The third document discusses

1. What “WE” Have Accomplished in 2009!
INDIANA Projects: (11) 3rd Party Vendors
– Circle K Midwest America Display
– Dissolvables Re-merchandised/Tweaks WIS
– Casey’s – New Fixtures Installations Ririe
– Bloomington Division Lighted Signs Installation Ririe
– Family Express Lighted Signs Installation WIS
– Gas America Re-merchandised WIS/TMs
– Pall Mall Pulse WIS
– Maintenance Program (Outdoor/Indoor Sign Removal) Ririe
– AMPM Re-merchandised America Display
– SNUS Fridge Cleaning Project (Indianapolis Division) Gram Washburn
– Greenfield Territory Vacancy WIS/TMs
KENTUCKY Projects: (11)
– Cox’s New Fixture Installations/Removal of Fixtures Lind Retail Group/Gram Washburn
– Double Kwik Re-merchandised Gram Washburn
– Pall Mall Pulse WIS
– Maintenance Program (Outdoor/Indoor Sign Removal) Ririe
– Food Lion WIS
– Houchens Lind Retail Group
– Jr Food Mart Gram Washburn
– Kroger's Gram Washburn
– Newcomb SNUS Installation/Re-merchandised Lind Retail Group
– Rocket Oil Lind Retail Group
– Sureway Gram Washburn

2. 2
CAMEL TOTAL TOBACCO INITIATIVES
Wednesday, January 6, 2010
REM Jared M. Sigler

3. What is the CAMEL MSFT Pulse Event?
CAMEL is a Total Tobacco Brand
A limited time Pulse promotion on CAMEL SNUS and live CAMEL Dissolvables (within the
Lead Markets) designed to increase your sales and outlet foot traffic!
• January 25, 2010 through March 28, 2010
• Discount rate of $1.00 per tin/pack – both states
• Creates a per tin price at $2.96 (INDIANA) & $2.47 (KENTUCKY)
• (Refer to MSRP in Expressway – click on icon to the right
A CAMEL MSFT Pulse Event is an opportunity worth taking full advantage of!
• (* EXAMPLES STATED BELOW ARE EXAMPLES FOR INDIANA and RDA is factored at Option 2 or 3)
• Profitability (Mark-up @ 22%) = Cost $3.25 Selling Full-Price $3.96 = .71 cents + .20 RDA = .91
• Profitability (Mark-up @ 22%) = Cost $2.25 Selling (Pulse) $2.96 = .71 cents + .20 RDA = .91
• Profitability (Mark-up @ 22%) = Cost $1.62 Selling Trial Offer $1.98 = .36 cents N/A RDA = .36
• INDIANA MSFT prices below are calculated to be within MSRP @ 104% for Option 1:
• FULL PRICE = $4.12 TRIAL OFFER = $2.06 PULSE = $3.08

4. Draft. For Discussion Only 4
How Do We Calculate CAMEL – based off of INDIANA St. Min. Website?
• CAMEL Cigarettes – List Price $34.14 (includes FET that is shipped to Wholesale)
• Indiana State SET - $9.95
$44.09 * 1.045% (wholesale mark-up) = $46.07
$46.07 * 1.08% (state min. mark-up) = $49.76/10 packs
$4.98 - discount .15 cents = $4.83 per pack
How Do We Calculate PALL MALL – based off of INDIANA St. Min. Website?
• PALL MALL Cigarettes – List Price $30.14 (includes FET that is shipped to Wholesale)
• Indiana State SET - $9.95
$40.09 * 1.045% (wholesale mark-up) = $41.89
$41.89 * 1.08% (state min. mark-up) = $45.24/10 packs
$4.52 - discount .70 cents = $3.83 per pack
INDIANA State Minimum Calculations

5. Draft. For Discussion Only 5
How Do We Check and Calculate Store Sponsored Multi-Packs
and VAP promotions?
1 – Consumer Pricing Fairness (CPF)
Example: Single Pack Price= $5.00
Outlet Funded 2-Pack Special Price=
$8.50
o ATC buys 2 packs of Camel VAP $1.00
off a pack
o Scenario 1: Retailer charges for 2 single
packs at $10.00 - $2.00 off= $8.00
o RJRT preferred (not required on this
option) method would be to sell the 2
packs at the outlet funded 2pack
special minus the VAP offer -- $8.50-
$2.00= $6.50
2 – Consumer Pricing Fairness (CPF)
&
Example: Single Pack Price= $5.00
Outlet Funded 2-Pack Special Price=
$8.50
o ATC buys 2 packs of Camel VAP
$1.00 off a pack
o RJRT required method for options
2 and 3 is to sell the 2 packs at the
outlet funded 2-pack special minus
the VAP offer
$8.50-$2.00= $6.50
3 – Consumer Pricing Fairness (CPF)

