to which such financial statements relate is equal to or greater than $100,000,000 or (ii) the net
sales of any Excluded Foreign Entity (determined on a consolidating basis) as at the last day of
the fiscal quarter or fiscal year, as the case may be, to which such financial statements relate is
equal to or greater than $100,000,000 (provided that such net sales shall be determined on
a pro forma basis for the 12 months last ended when determining whether any Person
that is the survivor of any merger or consolidation or that is the transferee of any property or
assets from other Subsidiaries of the Borrower is a Material Subsidiary), then on the 90th day
following the delivery (or required delivery) of such financial statements, such entity shall cease
to be an “Excluded Foreign Entity” for purposes of this Agreement.

“Excluded Investment Entities” shall mean and include (i) Targacept, Inc., a Delaware
corporation, (ii) Technology Concepts & Design, Inc., a Virginia corporation, (iii) Intellilink
Services, Inc., a Georgia corporation, (iv) Large Scale Biology Corporation and (v) preferred stock
and/or “income notes” of any investment vehicle owned by the Borrower or any of its Subsidiaries,
so long as (x) such investment vehicle invests solely in debt securities; and (y) either: (I) such
preferred stock and/or “income notes” of such investment vehicle are owned by the Borrower or its
Subsidiaries on the Fourth Restatement Effective Date; or (II) the aggregate amount of cash used to
acquire such preferred stock and/or “income notes” after the Fourth Restatement Effective Date does
not exceed $35,000,000.00.

“Excluded RJRTH Foreign Subsidiary” shall mean any Subsidiary of RJRTH that is not a
Domestic Subsidiary of RJRTH.

“Existing Senior Notes” shall mean, collectively, (i) RJRTH’s 6.50% Notes due June 1, 2007
in an initial aggregate principal amount equal to $300,000,000 (ii) RJRTH’s 7.875% Notes due May
15, 2009 in an initial aggregate principal amount equal to $200,000,000, (iii) RJRTH’s 6.50% Notes
due July 15, 2010 in an initial aggregate principal amount equal to $300,000,000, (iv) RJRTH’s
7.25% Notes due June 1, 2012 in an initial aggregate principal amount equal to
$450,000,000, and (v) RJRTH’s 7.30% Notes due July 15, 2015 in an initial aggregate principal
amount equal to $200,000,000, in each case as the same may be amended, modified and/or supplemented
from time to time in accordance with the terms thereof and the Credit Agreement.

 

 

“Existing Senior Notes Creditors” shall mean the Existing Senior Notes Trustee and the
holders of the Existing Senior Notes.

“Existing Senior Notes Documents” shall mean the Existing Senior Notes and the Existing
Senior Notes Indenture.

“Existing Senior Notes Indenture” shall mean, collectively, (i) the indenture, dated as of
May 20, 2002, as amended among RJRTH, the guarantors of the notes issued pursuant thereto, and The
Bank of New York, as trustee and (ii) the indenture, dated as of May 15, 1999, as amended among
RJRTH, the guarantors of the notes issued pursuant thereto, and The Bank of New York, as trustee,
in each case as the same may be amended, modified and/or supplemented from time to time in
accordance with the terms thereof and the Credit Agreement.

“Existing Senior Notes Obligations” shall have the meaning provided in Section 1 hereof.

“Existing Senior Notes Trustee” shall mean, collectively, the trustee and/or trustees under
the under the Existing Senior Notes Indenture.

“Financial Asset” has the meaning given such term in Section 8-102(a)(9) of the UCC,
provided that the term “Financial Asset” shall not include (i) any capital stock or other
equity interests of any Excluded Domestic Entity or any Excluded Investment Entity or (ii) any
Margin Stock.

“Hedging Creditors” shall have the meaning provided in the recitals to this Agreement.

“Hedging Obligations” shall have the meaning provided in Section 1 hereof.

“Indemnitees” shall have the meaning set forth in Section 11 hereof.

“Initial New Senior Notes” shall mean, collectively, (i) the Borrower’s 7.25% Senior
Secured Notes due 2013 in an initial aggregate principal amount equal to $625,000,000, (ii) the
Borrower’s 7.625% Senior Secured Notes due 2016 in an initial aggregate principal amount equal to
$775,000,000 and (iii) the Borrower’s 7.75% Senior Secured Notes due 2018 in an initial aggregate
principal amount equal to $250,000,000, in each case issued pursuant to the New Senior Notes
Indenture, as in effect on the Fourth Restatement Effective Date and as the same may be amended,
modified and/or supplemented from time to time in accordance with the terms thereof and the Credit
Agreement.

“Instrument” has the meaning given such term in Section 9-102(a)(47) of the UCC.

“Investment Property” has the meaning given such term in Section 9-102(a)(49) of the UCC,
provided that the term “Investment Property” shall not include (i) any capital stock or
other Equity Interests of any Excluded Domestic Entity, any Excluded Investment Entity or any
Excluded RJRTH Foreign Subsidiary or (ii) any Margin Stock.

“Lender Creditors” shall have the meaning provided in the recitals to this Agreement.

“Lender Secured Creditors” shall have the meaning provided in the recitals to this
Agreement.

 

 

“Lenders” shall have the meaning provided in the recitals to this Agreement.

“Limited Liability Company Assets” shall mean all assets, whether tangible or intangible
and whether real, personal or mixed (including, without limitation, all limited liability company
capital and interests in other limited liability companies), at any time owned or represented by
any Limited Liability Company Interest.

“Limited Liability Company Interest” shall mean the entire limited liability company
interest at any time directly owned by each Pledgor in any limited liability company;
provided that the term “Limited Liability Company Interest” shall not include any limited
liability company interest of any Excluded Domestic Entity, any Excluded Investment Entity or any
Excluded RJRTH Foreign Subsidiary (with any limited liability company the equity interests of which
are required to be included as “Limited Liability Company Interests” hereunder being herein called
a “Pledged LLC”).

“LSB Note” shall mean that certain Non-Recourse Secured Promissory Note, dated May 14,
1997, made by Technology Directors II, LLC to R.J. Reynolds Tobacco Company (as assignee of
Reynolds Technologies, Inc.) as amended from time to time, in an initial aggregate principal amount
of $15,000,000.

“New Senior Notes” shall mean (i) the Initial New Senior Notes, (ii) the Exchange Senior
Notes and (iii) the Additional Senior Notes, in each case as the same may be amended, modified
and/or supplemented from time to time in accordance with the terms thereof and the Credit
Agreement.

“New Senior Notes Creditors” shall mean the New Senior Notes Trustee and the holders of the
New Senior Notes.

“New Senior Notes Documents” shall mean the New Senior Notes and the New Senior Notes
Indenture.

“New Senior Notes Indenture” shall mean the Indenture, dated as of May 31, 2006, among the
Borrower, the Subsidiary Guarantors and The Bank of New York, as trustee, as in effect on the
Fourth Restatement Effective Date and as the same may be amended, modified and/or supplemented from
time to time in accordance with the terms thereof and the Credit Agreement.

“New Senior Notes Obligations” shall have the meaning provided in Section 1 hereof.

“New Senior Notes Trustee” shall mean the trustee under the New Senior Notes Indenture.

“Notes” shall mean all promissory notes at any time issued to, or held by, any Pledgor,
provided that the term “Note” shall not include the LSB Note.

“Noticed Event of Default” shall have the meaning provided in Section 5 hereof.

“Notified Non-Credit Agreement Event of Default” means (i) the acceleration of the maturity
of any Existing Senior Notes, New Senior Notes or Refinancing Senior Notes or the failure to pay at
maturity any Existing Senior Notes, New Senior Notes or Refinancing Senior Notes, or the occurrence
of any bankruptcy or insolvency Event of Default under the Existing Senior Notes

 

 

Indenture, the New
Senior Notes Indenture or the Refinancing Senior Notes Indenture, (ii) any Event of Default under a
Secured Credit Card Agreement or (iii) any Event of Default under a Secured Hedging Agreement, in
the case of any event described in clause (i), (ii) or (iii) to the extent the Existing Senior
Notes Trustee, New Senior Notes Trustee or the Refinancing Senior Notes Trustee, the relevant
Credit Card Issuer or the relevant Hedging Creditor, as the case may be, has given written notice
to the Collateral Agent that a “Notified Non-Credit Agreement Event of Default” exists;
provided that such written notice may only be given if such Event of Default is continuing
and, provided further, that any such Notified Non-Credit Agreement Event of Default shall
cease to exist (I) once there is no longer any Event of Default under the Existing Senior Notes
Indenture, the New Senior Notes Indenture, the Refinancing Senior Notes Indenture, the respective
Secured Credit Card Agreement or the respective Secured Hedging Agreement, as the case may be, in
existence, (II) in the case of an Event of Default under the Existing Senior Notes Indenture, the
New Senior Notes Indenture or the Refinancing Senior Notes Indenture, after all Existing Senior
Notes Obligations, New Senior Notes Obligations or Refinancing Senior Notes Obligations, as the
case may be, have been repaid in full, (III) in the case of an Event of Default under a Secured
Credit Card Agreement or Secured Hedging Agreement, such Secured Credit Card Agreement or Secured
Hedging Agreement, as the case may be, has been terminated and all Credit Card Obligations or
Hedging Obligations, as the case may be, thereunder have been repaid in full, (IV) in the case of
an Event of Default under the Existing Senior Notes Indenture, the New Senior Notes Indenture or
the Refinancing Senior Notes Indenture, if the Existing Senior Notes Creditors, the New Senior
Notes Creditors or the Refinancing Senior Notes Creditors, as the case may be, holding at least a
majority of the aggregate principal amount of the outstanding Existing Senior Notes, New Senior
Notes or the Refinancing Senior Notes, as the case may be, at such time have rescinded such written
notice and (V) in the case of an Event of Default under a Secured Credit Card Agreement or Secured
Hedging Agreement, the requisite Credit Card Issuers with Credit Card Obligations or Hedging
Creditors with Hedging Obligations, as the case may be, thereunder at such time have rescinded such
written notice.

“Obligations” shall have the meaning provided in Section 1 hereof.

“Partnership Assets” shall mean all assets, whether tangible or intangible and whether
real, personal or mixed (including, without limitation, all partnership capital and interests in
other partnerships), at any time owned or represented by any Pledged Partnership or represented by
any Partnership Interest.

“Partnership Interest” shall mean the entire partnership interests (whether general and/or
limited partnership interests) at any time directly owned by each Pledgor in any partnership;
provided that the term “Partnership Interest” shall not include any partnership interest of
any Excluded Domestic Entity, any Excluded Investment Entity or any Excluded RJRTH Foreign
Subsidiary (with any partnership the partnership interests of which are required to be included as
“Partnership Interests” hereunder being herein called a “Pledged Partnership”).

“Pledged Entity” shall mean each Pledged Partnership and each Pledged LLC.

“Pledged Notes” shall mean all Notes at any time pledged or required to be pledged
hereunder.

 

 

“Pledged Limited Liability Company Interests” shall mean all Limited Liability Company
Interests at any time pledged or required to be pledged hereunder.

“Pledged LLC” shall have the meaning provided in the definition of “Limited Liability
Company Interest”.

“Pledged Partnership” shall have the meaning provided in the definition of “Partnership
Interest”.

“Pledged Partnership Interests” shall mean all Partnership Interests at any time pledged or
required to be pledged hereunder.

“Pledgee” shall have the meaning provided in the first paragraph of this Agreement.

“Pledgor” shall have the meaning provided in the first paragraph of this Agreement.

“Principal Property” shall have the meaning provided in the Existing Senior Notes
Indenture, the New Senior Notes Indenture or the Refinancing Senior Notes Indenture (in each case
as in effect on the date hereof), as the context may require.

          “Proceeds” has the meaning given such term in Section 9-102(a)(64) of the UCC.

          “Pro Rata Share” shall have the meaning provided in Section 9 hereof.

“RAI Senior Notes Obligations” shall mean, collectively, the New Senior Notes Obligations
and the Refinancing Senior Notes Obligations.

“Refinancing Senior Notes” shall have the meaning provided in the Credit Agreement.

“Refinancing Senior Notes Creditors” shall mean the Refinancing Senior Notes Trustee and
the holders of the Refinancing Senior Notes.

