Document:

Exhibit 10.2

 

Exhibit 10.2

GUARANTEE OF JT INTERNATIONAL HOLDING B.V.

This Deed of Guarantee (this “Guarantee”), is made and entered into as of 20 February 2008 by JT
International Holding B.V., a company organized under the laws of The Netherlands (the
“Guarantor”), in favor of R. J. Reynolds Tobacco C.V., a limited partnership organized under the
laws of The Netherlands (together with its successors and assigns, the “Guaranteed Party”).

1. Guarantee.

	 	a)	 	To induce the Guaranteed Party to enter into the Valuation Payment Settlement
Agreement made on 20 February 2008 with Gallaher Limited, a corporation organized
under the laws of England and Wales (together with its successors and assigns,
“Gallaher”) (the “Agreement”), the Guarantor absolutely, unconditionally and
irrevocably as a primary obligation guarantees to the Guaranteed Party the prompt
payment when due, subject to any applicable grace period, of all payment obligations
of Gallaher to the Guaranteed Party arising under the Agreement (the “Obligation”).
	 
	 	b)	 	The Guarantor agrees that, if and whenever Gallaher shall be in default in
the payment when due of any amount payable under the Agreement, it shall pay all such
amounts then payable by Gallaher, as though the Guarantor instead of Gallaher was
expressed to be the principal debtor under the Agreement.
	 
	 	c)	 	The obligations and liabilities of the Guarantor to the Guaranteed Party
under this Guarantee are as principal obligor and not merely as surety, with the
intention that, if any amount guaranteed under this Guarantee is not recoverable on
the basis of a guarantee, it will be recoverable on the basis of an indemnity.
	 
	 	d)	 	Notwithstanding anything herein to the contrary, the Guarantor shall not at
any time be required to make payment under this Guarantee in excess of the amount then
outstanding as due and payable under the Agreement, taking account of any and all
payments received by the Guaranteed Party under the Agreement or this Guarantee as at
that date.

2. Nature of Guarantee.

	 	a)	 	The Guarantor’s obligations hereunder are continuing obligations and shall
not be affected by (i) the existence, validity, enforceability, perfection or extent
of any collateral therefore, (ii) any enforcement of, or failure to enforce any of,
the provisions of the Agreement, (iii) the liquidation, dissolution, reconstruction or
amalgamation or bankruptcy of Gallaher or the Guarantor, or (iv) by any other
circumstance relating to the Obligation that might otherwise constitute a legal or
equitable discharge of, or defense to, the Guarantor not available to Gallaher.
	 
	 	b)	 	The Guarantor agrees that the Guaranteed Party may resort to the Guarantor
for payment of the Obligation whether or not the Guaranteed Party shall have resorted
to any collateral therefore or shall have enforced the Agreement or proceeded against
Gallaher with respect to the Obligation.
	 
	 	c)	 	The Guaranteed Party shall not be obligated to file any claim relating to the
Obligation in the event that Gallaher becomes subject to a bankruptcy, reorganization
or similar proceeding, and the failure of the Guaranteed Party to so file shall not
affect the Guarantor’s obligations hereunder.
	 
	 	d)	 	This Guarantee shall remain in full force and effect and shall be binding on
the Guarantor until the Obligation has been satisfied in full. In the event that any
payment to the Guaranteed Party in respect of the Obligation is rescinded or must
otherwise be returned

 

 

	 	 	 	for any reason whatsoever, the Guarantor shall remain liable hereunder with respect to
such Obligation as if such payment had not been made.
	 
	 	e)	 	The Guarantor reserves the right to (i) set-off against any payment owing
hereunder any amounts due and owing by the Guaranteed Party to Gallaher; and (ii)
assert defenses which Gallaher may have to payment of any Obligation other than
defenses arising from the bankruptcy or insolvency of Gallaher and other defenses
expressly waived hereby.

	3.	 	Changes in Obligation, Collateral therefore and Agreements Relating thereto; Waiver of
Certain Notices. The Guarantor agrees that the Guaranteed Party may at any time and from time
to time, either before or after the maturity thereof, without notice to or further consent of
the Guarantor, agree to amendments or variations to the Agreement, extend the time of payment
of, exchange or surrender any collateral for, or renew the Obligation, and may also make any
agreement with Gallaher for the extension, renewal, payment, compromise, discharge or release
thereof, in whole or in part, or for any modification of the terms thereof or of any agreement
between the Guaranteed Party and Gallaher, without in any way impairing or affecting this
Guarantee. The Guarantor waives notice of the acceptance of this Guarantee and of the
Obligation.

