XI. U.S. EMBARGO AGAINST CERTAIN COUNTRIES

The Company and all its employees are prohibited or severely restricted from exporting to, or entering into transactions with, countries or nationals of countries embargoed by the U.S. government. The restrictions extend to specially designated nationals ("SDNs") which include over 5,000 companies and individuals who are connected with sanctions targets and are located in practically every country in the world and apply to all transactions, including exports, imports, contracts, financing, payments, services, etc. As of November 30, 2005, the embargoed countries are:

• Burma (exports are permissible, but imports are not)
  
  
• Cuba
  
  
• Iran
  
  
• North Korea (certain transactions)
  
  
• Sudan
  
  
• Syria
  
  

U.S. embargoes change on an irregular basis in response to shifts in U.S. foreign policy. All exports must undergo required export compliance screening procedures prior to shipment and payment. Violation of these laws could subject you and the Company to criminal prosecution. The regulations are very complicated and since the countries and SDNs to which they apply may change, please consult the General Counsel of RAI or his designee for current information.