Document:

Exhibit 4.3

 

Exhibit 4.3

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION (“DTC”), TO ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH
OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE
& CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

REYNOLDS AMERICAN INC.

7.250% Senior Secured Notes due 2037

			
	 	 	 
	Certificate No. 1
	 	$450,000,000
	 
	 	CUSIP No. 761713AT3

     Reynolds American Inc., a North Carolina corporation (the “Company,”) which term includes any
successor corporation under the Indenture hereinafter referred to), for value received, promises
to pay to Cede & Co., or its registered assigns, the principal sum of FOUR HUNDRED FIFTY MILLION
DOLLARS ($450,000,000) on June 15, 2037.

     Interest Payment Dates: June 15 and December 15, commencing December 15, 2007.

     Record Dates: June 1 and December 1.

 

 

     Reference is hereby made to the further provisions of this Note set forth on the reverse
hereof, which further provisions shall have the same effect for all purposes as if set forth at
this place.

     Unless the certificate of authentication hereof has been executed by the Trustee referred to
on the reverse hereof by manual signature, this Note shall not be entitled to any benefit under
the Indenture or be valid or obligatory for any purpose.

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

Dated: June 21, 2007

	 	 	 	 	 	 	 
	 	 	REYNOLDS AMERICAN INC.,	 	 
	 	 	as Issuer	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Daniel A. Fawley	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Daniel A. Fawley	 	 
	 

	 	 	 	Senior Vice President and Treasurer	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ McDara P. Folan, III	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	McDara P. Folan, III	 	 
	 

	 	 	 	Senior Vice President, Deputy General Counsel	 	 
	 

	 	 	 	and Secretary	 	 

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

SANTA FE NATURAL TOBACCO COMPANY, INC., as Guarantor

	 	 	 	 	 	 	 
	By:

	 	/s/ Daniel A. Fawley
	 	 
	 	 
	 

	 	 	 	 	 	 
	 

	 	Daniel A. Fawley	 	 	 	 
	 

	 	Assistant Treasurer	 	 	 	 
	 
	 	 	 	 	 	 
	LANE, LIMITED, as Guarantor	 	 	 	 
	 
	 	 	 	 	 	 
	By:

	 	/s/ Daniel A. Fawley	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Daniel A. Fawley	 	 	 	 
	 

	 	Assistant Treasurer	 	 	 	 

Note Signature Page

 

	 	 	 	 	 	 	 
	CONWOOD HOLDINGS, INC., as Guarantor	 	 	 	 
	 
	 	 	 	 	 	 
	By:

	 	/s/ Daniel A. Fawley	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Daniel A. Fawley	 	 	 	 
	 

	 	Vice President and Treasurer	 	 	 	 
	 
	 	 	 	 	 	 
	CONWOOD COMPANY, LLC, as Guarantor	 	 	 	 
	 
	 	 	 	 	 	 
	By:

	 	/s/ Daniel A. Fawley	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Daniel A. Fawley	 	 	 	 
	 

	 	Vice President and Treasurer	 	 	 	 
	 
	 	 	 	 	 	 
	CONWOOD SALES CO., LLC, as Guarantor	 	 	 	 
	 
	 	 	 	 	 	 
	By:

	 	/s/ Daniel A. Fawley	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Daniel A. Fawley	 	 	 	 
	 

	 	Vice President and Treasurer	 	 	 	 
	 
	 	 	 	 	 	 
	ROSSWIL LLC, as Guarantor	 	 	 	 
	 
	 	 	 	 	 	 
	By:

	 	/s/ Daniel A. Fawley	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Daniel A. Fawley	 	 	 	 
	 

	 	Vice President and Treasurer	 	 	 	 
	 
	 	 	 	 	 	 
	SCOTT TOBACCO LLC, as Guarantor	 	 	 	 
	 
	 	 	 	 	 	 
	By:

	 	/s/ Daniel A. Fawley	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Daniel A. Fawley	 	 	 	 
	 

	 	Vice President and Treasurer	 	 	 	 

Note Signature Page

 

	 	 	 	 	 	 	 
	R.J. REYNOLDS TOBACCO HOLDINGS, INC., as Guarantor	 	 	 	 
	 
	 	 	 	 	 	 
	By:

	 	/s/ Daniel A. Fawley	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Daniel A. Fawley	 	 	 	 
	 

	 	Senior Vice President and Treasurer	 	 	 	 
	 
	 	 	 	 	 	 
	R. J. REYNOLDS GLOBAL PRODUCTS, INC., as Guarantor	 	 	 	 
	 
	 	 	 	 	 	 
	By:

	 	/s/ Daniel A. Fawley	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Daniel A. Fawley	 	 	 	 
	 

	 	Vice President and Treasurer	 	 	 	 
	 
	 	 	 	 	 	 
	RJR ACQUISITION CORP., as Guarantor	 	 	 	 
	 
	 	 	 	 	 	 
	By:

	 	/s/ Daniel A. Fawley	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Daniel A. Fawley	 	 	 	 
	 

	 	Vice President and Assistant Treasurer	 	 	 	 
	 
	 	 	 	 	 	 
	R. J. REYNOLDS TOBACCO COMPANY, as Guarantor	 	 	 	 
	 
	 	 	 	 	 	 
	By:

	 	 /s/ Daniel A. Fawley	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Daniel A. Fawley	 	 	 	 
	 

	 	Treasurer	 	 	 	 
	 
	 	 	 	 	 	 
	R. J. REYNOLDS TOBACCO CO., as Guarantor	 	 	 	 
	 
	 	 	 	 	 	 
	By:

