Document:

exv10w8

Exhibit 10.8

FIRST AMENDMENT TO LEASE

     THIS FIRST AMENDMENT TO LEASE (this “Amendment”) is made as of the 31st day of
March, 2009, by and between Windsor Plaza, LLC, a Minnesota limited liability company, as landlord
(hereinafter “Landlord”) and Virtual Radiologic Corporation, a Delaware corporation, as tenant
(hereinafter “Tenant”)

W I T N E S S E T H:

     WHEREAS, Landlord and Tenant entered into that certain Lease dated November 30, 2007 (the
“Lease”), covering certain premises in Windsor Plaza in the City of Eden Prairie, County of
Hennepin, State of Minnesota, as described in the Lease (“Premises”); and

     WHEREAS, the parties to this Amendment hereby wish to amend the Lease as set forth in this
Amendment;

     NOW, THEREFORE, for and in consideration of the mutual covenants contained herein, and for
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

     1. Definitions. Capitalized terms used, but not defined, herein have the meanings
ascribed to them in the Lease, unless defined otherwise herein.

     2. Rent for VRC-Dedicated Electrical Room and VRC-Generator Room. Attached hereto as
Exhibit A is the updated garage floor plan for the Project (“Garage Level Floor Plan”).
The Garage Level Floor Plan identifies, among other items, the VRC-Generator Room and the UPS Room.
The UPS Room is the VRC-Dedicated Electrical Room (as said term is defined in the Lease), and will
be hereinafter defined as the UPS Room. The location and size of the VRC-Generator Room and UPS
Room identified on Exhibit A attached hereto replaces any reference to said rooms on
Exhibits Q and R of the Lease.

     Pursuant to Section 2.7 of the Lease, Tenant will pay, in addition to the Base Rent for the
Leased Premises (as set forth in the Schedule of Basic Terms (E)), Twelve and No/100 Dollars
($12.00) per square foot in gross rent for the VRC-Generator Room and UPS Room, which amount shall
increase by two percent (2%) per year (cumulatively) during the Lease Term, effective as of each
anniversary of the Rent Commencement Date. Said gross rent will be calculated as follows:

	 	a.	 	the UPS Room is 625 square feet. The gross rent to be paid by
Tenant for said room is based on 419 square feet (67% of the total square
footage), which is a stipulated number in recognition of the fact that the UPS
(as defined below) will also be used by Landlord to power the life safety
systems of the Project. The 419 square feet figure equates to Tenant’s payment
of gross rent for the UPS Room initially being $5,025.00 per year or $419.00
per month, to be paid along with the Base Rent for the Leased
Premises for

 

 

	 	 	 	the Lease Term. Tenant and Landlord will each have access to
the UPS Room at all times.
	 
	 	b.	 	the VRC-Generator Room is 1,350 square feet. The gross rent to
be paid by Tenant for said room is based on 905 square feet (67% of the total
square footage), which is a stipulated number in recognition of the fact that
the Generators (as defined below) will also be used by Landlord to power the
life safety systems of the Project. The 905 square feet figure equates to
Tenant’s payment of gross rent for the VRC-Generator Room initially being
$10,860 per year or $905.00 per month, to be paid along with the Base Rent for
the Leased Premises for the Lease Term. Landlord and Tenant will each have
access to the VRC-Generator Room at all times.

     The obligation to pay said gross rent will commence on the Rent Commencement Date, and be paid
pursuant to Section 2.3 of the Lease.