6. MSFT Pulse Event Details –
January 25, 2010 through March 28, 2010
• Products eligible for Pulse discounting include all Full Price CAMEL SNUS and
Full Price Camel Dissolvables.
• NO Pulse discounting will be paid for promotional products (i.e. Special
Trial Offer, Multi-Variant pack, etc.).
• Pulse discounting will be paid via AIM Pay based on the state-specific rates listed
in TMC 276-09.
• Two monthly payments will be made based on actual AIM volume (with no
reconciliation payment) during the following weeks:
– March 8, 2010
– April 12, 2010
• MSFT Pulse POS kits are scheduled to arrive at all TM Org Material Addresses
during the week of 12/21/09
• Additional POS quantities will be available for order the week of 12/28/09

7. CAMEL DISSOLVABLES
Available Pulse POS
and POS Kit Contents
CAMEL SNUS
Available Pulse POS
and POS Kit Contents

8. 2010 MSFT Pricing
JANUARY 2010
State
Sleeve
Whlsl
Price
Total
Excise
Supplier
Markup
Supplier
Suggested
Price
Retail
Markup
Retail
Suggested
Price
Pulse
Discount
Rate Per
Tin/Pack
PULSE Retail
Suggested Price
INDIANA 12.30$ 2.95$ 8.0% 16.24$ 22% $3.96 $1.00 $2.96
KENTUCKY 12.30$ 0.95$ 8.0% 14.23$ 22% $3.47 $1.00 $2.47
JANUARY 2010
State
Sleeve
Whlsl
Price
Total
Excise
Supplier
Markup
Supplier
Suggested
Price
Retail
Markup
Retail
Suggested
Price
INDIANA $6.15 1.48$ 8.0% 8.12$ 22% $1.98
KENTUCKY $6.15 0.95$ 8.0% 7.59$ 22% $1.85
CAMEL SNUS SPECIAL TRIAL OFFER PRICING STRUCTURE
SUPPLIER SUGGESTED PRICE RETAIL SUGGESTED PRICE
CAMEL MODERN SMOKE FREE TOBACCO (MSFT) PRICING STRUCTURE
CAMEL SNUS FULL PRICE OFFER PRICING STRUCTURE
SUPPLIER SUGGESTED PRICE RETAIL SUGGESTED FEBRUARY / MARCH 2010

9. RE-LAUNCH of CAMEL MENTHOL
Timeline: Materials due to Kenco 12/4/2009
Shipments begin 12/14/2009
Shipments complete 12/31/2009
Open items to laptop orderable 1/4/2010
Camel Menthol POS Changeover (1Q10) DTS - 1/18/10
Item Description
Orderable
Item #
CAM MEN LG ACRYLIC EQUITY INS 1Q10 (2-S) 680407
CAM MEN LG B4 (24") INS 1Q10 680414
CAM MEN SM B4 (18") INS 1Q10 680421
CAM MEN 1' SMALL (5.5"H) OVERLAY CD 1Q10 680216
CAM MEN 2' SMALL (5.5"H) OVERLAY CD 1Q10 680267
CAM MEN 3' SMALL (5.5"H) OVERLAY CD 1Q10 680311
CAM MEN 1' STANDARD (8.25"H) OVERLAY CD 1Q10 680230
CAM MEN 18 INCH STANDARD (8.25"H) CD 1Q10 680246
CAM MEN 2' STANDARD (8.25"H) OVERLAY CD 1Q10 680281
CAM MEN 3' STANDARD (8.25"H) OVERLAY CD 1Q10 680325
CAM MEN 1' LARGE (11.5"H) CD 1Q10 680209
CAM MEN 2' LARGE (11.5"H) CD 1Q10 680260
CAM MEN 3' LARGE (11.5"H) CD 1Q10 680304
CAM MEN MODULAR NSS HEADER INS 1Q10 680441
CAM MEN 4' SMALL (5.5"H) OVERLAY CD 1Q10 680353
Example only

10. 2010 TDM, Coupon Redemption Rates, misc.

11. 11
Timeline for POS Changeover
RJRT plans to remove and/or replace these non-compliant POS
advertisements on or before the statutory deadline of June 22, 2010.
New Communication on
FDA Ruling

12. TOBACCO INDUSTRY PROVISIONS - FDA
• Not later than September 30, 2009 (and
the last day of every fiscal quarter
thereafter) Pay user fees/brand additives
Beginning June 22, 2010
• Comply with advertising and marketing
restrictions in Final Rule
• Ban on “light”, “mild”, “low” and similar
descriptors
• Prominently display established name on labels
and advertisements
• Place brief statement of uses, precautions, etc.
on advertisements
• Smokeless - Place “Sale only allowed in United
States” on labels and shipping containers
• Smokeless - Place name/address, quantity,
domestic/foreign percent statements on labels
• Smokeless - Place required warning statements
on advertisements and labels
Not Later Than March 22, 2011
• Substantial equivalence (SE) reports for
products introduced between
• 2/15/07 - 3/22/11 (FDA to provide form and
manner of reporting)
Beginning June 22, 2011
• Pesticide limitations established for tobacco
Not Before June 22, 2012
• Comply with any manufacturing
restrictions/GMPs promulgated by FDA
• Test/report constituents, ingredients, and
additives
Beginning June 22, 2012
• Submit list of all constituents identified as
potentially harmful
Not Later Than September 22, 2012
• Cigarettes2 – Place required color graphic
warning statements on advertisements and
labels
• Cigarettes – Place “Sale only allowed in United
States” on labels and shipping containers
• Cigarettes – Place name/address, quantity,
domestic/foreign percent