	 	/s/ Daniel A. Fawley	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Daniel A. Fawley	 	 	 	 
	 

	 	Vice President and Treasurer	 	 	 	 

Note Signature Page

 

	 	 	 	 	 	 	 
	RJR PACKAGING, LLC, as Guarantor	 	 	 	 
	 
	 	 	 	 	 	 
	By:

	 	/s/ Daniel A. Fawley	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Daniel A. Fawley	 	 	 	 
	 

	 	Vice President and Treasurer	 	 	 	 
	 
	 	 	 	 	 	 
	FHS, INC., as Guarantor	 	 	 	 
	 
	 	 	 	 	 	 
	By:

	 	 /s/ Kathryn A. Premo	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Kathryn A. Premo	 	 	 	 
	 

	 	Treasurer	 	 	 	 
	 
	 	 	 	 	 	 
	GMB, INC., as Guarantor	 	 	 	 
	 
	 	 	 	 	 	 
	By:

	 	 /s/ Daniel A. Fawley	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Daniel A. Fawley	 	 	 	 
	 

	 	Treasurer	 	 	 	 

Note Signature Page

 

(Trustee’s Certificate of Authentication)

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

Dated: June 21, 2007

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

	 	 	 	 	 	 	 
	By:

	 	/s/ Christie Leppert
	 	 
	 	 
	 

	 	 	 	 	 	 
	Name:

	 	Christie Leppert	 	 	 	 
	Title:

	 	Assistant Vice President	 	 	 	 

Note Signature Page

 

[REVERSE OF NOTE]

7.250% Senior Secured Notes due 2037

     References herein to the “Notes” mean the Company’s 7.250% Senior Secured Notes due 2037 and
not to any other series. Other capitalized terms used, but not defined, herein shall have the
meanings assigned to them in the Indenture and Schedule I attached hereto unless otherwise
indicated.

     1. Interest. The Company promises to pay interest on the principal amount of this
Note at 7.250% per annum from the date provided below until maturity. The Company shall pay
interest semi-annually, in arrears, on June 15 and December 15 of each year, or if any such day is
not a Business Day, on the next succeeding Business Day (each an “Interest Payment Date”), except
that, if the maturity date of the Note falls on a day that is not a Business Day, the Company will
make the required payment of interest and principal on the immediately succeeding Business Day, as
if it were made on the date the payment was due. Interest on the Notes shall accrue from the date
of initial issuance or, if interest has already been paid on the Notes, from and including the most
recent Interest Payment Date to which interest has been paid or provided for, to, but excluding the
relevant Interest Payment Date; provided the first Interest Payment Date shall be December 15,
2007. Interest shall be computed on the basis of a 360-day year of twelve 30-day months. Interest
will not accrue as a result of any postponed or delayed payment in accordance with this paragraph.

     2. Method of Payment. The Company shall pay interest on the Notes (except defaulted
interest) to the Persons who are registered Holders of Notes at the close of business on the June 1
or December 1 immediately preceding the Interest Payment Date (except that interest payable at
maturity of the Notes shall be paid to the same persons to whom principal of such Notes is
payable), even if such Notes are canceled after such record date and on or before such Interest
Payment Date, except as provided in Section 2.13 of the Indenture with respect to defaulted
interest. The Notes shall be payable as to principal, premium, if any, and interest at the office
or agency of the Company maintained for such purpose within the Borough of Manhattan of the City of
New York, or, at the option of the Company, payment of interest may be made by check mailed to the
Holders at their addresses set forth in the register of Holders, and provided that payment by wire
transfer of immediately available funds shall be required with respect to principal of and interest
and premium, if any, on, all Global Notes and all other Notes the Holders of which shall have
provided wire transfer instructions to the Company or the Paying Agent. Such payment shall be in
such coin or currency of the United States of America as at the time of payment is legal tender for
payment of public and private debts.

     3. Paying Agent and Registrar. Initially, The Bank of New York Trust Company, N.A.,
the Trustee under the Indenture, shall act as Paying Agent and Registrar. The Company may change
any Paying Agent or Registrar without notice to any Holder. The Company or any of its Subsidiaries
may act in any such capacity.

     4. Indenture. The Company issued the Notes under an Indenture dated as of May 31,
2006 among the Company, as issuer, certain direct and indirect subsidiaries of the Company, as
guarantors, and The Bank of New York Trust Company, N.A., as trustee (the “Indenture”). The terms
of the

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

     5. Redemption at Company’s Option. The Company may redeem all or a part of the Notes
from time to time in accordance with Article 5 of the Indenture at a redemption price equal to the
greater of (a) 100% of the principal amount of the Notes and (b) the sum of the present values of
the remaining scheduled payments of principal and interest on the Notes, discounted to the
redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months)
at the applicable Treasury Rate plus 35 basis points plus, with respect to each of the Notes,
accrued and unpaid interest, on the principal amount being redeemed to the date of redemption.
Notice of redemption under this Article 5 shall be mailed, by first class mail, at least 30 days
but not more than 60 days before the redemption date to each Holder whose Notes are to be redeemed
at its registered address. Notes in denominations equal to or larger than $2,000 may be redeemed
in part but only in whole multiples of $1,000, unless all of the Notes held by a Holder are to be
redeemed. On and after the redemption date, interest ceases to accrue on Notes or portions thereof
called for redemption (unless the Company shall default in the payment of the redemption price and
accrued interest).

