Document:

Leasehold Deed of Trust Security Agreement

 Exhibit 10.5 
 NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL 
 PERSON, YOU MAY REMOVE OR STRIKE ANY OF THE FOLLOWING

 INFORMATION FROM THIS INSTRUMENT BEFORE IT IS FILED FOR 
 RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY 
 NUMBER OR YOUR DRIVER’S LICENSE NUMBER. 

LEASEHOLD DEED OF TRUST 
 SECURITY AGREEMENT
- FINANCING STATEMENT 
  

							
	THE STATE OF TEXAS	  	§	  		  	
		  	§	  		  	
	COUNTY OF DALLAS	  	§	  		  	

 As of the 14th day of April, 2008, VCG Holding Corp. (hereinafter, whether one or more, jointly and
severally called “Grantor”), whose mailing address is 390 Union Boulevard, Suite 540, Lakewood. Colorado 80228, in consideration of the debt and trust hereinafter mentioned, does hereby GRANT, BARGAIN, SELL, TRANSFER, ASSIGN and CONVEY
unto Charles F. Baum, Trustee, the Grantor’s leasehold interest and building on the following described property (all of which is sometimes referred to collectively herein as the “Property”): 
 Part I: 
 See Exhibit “A” attached
hereto and made a part hereof. 
 (i) and all buildings and improvements now or hereafter situated thereon inclusive of all goods which are or
are to become fixtures, now or hereafter located in and about such improvements, including, without limitation, all heating, air conditioning, ventilating, plumbing, electrical fixtures and wiring, replacements thereof and additions thereto, all of
which Grantor represents and agrees are or will be a part of and affixed to said land; 
 Part II: 
 (ii) all personal property owned by Grantor located or to be located on the above described real property including, without limitations, all furniture,
furnishings, equipment, appliances and all other personal property of every kind and description except for the computer equipment and software; and 
 (iii) all proceeds of the above. 
 TO HAVE AND TO HOLD the Property, together with the rights, privileges, and appurtenances
thereto, unto the said Trustee, and to his substitutes or successors forever. And Grantor does hereby bind itself, and Grantor’s successors and assigns to warrant and forever defend the Property unto the said Trustee, his substitutes or
successors and assigns forever, against the claim or claims of all persons claiming or to claim the Property or any part thereof. 
  

	
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 This conveyance, however, is made in TRUST to secure payment of the indebtedness evidenced by that
certain promissory note (the “Note”) of even date herewith, incorporated herein by this reference, executed by Grantor and payable to the order of Bryan S. Foster. whose mailing address is 2696 Botticelli Drive. Henderson, NV 89052
(hereinafter called “Beneficiary”, which definition shall include any holder of the indebtedness) in the principal amount of Two Million Five Hundred Thousand and No/100 Dollars ($2,500,000.00), bearing interest as therein
specified, containing an attorneys fee clause, and with interest and principal being payable as therein specified. 
 If Grantor performs all
of the covenants and agreements herein contained, and if Grantor makes prompt payment of all indebtedness secured hereby as the same shall become due and payable, then this conveyance shall become null and void and of no further force and effect,
and this Deed of Trust shall be released, at the expense of Grantor, by the Beneficiary. 
 Grantor covenants and agrees as follows:

 1. Title. That it is lawfully seized of the Property, and has the right to convey the same, and that the Property is free
from all liens and encumbrances, except as provided in that certain Commitment for Title Insurance dated March 12, 2008 by United Title, File No. 0776 123229LM. 
 2. Taxes, Assessments. To protect the title and possession of the Property, and to pay when due all taxes and assessments now existing or hereafter levied or assessed upon the Property or levied or
assessed on the interest therein created by this Deed of Trust, and to deliver to Beneficiary on or before thirty (30) days prior to the date such taxes become delinquent, validated receipts evidencing payment of all such taxes, and to preserve
and maintain the lien hereby created as a first and prior lien, except as hereinafter provided, on the Property, including any improvements hereafter made a part of the realty. 
 3. Maintenance. To keep the improvements on the Property in good repair and condition, and not to permit or commit any waste thereof, and
to keep all buildings and other improvements occupied so as not to impair the insurance carried thereon. 
 4. Minerals. To
not, without the prior written consent of Beneficiary, permit any drilling or exploration for or extraction, removal or production of any mineral, natural element, compound or substance from the surface or subsurface of the Property regardless of
the depth thereof or the method of mining or extraction thereof and agree to defend, indemnify, save and hold Beneficiary, its officers, agents, servants, employees, successors and assigns harmless from any and all claims, liabilities, losses or
expenses which may be incurred by Beneficiary, and any and all other expenses or losses, either direct or consequential, which are attributable, or alleged in any way to be attributable, to the development and exploitation of mineral rights in, on
or around the Property by Grantor or any other party. 
  