13. Draft. For Discussion Only 13
•The ruling is that we can use color pos with images for all RJRT brands, however the pos for
MSFT must carry the new warning label which is 20% of the pos.
•Cigarette pos is ok as is in the market with the exception of the category call out - "cigarettes".
•To correct this versus printing all new cigarette pos, we can place a sticker in one of the 4
corners of the pos where it does not interfere with other printed call outs.
•Stickers will be produced for placement on cigarette pos - Trade Marketing and/or Third Party
Third Party Support
• We will be delayed by 2-3 weeks in our conversion efforts due to the change to color pos.
• Mid to late April is the estimated time frame for conversion efforts to begin.
• We will be producing all new SNUS & Dissolvables pos for placement at retail before June-22.
• 3rd party will cover an average of 80% of all outlets within our region.
•It will be up to the REM to determine the 3rd party or parties for this conversion.
• The plan is to maintain TM kits as they will need access to the pos in the balance of their calls
not being supported by third party, and to adjust any omissions/errors made by the third party.
• Each region will determine which contracted outlets will be selected for FDA conversion.
Updates to POS Changeover Q2 2010

14. FDA Q2 2010 POS Changeover
PLEASE UPDATE MATERIAL ASSETS!
• Each Division will determine which contracted outlets will be
selected for FDA conversion
3rd Party POS Requirements by Region – REMs – list of new POS sent 1-19-10
• SNUS
• Dissolvables
• Include ship to location
• Due Date: 1-22-2010 – back to David Cook
• Contracted Outlets for 3rd Party FDA activity – Region – 80% target coverage
• REMs to survey Region and Account Management for drop list and specific
activity for accounts.
• Format – WDC
• List Out to DM’s/TM’s for Survey: 1-29-2010
• Outlet List Revisions – Based on Division/Region/Account management
discussion – add/drop outlets - REMs
• Revised Final List Due Date: 2-12-2010 – send to David Cook

15. CONT…INFORMATION REGARDING FDA
POS CHANGEOVER
· The scope of work will also involve removal of certain signs - door strikes, security
glass decals placed on outside, 1 sheet frame with pricing placed outside on drive
through walls, 4 x 2 equity frames (being discontinued).
• David Cook is preparing a deck showing all types of signage and action required.
ADDITIONAL INFORMATION
· Possibility that American Snuff Co. will be hitchhiking onto our use of 3rd party
vendors for their FDA POS changeover
· Estimated time per outlet for FDA POS changeover 45 minutes includes drive time
· Objective is to use 3rd party for 80% of the outlets
· REM’s will have the option to order additional POS to a designated location for 3rd
party use (the company projects needs at 100-150% over normal usage)

16. Family Smoking & Prevention Act –
Descriptor Changes for 2010
• We will revise pack, carton & case descriptors on our remaining brand families as listed below:
- CAMEL, WINSTON, KOOL & DORAL
• All other product details (i.e., taste signature, blend, UPCs, weights, measurements, etc.) will remain
unchanged
• Since some brand styles sell through at different rates, we anticipate products with the new
descriptors could start to flow through between February and March 2010.
• Returns are NOT authorized on products with current (old) descriptors at wholesale or retail.
• Trade Marketing Talking Points (this is NOT a leave-behind for Adult Tobacco
Consumers).
 Item will be shipped in pads of 50; TM will be shipped (2) pads in mid to late Jan. to their Org
Material address
 Item #709374 (minimal quantities will be available for reorders as needed)
• Package tags and carton end labels will be updated in CONNECT no later than January 22, 2010.
• Descriptions in CONNECT & Hyperion (i.e. Product Line Numbers, Product Availability, Prebooks,
volume reports, etc.) will be updated to the new descriptions on 1/25/10.

17. RJRT 2010 Contracts –(CPF) Volumes Report
• To assist you and your teams during the 2010 Contract Sell-In Period, the attached tool
has been developed to provide you with an easy and efficient view of volume for the
seven Camel Priority styles, Pall Mall Box, Camel SNUS and combined Doral, Winston,
Salem, Kool and Misty. There are two sheets in each file - one which contains outlet level
data based on geography, the other with Account data based on presence. Data
contained in these files is STR.
• For the outlet level data, all the user needs to do is type the Customer Code for the outlet
into the yellow highlighted box and data for that outlet will populate automatically. You
will see both average weekly carton shipments (based on the latest 26 weeks) and a 13
week number (the average weekly times 13).
• On the presence tab, your KAMs/AMs can filter on either their Org Unit or the L1 Account
name to find similar average weekly volume information.
Draft. For Discussion Only 17

18. 3rd party
Tools
Draft. For Discussion Only 18