     3. Generators. Landlord and Tenant acknowledge that they jointly determined after the
Effective Date (and following completion of Landlord’s initial plans for the installation of
equipment to supply power for the base building life safety systems for the Project) that three (3)
250kVA generators, totaling 750kVA (collectively “Generators”) and uninterruptable power supply
equipment (the “UPS”) are needed for the operation of (i) Tenant’s business within the Leased
Premises (“Tenant’s Generator/UPS Use”) and (ii) the base building life safety systems of the
Project (“Landlord’s Generator/UPS Use”). The term “Generator” or “Generators” also includes any
replacement Generators. Landlord’s initial plans called for only one (1) 166kVA generator to
satisfy Landlord’s Generator/UPS Use. As a result, the Landlord and Tenant agree to the following
with respect to the installation, maintenance, repair, use and ownership of the Generators, the UPS
and related fixtures and equipment:

	 	a.	 	Tenant will contract directly with Amcon Construction, LLC
(“Amcon”), the general contractor for the Project (as well as Tenant’s Work),
to install the Generators in the VRC-Generator Room and the UPS in the UPS
Room. A summary of the improvements required for operation of the Generators
and the UPS is set forth on Exhibit B (collectively referred to as
“Generator/UPS Improvements”) attached hereto and incorporated herein. The
cost of the Generator/UPS Improvements will be paid directly by Tenant to
Amcon, and Landlord will have no responsibility therefor.
	 
	 	b.	 	Landlord’s Work is hereby amended to exclude any of the items
on Exhibit B which are part of the Generator/UPS Improvements.
Following installation of the Generator/UPS Improvements, Tenant will own the
Generators and the UPS (collectively, the “Tenant Generator/UPS Equipment”),
and Landlord will own all other Generator/UPS Improvements, for purposes of
depreciation and insurance (and any applicable provision of the Lease relating
to Tenant’s property).

 

 

	 	c.	 	During the Lease Term, Landlord will be responsible for
maintaining, repairing and replacing the Generator/UPS Improvements, which
Landlord shall at all times keep in good working order, condition and repair.
Tenant will reimburse Landlord for sixty-seven percent (67%) of the costs and
expenses for the same within thirty (30) days after receiving invoices from
Landlord. If not reimbursed within said thirty (30) days, then Landlord will
have all rights and remedies under the Lease, arising out of a monetary default
by Tenant. Landlord shall deliver to Tenant copies of all maintenance and
repair records, documentation and invoices as and when the same are prepared or
received by Landlord. Landlord shall confer with Tenant and reasonably
cooperate with Tenant in connection with the maintenance and repair of the
Generator/UPS Improvements. At all times, Tenant shall have access to the
Generator/UPS Improvements and the right, but not the obligation, to inspect
and test the Generator/UPS Improvements. Landlord shall comply with reasonable
recommendations from Tenant with respect to the maintenance, repair and/or
replacement of all or any part of the Generator/UPS Improvements. If any of
the Generators need to be replaced, if the UPS needs to be replaced, or if any
other component of the Generator/UPS Improvements needs to be replaced, and
cost of replacing the same will exceed $25,000.00, Landlord will first notify
Tenant and Landlord will accept reasonable recommendations by Tenant with
respect to the same. No costs or expenses in connection with maintaining,
repairing or replacing the Generator/UPS Improvements or any part thereof shall
be included as Operating Costs (it being understood that Tenant’s sole payment
obligations for such items are set forth in this Section 3.c).
	 
	 	d.	 	Subject to Landlord’s right to purchase the Tenant
Generator/UPS Equipment (as set forth in Section 3.f herein), Tenant, at the
end of the Lease Term, and following at least 180 days written notice to
Landlord, may remove the Tenant Generator/UPS Equipment. Tenant’s removal of
the Tenant Generator/UPS Equipment must be in compliance with the terms and
conditions of the Lease, and Tenant may only remove the Tenant Generator/UPS
Equipment, and may not remove any of the hardware, electrical, piping, fire
protection, switchboard modification, equipment pads, or other items (besides
the Tenant Generator/UPS Equipment) identified on Exhibit B (or future
improvements installed in order to operate the Tenant Generator/UPS Equipment).
	 
	 	e.	 	Prior to execution of this Amendment, Landlord acknowledges
that Tenant paid Landlord Nine Thousand Nine Hundred Forty-Six and 39/100
Dollars ($9,946.39) for reimbursement to Landlord for a portion of costs
incurred in the redesign of the Generator/UPS Improvements.
	 