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

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that each new Note will be in a principal amount of $2,000 or an integral multiple of $1,000.
The Company will not be required to make an offer to repurchase the notes upon a Change of Control
Repurchase Event if a third party makes such an offer in the manner, at the times and otherwise in
compliance with the requirements for an offer made by the Company, and such third party purchases
all Notes properly tendered and not withdrawn under its offer.

     7. No Sinking Fund. The Company shall not be required to make sinking fund payments
with respect to the Notes.

     8. Denominations, Transfer, Exchange. The Notes are in registered form without
coupons in minimum denominations of $2,000 and integral multiples of $1,000. The transfer of Notes
may be registered and Notes may be exchanged as provided in the Indenture. The Registrar and the
Trustee may require a Holder, among other things, to furnish appropriate endorsements and transfer
documents and the Company may require a Holder to pay any taxes and fees required by law or
permitted by the Indenture, including any transfer tax or other similar governmental charge payable
in connection therewith. The Company need not exchange or register the transfer of any Note or
portion of a Note selected for redemption, except for the unredeemed portion of any Note being
redeemed in part. Also, the Company need not exchange or register the transfer of any Note for a
period of 15 days before a selection of Notes to be redeemed.

     9. Persons Deemed Owners. The registered Holder of a Note may be treated as its owner
for all purposes.

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

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

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

     11. Defaults and Remedies. Any of the following events which shall have occurred and
be continuing (whatever the reason for such Event of Default and whether it shall be voluntary or
involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any
court or any order, rule or regulation of any administrative or governmental body) constitutes an
“Event of Default” under the Indenture: (a) default in the payment of any installment of interest
upon Securities of any series as and when the same shall become due and payable, and continuance of
such default for a period of 30 days; or (b) default in the payment of all or any part of the
principal on Securities of any series as and when the same shall become due and payable either at
maturity, upon any redemption, by declaration or otherwise; or (c) default in the payment of any
sinking fund installment as and when the same shall become due and payable by the terms of
Securities of any series; or (d) default in the performance, or breach, of any covenant or
agreement of the Company or the Guarantors in respect of Securities of any series (other than a
covenant or agreement in respect of such Securities a default in whose performance or whose breach
is elsewhere in this Section specifically dealt with), and continuance of such default or breach
for a period of 90 days after there has been given, by first class mail, to the Company by the
Trustee or to the Company and the Trustee by the Holders of at least 25% in principal amount of the
outstanding Securities of all series affected thereby, a written notice specifying such default or
breach and requiring it to be remedied and stating that such notice is a “Notice of Default”
hereunder; or (e) a court having jurisdiction in the premises shall enter a decree or order for
relief in respect of the Company or the Guarantors in an involuntary case under any applicable
bankruptcy, insolvency or other similar law now or hereafter in effect, or appointing a receiver,
liquidator, assignee, custodian, trustee or sequestrator (or similar official) of the Company or
for any substantial part of its property or ordering the winding up or liquidation of its affairs,
and such decree or order shall remain unstayed and in effect for a period of 60 consecutive days;
or (f) the Company or any Restricted Subsidiary shall commence a voluntary case under any
applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or consent to
the

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entry of an order for relief in an involuntary case under any such law, or consent to the
appointment of or taking possession by a receiver, liquidator, assignee, custodian, trustee or
sequestrator (or similar official) of the Company or for any substantial part of its property, or
make any general assignment for the benefit of creditors; or (g) any Guarantee ceases to be in full
force and effect (except as contemplated by the terms of the Indenture), or any Guarantee is
declared in a judicial proceeding to be null and void, or any Guarantor denies or disaffirms in
writing its obligations under the terms of the Indenture or its Guarantee; or (h) at any time as
such security is required by the terms of the Indenture, any Security Document shall cease to be in
full force and effect or shall cease to give the Collateral Agent the liens or any of the material
rights, powers and privileges purported to be created thereby in favor of the Collateral Agent and
such default shall continue unremedied for a period of at least 30 days after written notice to the
Company by the Collateral Agent; or (i) any other Event of Default provided in Schedule I
or in this Note.

     If an Event of Default described in clauses (a), (b), (c), (d) or (i) above (if the Event of
Default under clause (d) or (i) is with respect to less than all series of Securities then
outstanding) occurs and is continuing, then, and in each and every such case, except for any
series of Securities the principal of which shall have already become due and payable, either the
Trustee or the Holders of not less than 25% in aggregate principal amount of the Securities of
each such affected series then outstanding under the Indenture (voting as a single class) by
notice in writing to the Company (and to the Trustee if given by Securityholders), may declare the
entire principal of all Securities of all such affected series, and the interest accrued thereon,
if any, to be due and payable immediately, and upon any such declaration the same shall become
immediately due and payable. If an Event of Default described in clause (d) or (i) (if the Event
of Default under clauses (d) or (i), as the case may be, is with respect to all series of
Securities then outstanding), (e), (f), (g) or (h) occurs and is continuing, then and in each and
every such case, unless the principal of all the Securities shall have already become due and
payable, either the Trustee or the Holders of not less than 25% in aggregate principal amount of
all the Securities then outstanding under the Indenture (treated as one class), by notice in
writing to the Company (and to the Trustee if given by Securityholders), may declare the entire
principal of all the Securities then outstanding and interest accrued thereon, if any, to be due
and payable immediately, and upon any such declaration the same shall become immediately due and
payable.

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

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

     12. Trustee Dealings with Company. The Trustee, in its individual or any other
capacity, may become the owner or pledgee of Securities, and may otherwise deal with the Company,
as if it were not the Trustee.