	4.	 	Subrogation. Upon payment of the Obligation in full (but not otherwise), the Guarantor shall
be subrogated to the rights of the Guaranteed Party against Gallaher with respect to such
Obligation, and the Guaranteed Party agrees to take at the Guarantor’s expense such steps as
the Guarantor may reasonably request to implement such subrogation.

	5.	 	No Waiver; Cumulative Rights. No failure on the part of the Guaranteed Party to exercise,
and no delay in exercising, any right, remedy or power hereunder shall operate as a waiver
thereof, nor shall any single or partial exercise by the Guaranteed Party of any right, remedy
or power hereunder preclude any other or future exercise of any right, remedy or power. Each
and every right, remedy and power hereby granted to the Guaranteed Party or allowed it by law
or other agreement shall be cumulative and not exclusive of any other, and may be exercised by
the Guaranteed Party at any time or from time to time.

     6. Representations and Warranties. The Guarantor hereby represents and warrants that:

	 	a)	 	the Guarantor has full corporate power to execute, deliver and perform this
Guarantee;
	 
	 	b)	 	the execution, delivery and performance of this Guarantee have been and
remain duly authorized by all necessary corporate action and do not contravene any
provision of the Guarantor’s certificate of incorporation or by-laws, as amended to
date, or any law, regulation, rule, decree, order, judgment or contractual restriction
binding on the Guarantor; and
	 
	 	c)	 	this Guarantee constitutes a legal, valid and binding obligation of the
Guarantor enforceable against the Guarantor in accordance with its terms, subject to
applicable bankruptcy, insolvency, reorganization, moratorium, liquidation, fraudulent
conveyance and other similar laws of affecting creditors’ rights generally.

	7.	 	Notices. All notices, requests, demands, or other communications sent under this Guarantee
by one party to the other party are to be sent by overnight courier or facsimile addressed to
the party at the addresses or facsimile number set forth below or to such other address or
number as a party has designated by written notice given to the other party. All notices are
effective when received. The parties agree that service of any process, summons, notice or
documents in compliance with this Section 7 shall be effective service of process for any
action, suit or proceeding brought against a party in any court. Absent a notice designating
another address or facsimile number, the addresses and facsimile numbers shall be as follows:

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If to Guarantor, to:

JT
International Holding B.V.

Vreelandsweg 46

1216 CH Hilversum

The Netherlands

Attention: Chief Financial Officer

Fax: +31 35 622 2890

With a copy to:

JT International S.A.

1, Rue de la Gabelle

1211 Geneva 26

Switzerland

Attention: Senior Vice President Legal Regulatory Affairs and Compliance

Fax: +41 22 703 0604

If to Guaranteed Party, to:

R. J. Reynolds Tobacco C. V.

Atrium Building 5th Floor

Strawinskylaan 3501

1077 ZX Amsterdam

The Netherlands

Fax: +31 (20) 710 5001

With a copy to:

Reynolds American Inc.

401 N. Main Street

Winston-Salem, NC 27101

Attention: General Counsel

Fax: (336) 741-2998

	8.	 	Amendment. This Guarantee will not be amended without the written consent of each of the
parties hereto.

	9.	 	Third Party Rights. No Person who is not a party to this Guarantee shall have any rights
under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this Guarantee.

	10.	 	Whole Agreement.

	 	a)	 	This Guarantee contains the entire understanding between the parties and
supersedes any prior understanding and agreements between them respecting the within
subject matter. There are no agreements, arrangements, or understandings, oral or
written, between and among the parties relating to the subject matter of this
Guarantee that are not set forth or expressly referred to herein.
	 
	 	b)	 	Notwithstanding Section 10(a), each party acknowledges that it has not been
induced to enter into this Guarantee by any representation or warranty other than
those contained in this Guarantee and, having negotiated and freely entered into this
Guarantee, agrees that it shall have no remedy in respect of any other such
representation or warranty except in the

Page 3 of 5

 

	 	 	 	case of fraud. Each party acknowledges that its legal advisers have explained to it
the effect of this Section 10.

	11.	 	Severability. If any provision of this Guarantee shall be held to be unlawful, the same
shall be deemed to be deleted from this Guarantee, but this Guarantee shall remain in full
force and effect as if the deleted provision had never been contained in it. The parties
shall negotiate in good faith as to the terms of a mutually acceptable and satisfactory
provision in place of any deleted provision, and if such terms shall be agreed, this Guarantee
shall be amended accordingly.