“Refinancing Senior Notes Documents” shall mean, collectively, the Refinancing Senior Notes
and the Refinancing Senior Notes Indenture.

“Refinancing Senior Notes Indenture” shall mean one or more indentures entered into from
time to time providing for the issuance of Refinancing Senior Notes by the Borrower, in each case
as the same may be amended, modified and/or supplemented from time to time in accordance with the
terms thereof and the Credit Agreement.

“Refinancing Senior Notes Obligations” shall have the meaning provided in Section 1 hereof.

“Refinancing Senior Notes Trustee” shall mean, collectively, the trustee and/or trustees
under the Refinancing Senior Notes Indenture.

          “Requisite Creditors” shall have the meaning provided in Section 20 hereof.

“Restricted Pledgor” shall mean Lane and Santa Fe.

 

 

          “RJRTH” shall have the meaning provided in the recitals to this Agreement.

          “RJRTH Intercompany Note” shall mean that certain intercompany promissory note, dated
May 31, 2006, issued by RJRTH in favor of the Borrower as consideration for , inter
alia, (i) the loan by the Borrower to RJRTH in an aggregate principal amount of
$1,650,000,000 made on the Fourth Restatement Effective Date with the proceeds of the issuance of
the Initial New Senior Notes, (ii) the loan by the Borrower to RJRTH in an aggregate principal
amount of $1,550,000,000 made on the Fourth Restatement Effective Date with the proceeds of the
incurrence of Term Loans, , (iii) the guaranty by the Borrower of all amounts owing by RJRTH to the
Existing Senior Notes Creditors in respect of the Existing Senior Notes, (iv) the assumption by the
Borrower of all indebtedness, liabilities and obligations of RJRTH under the Third Amended and
Restated Credit Agreement and the other Credit Documents to which it is a party pursuant to the RAI
Assumption Agreement and (v) the Borrower’s agreements in favor of RJRTH under the RAI Existing
Senior Notes Assumption and Indemnification Agreement, as the same may be amended, modified and/or
supplemented from time to time in accordance with the terms thereof and the Credit Agreement.

          “RJRTH Intercompany Note Creditor” shall mean the Borrower, in its capacity as obligee
under the RJRTH Intercompany Note.

          “RJRTH Intercompany Note Obligations” shall have the meaning provided in Section 1
hereof.

          “Secured Credit Card Agreements” shall have the meaning set forth in the recitals to
this Agreement.

          “Secured Creditors” shall mean, collectively, the Lender Secured Creditors, the
Existing Senior Notes Creditors, the New Senior Notes Creditors, the Refinancing Senior Notes
Creditors and the RJRTH Intercompany Note Creditor.

          “Secured Debt Agreements” shall have the meaning provided in Section 5 hereof.

“Secured Hedging Agreement” shall have the meaning provided in the recitals to this
Agreement.

          “Securities Account” has the meaning given such term in Section 8-501(a) of the UCC.

          “Security” and “Securities” has the meaning given such term in Section
8-102(a)(15) of the UCC and shall in any event also include all Stock and all Notes,
provided that the terms “Security” and “Securities” shall not include (i) any capital stock
or other equity interests of any Excluded Domestic Entity, any Excluded Investment Entity or any
Excluded RJRTH Foreign Subsidiary; (ii) any Margin Stock; or (iii) excess capital stock of a
Foreign
Corporation not required to be pledged hereunder as a result of the application of the first
proviso appearing in the definition of Stock.

          “Security Entitlement” has the meaning given such term in Section 8-102(a)(17) of the
UCC.

 

 

“Specified Existing Senior Notes Pledgor” shall mean the Borrower, RJRTH and each other
Pledgor with Existing Senior Notes Obligations that is a Restricted Subsidiary (as defined in the
Existing Senior Notes Indenture).

“Specified RAI Senior Notes Pledgor” shall mean the Borrower and each Pledgor with RAI
Senior Notes Obligations that is a Restricted Subsidiary (as defined in the New Senior Notes
Indenture). For avoidance of doubt, NA Holdings is not a “Specified RAI Senior Notes Pledgor”.

“Stock” shall mean (i) all of the issued and outstanding shares of stock of any corporation
(other than a corporation that is not organized under the laws of the United States or any State or
territory thereof (a “Foreign Corporation”)) at any time directly owned by any Pledgor, and
(ii) all of the issued and outstanding shares of capital stock of any Foreign Corporation at any
time directly owned by any Pledgor, provided that such Pledgor shall not be required to
pledge hereunder the capital stock of a Foreign Corporation if more than 65% of the total combined
voting power of all classes of capital stock of any Foreign Corporation entitled to vote are
pledged hereunder (after giving effect to the pledge of capital stock of such Foreign Corporation
by other Pledgors hereunder), provided further that the term “Stock” shall not
include (i) any capital stock of any Excluded Domestic Entity, any Excluded Investment Entity or
any Excluded RJRTH Foreign Subsidiary, (ii) any Margin Stock and (iii) excess capital stock of a
Foreign Corporation not required to be pledged hereunder as a result of the application of the
preceding proviso.

          “Subsequent Effective Date” shall have the meaning set forth in Section 18 hereof.

          “Termination Date” shall have the meaning set forth in Section 18 hereof.

          “UCC” means the Uniform Commercial Code as in effect in the State of New York from
time to time; provided that all references herein to specific sections or sub-sections of
the UCC are references to such sections or subsections, as the case may be, of the Uniform
Commercial Code as in effect in the State of New York on the date hereof.

“Uncertificated Security” has the meaning given such term in Section 8-102(a)(18) of the
UCC.

“Unrestricted Secured Creditor” shall mean each Secured Creditor other than the RJRTH
Intercompany Note Creditor.

(b) Each Pledgor represents and warrants that on the date hereof (or, if later, the date it first
becomes party hereto) and on any Subsequent Effective Date: (a) each Subsidiary of such Pledgor,
and the direct ownership thereof, is listed on Annex A hereto; (b) the Stock held by such Pledgor
consists of the number and type of shares of the stock of the corporations as described in Annex B
hereto; (c) such Stock constitutes that percentage of the issued and outstanding capital stock of
the issuing corporation as set forth in Annex B hereto; (d) the Notes
held by such Pledgor consist of the promissory notes described in Annex C hereto; (e) the Limited
Liability Company Interests held by such Pledgor consists of the number and type of interest of the
respective Pledged LLC as described in Annex D hereto; (f) such Limited Liability Company Interests
held by such Pledgor constitute the percentage of the issued and outstanding equity interests of
the respective Pledged LLC as set forth in Annex D hereto for such Pledgor; (g) except for such
immaterial exceptions set forth on Annexes B and C as may be reasonably

 

 

acceptable to the Pledgee,
each such Pledgor is the holder of record and sole beneficial owner of the Stock, the Notes, the
Limited Liability Company Interests, the Partnership Interests and the Securities identified on
Annex G hereto; (h) the Partnership Interests held by such Pledgor consists of the number and type
of interest of the respective Pledged Partnership as described in Annex E hereto; (i) the
Partnership Interests held by such Pledgor constitutes that percentage of the entire Partnership
Interest of the respective Pledged Partnership as is set forth in Annex E hereto for such Pledgor;
(j) such Pledgor owns or possesses no other Securities except as described on Annexes B, C, D, E
and G hereto; and (k) such Pledgor has complied with the respective procedures set forth in Section
3.2(a) with respect to each item of Collateral described in Annexes B through E hereto and Annex G
hereto that is required by this Agreement to be pledged to the Pledgee on the date hereof (or the
respective Subsequent Effective Date).

3. PLEDGE OF SECURITIES, ETC.

3.1 Pledge. To secure the Applicable Obligations of such Pledgor and for the purposes set
forth in Section 1, each Pledgor does hereby grant, pledge and assign to the Pledgee for the
benefit of the relevant Secured Creditors, and does hereby create a continuing security interest in
favor of the Pledgee for the benefit of the relevant Secured Creditors in, all of the right, title
and interest in and to the following, whether now existing or hereafter from time to time acquired
(collectively, the “Collateral”):

     (i) each of the Collateral Accounts, including any and all assets of whatever type or
kind deposited by such Pledgor in such Collateral Account, whether now owned or hereafter
acquired, existing or arising, including, without limitation, all Financial Assets,
Investment Property, moneys, checks, drafts, Instruments, Securities or interests therein of
any type or nature deposited or required by the Credit Agreement or any other Secured Debt
Agreement to be deposited in such Collateral Account, and all investments and all
certificates and other Instruments (including depository receipts, if any) from time to time
representing or evidencing the same, and all dividends, interest, distributions, cash and
other property from time to time received, receivable or otherwise distributed in respect of
or in exchange for any or all of the foregoing;

     (ii) all Securities owned by such Pledgor from time to time and all options and
warrants owned by such Pledgor from time to time to purchase Securities;

     (iii) all Limited Liability Company Interests owned by such Pledgor from time to time
and all of such Pledgor’s right, title and interest in each limited liability company to
which such interests relate, whether now existing or hereafter acquired, including, without
limitation:

     (1) all the capital thereof and its interest in all profits, income, surpluses,
losses, Limited Liability Company Assets, distributions and other payments to which
such Pledgor shall at any time be entitled in respect of such Limited Liability
Company Interests;

     (2) all other payments due or to become due to such Pledgor in respect of
Limited Liability Company Interests, whether under any limited liability

 

 

company
agreement or otherwise, whether as contractual obligations, damages, insurance
proceeds or otherwise;

     (3) all of its claims, rights, powers, privileges, authority, options, security
interest, liens and remedies, if any, under any limited liability company agreement
or operating agreement, or at law or otherwise in respect of such Limited Liability
Company Interests;

     (4) all present and future claims, if any, of any of such Pledgor against any
such Pledged LLC for moneys loaned or advanced, for services rendered or otherwise;

     (5) all of such Pledgor’s rights under any limited liability company agreement
or operating agreement or at law to exercise and enforce every right, power, remedy,
authority, option and privilege of any of such Pledgor relating to such Limited
Liability Company Interests, including any power to terminate, cancel or modify any
limited liability company agreement or operating agreement, to execute any
instruments and to take any and all other action on behalf of and in the name of any
of such Pledgor in respect of such Limited Liability Company Interest and any such
Pledged LLC, to make determinations, to exercise any election (including, but not
limited to, election of remedies) or option or to give or receive any notice,
consent, amendment, waiver or approval, together with full power and authority to
demand, receive, enforce, collect or receipt for any of the foregoing or for any
Limited Liability Company Asset, to enforce or execute any checks, or other
instruments or orders, to file any claims and to take any action in connection with
any of the foregoing (with all of the foregoing rights to be exercisable only upon
the occurrence and during the continuation of a Noticed Event of Default); and

     (6) all other property hereafter delivered in substitution for or in addition
to any of the foregoing, all certificates and instruments representing or evidencing
such other property and all cash, securities, interest, dividends, rights and other
property at any time and from time to time received, receivable or otherwise
distributed in respect of or in exchange for any or all thereof;

     (iv) all Partnership Interests owned by such Pledgor from time to time and all of such
Pledgor’s right, title and interest in each partnership to which such interests relate,
whether now existing or hereafter acquired, including, without limitation:

     (1) all of the capital thereof and its interest in all profits, income,
surplus, losses, Partnership Assets, distributions and other payments to which such
Pledgor shall at any time be entitled in respect of any such Partnership Interest;

     (2) all other payments due or to become due to such Pledgor in respect of any
such Partnership Interest, whether under any partnership agreement or

 

 

otherwise,
whether as contractual obligations, damages, insurance proceeds or otherwise;

     (3) all of its claims, rights, powers, privileges, authority, options, security
interest, liens and remedies, if any, under any partnership or other agreement or at
law or otherwise in respect of any such Partnership Interest;

     (4) all present and future claims, if any, of such Pledgor against any Pledged
Partnership for moneys loaned or advanced, for services rendered or otherwise;

     (5) all of such Pledgor’s rights under any partnership agreement or at law to
exercise and enforce every right, power, remedy, authority, option and privilege of
such Pledgor relating to any Partnership Interest, including any power, if any, to
terminate, cancel or modify any general or limited partnership agreement, to execute
any instruments and to take any and all other action on behalf of and in the name of
such Pledgor in respect of such Partnership Interest and any Pledged Partnership, to
make determinations, to exercise any election (including, but not limited to,
election of remedies) or option or to give or receive any notice, consent,
amendment, waiver or approval, together with full power and authority to demand,
receive, enforce, collect, or receipt for any of the foregoing or for any
Partnership Asset, to enforce or execute any checks, or other instruments or orders,
to file any claims and to take any action in connection with any of the foregoing
(with all of the foregoing rights to be exercisable only upon the occurrence and
during the continuation of a Noticed Event of Default);

     (6) all other property hereafter delivered in substitution for or in addition
to any of the foregoing, all certificates and instruments representing or evidencing
such other property and all cash, securities, interest, dividends, rights and other
property at any time and from time to time received, receivable or otherwise
distributed in respect of or in exchange for any or all thereof;

     (v) all Financial Assets and Investment Property owned by such Pledgor from time to
time;

     (vi) in the case of the Borrower, the RJRTH Intercompany Note and all rights of the
Borrower hereunder in its capacity as the RJRTH Intercompany Note Creditor (including all
rights to receive proceeds from any sale or other disposition of the capital stock of
Reynolds Tobacco pledged to secure RJRTH Intercompany Note Obligations);

     (vii) all Security Entitlements owned by such Pledgor from time to time in any and all
of the foregoing; and

     (viii) all Proceeds of any and all of the foregoing.