	
	
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 5. Insurance. (a) To procure and maintain, and pay all premiums, fees and charges for
the purpose of procuring and maintaining continuously throughout the Term: (i) insurance on the improvements (including building and fixtures on the Premises) against loss or damage by fire or other casualty with endorsements providing what is
commonly known as all risk fire and extended coverage (but not including flood or earthquake coverage), vandalism and malicious mischief insurance, in an amount equal to the full replacement cost thereof; and (ii) general liability insurance
with a combined single limit of not less than One Million Dollars ($1,000,000.00) for any bodily injury or property damage, with a deductible that is consistent with Beneficiary’s insurance practices. Grantor may procure and maintain general
liability insurance. All property, casualty and other policies of insurance referred to in this Lease shall include the other party, as their interest may appear, as additional insureds, shall insure such party against liability arising out of the
other party’s negligence or, to the extent typically covered by a standard policy of commercial general liability insurance, the negligence of any other person, firm or corporation and contain a contractual liability endorsement for liabilities
assumed by the other party under this Lease. All policies procured hereunder shall be on standard policy forms issued by insurers of recognized responsibility, rated APlusXII or better by Best’s Insurance Rating Service, qualified to do
business in Texas. A certificate of such insurance shall be delivered to the other party prior to the Lease Commencement Date and thereafter not less than fifteen (15) days after the expiration thereof and shall provide that such policy may not
be cancelled or modified except upon not less than thirty (30) days written notice to the other. Any insurance required or permitted to be carried pursuant to this paragraph may be carried under a policy or policies covering other liabilities
and locations of Grantor or Beneficiary; provided, however, that such policy or policies shall apply to the property required to be insured as set forth above and, with respect to Beneficiary, in an amount not less than the amount of insurance
required to be carried by Beneficiary. 
 (b) In the event of loss covered by the Insurance, the proceeds shall first be used to restore the
Property, if the Grantor so elects, any such proceeds in excess of the restoration cost shall be applied to the Note. The funds shall be paid into an account controlled by the Trustee who shall pay out such funds as set forth in this Section 5.

 6. Performance by Beneficiary. That, in the event Grantor shall fail to keep the improvements on the Property hereby
conveyed in good repair and condition, or to pay promptly when due all taxes and assessments as aforesaid, or to preserve the prior lien of this Deed of Trust on the Property, or to keep the buildings and improvements insured as aforesaid, or to
deliver the policy or policies of insurance, or the renewal or renewals thereof, to Beneficiary as aforesaid, or to perform any other covenants of this Deed of Trust concerning the Property, then Beneficiary may, at its option, but without being
required to do so, make such repairs, pay such taxes and assessments, purchase any tax title thereon, remove any prior liens, and prosecute or defend any suits in relation to the preservation of the prior lien of this Deed of Trust on the Property,
or insure and keep insured the improvements thereon in an amount not to exceed that above stipulated; and any sums which may be so paid out by Beneficiary, and all sums paid for insurance premiums as aforesaid, including the costs, expenses and
attorneys fees paid in any suit affecting the Property, shall bear interest from the dates of such payments at the rate stated in the Note, and shall be paid 

  

	
	
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by Grantor to Beneficiary upon demand, at the same place at which the Note is payable, and shall be deemed a part of the debt hereby secured and recoverable
as such in all respects. 
 7. Default, Foreclosure. Upon the occurrence of any one or more of the following events
(individually a “Default” and collectively, “Defaults”): 
 (a) the failure of Grantor to pay any sum of
money in accordance with the Note or any part thereof; as it becomes due and payable, whether at the scheduled due date thereof or when accelerated pursuant to any power to accelerate, or otherwise; or 
 (b) the failure of Grantor to punctually and properly perform, observe or comply with any covenant, agreement, undertaking or condition contained herein,
or in the Note, or any renewal, modification, rearrangement, amendment or extension thereof; or in any documents evidencing, securing or executed in connection with the Note (the “Loan Documents”) (other than covenants to pay any sum of
money in accordance with the Note); or 
 (c) a default under and pursuant to any Ground Lease Agreement between Grantor and Beneficiary of
even date herewith which covers or affects any part of the Property; or 
 (d) the execution by Grantor of an assignment for the benefit of
creditors or the admission in writing by Grantor of Grantor’s inability to pay, or Grantor’s failure to pay, debts generally as the debts become due; or 
 (e) the levy against the Property or any part thereof; of any execution, attachment, sequestration or other writ which is not vacated within sixty (60) days after the levy; or 
 (f) the appointment of a receiver, trustee or custodian of Grantor, or of the Property or any part thereof; which receiver, trustee or custodian is not
discharged within sixty (60) days after the appointment; or 
 (g) the filing by Grantor as a debtor of a petition, case, proceeding or
other action pursuant to, or the voluntary seeking of the benefit or benefits of, Title 11 of the United States Code, as now or hereafter in effect, or any other law, domestic or foreign, as now or hereafter in effect relating to bankruptcy,
insolvency, liquidation, receivership, reorganization, arrangement, or composition or extension or adjustment of debts, or similar laws affecting the rights of creditors (Title 11 of the United States Code and such other laws being herein referred
to as “Debtor Relief Laws”), or the taking of any action in furtherance thereof; or 
 (h) the filing by Grantor of either a
petition, complaint, answer or other instrument which seeks to effect a suspension of; or which has the effect of suspending any of 