	 	f.	 	Landlord has the option to purchase the Tenant Generator/UPS
Equipment as set forth herein. In order to exercise said option, Landlord must
deliver written notice to Tenant of Landlord’s election to exercise said option
within

 

 

	 	 	 	thirty (30) days after of receipt of Tenant’s 180 day notice (required to be
delivered in Section 3.d), in which case Tenant will not remove the Tenant
Generator/UPS Equipment from the VRC-Generator Room or UPS Room. If
Landlord does not deliver said exercise notice within said thirty (30) days,
then Landlord will be deemed to have waived said right and the option will
be deemed terminated. If Landlord timely exercises said option, then the
purchase price for the Tenant Generator/UPS Equipment will be an amount
equal to the unamortized useful life of the same at the time of purchase,
determined as follows. For purposes of this Section 3.f, the initial value
of the Generators is $423,242.40 and the useful life thereof shall be deemed
to be twenty (20) years; and the initial value of the UPS is $188,404.65,
and the useful life thereof shall be deemed to be fifteen (15) years. Each
respective amortization schedule will be on a straight line basis, will be
based on a 365 day year, and will be calculated starting as of the
Commencement Date and ending as of the date that Tenant vacates the Leased
Premises. Landlord’s exercise notice must include Landlord’s calculation of
the purchase price, based on the formulas in the preceding sentence.
Landlord will accept the Tenant Generator/UPS Equipment in its then AS-IS
condition, with no representations or warranties by Tenant.
	 
	 	g.	 	Each of the three (3) Generators is 250 kVA, for a total of 750
kVA. Landlord represents and warrants that the amount of power required for
Landlord’s Generator/UPS Use is estimated to be 166kVA and in no event will
exceed 166kVA at any given time. Landlord agrees that Landlord will not cause
or permit the power consumption from landlord’s Generator/UPS use to exceed
said 166kVA and that the power available for Tenant’s Generator/UPS Use will
never be less than the total amount of power available from the Generators and
the UPS, minus 166kVA. Landlord further agrees that Landlord will not cause or
permit any other use of the Tenant Generator/UPS Equipment or other
Generator/UPS Improvements without obtaining the prior written consent of
Tenant.

     4. Parking. Section 3.9 of the Lease is supplemented as follows:

	 	a.	 	Pursuant to Section 3.9(ii) of the Lease, the Tenant has the
exclusive right to lease twenty (20) parking stalls within the Parking Garage.
Said twenty (20) parking stalls are identified as stalls 17-27 and 39-47 on the
Garage Level Floor Plan.
	 
	 	b.	 	In addition to Tenant’s other parking rights under the Lease
(as hereby amended), at no additional cost to Tenant, Tenant shall have the
exclusive right to use the fifteen (15) covered (but not enclosed) parking
stalls identified on Exhibit C attached hereto (the “Covered Stalls”)
during the Lease Term. The Covered Stalls are located on the sub-deck level of
the parking deck, which is located on the same level as the vehicle entrance to
the enclosed portion of the Parking Garage. At Tenant’s expense, Tenant

 

 

	 	 	 	shall have the right to install signs identifying the Covered Stalls as
being reserved or dedicated exclusively for the use of Tenant.

     5. Storage Space. Attached hereto as Exhibit E is a floor plan of a portion
of the garage level of the Project that identifies, among other areas, a room designated “Storage –
VRC,” consisting of 522 square feet (the “VRC Storage Room”). Landlord hereby leases to Tenant and
Tenant hereby leases from Landlord the VRC Storage Room. In addition to the other amounts payable
by Tenant under the Lease, as hereby amended, Tenant will pay $12.00 per square foot per year in
gross rent for the VRC Storage Room. The gross rent for the VRC Storage Room will increase by two
percent (2%) per year (cumulatively) during the Lease Term, effective as of each anniversary of the
Rent Commencement Date. Tenant’s initial gross rent for the VRC Storage Room is $6,264.00 per year
or $522.00 per month, to be paid along with Base Rent for the Leased Premises. Tenant will have
access to the VRC Storage Room at all times. The obligation to pay said gross rent for the VRC
Storage Room will commence on the Rent Commencement Date.