; provided that, notwithstanding the foregoing, (1) the Collateral that secures the
Existing Senior Notes Obligations of a Specified Existing Senior Notes Pledgor shall be limited to
Designated Existing Senior Notes Collateral owned by such Specified Existing Senior Notes Pledgor, all of

 

 

which Collateral shall also ratably secure all other Applicable Obligations of such
Specified Existing Senior Notes Pledgor, and the Collateral Proceeds with respect to any item of
Collateral owned by a Specified Existing Senior Notes Pledgor that are to be applied to the
Existing Senior Notes Obligations shall be limited to Collateral Proceeds resulting from the sale,
other disposition of or other realization upon, and other moneys received in respect of, the
Designated Existing Senior Notes Collateral of such Specified Existing Senior Notes Pledgor, with
such Collateral Proceeds to also be applied ratably to all other Applicable Obligations of such
Specified Existing Senior Notes Pledgor, (2) the Collateral that secures the RAI Senior Notes
Obligations of a Specified RAI Senior Notes Pledgor shall be limited to Designated RAI Senior Notes
Collateral owned by such Specified RAI Senior Notes Pledgor, all of which Collateral shall also
ratably secure all other Applicable Obligations of such Specified RAI Senior Notes Pledgor, and the
Collateral Proceeds with respect to any item of Collateral owned by a Specified RAI Senior Notes
Pledgor that are to be applied to the RAI Senior Notes Obligations shall be limited to Collateral
Proceeds resulting from the sale, other disposition of or other realization upon, and other moneys
received in respect of, the Designated RAI Senior Notes Collateral of such Specified RAI Senior
Notes Pledgor, with such Collateral Proceeds to also be applied ratably to all other Applicable
Obligations of such Specified RAI Senior Notes Pledgor, (3) the Collateral that secures the RJRTH
Intercompany Note Obligations of RJRTH shall be limited to the capital stock of Reynolds Tobacco
owned by RJRTH, and the Collateral Proceeds with respect to the capital stock of Reynolds Tobacco
owned by RJRTH that are to be applied to the RJRTH Intercompany Note Obligations shall be limited
to Collateral Proceeds from the sale, other disposition of or other realization upon, and other
moneys received in respect of, such capital stock of Reynolds Tobacco, (4) prior to (but not after)
the time RJRTH becomes a Specified RAI Senior Notes Pledgor, the capital stock of Reynolds Tobacco
shall not secure any Obligations other than the RJRTH Intercompany Note Obligations, (5) at any
time prior to the exchange of at least 51% in aggregate principal amount of each series of Existing
Senior Notes for Exchange Senior Notes as contemplated by the definition of “Exchange Senior Notes”
in the Credit Agreement (and the elimination of the lien covenant in the Existing Senior Notes
Indenture as consented to by the requisite holders of the Existing Senior Notes), the term
“Collateral” as used herein shall not include any indebtedness or other obligations owing by a
Subsidiary of RJRTH to RJRTH or any of its Subsidiaries, (6) at any time on and after RJRTH becomes
a Specified RAI Senior Notes Pledgor, the capital stock of Reynolds Tobacco owned by RJRTH shall
cease to secure the RJRTH Intercompany Note Obligations, and (7) in the case of any sale,
assignment, transfer or grant of a security interest hereunder by a Restricted Pledgor only, the
term “Collateral” shall not include any Collateral (determined as provided herein without regard to
this clause (7)) of such Restricted Pledgor other than (x) Collateral of the type described in
clause (i) of Section 3.1 and (y) all other Collateral of the type which may be perfected by the
filling of a UCC-1 financing statement in any relevant jurisdiction.

          3.2. Procedures. (a) To the extent that any Pledgor at any time or from time to time
owns, acquires or obtains any right, title or interest in any Collateral, such Collateral shall
automatically (and without the taking of any action by the respective Pledgor) be pledged pursuant
to Section 3.1 of this Agreement and, in addition thereto, such Pledgor shall (to the extent
provided below) take the following actions for the benefit of the Pledgee and the other relevant
Secured Creditors as set forth below as promptly as practicable and, in any event, within 10
Business Days after it obtains such Collateral, provided that, notwithstanding the
foregoing, (i) in the case of Collateral consisting of an Uncertificated Security, Limited
Liability Company

 

 

	 	 	Interest or Partnership Interest of a Person which is not a Subsidiary of such
Pledgor and a security interest in which is to be perfected by taking an action specified in
sub-clause (ii) or (iv)(2) below, such Pledgor shall have 30 days after it obtains such Collateral
to take the respective action required by said sub-clause, (ii) in the case of Collateral a
security interest in which is to be perfected by taking an action specified in sub-clause (iii)
below, such Pledgor shall have 90 days after the Fourth Restatement Effective Date (or, if such
Collateral is acquired after the Fourth Restatement Effective Date, the date it obtains such
Collateral) to take the respective action required by said sub-clause, (iii) in the case of any
Security, Stock, Limited Liability Company Interest or Partnership Interest of an Excluded Foreign
Entity, such Pledgor owning the same shall only be required to take the respective action specified
below on the date such Excluded Foreign Entity ceases to qualify as an “Excluded Foreign Entity” in
accordance with the definition thereof and (iv) in the case of any Security, Stock, Limited
Liability Company Interest or Partnership Interest of any Domestic Subsidiary of the Borrower which
is not (or is not required pursuant to the terms of the Credit Agreement to be) a Credit Party
owned by such Pledgor, such Pledgor shall not be required (until such time, if any, as such
Subsidiary shall become a Credit Party) to take any of the actions specified in clause (i), (ii),
(iii) or (iv) below, so long as such Pledgor has taken all actions required by Section 3.2(b)(ii)
below with respect to such Collateral:

     (i) with respect to a Certificated Security (other than a Certificated Security
credited on the books of a Clearing Corporation), the respective Pledgor shall deliver such
Certificated Security to the Pledgee, indorsed to the Pledgee or indorsed in blank;

     (ii) with respect to an Uncertificated Security (other than an Uncertificated Security
credited on the books of a Clearing Corporation), the respective Pledgor shall cause the
issuer of such Uncertificated Security (or, in the case of an issuer that is not a
Subsidiary of such Pledgor, will use reasonable efforts to cause such issuer) to duly
authorize and execute, and deliver to the Pledgee, an agreement for the benefit of the
Pledgee and the other relevant Unrestricted Secured Creditors substantially in the form of
Annex F hereto (appropriately completed to the reasonable satisfaction of the Pledgee and
with such modifications, if any, as shall be reasonably satisfactory to the Pledgee)
pursuant to which, subject to Section 5 hereof, such issuer agrees to comply with any and
all instructions originated by the Pledgee without further consent by the registered owner
and not to comply with instructions regarding such Uncertificated Security (and any
Partnership Interest and Limited Liability Company Interest issued by such issuer)
originated by any other Person other than a court of competent jurisdiction;
provided that in the case of an Uncertificated Security issued by a Person that is
organized under the laws of a jurisdiction other than the United States or any state
thereof, such Pledgor shall
enter into a Foreign Pledge Agreement and comply with the requirements of Section 16(d)
as if said Person had been (but then ceased to be) an Excluded Foreign Entity,

     (iii) with respect to a Certificated Security, Uncertificated Security, Partnership
Interest or Limited Liability Company Interest credited on the books of a Clearing
Corporation (including a Federal Reserve Bank, Participants Trust Company or The Depository
Trust Company), the respective Pledgor shall promptly notify the Pledgee thereof and shall
promptly take (x) all actions required (i) to comply with the applicable rules of such
Clearing Corporation and (ii) to perfect the security interest of the Pledgee

 

 

under
applicable law (including, in any event, under Sections 9-314(a) and (b), 9-106 and 8-106(d)
of the UCC) and (y) such other actions as the Pledgee deems reasonably necessary or
desirable to effect the foregoing;

     (iv) with respect to a Partnership Interest or a Limited Liability Company Interest
(other than a Partnership Interest or Limited Liability Interest credited on the books of a
Clearing Corporation), (1) if such Partnership Interest or Limited Liability Company
Interest is represented by a certificate and is a Security for purposes of the UCC, the
procedure set forth in Section 3.2(a)(i) hereof, and (2) if such Partnership Interest or
Limited Liability Company Interest is not represented by a certificate or is not a Security
for purposes of the UCC, the procedure set forth in Section 3.2(a)(ii) hereof;

     (v) with respect to any Note, delivery of such Note to the Pledgee, indorsed to the
Pledgee or indorsed in blank; and

     (vi) with respect to cash proceeds, (i) establishment by the Pledgee of a cash account
in the name of such Pledgor over which the Pledgee shall have exclusive and absolute control
and dominion (and no withdrawals or transfers may be made therefrom by any Person except
with the prior written consent of the Pledgee) and (ii) deposit of such cash in such cash
account.

          (b) In addition to the actions required to be taken pursuant to Section 3.2(a) hereof, each
Pledgor shall take the following additional actions with respect to the Collateral:

     (i) with respect to all Collateral of such Pledgor whereby or with respect to which the
Pledgee may obtain “control” thereof within the meaning of Section 8-106 of the UCC (or
under any provision of the UCC as same may be amended or supplemented from time to time, or
under the laws of any relevant State other than the State of New York), the respective
Pledgor shall take all actions as may be reasonably requested from time to time by the
Pledgee so that “control” of such Collateral is obtained and at all times held by the
Pledgee; and

     (ii) each Pledgor shall from time to time cause appropriate financing statements (on
Form UCC-1 or other appropriate form) under the Uniform Commercial Code as in effect in the
various relevant States, covering all Collateral hereunder (with the form of such financing
statements to be satisfactory to the Pledgee), to be filed in the relevant filing offices so
that at all times the Pledgee has a security interest in all Investment Property and other
Collateral which is perfected by the filing of such
financing statements (in each case to the maximum extent perfection by filing may be
obtained under the laws of the relevant States, including, without limitation, Section
9-312(a) of the UCC).

          3.3. Subsequently Acquired Collateral. If any Pledgor shall acquire (by purchase,
stock dividend or similar distribution or otherwise) any additional Collateral at any time or from
time to time after the date hereof, such Collateral shall automatically (and without any further
action being required to be taken) be subject to the pledge and security interests created pursuant
to Section 3.1 hereof and, furthermore, the respective Pledgor will promptly thereafter take (or

 

 

cause to be taken) all action with respect to such Collateral in accordance with the procedures set
forth in Section 3.2 hereof, and will promptly thereafter deliver to the Pledgee (i) a certificate
executed by a principal executive officer of such Pledgor describing such Collateral and certifying
that the same has been duly pledged in favor of the Pledgee (for the benefit of the relevant
Unrestricted Secured Creditors entitled thereto) hereunder and (ii) supplements to Annexes A
through E hereto as are reasonably necessary to cause such annexes to be complete and accurate at
such time, provided that unless specifically requested by the Collateral Agent, such
updated Annexes shall not be required to include any after-acquired Securities pledged to the
Pledgee pursuant to the procedures set forth in Section 3.2(a)(iii). Notwithstanding the
foregoing, no Pledgor shall be required at any time to pledge hereunder any Stock which will result
in more than 65% of the total combined voting power of all classes of capital stock of any Foreign
Corporation entitled to vote being pledged hereunder.