     13. No Recourse Against Others. No director, officer, employee, incorporator or
shareholder or controlling person of the Company or the Trustee, as such, shall have any liability
for any obligations of the Company or the Trustee, respectively, under the Notes or the Indenture
or for any claim based on, in respect of, or by reason of, such obligations or their creation.
Each Holder of Notes by accepting a Note waives and releases all such liability. The waiver and
release are part of the consideration for issuance of the Notes. Such waiver may not be effective
to waive liabilities under the federal securities laws and it is the view of the Securities and
Exchange Commission that such a waiver is against public policy.

     14. Authentication. This Note shall not be valid until authenticated by the manual
signature of the Trustee or an authenticating agent and in accordance with the Indenture.

     15. Guarantees. This Note will be entitled to the benefits of certain Guarantees made
for the benefit of the Holders. Subject to the terms of the Indenture, each Guarantor of the
Indenture fully, unconditionally and irrevocably guarantees, as primary obligor and not merely as
surety, jointly and severally, to each Holder of the Notes and the Trustee the full and punctual
payment when due, whether at maturity, by acceleration, by redemption, by repurchase, or otherwise,
of the principal of, premium, if any, and interest on the Notes and all other obligations of the
Company under the Indenture, as provided in the Indenture. Reference is made to the Indenture for
a statement of the respective rights, limitations of rights, duties and obligations thereunder of
the Guarantors, the Trustee and the Holders, and of the circumstances under which the Guarantees
may be released.

     16. Abbreviations. Customary abbreviations may be used in the name of a Holder or an
assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (=
joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and
U/G/M/A (=Uniform Gifts to Minors Act).

     17. CUSIP and ISIN Numbers. Pursuant to a recommendation promulgated by the Committee
on Uniform Security Identification Procedures, the Company has caused CUSIP or ISIN numbers or both
numbers to be printed on the Notes and the Trustee may use CUSIP or ISIN numbers or both numbers in
notices to the Holders of the Notes as a convenience to Holders. No representation is made as to
the accuracy of such numbers either as printed on the Notes or as

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contained in any notice to the Holders of the Notes and reliance may be placed only on the
other identification numbers placed thereon.

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

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

Reynolds American Inc.

401 North Main Street

Winston-Salem, North Carolina 27101-3818

Facsimile: 336-741-5000

Attention: Treasurer

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[FORM OF TRANSFER NOTICE]

     FOR VALUE RECEIVED the undersigned registered holder hereby sell(s), assign(s) and transfer(s)
unto

Insert Taxpayer Identification No.

 

 

Please print the name and address including zip code of assignee

 

the within Note and all rights thereunder, hereby irrevocably constituting and appointing
                     attorney to transfer said Note on the books of the Company with full power of
substitution in the premises.

	 	 	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	Date:
	 	 	 	 
	 

	 	 	 	 
	 

	 	 	 	NOTICE: The signature to this assignment must correspond with the name
as written upon the face of the within-mentioned instrument in every
particular, without alteration or any change whatsoever.

Signature
Guarantee:                                      &n
bsp;                     

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

9

 

SCHEDULE I

REYNOLDS AMERICAN INC.

TERMS OF 6.750% SENIOR SECURED NOTES DUE 2017,

7.250% SENIOR SECURED NOTES DUE 2037, AND

FLOATING RATE SENIOR SECURED NOTES DUE 2011

     Section 1.01 Designation of Notes. (a) The terms set forth in this Schedule I pertain
to notes to be issued pursuant to that certain Indenture dated May 31, 2006, by and among Reynolds
American Inc. (the “Company”) as Issuer, The Bank of New York Trust Company, N.A., as Trustee, and
certain Subsidiaries of the Company who have executed such Indenture or a supplement thereto as
Guarantors (as so supplemented, the “Indenture”). The notes subject to these terms are (i) the
Company’s 6.750% Senior Secured Notes due 2017 in the original principal amount of $700,000,000
(CUSIP Number 761713AU0) (the “2017 Notes”), (ii) the Company’s 7.250% Senior Secured Notes due
2037 in the original principal amount of $450,000,000 (CUSIP Number 761713AT3) (the “2037 Notes”),
and (iii) the Company’s Floating Rate Senior Secured Notes due 2011 in the original principal
amount of $400,000,000 (CUSIP Number 761713AS5) (the “Floating Rate Notes,” and together with the
2017 Notes and the 2037 Notes, the “Notes”).

          (b) The 2017 Notes, the 2037 Notes and the Floating Rate Notes shall each be considered a
separate series for all purposes of the Indenture.

     Section 1.02 Initial Issuance. (a) The Notes are being offered and sold by the Company
pursuant to an Underwriting Agreement, dated June 18, 2007 (the “Underwriting Agreement”) among the
Company, Citigroup Global Markets Inc., J.P. Morgan Securities Inc., Lehman Brothers Inc., and
Morgan Stanley and Co. Incorporated and the other underwriters named therein. The Notes will be
resold in an offering registered under the Securities Act. Each series of Notes shall be issued in
the form of a permanent global note, with each such global note to be deposited with the Trustee,
as Custodian for the Depository, duly executed by the Company, and authenticated by the Trustee as
hereinafter provided. Each such global note may be represented by more than one certificate, if so
required by the Depository’s rules regarding the maximum principal amount to be represented by a
single certificate. The global notes representing the Notes are sometimes collectively herein
referred to as the “Global Notes.” The Notes may have notations, legends or endorsements required
by law, stock exchange rule or usage. The Company and the Trustee shall approve the forms of the
Notes and any notation, endorsement or legend on them.