     6. Tenant Improvements. The plans and Amcon’s 12/16/08 restroom revision bulletin
attached hereto as Exhibit D shall be deemed to be a part of Tenant’s Plans and
Specifications (as said term is defined in Section 8.2(b) of the Lease) and the improvements and
work shown and described therein (the “New Restroom Improvements”) shall be included among the
Tenant Improvements to be completed by Landlord. Tenant has or will pay for the New Restroom
Improvements, and Landlord agrees, pursuant to paragraph 7 herein, to contribute one half
($32,447.50) for said improvements through the Base Rent Credit described in Paragraph 7 herein.

     7. Base Rent Credit. One half (1/2) of the total cost of the New Restroom
Improvements estimated at $64,895.00 will be a credit against Tenant’s first month of Base Rent due
Landlord, resulting in a decrease in the Tenant’s Base Rent for the first month following the Rent
Commencement Date, in the amount of $32,447.50.

     8. Commencement Date and Rent Commencement Date. The Commencement Date is hereinafter
defined as March 2, 2009, and the Rent Commencement Date is hereinafter defined as September 2,
2009.

     9. Ratification. Except as expressly amended hereby, all of the terms, provisions,
covenants and conditions of the Lease are hereby ratified and confirmed and shall continue in full
force and effect. In the event of any conflict or inconsistency between the Lease and this
Amendment, the terms of this Amendment shall govern and control.

     10. Successors and Assigns. This Amendment shall be binding upon and inure to the
benefit of each of the parties hereto and their respective successors and assigns.

     11. Authority. The individuals executing this Amendment hereby represent and warrant
that they are empowered and duly authorized to so execute this Amendment on behalf of the parties
they represent.

 

 

     12. Counterparts. This Amendment may be executed in several counterparts, each of
which shall be deemed an original, and all of which together shall constitute one and the same
instrument.

[Signatures Appear On Next Page]

 

 

[Signature page to First Amendment to Lease]

     IN WITNESS WHEREOF, the parties have hereunto set their hands this 31st day of
March, 2009.

	 	 	 	 	 	 	 
	 	 	LANDLORD:	 	 
	 	 	Windsor Plaza, LLC, a Minnesota limited	 	 
	 	 	liability company	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Jay Scott
 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Its:
	 	President	 	 
	 
	 	 	 	 	 	 
	 	 	TENANT:	 	 
	 	 	Virtual Radiologic Corporation, a Delaware	 	 
	 	 	corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Robert C. Kill	 	 
	 

	 	 	 	 	 	 
	 

	 	Its:
	 	President and Chief Executive OfficerEX-10.7

Exhibit 10.7

Performance Unit

One-Year Vest

REYNOLDS AMERICAN INC.

LONG-TERM INCENTIVE PLAN

 

PERFORMANCE UNIT AGREEMENT

 

DATE OF GRANT: February 3, 2009

W I T N E S S E T H:

     1. Grant. Pursuant to the provisions of the Long-Term Incentive Plan
(collectively, the “Plan”), Reynolds American Inc. (the “Company”) on the above date has granted to

«FirstName» «LastName» (the “Grantee”),

subject to the terms and conditions which follow and the terms and conditions of the Plan, a target
of

«Number» Performance Units.

A copy of the Plan has been provided to the Grantee and made a part of this Agreement with the same
effect as if set forth in the Agreement itself. All capitalized terms used in this Agreement shall
have the meaning set forth in the Plan, unless otherwise indicated.

     2. Valuation of Performance Units. (a) Each Performance Unit shall have
an initial value of $1,000 (the “Initial Grant Value”). The Compensation and Leadership Development Committee
of the Company’s Board of Directors (the “Compensation Committee”) shall value each Performance
Unit at the end of 2009 using the performance measures set forth in the grid attached as
Exhibit A, but the Compensation Committee shall have the discretion to reduce the resulting
valuation (the “Payment Value”). The Grantee agrees that the Performance Units granted hereunder
are in lieu of an award under the Company’s Annual Incentive Award Plan for 2009.