3.4. Transfer Taxes. Each pledge of Collateral under Section 3.1 or Section 3.3 hereof
shall be accompanied by any transfer tax stamps required in connection with the pledge of such
Collateral.

4. APPOINTMENT OF SUB-AGENTS; ENDORSEMENTS, ETC. The Pledgee shall have the right to
appoint one or more sub-agents for the purpose of retaining physical possession of the Collateral,
which may be held (in the discretion of the Pledgee) in the name of the relevant Pledgor, endorsed
or assigned in blank or, following a Noticed Event of Default which is continuing, in favor of the
Pledgee or any nominee or nominees of the Pledgee or a sub-agent appointed by the Pledgee.

5. VOTING, ETC., WHILE NO EVENT OF DEFAULT. Unless and until a Noticed Event of Default
shall have occurred and be continuing, each Pledgor shall be entitled to exercise all voting rights
attaching to any and all Collateral owned by it, and to give consents, waivers or ratifications in
respect thereof; provided that no vote shall be cast or any consent, waiver or ratification
given or any action taken which would violate, result in breach of any covenant contained in, or be
inconsistent with, any of the terms of this Agreement, the Credit Agreement, any other Credit
Document, any Existing Senior Notes Document, any New Senior Notes Document, any Refinancing Senior
Notes Document, any Secured Credit Agreement or any Secured Hedging Agreement (collectively, the
“Secured Debt Agreements”), or which would have the effect of impairing in any material
respect the value of the Collateral or any material part thereof or impairing the position or
interests of the Pledgee or any other Secured Creditor therein, provided however,
each Pledgor shall be permitted to amend
and/or modify intercompany notes constituting Collateral in the ordinary course of business and
consistent with past practices. All such rights of a Pledgor to vote and to give consents, waivers
and ratifications shall cease in case a Noticed Event of Default shall occur and be continuing and
Section 7 hereof shall become applicable. As used herein, a “Noticed Event of Default”
shall mean (i) an Event of Default with respect to a Credit Party under Section 9.05 of the Credit
Agreement and (ii) any other Event of Default in respect of which the Pledgee has given the
Borrower notice that such Event of Default constitutes a “Noticed Event of Default”.

6. DIVIDENDS AND OTHER DISTRIBUTIONS. Unless and until a Noticed Event of Default shall
have occurred and be continuing, all cash dividends, distributions, cash Proceeds or other amounts
payable in respect of the Collateral shall be paid to the respective Pledgor; provided that

 

 

all dividends or other amounts payable in respect of the Collateral which are determined by the
Pledgee, to represent in whole or in part an extraordinary, liquidating or other distribution in
return of capital not permitted by the Credit Agreement shall be paid, to the extent so determined
to represent an extraordinary, liquidating or other distribution in return of capital, to the
Pledgee and retained by it as part of the Collateral (unless such cash dividends are applied to
repay the Obligations pursuant to Section 9 of this Agreement). The Pledgee shall also be entitled
to receive directly, and to retain as part of the Collateral:

     (i) all other or additional stock, notes, limited liability company interests,
partnership interests, instruments or other securities or property (other than cash) paid or
distributed by way of dividend or otherwise in respect of the Collateral;

     (ii) all other or additional stock, notes, limited liability company interests,
partnership interests, instruments or other securities or property (including cash) paid or
distributed in respect of the Collateral by way of stock-split, spin-off, split-up,
reclassification, combination of shares or similar rearrangement; and

     (iii) all other or additional stock, notes, limited liability company interests,
partnership interests, instruments or other securities or property (including cash) which
may be paid in respect of the Collateral by reason of any consolidation, merger, exchange of
stock, conveyance of assets, liquidation or similar corporate, partnership or other
reorganization.

Nothing contained in this Section 6 shall limit or restrict in any way the Pledgee’s right to
receive proceeds of the Collateral in any form in accordance with Section 3 of this Agreement. All
dividends, distributions or other payments which are received by the respective Pledgor contrary to
the provisions of this Section 6 or Section 7 shall be received in trust for the benefit of the
Pledgee and shall be forthwith paid over to the Pledgee as Collateral in the same form as so
received (with any necessary endorsement).

7. REMEDIES IN CASE OF AN EVENT OF DEFAULT. In case a Noticed Event of Default shall have
occurred and be continuing, the Pledgee shall be entitled to exercise all of the rights, powers and
remedies (whether vested in it by this Agreement or by any other Secured Debt Agreement or by law)
for the protection and enforcement of its
rights in respect of the Collateral, including, without limitation, all the rights and remedies of
a secured party upon default under the Uniform Commercial Code as in effect in any relevant
jurisdiction, and the Pledgee shall be entitled, without limitation, to exercise any or all of the
following rights, which each Pledgor hereby agrees to be commercially reasonable:

     (i) to receive all amounts payable in respect of the Collateral otherwise payable under
Section 6 to such Pledgor;

     (ii) to transfer all or any part of the Collateral into the Pledgee’s name or the name
of its nominee or nominees;

     (iii) to accelerate any Pledged Note which may be accelerated in accordance with its
terms, and take any other lawful action to collect upon any Pledged Note (including, without
limitation, to make any demand for payment thereon);

 

 

     (iv) to vote all or any part of the Collateral (in each case whether or not transferred
into the name of the Pledgee) and give all consents, waivers and ratifications in respect of
the Collateral and otherwise act with respect thereto as though it were the outright owner
thereof (each Pledgor hereby irrevocably constituting and appointing the Pledgee the proxy
and attorney-in-fact of such Pledgor, with full power of substitution to do so);

     (v) at any time or from time to time to sell, assign and deliver, or grant options to
purchase, all or any part of the Collateral, or any interest therein, at any public or
private sale, without demand of performance or advertisement or to redeem or otherwise (all
of which are hereby waived by each Pledgor), for cash, on credit or for other property, for
immediate or future delivery without any assumption of credit risk, and for such price or
prices and on such terms as the Pledgee in its reasonable discretion may determine, provided
that at least 10 days’ notice of the time and place of any such sale shall be given to such
Pledgor. The Pledgee shall not be obligated to make such sale of Collateral regardless of
whether any such notice of sale has theretofore been given. Each purchaser at any such sale
shall hold the property so sold absolutely free from any claim or right on the part of any
Pledgor, and each Pledgor hereby waives and releases to the fullest extent permitted by law
any right or equity of redemption with respect to the Collateral, whether before or after
sale hereunder, and all rights, if any, of marshalling the Collateral and any other security
for the Obligations or otherwise. At any such sale, unless prohibited by applicable law,
the Pledgee on behalf of all Secured Creditors (or certain of them) may bid for and purchase
all or any part of the Collateral so sold free from any such right or equity of redemption.
Neither the Pledgee nor any other Unrestricted Secured Creditor shall be liable for failure
to collect or realize upon any or all of the Collateral or for any delay in so doing nor
shall it be under any obligation to take any action whatsoever with regard thereto; and

     (vi) to set-off any and all Collateral against any and all Obligations, and to withdraw
any and all cash or other Collateral from any and all Collateral Accounts and to apply such
cash and other Collateral to the payment of any and all Obligations.

8. REMEDIES, ETC., CUMULATIVE. Each right, power and remedy of the Pledgee provided for
in this Agreement or any other Secured Debt Agreement, or now or hereafter existing at law or in
equity or by statute shall be cumulative and concurrent and shall be in addition to every other
such right, power or remedy. The exercise or beginning of the exercise by the Pledgee or any other
Secured Creditor of any one or more of the rights, powers or remedies provided for in this
Agreement or any other Secured Debt Agreement or now or hereafter existing at law or in equity or
by statute or otherwise shall not preclude the simultaneous or later exercise by the Pledgee or any
other Secured Creditor of all such other rights, powers or remedies, and no failure or delay on the
part of the Pledgee or any other Secured Creditor to exercise any such right, power or remedy shall
operate as a waiver thereof. Unless otherwise required by the Credit Documents, no notice to or
demand on any Pledgor in any case shall entitle it to any other or further notice or demand in
similar other circumstances or constitute a waiver of any of the rights of the Pledgee or any other
Secured Creditor to any other further action in any circumstances without demand or notice. By
accepting the benefits of this Agreement, the Secured Creditors expressly acknowledge and agree
that (x) this Agreement may be enforced only by the action of

 

 

the Pledgee acting upon the
instructions of the Required Lenders or, if the CA Termination Date has occurred, the holders of a
majority of the outstanding principal amount of all remaining Obligations, provided that if
prior to the CA Termination Date a payment default with respect to at least $300,000,000 principal
amount in the aggregate of Existing Senior Notes, New Senior Notes and/or Refinancing Senior Notes
has continued for at least 180 days (and such defaulted payment has not been received pursuant to a
drawing under any letter of credit), the holders of a majority of the outstanding principal amount
of the Indebtedness subject to such payment default or defaults can direct the Pledgee to commence
and continue enforcement of the Liens created hereunder, which the Pledgee shall comply with
subject to receiving any indemnity which it reasonably requests, provided further that the
Pledgee shall thereafter comply only with the directions of the Required Lenders as to how to carry
out such enforcement so long as such directions are not adverse to the aforesaid directions of the
holders of Indebtedness subject to such payment default or defaults and (y) no other Secured
Creditor shall have any right individually to seek to enforce or to enforce this Agreement or to
realize upon the security to be granted hereby, it being understood and agreed that such rights and
remedies shall be exercised exclusively by the Pledgee for the benefit of the Secured Creditors as
their interests may appear upon the terms of this Agreement.

9. APPLICATION OF PROCEEDS. (a) All moneys collected by the Pledgee upon any sale, other
disposition of or other realization upon any Collateral pursuant to the terms of this Agreement,
together with all other moneys received by the Pledgee hereunder (collectively, the “Collateral
Proceeds”), shall be applied (subject to the payment rules set forth more specifically in
Section 9(c) below) as follows:

     (i) first, to the payment of all Obligations owing to the Pledgee of the type
described in clauses (viii), (ix) and (x) of Section 1 herein;

     (ii) second, to the extent proceeds of the sale, other disposition of or other
realization upon any item of Collateral remain after the application pursuant to preceding
clause (i), an amount equal to the outstanding Applicable Obligations secured by such item
of Collateral shall be paid to the Secured Creditors as their interests may appear, with (x)
each Secured Creditor receiving an amount equal to its outstanding Applicable Obligations
secured by such item of Collateral or, if the proceeds are insufficient to pay in full all
such Applicable Obligations, its Pro Rata Share of the amount so remaining
to be distributed and (y) in the case of the Credit Document Obligations, the Existing
Senior Notes Obligations, the New Senior Notes Obligations, the Refinancing Senior Notes
Obligations and the RJRTH Intercompany Note Obligations included in such Applicable
Obligations, any such amount to be applied (1) first to the payment of interest in
respect of the unpaid principal amount of Loans, Existing Senior Notes, New Senior Notes,
Refinancing Senior Notes or the RJRTH Intercompany Note, as the case may be, (2)
second to the payment of principal of Loans, Existing Senior Notes, New Senior
Notes, Refinancing Senior Notes or the RJRTH Intercompany Note, as the case may be, and (3)
third to the other Credit Document Obligations, Existing Senior Notes Obligations,
New Senior Notes Obligations, Refinancing Senior Notes Obligations or RJRTH Intercompany
Note Obligations, as the case may be; and

 

 

     (iii) third, to the extent proceeds remain after the application pursuant to
the preceding clauses (i) and (ii), to the relevant Pledgor or, to the extent directed by
such Pledgor or a court of competent jurisdiction, to whomever may be lawfully entitled to
receive such surplus.