	12.	 	Successors and Assigns. The provisions of this Guarantee are binding upon, and inure to the
benefit of, the parties and their respective successors and authorized assigns. None of the
rights or obligations of either party may be assigned to any other person or entity except
with the written consent of the other party (such consent not to be unreasonably withheld).

	13.	 	Waivers. No waiver by either party of any of the provisions of this Guarantee will be
effective unless explicitly set forth in writing and executed by that party. Any waiver by
either party of a breach of this Guarantee will not operate or be construed as a waiver of any
subsequent breach.

	14.	 	Headings. The Section and other headings in this Guarantee are for convenience of reference
only and are not to affect its meaning, interpretation or construction.

	15.	 	Counterparts. This Guarantee and any amendment may be executed in multiple counterparts,
each of which is an original and all of which constitute one agreement or amendment, as the
case may be, notwithstanding that each of the parties are not signatories to the original or
the same counterpart, or that signature pages from different counterparts are combined, and
the signature of any party to any counterpart is a signature to and may be appended to any
other counterpart.

	16.	 	Governing Law. This Guarantee shall be governed by, and construed in accordance with, the
laws of England.

	17.	 	Resolution of Disputes. Any dispute arising out of or in connection with, or concerning the
carrying into effect of, this Guarantee shall be referred to and finally resolved by
arbitration in accordance with the UNCITRAL Arbitration Rules as at present in force (which
Rules are deemed to be incorporated by reference into this Section 17). The number of
arbitrators shall be three. One arbitrator shall be appointed by each of the Guaranteed Party
and the Guarantor and the two arbitrators so appointed shall appoint the third arbitrator. In
the event that the two arbitrators fail to agree on the identify of the third arbitrator, such
arbitrator shall be appointed by the International Court of Arbitration of the International
Chamber of Commerce. The seat, or legal place, of the arbitration shall be Dublin, Ireland.
The language to be used in the arbitral proceedings shall be English and the award will be
made in English.

IN WITNESS WHEREOF, this Guarantee has been duly executed and delivered by the Guarantor to the
Guaranteed Party as of the date first above written.

JT INTERNATIONAL HOLDING B.V.

	 	 	 	 	 	 	 
	By:

	 	/s/ Pierre de Labouchére

 

	 	By:
	 	/s/ Yasushi Shingai

 

	 
	 	 	 	 	 	 
	Name:

	 	Pierre de Labouchére

 

	 	Name:
	 	Yasushi Shingai

 

	 
	 	 	 	 	 	 
	Title:

	 	Director

 

	 	Title:
	 	Director

 

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Accepted and Agreed:

R. J. REYNOLDS TOBACCO C.V.

By: R. J. REYNOLDS GLOBAL PRODUCTS, INC., Its General Partner

	 	 	 	 	 
	By:

	 	/s/ McDara P. Folan, III
 

	 	 
	 
	 	 	 	 
	Name:

	 	McDara P. Folan, III
 
	 	 
	 
	 	 	 	 
	Title:

	 	Director and Secretary
 
	 	 

Page 5 of 5Ex-10.1

 

Exhibit
10.1

NON-QUALIFIED STOCK OPTION AGREEMENT

     This
NON-QUALIFIED STOCK OPTION AGREEMENT (the “Agreement”) is made this ______ day of ______,
20___, by and between CORRECTIONS CORPORATION OF AMERICA, a Maryland corporation (the “Company”),
and ______ (“Optionee”).

W I T N E S S E T H:

     WHEREAS, the Company has adopted the 2008 Stock Incentive Plan (the “Plan”), which authorizes
the Company to grant non-qualified stock options (“Options”) to key employees of the Company and/or
its affiliates; and

     WHEREAS, the Company and Optionee wish to confirm the terms and conditions of an Option
granted to Optionee on ______,
20___ (the “Date of Grant”).

     NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, and
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, it is agreed between the parties hereto as follows:

     1. Definitions. Except as provided in this Agreement, or unless the context otherwise
requires, the terms used herein shall have the same meaning as set forth in the Plan.

     2. Grant of Option. Upon and subject to the terms, restrictions, limitations and
conditions stated herein, the Company hereby grants to Optionee an
Option to purchase up to ______ shares of the Company’s Common Stock (collectively, the “Option Shares”).

     3. Option
Price. The purchase price per Option Share shall be $______ (the “Option
Price”). This purchase price equals 100% of the Fair Market Value of each Option Share on the Date
of Grant.

