RETURNS OF MOIST SNUFF PRODUCTS June 1, 2012

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1 ` RETURNS OF MOIST SNUFF PRODUCTS June 1, 2012 UST (ALTRIA) BRANDS: All returns of UST Moist Snuff products are sent directly to CoreMark for processing and credit. The procedures are as follows: On a weekly basis check the dating on your UST products and pull any cans that are older than the Sell By Date indicated on the back of the individual cans. Keep the OOD (out of date) products in a safe place, accessible to your Altria Rep. Your Altria Rep should visit your store on a monthly basis and perform the following: Authorize the returns (subject to limitations, further defined below) Seal the return box do not tamper with the seal. Attach an Authorization Receipt Provide a copy of the receipt to the store After your rep has boxed the product, YOU SHOULD: Fill out a CoreMark Credit Holding Form 1. Using the ALSD # as your Credit Reference # 2. Attach the Authorization Receipt to your Holding for Credit please note, the Credit Holding IS NOT VALID WITHOUT THE AUTHORIZATION RECEIPT!!!!! You must also ensure that the CoreMark driver SIGNS THE PICK-UP SLIP. THIS IS YOUR PROOF OF PICK UP!!!!! Without proof of pick-up, we cannot research credits if needed. Pick Up s, along with quantities packed in the boxes, are directly transmitted to CoreMark by Altria therefore it is not necessary to call CoreMark for a return you should AUTOMATICALLY receive a pick-up within the next 2 deliveries. Once returned - You should receive credit within 3-4 weeks. moist snuff return procedure of 4

2 ` RETURNS OF MOIST SNUFF PRODUCTS June 1, 2012 (Continued) UST Brands are: Copenhagen Skoal Red Seal Husky Limitations for returns: 1. The Can is OOD 2. The Sell-By-Date, Made-Date, Code-Date, or Guaranteed Fresh Until Date indicated on the bottom of the can is not more than 1 year prior to the date on which eligibility is determined. 3. The can s label, UPC, and Sell-By-Date, Made-Date, Code-Date, Guaranteed Fresh Until Date are legible. 4. The can is unopened. 5. The store has removed the can from Saleable inventory prior to the AlS&D rep calling on the store. moist snuff return procedure of 4

3 ` RETURNS OF MOIST SNUFF PRODUCTS June 1, 2012 (Continued) AMERICAN SNUFF (RJR) BRANDS: All returns of American Snuff Moist Snuff products are sent directly to CoreMark for processing and credit. The procedures are as follows: Your RJR Rep should visit your store on a monthly basis and perform the following: Check all stock for any product that is beyond code date Authorize the returns Place cans designated for return in white cartons packed as 5 After your rep has boxed the product, YOU SHOULD: Call CoreMark for a return indicating the specific items and qtys being returned Be sure to note the Credit Reference # Fill out a Credit Holding Form - CoreMark Attach the Authorization Receipt to your Holding for Credit You must also ensure that the CoreMark driver SIGNS THE PICK-UP SLIP. THIS IS YOUR PROOF OF PICK UP!!!!! Without proof of pick-up, we cannot research credits if needed. Once returned - You should receive credit within 3-4 weeks. ASC Brands are: Grizzly Kodiak moist snuff return procedure of 4

4 ` RETURNS OF MOIST SNUFF PRODUCTS June 1, 2012 (Continued) SWEDISH MATCH BRANDS: All credits for OOD Swedish Match Moist Snuff products are swapped in-store can by can by Swedish Match representatives. The procedures are as follows: Your SMNA Rep should visit your store on no less than a quarterly basis and perform the following: Check all stock for any product that is beyond code date Swap any out of date product for fresh product Swedish Match Brands are: Timberwolf Longhorn moist snuff return procedure of 4