          (b) Denominations. The Notes shall be issuable only in fully registered form, without
interest coupons, and only in denominations of $2,000 and any integral multiples of $1,000 in
excess thereof.

     Section 1.03. Depository: Custodian. The Company initially appoints The Depository Trust
Company (“DTC”) to act as Depository with respect to the Global Notes. The Company initially
appoints the Trustee to act as Custodian with respect to the Global Notes.

     Section 1.04. Transfer and Exchange of Global Notes. A Global Note may not be transferred as
a whole except by the Depository to a nominee of the Depository, by a nominee of the Depository

I-1

 

to the Depository or to another nominee of the Depository, or by the Depository or any such
nominee to a successor Depository or to a nominee of such successor Depository.

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

          (b) As used herein and in the Notes, the following terms shall have the meanings set forth
below:

          “Below Investment Grade Rating Event” means, with respect to each series of Notes, the Notes
of that series are downgraded by each of the Rating Agencies on any date from the date of the
public notice of an arrangement that could result in a Change of Control until the end of the
60-day period following public notice of the occurrence of a Change of Control (which period shall
be extended so long as the rating of the Notes is under publicly announced consideration for
possible downgrade by any of the Rating Agencies), and the rating resulting from such downgrade for
such Notes issued by each Rating Agency is below Investment Grade, regardless of whether the rating
immediately prior to such downgrade was below Investment Grade; provided that a particular
reduction in rating shall not be deemed a Below Investment Grade Rating Event for purposes of the
definition of Change of Control Repurchase Event hereunder unless the Rating Agencies making the
reduction in rating to which this definition would otherwise apply announce or publicly confirm or
inform the Trustee in writing at its request that the reduction was the result, in whole or in
part, of any event or circumstance comprised of or arising as a result of, or in respect of, the
applicable Change of Control (whether or not the applicable Change of Control shall have occurred
at the time of the Below Investment Grade Rating Event).

          “Calculation Agent” means, initially, The Bank of New York Trust Company, N.A.

          “Change of Control” means the occurrence of any of the following: (1) the direct or indirect
sale, transfer, conveyance, or other disposition (other than by way of merger or consolidation), in
one or a series of related transactions, of all or substantially all of the properties or assets of
the Company and its subsidiaries taken as a whole to any “person” (as that term is used in Section
13(d)(3) of the Exchange Act), other than the Company or one of its subsidiaries; or (2) the
consummation of any transaction (including, without limitation, any merger or consolidation) the
result of which is that any “person” (as that term is used in Section 13(d)(3) of the Exchange Act)
other than the Company or one of its subsidiaries becomes the beneficial owner, directly or
indirectly, of more than 50% of the then outstanding number of shares of the Company’s Voting
Stock.

          “Change of Control Repurchase Event” means the occurrence of both a Change of Control and a
Below Investment Grade Rating Event.

          “Clearstream” means Clearstream Banking, société anonyme, Luxembourg.

          “Comparable Treasury Issue” means the U.S. Treasury security selected by an Independent
Investment Banker as having a maturity comparable to the remaining term (“Remaining Life”) of the
notes to be redeemed that would be utilized, at the time of selection and in accordance with
customary financial practice, in pricing new issues of corporate debt securities of comparable
maturity to the remaining term of such notes.

I-2

 

          “Comparable Treasury Price” means, with respect to any redemption date, (1) the average of
five Reference Treasury Dealer Quotations for such redemption date, after excluding the highest and
lowest Reference Treasury Dealer Quotations, or (2) if the Independent Investment Banker obtains
fewer than five such Reference Treasury Dealer Quotations, the average of all such quotations.

          “Custodian” means the Trustee, as custodian with respect to the Global Notes, or any successor
entity thereto.

          “Definitive Note” means a certificated Note registered in the name of the Holder thereof.

          “Depository” means, with respect to the Notes issued in the form of one or more Global Notes,
DTC as the Person appointed hereby as the Depository with respect to the Notes, or another Person
appointed as Depository by the Company, which Person must be a clearing agency registered under the
Exchange Act, and any and all successors thereto appointed as Depository hereunder and having
become such pursuant to the applicable provision of the Indenture.

          “Euroclear” means Euroclear Bank S.A./N.V., as operator of the Euroclear System.

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

          “Independent Investment Banker” means any of Citigroup Global Markets Inc., J.P. Morgan
Securities Inc., Lehman Brothers Securities Inc. and Morgan Stanley & Co. Incorporated, or, if all
such firms are unwilling or unable to select the Comparable Treasury Issue, an independent
investment banking institution of national standing appointed by the Trustee after consultation
with the Company.

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

          “Moody’s” means Moody’s Investors Service Inc.

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

          “Reference Treasury Dealer” means (1) Citigroup Global Markets Inc., J.P. Morgan Securities
Inc., Lehman Brothers Securities Inc. or Morgan Stanley & Co. Incorporated and their respective
successors, provided, however, that if any of the foregoing shall cease to be a primary U.S.
Government securities dealer in New York City (a “Primary Treasury Dealer”), the Company will
substitute for it another Primary Treasury Dealer and (2) any other Primary Treasury Dealer
selected by the Independent Investment Banker after consultation with the Company.

I-3

 

          “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer
and any redemption date, the average, as determined by the Independent Investment Banker, of the
bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of
its principal amount) quoted in writing to the Independent Investment Banker at 5:00 p.m., New York
City time, on the third business day preceding such redemption date.