     4. Exercise; Vesting; Forfeiture.

          (i) Except as otherwise provided herein, Optionee shall have the right to exercise the Option,
if and to the extent the Option has vested in accordance with subparagraphs (iii) and (iv) below,
at any time during the ten-year period commencing on the Date of Grant; provided, however, that
except as otherwise provided in subparagraph (iv) below, Optionee may not exercise the Option
unless Optionee is on the date of exercise and continuously after the Date of Grant an employee of:
(a) the Company; (b) an Affiliate; or (c) an entity issuing or assuming the Option in a transaction
to which Code Section 424 applies (or a Subsidiary of such entity) ((a), (b) and (c) known
collectively, herein, as the “Employer”).

          (ii) Optionee shall exercise the Option in accordance with the procedures set forth in Section
6.4 of the Plan; provided, however, that an Option may not be exercised at any one time as to fewer
than one hundred (100) shares (or such number of shares as to which the Option is then exercisable
if such number of shares is less than one hundred (100)).

 

 

          (iii) Subject to the provisions of subparagraph (iv) below, the Option shall vest with respect
to one fourth (1/4) of the Option Shares on each Vesting Date (as herein defined). For purposes
hereof, the term “Vesting Date” shall mean each of the first, second, third and fourth
anniversaries of the Date of Grant.

          (iv) In the event that: (a) Optionee dies while in the employ of the Employer; or (b)
Optionee’s employment with the Employer terminates by reason of Optionee’s Disability, then in any
such case the Option shall vest in full and may be, unless earlier terminated or expired, exercised
by Optionee (or by Optionee’s estate or by a person who acquired the right to exercise such Option
by bequest or inheritance or otherwise by reason of the death or Disability of Optionee) at any
time during the stated term of the Option. For the purpose of this Agreement and notwithstanding
any provision(s) of the Plan or this Agreement to the contrary, subject to the preceding sentence,
in the event Optionee’s employment with the Employer is terminated due to Retirement (other than as
the result of Optionee’s death or Disability) then the Option, to the extent the Option has vested
and unless it earlier terminates or expires, may be exercised at any time during the stated term of
the Option, with the unvested portion of the Option being forfeited. In the event that there
occurs a Change of Control, then in such case the Option shall vest in full, unless earlier
terminated or expired, and may be exercised by Optionee (or by Optionee’s estate or by a person who
acquired the right to exercise such Option by bequest or inheritance or otherwise by reason of the
death or Disability of Optionee) within one (1) year following the Change in Control. Subject to
the first sentence of this subparagraph (iv), in the event that Optionee’s employment with the
Employer terminates other than by reason of Optionee’s death, Disability, or Retirement, then the
Option, to the extent the Option has vested and unless it earlier terminates or expires, may be
exercised within three (3) months following the termination of such employment, with the unvested
portion of the Option being forfeited. Nothing in this Agreement or in any Option granted pursuant
hereto shall confer upon Optionee any right to continue in the employ or service of the Employer or
interfere in any way with the right of the Employer to terminate Optionee’s employment at any time.

     5. Option and Option Shares Subject to Plan. The Option and the Option Shares shall
be subject to, and the Company and Optionee agree to be bound by, all of the terms and conditions
of the Plan, as the same shall be amended from time to time in accordance with the terms thereof.
A copy of the Plan, as amended, is attached hereto as Exhibit A and made a part hereof as
if fully set out herein.

     6. Covenants and Representations of Optionee. Optionee represents, warrants,
covenants and agrees with the Company as follows:

          (i) Optionee is not acquiring the Option Shares based upon any representation, oral or
written, by any person with respect to the future value of, or income from, the Option Shares but
rather upon an independent examination and judgment as to the prospects of the Company;

          (ii) Optionee is able to bear the economic risks of the investment in the Option Shares,
including the risk of a complete loss of his or her investment therein;

2

 

          (iii) Optionee understands and agrees that the Option Shares may be issued and sold to
Optionee without registration under any state law relating to the registration of securities for
sale, and in such event will be issued and sold in reliance on exemptions from registration under
appropriate state laws;

          (iv) The Option Shares cannot be offered for sale, sold or transferred by Optionee other than
pursuant to: (A) an effective registration under applicable state securities laws or in a
transaction which is otherwise in compliance with such laws; (B) an effective registration under
the Securities Act of 1933, as amended (the “1933 Act”), or in a transaction otherwise in
compliance with the 1933 Act; and (C) evidence satisfactory to the Company of compliance with the
securities laws of all applicable jurisdictions. The Company shall be entitled to rely upon an
opinion of counsel satisfactory to it with respect to compliance with the foregoing laws;