(b) For purposes of this Agreement, “Pro Rata Share” shall mean when calculating a
Secured Creditor’s portion of any distribution or amount pursuant to clause (a) above, the amount
(expressed as a percentage) equal to a fraction the numerator of which is the then outstanding
amount of the relevant Applicable Obligations secured by the relevant item of Collateral owed such
Secured Creditor and the denominator of which is the then outstanding amount of all Applicable
Obligations secured by the relevant item of Collateral.

(c) All payments required to be made to (i) the Lender Creditors hereunder shall be made to the
Administrative Agent for the account of the respective Lender Creditors, (ii) the Credit Card
Issuers hereunder shall be made to the Credit Card Issuer(s) under the applicable Secured Credit
Card Agreement, (iii) the Hedging Creditors hereunder shall be made to the paying agent under the
applicable Secured Hedging Agreement or, in the case of Secured Hedging Agreements without a paying
agent, directly to the applicable Hedging Creditors, (iv) the Existing Senior Notes Creditors
hereunder shall be made to the Existing Senior Notes Trustee for the account of the respective
Existing Senior Notes Creditors, (v) the New Senior Notes Creditors hereunder shall be made to the
New Senior Notes Trustee for the account of the respective New Senior Notes Creditors, (vi) the
Refinancing Senior Notes Creditors hereunder shall be made to the Refinancing Senior Notes Trustee
for the account of the respective Refinancing Senior Notes Creditors and (vii) the RJRTH
Intercompany Note Creditor hereunder shall be made to the other Secured Creditors as otherwise
provided above in Section 9(a)(ii) (for purposes of such Section, treating amounts which would (in
the absence of the pledge by the Borrower of the Collateral described in clause (vi) of Section
3.1) be paid to the RJRTH Intercompany Note Creditor as Collateral pledged to secure the Applicable
Obligations of such other Secured Creditors) (or, in the circumstances contemplated by Section
9(a)(iii), to the RJRTH Intercompany Note Creditor).

(d) For purposes of applying payments received in accordance with this Section 9, the Pledgee
shall be entitled to rely upon (i) the Administrative Agent for a determination of the outstanding
Credit Document Obligations, (ii) any Credit Card Issuer for a determination of the outstanding
Credit Card Obligations owed to such Credit Card Issuer, (iii) any Hedging Creditor for a
determination of the outstanding Hedging Obligations owed to such Hedging Creditor, (iv) the
Existing Senior Notes Trustee for a determination of the outstanding Existing Senior Notes
Obligations, (v) the New Senior Notes Trustee for a determination of the outstanding New Senior
Notes Obligations, (vi) the Refinancing Senior Notes Trustee for a determination of the outstanding
Refinancing Senior Notes Obligations and (vii) the RJRTH Intercompany Note Creditor for a
determination of the outstanding RJRTH Intercompany Note Obligations. Unless it has actual
knowledge (including by way of written notice from a Secured Creditor) to the contrary, the
Administrative Agent under the Credit Agreement, in furnishing information pursuant to the
preceding sentence, and the Pledgee, in acting hereunder, shall be entitled to assume that no
Credit Document Obligations other than principal, interest and regularly accruing fees are owing to
any Lender Creditor.

 

 

(e) It is understood and agreed that each Pledgor shall remain liable to the extent of any
deficiency between (x) the amount of the Obligations for which it is responsible directly or as a
Guarantor that are satisfied with proceeds of the Collateral and (y) the aggregate outstanding
amount of such Obligations.

10. PURCHASERS OF COLLATERAL. Upon any sale of the Collateral by the Pledgee hereunder
(whether by virtue of the power of sale herein granted, pursuant to judicial process or otherwise),
the receipt of the Pledgee or the officer making the sale shall be a sufficient discharge to the
purchaser or purchasers of the Collateral so sold, and such purchaser or purchasers shall not be
obligated to see to the application of any part of the purchase money paid over to the Pledgee or
such officer or be answerable in any way for the misapplication or nonapplication thereof.

11. INDEMNITY. Each Pledgor jointly and severally agrees (i) to indemnify and hold
harmless the Pledgee and each other Unrestricted Secured Creditor and their respective successors,
assigns, employees, agents and affiliates (individually, an “Indemnitee,” and collectively
the “Indemnitees”) from and against any and all claims, demands, losses, judgments and
liabilities (including liabilities for penalties) of whatsoever kind or nature, and (ii) to
reimburse each Indemnitee for all reasonable costs and expenses, including reasonable attorneys’
fees, in each case growing out of or resulting from this Agreement or the exercise by any
Indemnitee of any right or remedy granted to it hereunder or under any other Secured Debt Agreement
(but excluding any claims, demands, losses, judgments and liabilities or expenses to the extent
incurred by reason of gross negligence or willful misconduct of such Indemnitee (as determined by a
court of competent jurisdiction in a final and non-appealable decision)). In no event shall the
Pledgee be liable, in the absence of gross negligence or willful misconduct on its part, for any
matter or thing in connection with this Agreement other than to account for moneys or other
property actually received by it in accordance with the terms hereof. If and to the extent that
the obligations of any Pledgor under this Section 11 are unenforceable for any reason, such
Pledgor hereby agrees to
make the maximum contribution to the payment and satisfaction of such obligations which is
permissible under applicable law.

12. PLEDGEE NOT BOUND. (a) Nothing herein shall be construed to make the Pledgee or any
other Unrestricted Secured Creditor liable as a general partner or limited partner of any Pledged
Partnership or a member of any Pledged LLC and the Pledgee or any other Unrestricted Secured
Creditor by virtue of this Agreement or otherwise (except as referred to in the following sentence)
shall not have any of the duties, obligations or liabilities of a general partner or limited
partner of any Pledged Partnership or a member of any Pledged LLC. The parties hereto expressly
agree that, unless the Pledgee shall become the absolute owner of the respective Pledged
Partnership Interest, Pledged Limited Liability Company Interest or Security pursuant hereto, this
Agreement shall not be construed as creating a partnership or joint venture among the Pledgee, any
other Unrestricted Secured Creditor and/or any Pledgor.

(b) Except as provided in the last sentence of paragraph (a) of this Section, the Pledgee, by
accepting this Agreement, did not intend to become a general partner or limited partner of any
Pledged Partnership or a member of any Pledged LLC or otherwise be deemed to be a co-venturer with
respect to any Pledgor, any Pledged Partnership or any Pledged LLC., either before or after an
Event of Default shall have occurred. The Pledgee shall have only those powers set

 

 

forth herein
and shall assume none of the duties, obligations or liabilities of a general partner or limited
partner of any Pledged Partnership or a member of any Pledged LLC or of any Pledgor.

(c) Neither the Pledgee nor any other Unrestricted Secured Creditor shall be obligated to perform
or discharge any obligation of any Pledgor as a result of the collateral assignment hereby
effected.

(d) The acceptance by the Pledgee of this Agreement, with all the rights, powers, privileges and
authority so created, shall not at any time or in any event obligate the Pledgee to appear in or
defend any action or proceeding relating to the Collateral to which it is not a party, or to take
any action hereunder or thereunder, or to expend any money or incur any expenses or perform or
discharge any obligation, duty or liability under the Collateral.

13. FURTHER ASSURANCES. (a) Each Pledgor agrees that it will join with the Pledgee in
executing and, at such Pledgor’s own expense, file and refile under the Uniform Commercial Code
such financing statements, continuation statements and other documents in such offices as the
Pledgee may reasonably deem necessary or appropriate and wherever required or permitted by law in
order to perfect and preserve the Pledgee’s security interest in the Collateral hereunder and
hereby authorizes the Pledgee to file financing statements and amendments thereto relative to all
or any part of the Collateral without the signature of such Pledgor where permitted by law, and
agrees to do such further acts and things and to execute and deliver to the Pledgee such additional
conveyances, assignments, agreements and instruments as the Pledgee may reasonably require or
reasonably deem advisable to carry into effect the purposes of this Agreement or to further assure
and confirm unto the Pledgee its rights, powers and remedies hereunder or thereunder.

(b) Each Pledgor hereby appoints the Pledgee, such Pledgor’s attorney-in-fact, with full authority
in the place and stead of such Pledgor and in the name of such Pledgor or otherwise, from time to
time after the occurrence and during the continuance of an Event of Default, in the Pledgee’s
reasonable discretion to take any action and to execute any instrument which the Pledgee may
reasonably deem necessary or advisable to accomplish the purposes of this Agreement.

14. THE PLEDGEE AS COLLATERAL AGENT. The Pledgee will hold in accordance with this
Agreement all items of the Collateral at any time received under this Agreement. It is expressly
understood and agreed that the obligations of the Pledgee as holder of the Collateral and interests
therein and with respect to the disposition thereof, and otherwise under this Agreement, are only
those expressly set forth in this Agreement. The Pledgee shall act hereunder on the terms and
conditions set forth herein and in Annex M to the Security Agreement, the terms of which shall be
deemed incorporated herein by reference as fully as if same were set forth herein in their entirety
(for such purpose, treating each reference to the “Security Agreement” as a reference to this
Agreement, each reference to the “Collateral Agent” as a reference to the Pledgee, each reference
to an “Assignor” as a reference to a “Pledgor” and each reference to a “Secured Creditor” and a
“Secured Debt Agreement” as a reference to a “Secured Creditor” or a “Secured Debt Agreement”, as
the case may be, as defined herein).

 

 

15. TRANSFER BY THE PLEDGORS. No Pledgor will sell or otherwise dispose of, grant any
option with respect to, or mortgage, pledge or otherwise encumber any of the Collateral or any
interest therein if prohibited by the terms of this Agreement or any other Secured Debt Agreement.

16. REPRESENTATIONS, WARRANTIES AND UNDERTAKINGS. (a) Each Pledgor represents, warrants
and covenants that:

     (i) it is the legal, record and beneficial owner of, and has good and marketable title
to, all Collateral consisting of one or more Securities pledged by it hereunder, subject to
no pledge, lien, mortgage, hypothecation, security interest, charge, option or other
encumbrance whatsoever, except the liens and security interests created by this Agreement
and Permitted Liens;

     (ii) it has full power, authority and legal right to pledge all the Collateral pledged
by it pursuant to this Agreement without the consent of any other Person;

     (iii) this Agreement has been duly authorized, executed and delivered by such Pledgor
and constitutes a legal, valid and binding obligation of such Pledgor enforceable in
accordance with its terms, except to the extent that the enforceability hereof may be
limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws
generally affecting creditors’ rights and by equitable principles (regardless of whether
enforcement is sought in equity or law);

     (iv) except to the extent already made or obtained, no consent of any other party
(including, without limitation, any stockholder, member, limited or general partner or
creditor of such Pledgor or any of its Subsidiaries) and no consent, license, permit,
approval or authorization of, exemption by, notice or report to, or registration, filing or
declaration with, any governmental authority is required to be obtained by such Pledgor in
connection with (a) the execution, delivery or performance of this Agreement, (b) the
validity or enforceability of this Agreement, (c) the perfection or enforceability of the
Pledgee’s security interest in the Collateral (other than with respect to the Equity
Interests of an Excluded Foreign Entity) or (d) except for compliance with or as may be
required by applicable securities laws, the exercise by the Pledgee of any of its rights or
remedies provided herein;

     (v) neither the execution, delivery or performance of this Agreement or any other
Secured Debt Agreement to which it is a party violates (a) any material provision of any
applicable law or regulation or of any order, judgment, writ, award or decree of any court,
arbitrator or domestic or foreign governmental authority, (b) the certificate of
incorporation, certificate of formation, certificate of partnership, partnership agreement,
limited liability company agreement (or equivalent organizational documents) or by-laws, as
the case may be, of such Pledgor or of any securities issued by such Pledgor or any of its
Subsidiaries, or (c) any indenture, mortgage, lease, deed of trust, credit agreement, loan
agreement, agreement or other instrument to which such Pledgor or any of its Subsidiaries is
a party or which purports to be binding upon such Pledgor or any of its Subsidiaries or upon
any of their respective assets and will not result in the creation or

 

 

imposition of any lien
or encumbrance on any of the assets of such Pledgor or any of its Subsidiaries except as
contemplated by this Agreement;