  

	
	
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the rights or powers of Beneficiary or Trustee granted in the Note, herein or in any Loan Document; or 
 (i) the filing of a petition, case, proceeding or other action against Grantor as a debtor under any Debtor Relief Law or seeking appointment of a
receiver, trustee, custodian or liquidator of Grantor or of the Property, or any part thereof; or of any significant portion of Grantors other property, and (i) Grantor admits, acquiesces in or fails to contest diligently the material
allegations thereof; or (ii) the petition, case, proceeding or other action results in the entry of an order for relief or order granting the relief sought against Grantor, or (iii) the petition, case, proceeding or other action is not
permanently dismissed or discharged on or before the earlier of trial thereon or thirty (30) days next following the date of filing; or 
 (j) abandonment by Grantor of all or any portion of the Property; or 
 (k) dissolution or liquidation of the Grantor or termination
or forfeiture of Grantor’s right to do business, or, if Grantor is an individual, the death of Grantor; or 
 (1) the failure of Grantor
to immediately pay any final money judgment against Grantor; or 
 (m) the occurrence of any event referred to in Subsections (d), (f), (g),
(h), (i). (k) and (l) above with respect to any guarantor or other person or entity obligated in any manner to pay or perform the Note or any part thereof (as if such guarantor or other person or entity were “Grantor” in such
Subsections), 
 Beneficiary may elect, after the giving of any required notice and expiration of any applicable cure period set forth in any of the Loan
Documents evidencing the Loan secured hereby, Grantor hereby expressly waiving any notice of intent to accelerate maturity of the indebtedness, protest and notice of protest, presentment and demand for payment, to declare the entire principal
indebtedness hereby secured, with all interest accrued thereon and all other sums hereby secured, immediately due and payable; and in the event of default in the payment of said indebtedness when due or declared due, it shall thereupon, or at any
time thereafter, be the duty of the Trustee, or his successor or substitute as hereinafter provided, at the request of Beneficiary (which request is hereby conclusively presumed), to enforce this trust; and after advertising the time, place and
terms of the sale of the above the Property then subject to the lien hereof; and after mailing and filing notices as required by Section 51.002, Texas Property Code, as then amended, and after otherwise complying with that statute, the Trustee
shall sell the Property then subject to the lien hereof; at public auction in accordance with such notices, on the first Tuesday in any month between the hours of ten o’clock A.M. and four o’clock P.M., to the highest bidder for cash;
selling all of the Property as an entirety or in such parcels as the Trustee acting may elect; and make due conveyance to the purchaser or purchasers, with general warranty binding Grantor, and Grantor’s successors and assigns; and out of the
money arising from such sale, the Trustee acting shall first pay all the expenses of advertising the sale and making the conveyance, including a reasonable commission to the Trustee, which commission shall be due and owing in addition to the
attorneys’ fees provided for in the Note, and 

  

	
	