          (v) The Company will be under no obligation to register the Option Shares or to comply with
any exemption available for sale of the Option Shares without registration. The Company is under
no obligation to act in any manner so as to make Rule 144 promulgated under the 1933 Act available
with respect to sales of the Option Shares;

          (vi) A legend indicating that the Option Shares have not been registered under the applicable
state securities laws and referring to any applicable restrictions on transferability and sale of
the Option Shares may be placed on the certificate or certificates delivered to Optionee and any
transfer agent of the Company may be instructed to require compliance therewith;

          (vii) Optionee realizes that the purchase of the Option Shares is a speculative investment and
that any possible profit therefrom is uncertain;

          (viii) Optionee will notify the Company prior to any sale of the Option Shares within six
months of the date of the exercise of all or any portion of the Option; and

          (ix) The agreements, representations, warranties and covenants made by Optionee herein extend
to and apply to all of the Common Stock of the Company issued to Optionee from time to time
pursuant to this Option. Acceptance by Optionee of the certificate(s) representing such Common
Stock shall constitute a confirmation by Optionee that all such agreements, representations,
warranties and covenants made herein shall be true and correct at such time.

     7. Withholding. In order to provide the Company with the opportunity to claim the
benefit of any income tax deduction which may be available to it upon the exercise of the Option,
and in order to comply with all applicable federal or state tax laws or regulations, the Company
may take such action as it deems appropriate to ensure that, if necessary, all applicable federal,
state or other taxes are withheld or collected from the Optionee.

     8. Governing Law. This Agreement shall be construed, administered and enforced
according to the laws of the State of Maryland, without regard to the conflicts of laws provisions

3

 

thereof; provided, however, the Option may not be exercised except, in the reasonable judgment of
the Committee, in compliance with exemptions under applicable state securities laws of the state in
which Optionee resides, and/or any other applicable securities laws.

     9. Successors. This Agreement shall be binding upon and inure to the benefits of the
heirs, legal representatives, successors and permitted assigns of the parties.

     10. Notice. Except as otherwise specified herein, all notices and other
communications under this Agreement shall be in writing and shall be deemed to have been given if
personally delivered or if sent by registered or certified United States mail, return receipt
requested, postage prepaid, addressed to the proposed recipient at the last known address of such
recipient. Any party may designate any other address to which notices shall be sent by giving
notice of such address to the other parties in the same manner provided herein.

     11. Severability. In the event that any one or more of the provisions or portion
thereof contained in this Agreement shall for any reason be held to be invalid, illegal or
unenforceable in any respect, the same shall not invalidate or otherwise affect any other
provisions of this Agreement and this Agreement shall be construed as if such invalid, illegal or
unenforceable provision or portion thereof had never been contained herein.

     12. Entire Agreement. Subject to the terms and conditions of the Plan, this Agreement
expresses the entire understanding and agreement of the parties hereto with respect to such terms,
restrictions and limitations. This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original but all of which shall constitute one and the same instrument.

     13. Violation. Any transfer, pledge, sale, assignment or hypothecation of the Option
except in accordance with this Agreement shall be a violation of the terms hereof and shall be void
and without effect.

     14. Headings. Section headings used herein are for convenience of reference only and
shall not be considered in interpreting this Agreement.

     15. Specific Performance. In the event of any actual or threatened default in, or
breach of, any of the terms, conditions and provisions of this Agreement, the party or parties who
are thereby aggrieved shall have the right to specific performance and injunction in addition to
any and all other rights and remedies at law or in equity, and all such rights and remedies shall
be cumulative.

     16. Counterparts. This Agreement may be executed by the signatures of each of the
parties hereto, or to a counterpart of this Agreement, and all such counterparts shall collectively
constitute one Agreement. Facsimile signatures shall constitute original signatures for purposes
of this Agreement.

4

 

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above
written.

	 	 	 
	 

	CORRECTIONS CORPORATION OF AMERICA	 
	 
	 	 
	 

	By:	 
	 

	 	 
	 
	 	 
	 

	Title:	 
	 

	 	 

	 	 	 
	 

	OPTIONEE:	 
	 
	 	 
	 
	 	 
	 

	Signature:	 
	 

	 	 
	 
	 	 
	 

	Name (printed):	 
	 

	 	 

5

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