     (b) Pursuant to Section 3(a) of the Plan and Section 11(a) hereof, the Compensation Committee
shall, in determining whether actual results have met the Goals, exclude the effect, or otherwise
make equitable adjustments in recognition, of such of the following as are set forth in Exhibit
A on the Date of Grant: charges for restructuring or asset impairment, acquisitions,
divestitures, discontinued operations, pension gains and/or losses, extraordinary items, unusual or
non-recurring items and changes in applicable laws (including, without limitation, tax laws and
changes in generally accepted accounting principles). To the extent that the Compensation
Committee determines that a change in the business, operations, corporate structure or capital
structure of the Company, or the manner in which it conducts its business, or other events or
circumstances render the performance measures unsuitable, the Compensation Committee may in its
discretion modify such

1

 

performance measures or the related minimum acceptable level or levels of achievement, in whole or
in part, as the Compensation Committee deems appropriate and equitable, except in the case when
such action would result in the loss of the otherwise available exemption of the Performance Units
under Section 162(m) of the Code. In such case, the Compensation Committee will not make any
modification of the performance measures or the minimum acceptable level or levels of achievement
with respect to the Performance Units granted hereunder.

     3. Vesting. (a) The Performance Units shall fully vest on December 31,
2009.

     (b) Notwithstanding anything in Section 3(a) to the contrary, in the event of (i) the
Grantee’s death, (ii) the Grantee’s Permanent Disability (as defined in the Company’s Long Term
Disability Plan), (iii) the Grantee’s Retirement (as defined below) or (iv) the Grantee’s
involuntary Termination of Employment without Cause (as such terms are defined in Section 5 of this
Agreement), the number of Performance Units which shall vest shall be equal to the product of (i)
the original number of Performance Units granted to the Grantee under this Agreement and (ii) a
fraction, the numerator of which shall be the number of whole or partial months between January 1,
2009, and the date of the Grantee’s Termination of Employment, and the denominator of which shall
be 12. For purposes of this Agreement, the term “Retirement” shall mean the Grantee’s voluntary
Termination of Employment (as such term is defined in Section 5 of this Agreement) on or after his
or her 65th birthday, on or after his or her 55th birthday with 10 or more
years of service, or on or after his or her 50th birthday with 20 or more years of
service with the Company or a subsidiary of the Company.

     (c) Upon the Grantee’s voluntary Termination of Employment or Termination of Employment for
Cause (as such terms are defined in Section 5 of this Agreement) prior to the end of December 31,
2009, all of the Grantee’s Performance Units shall be cancelled.

     (d) Notwithstanding anything to the contrary contained in this Section 3 or in any other
Section of this Agreement, if the Grantee has a written employment or severance agreement with the
Company or one of its subsidiaries, and such other agreement contains provisions relating to the
vesting by the Grantee in the Performance Units or the right of the Grantee to receive the Payment
Value (including, without limitation, vesting provisions upon the termination of employment of the
Grantee), and such provisions are different than the comparable provisions of this Agreement, then
the provisions of such other agreement shall govern and control.

     4. Payment. (a) Payment of Performance Units shall be made only in Cash.

     (b) Payment of Performance Units vesting on December 31, 2009, shall be made in the
amount of the Payment Value as soon as practicable following the close of the Company books at the
end of 2009, and in any event no later than March 15, 2010.

     (c) In the event of the Grantee’s death or Permanent Disability, the Payment Value of each
vested Performance Unit shall be equal to the Initial Grant Value. Payment of such vested
Performance Units shall be made as soon as practicable following the Grantee’s death or Permanent
Disability, as the case may be.

     (d) In the event of the Grantee’s Retirement or involuntary Termination of Employment without
Cause, the Payment Value of each vested Performance Unit shall be

2

 

determined in accordance with Section 2 of this Agreement. Payment of such vested Performance
Units shall be made as soon as practicable following the close of the Company books at the end of
2009, and in any event no later than March 15, 2010.