          “S&P” means Standard & Poor’s Ratings Services, a division of the McGraw-Hill Companies.

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

          “Treasury Rate” means, with respect to any redemption date, (1) the yield, under the heading
which represents the average for the immediate preceding week, appearing in the most recently
published statistical release designated “H.15(519)” or any successor publication which is
published weekly by the Board of Governors of the Federal Reserve System and which establishes
yields on actively traded U.S. Treasury securities adjusted to constant maturity under the caption
“Treasury Constant Maturities,” for the maturity corresponding to the Comparable Treasury Issue (if
no maturity is within three months before or after the Remaining Life, yields for the two published
maturities most closely corresponding to the Comparable Treasury Issue will be determined and the
Treasury Rate will be interpolated or extrapolated from such yields on a straight line basis,
rounding to the nearest month) or (2) if such release (or any successor release) is not published
during the week preceding the calculation date or does not contain such yields, the rate per annum
equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, calculated
using a price for the Comparable Treasury Price for such redemption date. The Treasury Rate will
be calculated on the third business day preceding the redemption date.

          “Voting Stock” means capital stock of any class or kind the holders of which are ordinarily,
in the absence of contingencies, entitled to vote for the election of directors (or persons
performing similar functions) of the issuer thereof, even if the right so to vote has been
suspended by the happening of such a contingency.

I-4Ex-4.3

 

EXHIBIT 4.3

THIS WARRANT HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE
SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION AND MAY NOT BE SOLD OR OTHERWISE DISPOSED OF
WITHOUT REGISTRATION UNDER SUCH ACT OR STATE OR OTHER SECURITIES LAWS UNLESS, IN THE OPINION OF
COUNSEL TO THE COMPANY, SUCH REGISTRATION IS NOT REQUIRED.

STOCK PURCHASE WARRANT

     This Warrant is issued this 15th day of April, 2004, by CUMBERLAND PHARMACEUTICALS
INC., a Tennessee corporation (the “Company”), to S.C.O.U.T. HEALTHCARE FUND, L.P., a Delaware
limited partnership (“Holder”).

AGREEMENT:

     1.     Issuance of Warrant; Term. For and in consideration of Holder’s investment in the
Company pursuant to the terms of that certain Securities Purchase Agreement between the Company and
Holder of even date herewith, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Company hereby grants to Holder the right to
purchase twenty thousand (20,000) shares (as adjusted from time to time hereunder, the “Shares”) of
the Company’s common stock, no par value per share (the “Common Stock”). The shares of Common Stock
issuable upon exercise of this Warrant, as adjusted from time to time pursuant to the terms hereof,
are hereinafter referred to as the “Shares.” This Warrant shall be exercisable at any time prior to
April 15, 2014, the “Expiration Date”.

     2.     Exercise Price. The exercise price (as adjusted from time to time hereunder, the
“Exercise Price”) for which all or any of the Shares may be purchased pursuant to the terms of this
Warrant shall be twelve dollars and no cents ($12.00) per share.

     3.     Exercise. Pursuant to the terms and subject to the conditions hereof, this Warrant
may be exercised by the Holder hereof (but only on the conditions hereafter set forth) at any time
after the date hereof and prior to the Expiration Date as to all or any increment or increments of
one hundred (100) Shares (or the balance of the Shares if less than such number), upon delivery of
written notice of intent to exercise to the Company at the following address: Cumberland
Pharmaceuticals Inc., 2525 West End Avenue, Suite 950, Nashville, Tennessee 37203, Attention: Chief
Executive, or such other address as the Company shall designate in a written notice to the Holder
hereof, together with this Warrant and payment to the Company of the aggregate Exercise Price of
the Shares so purchased. The Exercise Price shall be payable by a certified or bank check (or by
wire transfer of immediately available funds to an account of the Company). Upon exercise of this
Warrant as aforesaid, the Company shall as promptly as practicable, and in any event within ten
(10) business days thereafter, execute and deliver to the Holder of this Warrant a certificate or
certificates for the total number of whole Shares for which this Warrant is being exercised in such
names and denominations as are requested by such Holder. If this Warrant shall be exercised with
respect to less than all of the Shares, the Holder shall be entitled to receive a new Warrant
covering the number of Shares in respect of which this Warrant shall not have been exercised, which
new Warrant shall in all other respects be identical to this Warrant. If a fractional share of
Common Stock would be issuable upon exercise of the rights

 

 

represented by this Warrant, the Company will, as soon as practicable after the exercise
thereof, deliver to the Holder, in lieu of such fractional share, a check payable to the Holder in
an amount equal to the difference between the fair market value of such fractional share as of the
date of such exercise, as determined in good faith by the Company’s board of directors, and the
Exercise Price of such fractional share. The Company will pay all documenting, stamp or similar
taxes and other governmental charges that may be imposed with respect to the issuance of the Shares
upon the exercise of the warrants, unless the Shares are to be delivered to a holder other than
Holder, in which case such delivery will be made only upon payment by the Holder of any transfer
taxes or other charges incidental thereto.