5 USSTB Retail Returned Goods Policy Effective Date: April 1, 2012 This policy sets forth the primary requirements with respect to returns from retail stores of U.S. Smokeless Tobacco Brands Inc. ( USSTB ) MST. Altria Group Distribution Company ( AGDC ) provides certain services to USSTB with respect to the distribution, sale, and return of USSTB MST including conducting transactions contemplated by this policy. AGDC, on behalf of USSTB, may communicate additional requirements from time to time, and reserves the right to cancel or change this policy at any time. This policy applies to USSTB MST returned from retail stores called on by the AGDC field sales force. I. DEFINITIONS Adulterated has the meaning set forth in the Family Smoking Prevention and Tobacco Control Act. BTN stands for Box Tracking Number, which means an alpha numeric code and bar code printed on a sticker to be affixed to a Return Box. Each unique BTN is linked to information related to the Return Box to which it is affixed, including the SKUs and quantities of authorized cans of USSTB MST contained in such Return Box. BTN Expiration Date means a date printed on a Return Receipt that is 180 days after the date on which the relevant Returned Goods Authorization Form is completed. If a Return Box is not authorized by an AGDC representative at a Direct Distributor within thirty days after the BTN Expiration Date for such box, AGDC will not authorize the cans contained in such box at the Direct Distributor for return under the RTD Process. Direct Distributor means any Distributor that purchases USSTB MST directly from USSTB. Distributor means any entity, including a Direct Distributor, non-direct distributor or wholesale club that sells USSTB MST to retail stores for the purpose of resale. List Price means, generally, the price at which USSTB sells a particular SKU of USSTB MST to Direct Distributors. Measurement Period means the first 22 STARS Weeks of the two STARS Quarters preceding the current STARS Quarter. OOD stands for Out-of-Date, which means, with respect to a can of USSTB MST, a can that is older than its Sell By Date. Promotional Allowance means a monetary amount established by USSTB that is intended to be subtracted from the non-promoted price at which Distributors and retail stores, as applicable, sell specified cans of USSTB MST. For purposes of this policy, Promotional Allowance does not include a retail price promotion or other payment made directly to a retail store for the purpose of reducing the retail selling price of USSTB MST. 1 of 4

6 Retail to Distributor Return Process or RTD Process means the returned goods process whereby a retail store selects a Distributor to which it delivers or makes available authorized returns of OOD USSTB MST contained in a Return Box. Return Box means a box provided by AGDC for the return of cans of USSTB MST authorized for return. Returned Goods Authorization Form means a form completed by an AGDC representative at the time cans of USSTB MST are authorized for return. Each Returned Goods Authorization Form states the contents of each Return Box with respect to which it is completed. Return Receipt means a receipt generated by an AGDC representative from a Return Goods Authorization Form and affixed to a sealed Return Box. Each Return Receipt states the contents of the Return Box to which it is affixed, the applicable BTN and BTN Expiration Date. Returned Goods Authorization Tape means tape prescribed by AGDC that an AGDC representative uses to seal a Return Box containing cans of USSTB MST authorized for return. Saleable means product that is in-date, undamaged, and not Adulterated. SET Credit means a monetary value based on the total number of cans of USSTB MST authorized for return and the applicable state excise tax associated with each such can. Special Returns means any cans of USSTB MST in the possession of a retail store that USSTB designates as subject to a special returns initiative. STARS means the Store Tracking Analytical Reporting System. STARS is used to capture Data reported by Distributors to Management Science Associates. STARS Calendar means the calendar used in connection with STARS. STARS Quarter means a calendar quarter according to the STARS Calendar. STARS Week means a calendar week according to the STARS Calendar. USSTB MST means any moist smokeless tobacco product, including fine cut, long cut, or pouched powdered tobacco sold in a can, including snus, marketed and sold by USSTB and intended for resale in the United States domestic market or United States military outlets, as specified by USSTB. USSTB MST does not include dry snuff or loose leaf tobacco. II. OOD USSTB MST RETURNS A. OVERVIEW Unless otherwise communicated, and subject to the specific provisions of this policy, AGDC in its sole discretion will authorize cans of USSTB MST for return from a retail store if: (i) the cans of USSTB MST are eligible for return, as described in Section II.B.; (ii) the cans of USSTB MST are authorized for return by an AGDC representative, as described in Section II.C.; and (iii) a Returned Goods Authorization Form is completed. Returns of OOD USSTB MST are subject to the General Terms and Conditions set forth in Section II.F. 2 of 4