     (e) In the event of the death of a Grantee, any payment to which such Grantee is entitled
under the Plan shall be made to the beneficiary designated by the Grantee to receive the proceeds
of any noncontributory group life insurance coverage provided for the Grantee by the Company or a
subsidiary of the Company (“Group Life Insurance Coverage”). If the Grantee has not designated
such beneficiary, or desires to designate a different beneficiary, the Grantee may file with the
Company a written designation of a beneficiary under the Plan, which designation may be changed or
revoked only by the Grantee, in writing. If no designation of beneficiary has been made by a
Grantee under the Group Life Insurance Coverage or filed with the Company under the Plan,
distribution upon such Grantee’s death shall be made in accordance with the provisions of the Group
Life Insurance Coverage. If a Grantee is no longer an employee of the Company at the time of
death, no longer has any Group Life Insurance Coverage and has not filed a designation of
beneficiary with the Company under the Plan, distribution upon such Grantee’s death shall be made
to the Grantee’s estate.

     5. Termination of Employment. (a) For purposes of this Agreement, the
term “Termination of Employment” shall mean termination from active employment with the Company or a
subsidiary of the Company; it does not mean the termination of pay and benefits at the end of a
period of salary continuation (or other form of severance pay or pay in lieu of salary).

     (b) For purposes of this Agreement, if the Grantee has an employment or severance agreement,
employment shall be deemed to have been terminated for “Cause” only as such term is defined in the
employment or severance agreement. For purposes of this Agreement, if the Grantee does not have an
employment or severance agreement that defines the term “Cause,” the Grantee’s employment shall be
deemed to have been terminated for “Cause” if the Termination of Employment results from the
Grantee’s: (i) criminal conduct; (ii) deliberate and continual refusal to perform employment
duties on substantially a full time basis; (iii) deliberate and continual refusal to act in
accordance with any specific lawful instructions of an authorized officer or employee more senior
than the Grantee or a majority of the Board of Directors of the Company; or (iv) deliberate
misconduct which could be materially damaging to the Company or any of its business operations
without a reasonable good faith belief by the Grantee that such conduct was in the best interests
of the Company. A Termination of Employment shall not be deemed for Cause hereunder unless the
chief human resources officer of the Company shall confirm that any such Termination of Employment
is for Cause; provided, however, that the chief executive officer of the Company
shall be required to confirm that a Termination of Employment of the chief human resources officer
of the Company is for Cause. Any voluntary Termination of Employment by the Grantee in
anticipation of an involuntary Termination of Employment for Cause shall be deemed to be a
Termination of Employment for Cause.

     6. Transferability. Other than as specifically provided in this Agreement
with regard to the death of the Grantee, this Agreement and any benefit provided or accruing hereunder
shall not be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge,
encumbrance, or change; and any attempt to do so shall be void. No such benefit shall, prior to
receipt thereof by the Grantee, be in any manner liable for or subject to the debts, contracts,
liabilities, engagements or torts of the Grantee.

3

 

     7. No Right to Employment. Neither the execution and delivery of this
Agreement nor the granting of the Performance Units evidenced by this Agreement shall constitute
any agreement or understanding, express or implied, on the part of the Company or its subsidiaries
to employ the Grantee for any specific period or in any specific capacity or shall prevent the
Company or its subsidiaries from terminating the Grantee’s employment at any time with or without
Cause.

     8. Application of Laws. The granting of Performance Units under this
Agreement shall be subject to all applicable laws, rules and regulations and to such approvals of
any governmental agencies as may be required.

     9. Notices. Any notices required to be given hereunder to the Company
shall be addressed to The Secretary, Reynolds American Inc., Post Office Box 2990, Winston-Salem, NC
27102-2990, and any notice required to be given hereunder to the Grantee shall be sent to the
Grantee’s address as shown on the records of the Company.

     10. Taxes. Any taxes required by federal, state or local laws to be
withheld by the Company in respect of the grant of Performance Units or payment of the Payment Value hereunder
shall be paid to the Company by the Grantee by the time such taxes are required to be paid or
deposited by the Company. The Grantee hereby authorizes the necessary withholding by the Company
to satisfy such tax withholding obligations prior to delivery of the Payment Value.