     4.     Covenants and Conditions. The above provisions are subject to the following:

          (a)      Neither this Warrant nor the Shares have been registered under the Securities Act or any
state securities laws (the “Blue Sky Laws”). This Warrant has been acquired for investment purposes
and not with a view to distribution or resale and may not be pledged, hypothecated, sold, made
subject to a security interest, or otherwise transferred without (i) an effective registration
statement for such Warrant under the Securities Act and such applicable Blue Sky Laws, or (ii) an
opinion of counsel, which opinion and counsel shall be reasonably satisfactory to the Company and
its counsel, that registration is not required under the Securities Act or under any applicable
Blue Sky Laws. Transfer of the Shares issued upon the exercise of this Warrant shall be restricted
in the same manner and to the same extent as the Warrant, and the certificates representing such
Shares shall bear substantially the following legend:

	 
	THE SHARES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY APPLICABLE
STATE SECURITIES LAW. SUCH SHARES MAY NOT BE SOLD OR
OTHERWISE TRANSFERRED UNTIL THE SAME HAVE BEEN REGISTERED
UNDER SAID ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR
UNTIL THE COMPANY HAS RECEIVED AN OPINION OF LEGAL COUNSEL
SATISFACTORY TO IT THAT SUCH SHARES MAY LEGALLY BE SOLD OR
OTHERWISE TRANSFERRED WITHOUT SUCH REGISTRATION.

The Holder hereof and the Company agree to execute such other documents and instruments as
counsel for the Company reasonably deems necessary to effect the compliance of the issuance of
this Warrant and any shares of Common Stock issued upon exercise hereof with applicable federal
and state securities laws.

          (b)      The Company covenants and agrees that all Shares which may be issued upon exercise of
this Warrant will, upon issuance and payment therefor, be legally and validly issued and
outstanding, fully paid and nonassessable, free from all taxes, liens, charges and preemptive
rights; if any, with respect thereto or to the issuance thereof. The Company shall at all times
reserve and keep available for issuance upon the exercise of this Warrant such number

2

 

of authorized but unissued shares of Common Stock as will be sufficient to permit the
exercise in full of this Warrant.

     5.     Transfer of Warrant. This Warrant may not be transferred, in whole or in part, to
any person or business entity, without prior approval of the Company. Upon approval of a transfer
of the Warrant by the Company, the Warrant may be transferred in whole but not in part, subject to
the provisions of Section 4 hereof, by presentation of the Warrant to the Company with written
instructions for such transfer. Upon such presentation for transfer, the Company shall promptly
execute and deliver a new Warrant or Warrants in the form hereof in the name of the assignee or
assignees and in the denominations specified in such instructions. The Company shall pay all
expenses incurred by it in connection with the preparation, issuance and delivery of Warrants under
this section.

     6.     Warrant Holder Not Shareholder. This Warrant does not confer upon the Holder, as
such, any right whatsoever as a shareholder of the Company, including, but not limited to, any
right to vote for the election of directors or upon any matter submitted to stockholders at any
meeting thereof, or to give or withhold consent to any corporate action (whether upon any
recapitalization, issue or reclassification of stock, merger or conveyance or otherwise), or to
receive notice of meetings, or to receive dividends or subscription rights, until the Holder shall
have exercised this Warrant in accordance with the provisions hereof.

     7.     Adjustment Upon Changes in Stock.

          (a)      If all or any portion of this Warrant shall be exercised subsequent to any stock split,
stock dividend, recapitalization, combination of shares of the Company, or other similar event,
occurring after the date hereof, then the Holder exercising this Warrant shall receive, for the
aggregate price paid upon such exercise (as appropriately adjusted), the aggregate number and class
of shares which such Holder would have received if this Warrant had been exercised immediately
prior to such stock split, stock dividend, recapitalization, combination of shares, or other
similar event. If any adjustment under this Section 7(a), would create a fractional share of stock
or a right to acquire a fractional share of stock, such fractional share shall be disregarded and
the number of shares subject to this Warrant shall be the next higher number of shares, rounding
all fractions upward. Whenever there shall be an adjustment pursuant to this Section 7(a), the
Company shall promptly notify the Holder or Holders of this Warrant of such adjustment, setting
forth in reasonable detail the event requiring the adjustment and the method by which such
adjustment was calculated.

          (b)      If all or any portion of this Warrant shall be exercised subsequent to any merger,
consolidation, exchange of shares, separation, reorganization or liquidation of the Company, or
other similar event, occurring after the date hereof, as a result of which shares of Common Stock
shall be changed into the same or a different number of shares of the same or another class or
classes of securities of the Company or another entity, then the Holder exercising this Warrant
shall receive, for the aggregate price paid upon such exercise (as appropriately adjusted), the
aggregate number and class of shares which such Holder would have received if this Warrant had been
exercised immediately prior to such merger, consolidation, exchange of shares, separation,
reorganization or liquidation, or other similar event. If any

3

 

adjustment under this Section 7(b) would create a fractional share of stock or a right to acquire a
fractional share of stock, such fractional share shall be disregarded and the number of shares
subject to this Warrant shall be the next higher number of shares, rounding all fractions upward.
Whenever there shall be an adjustment pursuant to this Section 7(b), the Company shall promptly
notify the Holder or Holders of this Warrant of such adjustment, setting forth in reasonable detail
the event requiring the adjustment and the method by which such adjustment was calculated.