     (vi) all the Collateral consisting of Securities, Pledged Limited Liability Company
Interests and Pledged Partnership Interests have been duly and validly issued, are fully
paid and non-assessable and are subject to no options to purchase or similar rights;

     (vii) to Pledgor’s knowledge, each of the Pledged Notes constitute, or, when executed
by the obligor thereof, will constitute, the legal, valid and binding obligation of such
obligor, enforceable in accordance with its terms except to the extent that the
enforceability thereof may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium or similar laws generally affecting creditors’ rights and by equitable principles
(regardless of whether enforcement is sought in equity or law);

     (viii) the pledge, assignment and delivery to the Pledgee of the Collateral consisting
of Certificated Securities (other than the Certificated Securities (x) of the Excluded
Foreign Entities and (y) required to be pledged pursuant to the procedures set forth in
Section 3.2(a)(iii)) and Pledged Notes pursuant to this Agreement, creates a valid and
perfected first security interest in such Collateral and the proceeds thereof, subject to no
prior Lien or encumbrance or to any agreement purporting to grant to any third party a
Lien or encumbrance on the property or assets of such Pledgor which would include the
Securities;

     (ix) it is not in default in the payment of any portion of any mandatory capital
contribution, if any, required to be made under any partnership agreement or limited
liability company agreement to which such Pledgor is a party, and such Pledgor is not in
violation of any other material provisions of any partnership agreement or limited liability
company agreement to which such Pledgor is a party, or otherwise in default or violation
thereunder; no Partnership Interest or Limited Liability Company Interest is subject to any
defense, offset or counterclaim, nor have any of the foregoing been asserted or alleged
against such Pledgor by any Person with respect thereto;

     (x) it shall not withdraw as a partner of any Pledged Partnership or member of any
Pledged LLC, or file or pursue or take any action which may, directly or indirectly, cause a
dissolution or liquidation of or with respect to any Pledged Entity or seek a partition of
any property of any Pledged Entity, except as permitted by the Credit Agreement;

     (xi) the Pledged Partnership Interests or Pledged Limited Liability Company Interests
of such Pledgor, as the case may be, constitute, and will at all times hereafter continue to
constitute, in the aggregate, all of the partnership interests or membership interests, as
the case may be, of each Pledged Entity of such Pledgor and no Pledged Entity shall create
any options or rights or other agreements to sell or otherwise transfer, or sell or
otherwise transfer, any Partnership Interests or Limited Liability Company Interests;

 

 

     (xii) each partnership agreement and limited liability company agreement is the legal,
valid and binding obligation of the parties thereto, enforceable in accordance with its
terms and, together with this Agreement, contains the entire agreement between the parties
thereto relating to the subject matter thereof; and

     (xiii) “control” (as defined in Section 8-106 of the UCC) has been obtained by the
Pledgee over all Collateral consisting of Securities (including Notes which are Securities)
with respect to which such “control” may be obtained pursuant to Section 8-106 of the UCC,
in each such case to the extent required by the terms of this Agreement.

(b) Each Pledgor covenants and agrees that it will defend the Pledgee’s right, title and security
interest in and to the Securities and the proceeds thereof against the claims and demands of all
persons whomsoever; and each Pledgor covenants and agrees that it will have like title to and right
to pledge any other property at any time hereafter pledged to the Pledgee as Collateral hereunder
and will likewise defend the right thereto and security interest therein of the Pledgee and the
other Secured Creditors.

(c) Each Pledgor covenants and agrees that it will take no action which would violate or be
inconsistent with any of the terms of any Secured Debt Agreement, or which would have the effect of
impairing the position or interests of the Pledgee or any other Secured Creditor under any Secured
Debt Agreement except as permitted by the Credit Agreement.

(d) Any Pledgor which owns an equity interest in an Excluded Foreign Entity covenants and agrees
that on the date on which such entity ceases to qualify as an “Excluded Foreign Entity” in
accordance with the definition thereof, (i) such Pledgor shall have duly authorized, executed and
delivered to the Pledgee a pledge agreement, in form and substance satisfactory to the Pledgee,
governed by the laws of the jurisdiction of organization of such Excluded Foreign Entity and
covering (subject to the pledge limitations in subclause (ii) of the definition of the term
“Stock”) the equity interests of such Excluded Foreign Entity owned by such Pledgor (as amended,
restated, modified and/or supplemented from time to time in accordance with the terms thereof and
of the Credit Agreement, each such pledge agreement, a “Foreign Pledge Agreement”), (ii)
such Foreign Pledge Agreement shall be in full force and effect and shall have been duly recorded
or filed in such manner and in such places as required by the law of the jurisdiction governing
such Foreign Pledge Agreement to establish, perfect, preserve and protect the pledge in favor of
the Collateral Agent, (iii) all taxes, fees and other charges payable in connection with the such
Foreign Pledge Agreement (including the recordation thereof) shall have been paid in full and (iv)
the Pledgee shall have received such other evidence that all actions necessary or, in the opinion
of the Pledgee, desirable, to perfect and/or render enforceable the security interest purported to
be created by such Foreign Pledge Agreement have been taken (including, without limitation, the
delivery of an opinion from local counsel acceptable to the Pledgee in form, scope and substance
reasonably satisfactory to the Pledgee).

(e) Each Pledgor represents and warrants as of the date of each Credit Event under the Credit
Agreement, that the fair market value of the Margin Stock held by the Pledgors as of the date of
such Credit Event does not exceed $50,000,000.

 

 

17. PLEDGORS’ OBLIGATIONS ABSOLUTE, ETC. The obligations of each Pledgor under this
Agreement shall be absolute and unconditional and shall remain in full force and effect without
regard to, and shall not be released, suspended, discharged, terminated or otherwise affected by,
any circumstance or occurrence whatsoever, including, without limitation:

     (i) any renewal, extension, amendment or modification of, or addition or supplement to
or deletion from any of the Secured Debt Agreements, or any other instrument or agreement
referred to therein, or any assignment or transfer of any thereof;

     (ii) any waiver, consent, extension, indulgence or other action or inaction under or in
respect of any such agreement or instrument or this Agreement;

     (iii) any furnishing of any additional security to the Pledgee or its assignee or any
acceptance thereof or any release of any security by the Pledgee or its assignee;

     (iv) any limitation on any party’s liability or obligations under any such instrument
or agreement or any invalidity or unenforceability, in whole or in part, of any such
instrument or agreement or any term thereof; or

     (v) any bankruptcy, insolvency, reorganization, composition, adjustment, dissolution,
liquidation or other like proceeding relating to such Pledgor or any Subsidiary of such
Pledgor, or any action taken with respect to this Agreement by any
trustee or receiver, or by any court, in any such proceeding, whether or not such Pledgor
shall have notice or knowledge of any of the foregoing.

18. TERMINATION; RELEASE. (a) After the Termination Date (as defined below), this
Agreement shall terminate (provided that all indemnities set forth herein including,
without limitation, in Section 11 hereof shall survive any such termination) and the Pledgee, at
the request and expense of the respective Pledgor, will execute and deliver to such Pledgor a
proper instrument or instruments acknowledging the satisfaction and termination of this Agreement
as provided above, and will duly assign, transfer and deliver to such Pledgor (without recourse and
without any representation or warranty) such of the Collateral as may be in the possession of the
Pledgee and as has not theretofore been sold or otherwise applied or released pursuant to this
Agreement, together with any moneys at the time held by the Pledgee hereunder. As used in this
Agreement, (i) “CA Termination Date” shall mean the date upon which the Total Commitment
has been terminated, no Letter of Credit or Note under the Credit Agreement is outstanding and all
other Credit Document Obligations have been paid in full in cash (other than arising from
indemnities for which no request for payment has been made) and (ii) “Termination Date”
shall mean the date upon which (x) the CA Termination Date shall have occurred and (y) if (but only
if) a Notified Non-Credit Agreement Event of Default shall have occurred and be continuing on the
CA Termination Date (and after giving effect thereto), either (I) such Notified Non-Credit
Agreement Event of Default shall have been cured or waived by the requisite holders of the relevant
Obligations subject to such Notified Non-Credit Agreement Event of Default or (II) all Secured
Credit Card Agreements and Secured Hedging Agreements (if any) giving rise to a Notified Non-Credit
Agreement Event of Default shall have been terminated and all Obligations subject to such Notified
Non-Credit Agreement Event of Default shall have been paid in full (other than arising from
indemnities for which no request for payment has been made).

 

 

(b) So long as no Notified Non-Credit Agreement Event of Default has occurred and is continuing,
in the event that (x) prior to the CA Termination Date (i) any part of the Collateral is sold or
otherwise disposed of in connection with a sale or other disposition permitted by Section 8.02 of
the Credit Agreement (it being agreed for such purposes that a release will be deemed “permitted by
Section 8.02 of the Credit Agreement” if the proposed transaction constitutes an exception to
Section 8.02 of the Credit Agreement) or (ii) all or any part of the Collateral is released at the
direction of the Required Lenders (or all the Lenders if required by Section 12.12 of the Credit
Agreement), and the proceeds of such sale or disposition or from such release (if any) are applied
in accordance with the terms of the Credit Agreement to the extent required to be so applied or (y)
on and after the CA Termination Date, any part of the Collateral is sold or otherwise disposed of
without violating the Existing Senior Notes Documents, the New Senior Notes Documents, the
Refinancing Senior Notes Documents, the Secured Credit Card Agreements and the Secured Hedging
Agreements, the Pledgee, at the request and expense of the respective Pledgor will release such
Collateral from this Agreement, duly assign, transfer and deliver to such Pledgor (without recourse
and without any representation or warranty) such of the Collateral as is then being (or has been)
so sold or released and as may be in possession of the Pledgee and has not theretofore been
released pursuant to this Agreement (it being understood and agreed that upon the release of all or
any portion of the Collateral by the Collateral Agent at the direction of the Lenders as provided
above, the Lien on the Collateral in favor of the
Collateral Agent for the benefit of the Credit Card Issuer, the Hedging Creditors, the Existing
Senior Notes Creditors, the New Senior Notes Creditors, the Refinancing Senior Notes Creditors and
the RJRTH Intercompany Note Creditor shall automatically be released).

(c) In addition to the foregoing, all Collateral shall be automatically released (subject to
reinstatement upon the occurrence of a new Trigger Event, with each date of such reinstatement, a
“Subsequent Effective Date”) in accordance with Section 7.10(i) of the Credit Agreement.

(d) At any time that the relevant Pledgor desires that the Pledgee take any action to give effect
to any release of Collateral pursuant to the foregoing Section 18(a), (b) or (c), it shall deliver
to the Pledgee a certificate signed by an authorized officer describing the Collateral to be
released and certifying its entitlement to a release pursuant to the applicable provisions of
Sections 18(a), (b) or (c) and in such case the Pledgee, at the request and expense of such
Pledgor, will execute such documents as required to duly release such Collateral and to assign,
transfer and deliver to such Pledgor or its designee (without recourse and without any
representation or warranty) such of the Collateral as is then being released and as may be in the
possession of the Pledgee. The Pledgee shall have no liability whatsoever to any other Secured
Creditor as the result of any release of Collateral by it in accordance with (or which the Pledgee
in good faith believes to be in accordance with) this Section 18. Upon any release of Collateral
pursuant to Section 18(a), (b) or (c), so long as no Noticed Event of Default is then in existence,
none of the Secured Creditors shall have any continuing right or interest in such Collateral, or
the proceeds thereof (subject to reinstatement rights upon the occurrence of a new Trigger Event in
the case of a release pursuant to Section 18(c)).

19. NOTICES, ETC. All notices and other communications provided for hereunder shall be in
writing (including telegraphic, telex, facsimile transmission or cable communication) and mailed,
telegraphed, telexed, telecopied, cabled or delivered (including by way of overnight courier):

 

 

     (i) if to any Pledgor, at its address set forth opposite its signature below;

     (ii) if to the Pledgee, at:

JPMorgan Chase Bank, N.A.