     11. Administration and Interpretation. (a) In consideration of the grant
of Performance Units hereunder, the Grantee specifically agrees that the Compensation Committee shall
have the exclusive power to interpret the Plan and this Agreement and to adopt such rules for the
administration, interpretation and application of the Plan and Agreement as are consistent
therewith and to interpret or revoke any such rules. All actions taken and all interpretation and
determinations made by the Compensation Committee shall be final, conclusive, and binding upon the
Grantee, the Company and all other interested persons. No member of the Compensation Committee
shall be personally liable for any action, determination or interpretation made in good faith with
respect to the Plan or the Agreement. The Compensation Committee may delegate its interpretive
authority to an officer or officers of the Company.

     (b) This Agreement is intended to comply with Section 409A of the Internal Revenue Code of
1986, as amended (the “Code”), and shall be construed and interpreted in accordance with such
intent.

     12. Amendment. This Agreement is subject to the Plan, of which a copy has been
provided to the Grantee. The Board of Directors may amend the Plan and the Compensation Committee
may amend this Agreement at any time and in any way, except that, other than for adjustments under
Section 11(b) hereof and as otherwise provided by the Plan, any amendment of the Plan or this
Agreement that would impair the Grantee’s rights under this Agreement may not be made without the
Grantee’s written consent.

     13. Recoupment Provisions. (a.) Subject to the clawback provisions of the
Sarbanes-Oxley Act of 2002, the Compensation Committee may, in its sole discretion, direct that the
Company recoup, and upon demand by the Company the Grantee agrees to return to

4

 

the Company, all or a portion of any amount paid to the Grantee hereunder computed using
financial information or performance metrics later found to be materially inaccurate. The amount
to be recovered shall be equal to the excess of the amount paid out over the amount that would have
been paid out had such financial information or performance metric been fairly stated at the time
the payout was made.

     (b) If after a demand for recoupment of Shares under Section 13 of this Agreement, the Grantee
fails to return any amount paid to the Company, the Grantee acknowledges that the Company (or the
Company through the actions of any of its subsidiaries employing the Grantee, if applicable) has
the right to effect the recovery of the amount paid and the amount of its court costs, attorneys’
fees and other costs and expenses incurred in connection with enforcing this Agreement by (i)
deducting (subject to applicable law and the terms and conditions of the Plan) from any amounts the
Company (and if applicable, any subsidiary of the Company employing the Grantee) owes to the
Grantee (including, but not limited to, wages or other compensation), (ii) withholding payment of
future increases in compensation (including the payment of any discretionary bonus amount) or
grants of compensatory awards that otherwise would have been made in accordance with the Company’s
or any of its subsidiaries’ otherwise applicable compensation practices, or (iii) any combination
of the foregoing. The right of recoupment set forth in the preceding sentence shall not be the
exclusive remedy of the Company, and the Company may exercise each and every other remedy available
to it under applicable law.

     14. GOVERNING LAW. THE LAWS OF THE STATE OF NORTH CAROLINA
SHALL GOVERN THE INTERPRETATION, VALIDITY AND PERFORMANCE OF THE TERMS OF THIS AGREEMENT,
REGARDLESS OF THE LAW THAT MIGHT BE APPLIED UNDER PRINCIPLES OF CONFLICTS OF LAWS.

     IN WITNESS WHEREOF, the Company, by its duly authorized officer, and the Grantee have executed
this Agreement as of the Date of Grant first above written.

	 	 	 	 	 
	 

	 	REYNOLDS AMERICAN INC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Lisa J. Caldwell
	 

	 	 	 	 
	 

	 	 	 	Authorized Signature
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	Grantee Signature	 	 	 	 
	 
	 	 	 	 
	Grantee’s Taxpayer Identification Number:
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 
	 	 	 	 
	Grantee’s Home Address:
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 
	 	 	 	 
	 
	 	 	 	 
	 

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