     8.     Certain Notices. In case at any time the Company shall propose to:

          (a)      declare any cash dividend upon its Common Stock;

          (b)      declare any dividend upon its Common Stock payable in stock or make any special dividend
or other distribution to the holders of its Common Stock;

          (c)      offer for subscription to the holders of any of its Common Stock any additional shares of
stock in any class or other rights;

          (d)      reorganize, or reclassify the capital stock of the Company, or consolidate, merge or
otherwise combine with, or sell of all or substantially all of its assets to, another corporation;

          (e)      voluntarily or involuntarily dissolve, liquidate or wind up of the affairs of the Company;

          (f)      redeem or purchase any shares of its capital stock or securities convertible into its
capital stock; or

          (g)      complete a Qualified Public Offering or a transaction that will result in a Qualified
Public Offering;

then, in any one or more of said cases, the Company shall give to the Holder of the Warrant, by
certified or registered mail, (i) at least ten (10) business days’ prior written notice of the date
on which the books of the Company shall close or a record shall be taken for such dividend,
distribution or subscription rights or for determining rights to vote in respect of any such
reorganization, reclassification, consolidation, merger, sale, dissolution, liquidation, winding up
or a Qualified Public Offering or transaction that will result in a Qualified Public Offering, and
(ii) in the case of a reorganization, reclassification, consolidation, merger, sale, dissolution,
liquidation, winding up or a Qualified Public Offering or transaction that will result in a
Qualified Public Offering, at least ten (10) business days’ prior written notice of the date when
the same shall take place. Any notice required by clause (i) shall also specify, in the case of any
dividend, distribution or subscription rights, the date on which the holders of stock shall be
entitled thereto, and any notice required by clause (ii) shall specify the date on which the
holders of stock shall be entitled to exchange their stock for securities or other property
deliverable upon such reorganization, reclassification, consolidation, merger, sale, dissolution,
liquidation or winding up, as the case may be.

4

 

     9.     Notice. Any notice, request, demand, instruction or other communication hereunder
shall be in writing and shall be either (a) delivered in person, (b) sent by certified mail, return
receipt requested, (c) delivered by a nationally recognized delivery service, or (d) sent by
facsimile transmission, and addressed as follows:

	 	 	 
	To the Company:

	 	To Purchaser:
	 
	 	 
	Cumberland Pharmaceuticals Inc.

	 	S.C.O.U.T. Healthcare Fund, L.P.
	Attn: Chief Executive

	 	Attn: Dr. Lawrence W. Greer
	2525 West End Avenue, Suite 950

	 	c/o Greer Capital Advisors, LLC
	Nashville, Tennessee 37203

	 	2200 Woodcrest Place, Suite 309
	Phone: (615) 255-0068

	 	Birmingham, Alabama 35209
	Fax: (615) 255-0094

	 	Phone: (205) 445-0800
	 

	 	Fax: (205) 445-1013

or at such other address, and to the attention of such other person, as the parties shall
give notice as herein provided. A notice, request, demand, instruction and other communication
shall be deemed to be delivered and duly received: (a) if delivered in person or by a nationally
recognized delivery service, on the date when delivered to the address of the recipient; (b) if
sent by mail, on the date of receipt by the recipient as shown on the return-receipt card; or (c)
if sent by facsimile, upon receipt by the sender of an acknowledgment or transmission report
generated by the machine from which the facsimile was sent indicating that the facsimile was sent
in its entirety to the recipient’s facsimile number; provided that if a notice, request, demand,
instruction or other communication is served by hand or is received by facsimile on a day which is
not a Business Day, as hereinafter defined, or after 5:00 p.m., Nashville, Tennessee time, on any
Business Day at the addressee’s location, such notice or communication shall be deemed to be duly
received by the recipient at 9:00 a.m., Nashville, Tennessee time, on the first Business Day
thereafter. For purposes hereof, a “Business Day” is any calendar day other than a Saturday, Sunday
or legal holiday.

     10.     Descriptive Headings. The descriptive headings of the several paragraphs of this
Warrant are inserted for convenience only and do not constitute a part of this Warrant.

     11.     Governing Law; Consent to Jurisdiction. This Warrant shall be construed and
enforced in accordance with, and the rights of the parties shall be governed by, the laws of the
State of Tennessee, without giving effect to the choice of law or conflicts principles thereof. Any
legal action or proceeding with respect to this Warrant may be brought in the courts of the State
of Tennessee or of the United States of America for the District of Middle Tennessee, and, by
execution and delivery of this Warrant, the Company and Holder hereby accept for their self, and in
respect of their property, generally and unconditionally, the jurisdiction of the aforesaid courts.
The Company irrevocably consents to the service of process out of any of the aforementioned courts
in any such action or proceeding by the mailing of copies thereof by registered or certified mail,
postage prepaid, to the Company to its address set forth herein after such mailing.

5

 

     12.     Miscellaneous. No amendment or modification hereof shall be effective except in a
writing executed by each of the parties hereto. This Warrant between the Company and Holder
represents the entire agreement between the parties concerning the subject matter hereof, and all
oral discussions and prior agreements are merged herein. This Warrant may be executed in any number
of counterparts, each of which when so executed shall be deemed to be an original and all of which
taken together shall constitute one and the same Warrant.

     IN WITNESS WHEREOF, the parties hereto have set their hands as of the date first above
written.

	 	 	 	 	 
	 	CUMBERLAND PHARMACEUTICALS INC.,

a Tennessee corporation

 	 
	 	By:  	/s/ A.J. Kazimi
 	 
	 	 	Name:  	A.J. Kazimi 	 
	 	 	Title:  	Chief Executive Officer 	 
	 

	 	 	 	 	 
	 	S.C.O.U.T. HEALTHCARE FUND, L.P.,

a Delaware limited partnership

 	 
	 	By:  	/s/ Lawrence W. Greer
 	 
	 	 	Name:  	Lawrence W. Greer 	 
	 	 	Title:  	President 	 
	 	 	 	S.C.O.U.T. Corporation

General Partner for the Fund

 	 

6

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