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then pay to Beneficiary the full amount of principal, interest, attorney’s fees and other charges due and unpaid on the Note and all other indebtedness
secured hereby, and then rendering the balance of the sales price, if any, to Grantor, and Grantor’s successors or assigns; and the recitals in the conveyance to the Purchaser or Purchasers shall be full and conclusive evidence of the truth of
the matters therein stated, and all prerequisites to said sale shall be presumed to have been performed and such sale and conveyance shall be conclusive against Grantor, and Grantor’s successors and assigns. 
 8. Abandonment, Dismissal. It is agreed that, in the event a foreclosure hereunder is commenced by the Trustee, or his substitute or
successor, Beneficiary may, at any time before the sale of the Property direct the said Trustee to abandon the sale, and may then institute suit, for the collection of the Note and for the judicial foreclosure of this Deed of Trust lien. It is
further agreed that, if Beneficiary institutes a suit for the collection thereof and for a judicial foreclosure of this Deed of Trust lien, Beneficiary may at any time before the entry of a final judgment in said suit dismiss the same and require
the Trustee, his substitute or successor, to sell the Property in accordance with the provisions of this Deed of Trust. 
 9. Right to
Purchase. Beneficiary, if it is the highest bidder, shall have the right to purchase at any sale of the Property, and to have the amount for which such Property is sold credited on the debt then owing. 
 10. Substitute Trustee. Beneficiary in any event is hereby authorized to appoint a substitute trustee, or a successor trustee, to act
instead of the Trustee named herein, without other formality than the designation in writing of a substitute or successor trustee; and the authority hereby conferred shall extend to the appointment of other successor and substitute trustees
successively until the indebtedness hereby secured has been paid in full, or until the Property is sold hereunder; and each substitute and successor trustee shall succeed to all of the rights and powers of the original trustee named herein.

 11. Possession. In the event any sale is made of the Property, or any portion thereof, under the terms of this Deed of
Trust, Grantor, and Grantor’s successors and assigns, shall forthwith upon the making of such sale surrender and deliver possession of the Property so sold to the Purchaser at such sale, and, in the event of their failure to do so, they shall
thereupon from and after the making of such sale be and continue as Beneficiaries at will of such Purchaser; and in the event of their failure to surrender possession of the Property upon demand, the Purchaser, and Purchaser’s successors or
assigns, shall be entitled to institute and maintain an action for forcible detainer of the Property in the Justice of the Peace Court in the Justice Precinct in which such Property, or any part thereof, is situated. 
 12. Prior Liens. It is agreed that the lien hereby created shall take precedence over and be a prior lien to any other lien of any
character, whether vendor’s, materialmen’s or mechanic’s lien, hereafter created against the Property; and in the event the proceeds of the indebtedness secured hereby as set forth herein are used to pay off and satisi5’ any
liens heretofore existing on the Property, then Beneficiary is, and shall be, subrogated to all of the rights, liens and remedies of the holders of the indebtedness so paid. 
  

	
	
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 13. Assignment of Leases and Rents. 
 (a) Grantor hereby assigns to Beneficiary all existing and future leases, including, without limitation, all subleases thereof and any and all
extensions, renewals. modifications and replacements thereof, upon any part of the Property (collectively, the “Leases”) Grantor hereby further assigns to Beneficiary all guaranties of Beneficiaries’ performance under the
Leases. Prior to a Default, Grantor shall have the right, without joinder of Beneficiary, to enforce the Leases, unless Beneficiary directs otherwise. 
 (b) Grantor does hereby absolutely and unconditionally assign, transfer and set over to Beneficiary all rents, income, receipts, revenues, issues, profits and proceeds to be derived from the Property, including,
without limitation, the immediate and continuing right to collect and receive all of the rents, income, receipts, revenues, issues, profits and other sums of money that may now or at any time hereafter become due and payable to Grantor under the
terms of any leases now or hereafter covering the Property, or any part thereof, including, but not limited to, minimum rents, additional rents, percentage rents, deficiency rents and liquidated damages following a Default, all proceeds payable
under any policy of insurance covering the loss of rents resulting from untenantability caused by destruction or damage to the Property, and all of Grantor’s rights to recover monetary amounts from any Beneficiary in bankruptcy, including,
without limitation, rights of recovery for use and occupancy and damage claims arising out of lease defaults, including rejections, under the United States Bankruptcy Code or any other present or future federal or state insolvency, bankruptcy or
similar law, together with any sums of money that may now or at any time hereafter become due and payable to Grantor by virtue of any and all royalties, overriding royalties, bonuses, delay rentals and any other amount of any kind or character
arising under any and all present and future oil, gas and mining leases covering the Property or any part thereof (collectively, the “Rents”); and all proceeds and other amounts paid or owing to Grantor under or pursuant to any and
all contracts and bonds relating to the construction, erection or renovation of the Property; subject however to a license hereby granted by Beneficiary to Grantor to collect and receive all of the foregoing (such license evidenced by
Beneficiary’s acceptance of this Deed of Trust), subject to the terms and conditions hereof. Notwithstanding anything contained herein or in any of the other Loan Documents to the contrary, the assignment in this Paragraph is an absolute,
unconditional and presently effective assignment and not merely a security interest; provided, however, upon the occurrence of a Default hereunder or upon the occurrence of any event or circumstance which with the lapse of time or the giving of
notice or both would constitute a Default hereunder, such license shall automatically and immediately terminate and Grantor shall hold all Rents paid to Grantor thereafter in trust for the use and benefit of Beneficiary and Beneficiary shall have
the right, power and authority, whether or not it takes possession of the Property, to seek enforcement of any such lease, contract or bond and to demand, collect, receive, sue for and recover in its own name any and all of the above described
amounts assigned hereby and to apply the sum(s) collected, first to the payment of expenses incident to the collection of the same, and the balance to the payment of the Note; provided further, however, that Beneficiary shall not be deemed to have
taken possession of the Property except on the exercise of its option to do so, evidenced by its demand and overt act for such purpose. It shall not be necessary for Beneficiary to institute 