7 B. USSTB MST ELIGIBLE FOR RETURN AGDC intends to authorize for return only eligible cans of USSTB MST. A can of USSTB MST is eligible for return if: 1. The can is OOD; 2. The Sell-By Date or Code Date indicated on the bottom of the can is not more than one year prior to the date on which eligibility is determined; 3. The can s label, UPC, and Sell-By Date or Code Date are legible; 4. The can is unopened; and 5. The retail store has removed the can from its Saleable inventory prior to an AGDC representative calling on such store and has made the can available to the AGDC representative for potential return authorization. C. RETURNED GOODS AUTHORIZATION Eligible cans of USSTB MST and the Return Box in which such cans are placed are authorized for return when an AGDC representative verifies the cans are eligible for return, scans the UPC code on each can, places each can in the Return Box, seals the Return Box with Returned Goods Authorization Tape, completes a Returned Goods Authorization Form, and affixes a Return Receipt and a BTN to the Return Box. D. RETAIL TO DISTRIBUTOR RETURN PROCESS Under the RTD Process, a retail store will make available or deliver each authorized Return Box to the Distributor selected by the retail store to receive its returned goods. USSTB will make available only to a Direct Distributor in possession of an authorized Return Box (i) credit in the amount of the List Price in effect as of the authorization date (less any applicable Promotional Allowances) of each can of USSTB MST authorized for return, as reflected on the Return Receipt affixed to such Return Box, and (ii) a tax affidavit with respect to all cans of USSTB MST contained in such Return Box. If a Return Box is not authorized by an AGDC representative at a Direct Distributor within thirty days after the BTN Expiration Date for such box, AGDC will not issue any credit or tax affidavit with respect to the cans contained in such box. In no event will USSTB be responsible for providing List Price credit or SET Credit to any retail store that returns cans of USSTB MST to a Distributor. In addition, USSTB does not require a Distributor to make available to any retail store any List Price credit or SET Credit in connection with cans of USSTB MST returned to the Distributor. Issuance of credit, if any, to a retail store is between the retail store and the Distributor to which the retail store provides its authorized returns. E. UNCAPPED RETAIL RETURNED GOODS A retail store may return all eligible cans of USSTB MST. For all eligible cans of USSTB MST returned, a retail store will receive List Price credit. There is no cap on the number of eligible cans of USSTB MST that a retail store may return for List Price credit. 3 of 4

8 F. GENERAL CONDITIONS FOR OOD USSTB MST RETURNS 1. A retail store (other than a retail store that has been first assigned an AGDC retail control number within the 26 STARS Weeks immediately preceding the current STARS Quarter) whose USSTB MST gross purchases in STARS during the Measurement Period are equal to zero is not eligible to return USSTB MST. 2. It is a retail store s responsibility to ensure the proper ordering and rotation of USSTB MST. 3. A retail store may not accept or attempt to return any cans of USSTB MST received from another retail store. policy. 4. USSTB reserves the right to grant or deny any credit in connection with this 5. Upon request, a retail store must provide to USSTB or its designee, books, records, documentation, and other information sufficient to verify the retail store s compliance with this policy. Such information includes, but is not limited to, a retail store s purchases, sales, and returns of USSTB MST by brand and SKU. 6. USSTB will not issue any List Price credit or tax affidavit under the Retail to Distributor Process with respect to any can of USSTB MST contained in a Return Box that has been opened or to which is not affixed a legible BTN and Return Receipt. 7. USSTB will not return to a retail store any USSTB MST or other items shipped to USSTB s reclamation center. 8. If any items, other than eligible cans of USSTB MST, are shipped to USSTB s reclamation center, such items will be destroyed and no credit will be issued in connection with the destroyed items. 9. With respect to the List Price credit, set forth in Section II.D, and uncapped returned goods, set forth in Section II.E, this policy applies to USSTB MST returns from Direct Distributors that supply only affiliated retail stores, and no other retail stores or non-direct distributors. III. SPECIAL RETURNS OF USSTB MST AGDC reserves the right to announce Special Returns initiatives. Any requirements associated with the Special Returns initiative will be communicated by AGDC. 4 of 4

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