Exhibit
10.1




LORILLARD TOBACCO COMPANY
SENIOR EXECUTIVE SEVERANCE PAY PLAN


Company Plan CEO
  A. Eligibility Rules
 1.
    
    What are the eligibility rules?
  
    
    Are a senior executive of the Company designated by the CEO as eligible for
benefits under this Plan (the list of eligible executives is set forth on
Exhibit A, as amended from time to time (but subject to C.3 below) in the sole
discretion of the CEO);
    
    (a) voluntarily Terminate for Good Reason; or (b) are involuntarily
Terminated by the Company other than for Cause; and
    
    Comply with A.2 below, including the signing of the required Release.
  Base Salary
 Cause
 Code
 Current CEO
 Disability
 Effective Date




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Good Reason
    Separation Date
 Severance Amount
 Termination
 2.
    
    What must I do to receive severance benefits?
  
    
    Sign (and not revoke) a release agreement satisfactory to the Company (the
Release). Such Release will be presented to you at the time you
become eligible to receive severance benefits under the Plan and, as of May 1,
2006, is in the form set forth in Exhibit B. Subject to C.3, the Company
reserves the right to modify the terms of the form Release set forth in Exhibit
B at its discretion;
    
    Return any financial advances and Company property that you may have by your
Separation Date; and
    
    Reconcile your expense account and repay any Company loans in full by your
Separation Date.




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3.
    
    Will I receive severance benefits if I voluntarily Terminate other than
for Good Reason or if I am Terminated for Cause?No. If you voluntarily Terminate your employment other than for Good Reason, or if
you are Terminated for Cause, you will not be eligible for severance benefits under
this Plan. Your failure to return from a vacation or an approved leave of absence
will be considered a voluntary Termination on your part other than for Good Reason.4.
    
    Are there other situations in which my employment Terminates and I will
not receive benefits under this Plan?Yes. You will not receive benefits under this Plan if you die while employed or if
you Terminate on account of Disability or retirement.
 B. Severance Benefits
 1.
    
    What are the severance benefits if I am Terminated without Cause or if I
Terminate for Good Reason?
  
    
    The Company will pay you the Severance Amount in equal bi-monthly
installments over a period of thirty-six (36) months commencing on the first
payroll date after your execution, and acceptance by the Company, of a Release
and the expiration of any revocation period set forth in the Release, with
subsequent bi-monthly installments paid in accordance with the Companys
regular payroll practice. However, payment of the Severance Amount will cease
should you begin to receive retirement benefits under the Companys pension
plan within that 36-month period.
    
    You will receive as a severance benefit hereunder, but only to the extent
not paid pursuant to the terms of the Lorillard Management Incentive Plan, the
Lorillard Executive Incentive Plan or any successors thereto (collectively, the
MIP), an amount equal to what you would have received under the MIP
with respect to the year in which you Terminate had you: (i) remained employed
throughout the entire year on the same terms as in effect before the event
resulting in your Termination; and (ii) been credited with the full amount of
the incentive compensation for which you were eligible under the MIP for that
year. Such payments shall be made on the normal payment date(s) under the MIP
with respect to that year as if you had not incurred a Separation Date.Under the MIP as in effect on May 1, 2006, incentive compensation is determined
in December for the year ending in December and deemed earned at that time.
One-half of any incentive compensation earned in that year is paid in December of
the year earned and the other half is paid in December of the following year,
assuming you remain employed by the Company through that following December.
Thus, by way of example only, assume that the MIP as in effect on May 1, 2006
continues without amendment and you are Terminated by the Company in July 2006
without Cause. To the extent not paid pursuant to the MIP, you will receive
pursuant to this Plan: (i) in December 2006, the remainder of your 2005 incentive
compensation earned in December 2005 with interest thereon and one-half of your
2006 incentive compensation (as if you had remained employed throughout 2006 and
received the full award for which you were eligible in 2006); and (ii) in
December 2007, the remainder of your 2006 incentive compensation earned in
December 2006 with interest thereon (as if you had remained employed throughout
2007 and received the full award for which you were eligible in 2006, but with no
award for 2007).
    
    As long as (i) you are receiving payments of the Severance Amount hereunder
and (ii) you have not accepted employment elsewhere which offers health
benefits substantially similar to the Companys health benefits, the Company
will pay you a monthly benefits payment (the Benefits Payment).




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The Benefits Payment will be equal to the total monthly COBRA premium for
coverage of you and your COBRA-eligible dependents under the Companys health
plan, as of the date of your Termination, but grossed-up for taxes (using an
effective tax rate of 35%). The Benefits Payment will be made on the first day
of each month, commencing on the first day of the month following your execution
and acceptance by the Company, of a Release and the expiration of any revocation
period set forth in the Release. However, the Benefits Payment will cease should
you begin to receive retirement benefits under the Companys pension plan or if
you begin benefits under the Companys retiree medical plan.
    
    The Company will provide and pay for reasonable outplacement services
actually used by you until such time as you accept other employment, but in no
event for more than twenty-four (24) months. The Company will work with you to
select the outplacement firm.
   2.
    
    What are the severance benefits if I Terminate due to Disability or
Death, or if I die after my Termination?
  th th
 3.
    
    When will I receive my severance benefits?
 e.g.




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4.
    
    What about my Indemnification and D&O Insurance?
  5.
    
    Are there any limitations on my Severance Benefits?
 Parachute Amount Base Amount
  C. Other Questions
 1.
    
    When must I sign the Release?
  2.
    
    How are my other Company benefits impacted by my Termination?
  3.
    
    Can the Company change the Plan?




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D. Administration
 1.
    
    Who administers the Plan?
 Board
 2.
    
    If I disagree with any determination made under this Plan, including my
eligibility for severance benefits or the amount of my severance benefits, who
should I contact?




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E. General Information about the Plan.
 Books and Records
  Plan Year
  Limits of Liability; Indemnification
  Nonassignability




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Unfunded Plan
  No Right of Employment
  Section Headings
  Invalidity of Provisions
  Taxes and Withholding
   Governing Law