270 Park Avenue

New York, New York 10017

Attention: Raju Nanoo

Tel: 212-270-2272

Fax: 212-270-5120

     (iii) if to any Lender (other than the Pledgee), at such address as such Lender shall
have specified in the Credit Agreement;

     (iv) if to any Credit Card Issuer, at such address as such Credit Card Issuer shall
have specified in writing to the Pledgors and the Pledgee;

     (v) if to any Hedging Creditor, at such address as such Hedging Creditor shall have
specified in writing to the Pledgors and the Pledgee;

     (vi) if to any Existing Senior Notes Creditor, at such address of the Existing Senior
Notes Trustee as the Existing Senior Notes Trustee shall have specified in writing to the
Pledgors and the Pledgee;

     (vii) if to any New Senior Notes Creditor, at such address of the New Senior Notes
Trustee as the New Senior Notes Trustee shall have specified in writing to the Pledgors and
the Pledgee;

     (viii) if to any Refinancing Senior Notes Creditor, at such address of the Refinancing
Senior Notes Trustee as the Refinancing Senior Notes Trustee shall have specified in writing
to the Pledgors and the Pledgee;

or at such other address as shall have been furnished in writing by any Person described above to
the party required to give notice hereunder. Except as otherwise expressly provided herein, all
such notices and communications shall be deemed to have been duly given or made when received.

20. WAIVER; AMENDMENT. None of the terms and conditions of this Agreement may be changed,
waived, modified or varied in any manner whatsoever unless in writing duly signed by the Pledgee
(with the consent of (x) if prior to the CA Termination Date, the Required Lenders or, to the
extent required by Section 12.12 of the Credit Agreement, all of the Lenders and (y) if on and
after the CA Termination Date, the holders of at least a majority of the outstanding principal
amount of the Obligations remaining outstanding), and each Pledgor affected thereby (it being
understood that the addition or release of any Pledgor hereunder shall not constitute a change,
waiver, discharge or variance affecting any Pledgor other than the Borrower and the Pledgor so
added or released), provided that any change, waiver, modification or variance affecting
the rights and benefits of a single Class of Unrestricted Secured Creditors (and not all
Unrestricted Secured Creditors in a like or similar manner) shall require the written consent of

 

 

the Requisite Creditors of such Class of Unrestricted Secured Creditors; provided,
however, that technical modifications may be made to this Agreement without the consent of
a given Class of Unrestricted Secured Creditors affected thereby if such modifications are intended
to conform the Collateral pledge requirements of this Agreement with the pledge requirements of the
relevant Secured Debt Agreements to which such Class of Unrestricted Secured Creditors is a party.
For the purpose of this Agreement, the term “Class” shall mean each class of Unrestricted
Secured Creditors, i.e., whether (1) the Lender Creditors as holders of the Credit Document
Obligations, (2) the Credit Card Issuers as holders of the Credit Card Obligations, (3) the Hedging
Creditors as holders of the Hedging Obligations, (4) the Existing Senior Notes Creditors as holders
of the Existing Senior Notes Obligations, (5) the New Senior Notes Creditors as holders of the New
Senior Notes Obligations or (6) the Refinancing Senior Notes Creditors as holders of the
Refinancing Senior Notes Obligations. For the purpose of this Agreement, the term “Requisite
Creditors” of any Class shall mean each of (1) with respect to each of the Credit Document
Obligations, the Required Lenders, (2) with respect to the Credit Card Obligations, the holders of
at least a
majority of all Credit Card Obligations outstanding from time to time, (3) with respect to the
Hedging Obligations, the holders of at least a majority of all Hedging Obligations outstanding from
time to time, (4) with respect to the Existing Senior Notes Obligations, the holders of at least a
majority of the outstanding principal amount of the Existing Senior Notes, (5) with respect to the
New Senior Notes Obligations, the holders of at least a majority of the outstanding principal
amount of the New Senior Notes and (6) with respect to the Refinancing Senior Notes Obligations,
the holders of at least a majority of the outstanding principal amount of the Refinancing Senior
Notes.

21. MISCELLANEOUS. This Agreement shall create a continuing security interest in the
Collateral and shall (i) remain in full force and effect, subject to release and/or termination as
set forth in Section 18, (ii) be binding upon each Pledgor, its successors and assigns, and (iii)
inure, together with the rights and remedies of the Pledgee hereunder, to the benefit of the
Pledgee, the other Secured Creditors and their respective successors, transferees and assigns. This
Agreement shall be construed and enforced in accordance with and governed by the law of the State
of New York. The headings of the several sections and subsections in this Agreement are for
purposes of reference only and shall not limit or define the meaning hereof. This Agreement may be
executed in any number of counterparts, each of which shall be an original, but all of which
together shall constitute one instrument. In the event that any provision of this Agreement shall
prove to be invalid or unenforceable, such provision shall be deemed to be severable from the other
provisions of this Agreement which shall remain binding on all parties hereto.

22. WAIVER OF JURY TRIAL. Each party hereto irrevocably waives all right to a trial by
jury in any action, proceeding or counterclaim arising out of or relating to this Agreement or the
transactions contemplated hereby.

23. ADDITIONAL PLEDGORS. It is understood and agreed that any Subsidiary of the Borrower
that is required to become a party to this Agreement after the date hereof pursuant to the
requirements of the Credit Agreement shall become a Pledgor hereunder by (x) executing a
counterpart hereof and/or an assumption agreement in form and substance satisfactory to the
Collateral Agent, (y) delivering supplements to Annexes A through E hereto, as are necessary to
cause such Annexes to be complete and accurate with respect to such additional Pledgor on such date
and (z) taking all actions as specified in this Agreement, in each case with all documents

 

 

required
above to be delivered to the Collateral Agent and with all documents and action required above to
be taken to the reasonable satisfaction of the Collateral Agent.

24. NO THIRD PARTY BENEFICIARIES. This Agreement is entered into solely for the benefit of
the parties hereto and their respective successors and assigns and for the benefit of the Secured
Creditors from time to time and their respective successors and assigns and, except for the Secured
Creditors and their successors and assigns, there shall be no third party beneficiaries hereof, nor
shall any Person other than the parties hereto and their respective successors and
assigns, and the Secured Creditors and their respective successors and assigns, be entitled to
enforce the provisions hereof or have any claims against any party hereto (or any Secured Creditor)
or their successors and assigns arising from, or under, this Agreement.

25. SPECIAL PROVISIONS AND WAIVERS RELATING TO THE RJRTH INTERCOMPANY NOTE CREDITOR.

(a) In the event that the RJRTH Intercompany Note Creditor institutes, commences, consents or
otherwise becomes subject to any insolvency or liquidation proceeding, the RJRTH Intercompany Note
Creditor unconditionally, irrevocably and immediately agrees to limited relief from the automatic
stay under Section 362(a) of the Bankruptcy Code so as to allow the Collateral Agent and the other
Secured Creditors the ability to exercise their rights under this Agreement with respect to the
Collateral (other than the RJRTH Intercompany Note). The RJRTH Intercompany Note Creditor hereby
agrees that it shall not, in any manner, oppose or otherwise delay any motion seeking limited
relief from the automatic stay solely to effectuate the intent of, and the agreements set forth in,
the preceding sentence.

          (b) The RJRTH Intercompany Note Creditor agrees that it shall not (and hereby waives any right
to) contest or support any other Person in contesting, in any proceeding (including any insolvency
or liquidation proceeding), (i) the validity or enforceability of this Agreement or any Obligation
hereunder or (ii) the validity, perfection, priority or enforceability of the Liens, mortgages,
assignments and security interests granted pursuant to this Agreement with respect to the
Obligations.

          (c) So long as the discharge of the Obligations hereunder has not occurred, whether or not any
insolvency or liquidation proceeding has been commenced by or against the Borrower or any other
Assignor, the RJRTH Intercompany Note Creditor will not exercise or seek to exercise any rights or
remedies (including setoff) with respect to the RJRTH Intercompany Note or institute or commence,
or join with any Person in commencing, any action or proceeding with respect to such rights or
remedies (including any action of foreclosure, enforcement, collection or execution and any
insolvency or liquidation proceeding), and will not contest, protest or object to any foreclosure
proceeding or action brought by the Collateral Agent of any other Secured Creditor or any other
exercise by the Collateral Agent or any other Secured Creditor of any rights and remedies relating
to the Collateral under this Agreement or otherwise, or object to the forbearance by the Collateral
Agent or any other Secured Creditor from bringing or pursuing any foreclosure proceeding or action
or any other exercise of any rights or remedies relating to the Collateral.

 

 

          (d) The RJRTH Intercompany Note Creditor agrees that it will not take or receive any
Collateral or any proceeds of Collateral in connection with the exercise of any right or remedy
(including setoff) with respect to the RJRTH Intercompany Note, unless and until the discharge of
Obligations has occurred.

          (e) The RJRTH Intercompany Note Creditor, (i) agrees that it will not take any action that
would hinder, delay, limit or prohibit any exercise of remedies under this Agreement, including any
collection, sale, lease, exchange, transfer or other disposition of the RJRTH Intercompany Note,
whether by foreclosure or otherwise, or that would limit, invalidate,
avoid or set aside any Lien or subordinate the priority of the Obligations and (ii) hereby waives
any and all rights it may have to object to the manner in which the Collateral Agent or any other
Secured Creditor seeks to enforce or collect the Obligations or the Liens granted in any of the
Collateral, regardless of whether any action or failure to act by or on behalf of the Collateral
Agent or any other Secured Creditor is adverse to the interest of the RJRTH Intercompany Note
Creditor.

          (f) Until the discharge of Obligations occurs, the RJRTH Intercompany Note Creditor, hereby
irrevocably constitutes and appoints the Collateral Agent and any officer or agent of the
Collateral Agent, with full power of substitution, as its true and lawful attorney-in-fact with
full irrevocable power and authority in the place and stead of the RJRTH Intercompany Note
Creditor, for the purpose of carrying out the terms of this Section 25, to take any and all
appropriate action and to execute any and all documents and instruments which may be necessary or
desirable to accomplish the purposes of this Section 25, including any endorsements or other
instruments of transfer or release.

          (g) Until the discharge of the Obligations has occurred, the RJRTH Intercompany Note Creditor
agrees that it shall not seek relief, pursuant to Section 362(d) of the Bankruptcy Code or
otherwise, from the automatic stay of Section 362(a) of the Bankruptcy Code or from any other stay
in any insolvency or liquidation proceeding in respect of the RJRTH Intercompany Note.

          (h) The RJRTH Intercompany Note Creditor agrees that it shall not (i) oppose, object to or
contest (or join with or support any third party opposing, objecting to or contesting) (a) any
request by the Collateral Agent or any other Secured Creditor for adequate protection in any
insolvency or liquidation proceeding (or any granting of such request) or (b) any objection by the
Collateral Agent or any other Secured Creditor to any motion, relief, action or proceeding based on
the Collateral Agent or any other Secured Creditor claiming a lack of adequate protection or (ii)
seek or accept any form of adequate protection under any of Sections 362, 363 and/or 364 of the
Bankruptcy Code with respect to the RJRTH Intercompany Note.

          (i) Nothing contained herein shall prohibit or in any way limit the Collateral Agent or any
other Secured Creditor from objecting on any basis in any insolvency or liquidation proceeding or
otherwise to any action taken by the RJRTH Intercompany Note Creditor including the seeking by the
RJRTH Intercompany Note Creditor of adequate protection.

 

 

          (j) The RJRTH Intercompany Note Creditor waives any claim it may hereafter have against the
Collateral Agent or any other Secured Creditor arising out of the election by the Collateral Agent
or any other Secured Creditor of the application to the claims of the Collateral Agent or any
other Secured Creditor of Section 1111(b)(2) of the Bankruptcy Code, and/or out of any cash
collateral or post-petition financing arrangement or out of any grant of a security interest in
connection with the RJRTH Intercompany Note in any insolvency or liquidation proceeding.

          (k) The RJRTH Intercompany Note Creditor agrees not to assert and hereby waives, to the
fullest extent permitted by law, any right to demand, request, plead or otherwise assert or
otherwise claim the benefit of, any marshalling, appraisal, valuation or other similar right that
may otherwise be available under applicable law with respect to the RJRTH Intercompany Note.

          (l) The parties hereto acknowledge and agree that it is their intent that the Obligations
(other than the RJRTH Intercompany Note Obligations) and the security therefor constitute a
separate and distinct class (and separate and distinct claims) from the RJRTH Intercompany Note
Obligations (and the security therefor).

          (m) Nothing in this Section 25 is intended as a waiver by the Borrower of any of its rights in
its capacity as an obligor or “debtor” under any of the Secured Debt Documents (as opposed to its
rights as a secured creditor in its capacity as the RJRTH Intercompany Note Creditor).

          (n) Notwithstanding the foregoing, the provisions of this Section 25 shall cease to be
operative on and after the date on which RJRTH becomes a Specified RAI Senior Notes Pledgor, and
the RJRTH Intercompany Note Obligations cease to be secured by the capital stock of Reynolds
Tobacco.

26. AMENDMENT AND RESTATEMENT. Each of the Collateral Agent and each of the Pledgors
hereby acknowledges and agrees that from and after the Fourth Restatement Effective Date, this
Agreement amends, restates and supersedes the First Amended and Restated Pledge Agreement in its
entirety.

*       *       *

 

 

          IN WITNESS WHEREOF, each Pledgor and the Pledgee have caused this Agreement to be executed and
delivered by their duly authorized officers as of the date first above written.

	 	 	 	 	 
	 	REYNOLDS AMERICAN INC.,

     as a Pledgor

 	 
	 	By:  	/s/
Daniel A. Fawley	 
	 	 	Name:  	Daniel A. Fawley	 
	 	 	Title:  	Senior Vice President & Treasurer	 
	 

	 	 	 	 	 
	 	R.J. REYNOLDS TOBACCO HOLDINGS,  

      INC., as a Pledgor
	 
	 	By:  	/s/ Daniel A. Fawley	 
	 	 	Name:  	Daniel A. Fawley	 
	 	 	Title:  	Senior Vice President & Treasurer	 
	 

	 	 	 	 	 
	 	R. J. REYNOLDS TOBACCO COMPANY,

     as a Pledgor

 	 
	 	By:  	/s/ Daniel A. Fawley	 
	 	 	Name:  	Daniel A. Fawley	 
	 	 	Title:  	Senior Vice President & Treasurer	 
	 

	 	 	 	 	 
	 	RJR ACQUISITION CORP.,

     as a Pledgor

 	 
	 	By:  	/s/
McDara P. Folan, III	 
	 	 	Name:  	McDara P. Folan, III	 
	 	 	Title:  	Vice President &  Assistant Secretary	 
	 

	 	 	 	 	 
	 	GMB, INC.,

     as a Pledgor

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

	 	 	 	 	 
	 	FHS, INC.,

     as a Pledgor

 	 
	 	By:  	/s/
Kathryn A. Premo	 
	 	 	Name:  	Kathryn A. Premo	 
	 	 	Title:  	Treasurer	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	R. J. REYNOLDS TOBACCO CO.,

     as a Pledgor

 	 
	 	By:  	/s/
Daniel A. Fawley	 
	 	 	Name:  	Daniel A. Fawley	 
	 	 	Title:  	Vice President & Treasurer	 
	 

	 	 	 	 	 
	 	CONWOOD COMPANY, L.P., as a
Pledgor

 	 
	 	By:  	/s/ Daniel A. Fawley	 
	 	 	Name:  	Daniel A. Fawley	 
	 	 	Title:  	Vice President & Treasurer	 
	 

	 	 	 	 	 
	 	CONWOOD SALES CO., L.P., as a
Pledgor

 	 
	 	By:  	/s/ Daniel A. Fawley	 
	 	 	Name:  	Daniel A. Fawley	 
	 	 	Title:  	Vice President & Treasurer	 
	 

	 	 	 	 	 
	 	ROSSWIL LLC, as a Pledgor

 	 
	 	By:  	/s/ Daniel A. Fawley	 
	 	 	Name:  	Daniel A. Fawley	 
	 	 	Title:  	Vice President & Treasurer	 
	 

	 	 	 	 	 
	 	CONWOOD HOLDINGS, INC., 

as a Pledgor

 	 
	 	By:  	/s/ Daniel A. Fawley	 
	 	 	Name:  	Daniel A. Fawley	 
	 	 	Title:  	Vice President & Treasurer	 
	 

	 	 	 	 	 
	 	NA HOLDINGS, INC.,

as a Pledgor

 	 
	 	By:  	/s/
McDara P. Folan, III	 
	 	 	Name:  	McDara P. Folan, III	 
	 	 	Title:  	President	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	SANTA FE NATURAL TOBACCO 

     COMPANY, INC., as a Pledgor

 	 
	 	By:  	/s/
Daniel A. Fawley	 
	 	 	Name:  	Daniel A. Fawley	 
	 	 	Title:  	Assistant Treasurer	 
	 

	 	 	 	 	 
	 	LANE LIMITED, as a Pledgor

 	 
	 	By:  	/s/
Daniel A. Fawley	 
	 	 	Name:  	Daniel A. Fawley	 
	 	 	Title:  	Assistant Treasurer	 

 

 

	 	 	 	 	 

Acknowledged And Agreed:

JPMORGAN CHASE BANK, N.A.,

      as Collateral Agent and Pledgee

	 	 	 	 	 
	By

	 	/s/ Robert T. Sacks	 
	 	 	 	 
	 

	 	Name:	Robert T. Sacks	 
	 

	 	Title:	Managing Director	 

 

 

ANNEX F

Form of Agreement Regarding Uncertificated Securities, Limited Liability

Company Interests and Partnership Interests

          AGREEMENT (as amended, modified or supplemented from time to time, this “Agreement”),
dated as of ___ ___, ___, among the undersigned pledgor (the “Pledgor”), JPMorgan Chase
Bank, N.A., not in its individual capacity but solely as Collateral Agent (the “Pledgee”),
and                     , as the issuer of the Uncertificated Securities, Limited Liability Company Interests
and/or Partnership Interests (each as defined below) (the “Issuer”).

W I T N E S S E T H :

          WHEREAS, the Pledgor, certain of its affiliates and the Pledgee have entered into a Pledge
Agreement, dated as of July 15, 2003, as amended and restated as of July 30, 2004, and as further
amended and restated as of May [___], 2006, (as so amended and restated and as further amended,
modified, restated and/or supplemented from time to time, the “Pledge Agreement”), under
which, among other things, in order to secure the payment of the Obligations (as defined in the
Pledge Agreement), the Pledgor will pledge to the Pledgee for the benefit of the Secured Creditors
(as defined in the Pledge Agreement), and grant a security interest in favor of the Pledgee for the
benefit of the Secured Creditors in, all of the right, title and interest of the Pledgor in and to
any and all (1) “uncertificated securities” (as defined in Section 8-102(a)(18) of the Uniform
Commercial Code, as adopted in the State of New York) (“Uncertificated Securities”), (2)
Partnership Interests (as defined in the Pledge Agreement) and (3) Limited Liability Company
Interests (as defined in the Pledge Agreement), in each case issued from time to time by the
Issuer, whether now existing or hereafter from time to time acquired by the Pledgor (with all of
such Uncertificated Securities, Partnership Interests and Limited Liability Company Interests being
herein collectively called the “Issuer Pledged Interests”); and

          WHEREAS, the Pledgor desires the Issuer to enter into this Agreement in order to protect the
security interest of the Pledgee under the Pledge Agreement in the Issuer Pledged Interests, to
vest in the Pledgee control of the Issuer Pledge Interests and to provide for the rights of the
parties under this Agreement;

          NOW THEREFORE, in consideration of the premises and the mutual promises and agreements
contained herein, and for other valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto hereby agree as follows:

          1. The Pledgor hereby irrevocably authorizes and directs the Issuer, and the Issuer hereby
agrees, to comply with any and all instructions and orders originated by the Pledgee (and its
successors and assigns) regarding any and all of the Issuer Pledged Interests without the further
consent by the registered owner (including the Pledgor), and, after receiving a notice from the
Pledgee stating that an “Event of Default” has occurred and is continuing, not to comply with any
instructions or orders regarding any or all of the Issuer Pledged Interests originated by any
person or entity other than the Pledgee (and its successors and assigns) or a court of competent
jurisdiction.

 

 

ANNEX F

Page 2

          2. The Issuer hereby certifies that (i) no notice of any security interest, lien or other
encumbrance or claim affecting the Issuer Pledged Interests (other than the security interest of
the Pledgee) has been received by it, and (ii) the security interest of the Pledgee in the Issuer
Pledged Interests has been registered in the books and records of the Issuer.

          3. The Issuer hereby represents and warrants that (i) the pledge by the Pledgor of, and the
granting by the Pledgor of a security interest in, the Issuer Pledged Interests to the Pledgee, for
the benefit of the Secured Creditors, does not violate the charter, by-laws, partnership agreement,
membership agreement or any other agreement governing the Issuer or the Issuer Pledged Interests,
and (ii) the Issuer Pledged Interests are fully paid and nonassessable.

          4. All notices, statements of accounts, reports, prospectuses, financial statements and other
communications to be sent to the Pledgor by the Issuer in respect of the Issuer will also be sent
to the Pledgee at the following address:

JPMorgan Chase Bank, N.A.

270 Park Avenue

New York, New York 10017

Attention: Raju Nanoo

Tel: 212-270-2272

Fax: 212-270-5120

          5. Until the Pledgee shall have delivered written notice to the Issuer that all of the
Obligations have been paid in full and this Agreement is terminated, the Issuer will, upon
receiving notice from the Pledgee stating that an “Event of Default” has occurred and is
continuing, send any and all redemptions, distributions, interest or other payments in respect of
the Issuer Pledged Interests from the Issuer for the account of the Pledgor only by wire transfers
to an account to be designated by the Pledgee.

          6. Except as expressly provided otherwise in Sections 4 and 5, all notices, shall be sent or
delivered by mail, telegraph, telex, telecopy, cable or overnight courier service and all such
notices and communications shall, when mailed, telegraphed, telexed, telecopied, or cabled or sent
by overnight courier, be effective when deposited in the mails, delivered to the telegraph company,
cable company or courier, as the case may be, or sent by telex or telecopier, except that notices
and communications to the Pledgee, the Pledgor or the Issuer shall not be effective until received
by the Pledgee, the Pledgor or the Issuer, as the case may be. All notices and other
communications shall be in writing and addressed as follows:

          (a) if to the Pledgor, at:

                                        

                                        

                                        

                                        

Attention:                     

Telephone No.:

Fax No.:

 

 

ANNEX F

Page 3

          (b) if to the Pledgee, at:

JPMorgan Chase Bank, N.A.

270 Park Avenue

New York, New York 10017

Attention: Raju Nanoo

Tel: 212-270-2272

Fax: 212-270-5120

          (c) if to the Issuer, at:

                                        

                                        

                                        

or at such other address as shall have been furnished in writing by any Person described above to
the party required to give notice hereunder. As used in this Section 6, “Business Day” means any
day other than a Saturday, Sunday, or other day in which banks in New York are authorized to remain
closed.

          7. This Agreement shall be binding upon the successors and assigns of the Pledgor and the
Issuer and shall inure to the benefit of and be enforceable by the Pledgee and its successors and
assigns. This Agreement may be executed in any number of counterparts, each of which shall be an
original, but all of which shall constitute one instrument. In the event that any provision of
this Agreement shall prove to be invalid or unenforceable, such provision shall be deemed to be
severable from the other provisions of this Agreement which shall remain binding on all parties
hereto. None of the terms and conditions of this Agreement may be changed, waived, modified or
varied in the manner whatsoever except in writing signed by the Pledgee, the Issuer and the
Pledgor.

          8. This Agreement shall be governed by and construed in accordance with the laws of the State
of New York, without regard to its principles of conflict of laws.

 

 

ANNEX F

Page 4

          IN WITNESS WHEREOF, the Pledgor, the Pledgee and the Issuer have caused this Agreement to be
executed by their duly elected officers duly authorized as of the date first above written.

	 	 	 	 	 
	 	[                                                            ],

as Pledgor

 	 
	 	By  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	JPMORGAN CHASE BANK, N.A.

not in its individual capacity but

solely as Collateral Agent and

Pledgee

 	 
	 	By  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	[                                        ], the Issuer

 	 
	 	By  	 	 
	 	 	Name:  	 	 
	 	 	Title:

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