  

	
	
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any type of legal proceedings or take any other action whatsoever to enforce the assignment provisions in this Section 13. 
 14. Possible Extensions. It is agreed that an extension or extensions may be made of the time of payment of all, or any part, of the
indebtedness secured hereby, and that any part of the Property may he released from this lien without altering or affecting the priority of the lien created by this Deed of Trust in favor of any junior encumbrancer, mortgagee or purchaser, or any
person acquiring an interest in the Property, or any part thereof; it being the intention of the parties hereto to preserve this lien on the Property, and all improvements thereon and that may be hereafter constructed thereon, as first and superior
to any liens that may be placed thereon, or that may be fixed, given or imposed by law thereon, after the execution of this instrument, notwithstanding any such extension of the time of payment or the release of a portion of the Property from this
lien. 
 15. Application of Payments. In the event any portion of the indebtedness hereinabove described cannot be lawfully
secured by this Deed of Trust lien on the Property, it is agreed that the first payments made on said indebtedness shall be applied to the discharge of that portion of said indebtedness. 
 16. Condemnation. (a) If the Property is taken by any authorized entity by imminent domain or by private sale to a governmental
authority under the threat thereof or if part of the Property is taken so as to substantially interfere with the use thereof so as to amount to a total taking, then the Beneficiary shall have the right to the proceeds to the extent of any unpaid
balance under the Note. 
 (b) Apportionment of Partial Award. If there occurs a Partial Taking and the Grantor elects to
restore the Property, the Property shall be restored and Grantor shall be entitled to recover the costs and expenses incurred in such restoration out of any such award. Thereafter, any excess over the restoration costs shall be paid to the
Beneficiary and applied against the Note. The funds shall be paid into an account controlled by the Trustee who shall pay out said funds as set forth in this Section 16. 
 17. Controlling Agreement. Nothing herein, or in the Note, contained shall ever entitle Beneficiary, upon the arising of any contingency
whatsoever, to receive or collect interest in excess of the highest rate allowed by the laws of the State of Texas and/or the United States on the principal indebtedness hereby secured or on any money obligation hereunder, and in no event shall
Grantor be obligated to pay interest thereon in excess of such rate. 
 18. Fixtures and Security Agreement. It is understood
and agreed that by this instrument Grantor, in addition to fixing and creating a Deed of Trust lien upon and against the Property, inclusive of all goods which are or are to become fixtures thereon, have also created and granted to the Beneficiary
pursuant to the Uniform Commercial Code of Texas a security interest in said goods. It is understood and agreed that by this instrument Grantors, in addition to fixing and creating a Deed of Trust lien upon and against the real property herein
described, inclusive of all goods which are or are to become fixtures thereon, have also created and granted to Beneficiary, pursuant to the Uniform Commercial Code of Texas, a security interest in all property described 

  

	
	
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under Part II and in the event of foreclosure sale, whether made by the Trustee or Substitute Trustee, under the terms of this Deed of Trust, or under
judgment of a court. all property herein described under Part l as well as all property described under Part II hereof may, at the option of the Beneficiary, be sold as a whole and that it shall not be necessary to have present at the place of sale
the property or any part thereof. 
 19. Other Indebtedness. It is agreed that this Deed of Trust also secures Beneficiary in
the payment of (a) all indebtedness, obligations and liabilities arising pursuant to the provisions of this Deed of Trust, any other security agreement, mortgage, deed of trust, collateral assignment, pledge agreement, loan agreement, contract
or assignment of any kind, now or hereafter existing, as security for or in connection with payment of the Note or any part thereof and of any other document evidencing, securing or executed in connection with the Note; provided, however, that this
Deed of Trust shall not secure any indebtedness of Grantor to Beneficiary which under any circumstances is prohibited by the Texas Finance Code or any other law, and the parties hereby agree that Chapter 346 of the Texas Finance Code shall not apply
to this transaction. If default is made in the payment of any other indebtedness secured hereby, or if Grantor breaches any of the covenants contained in any lien securing such indebtedness, the indebtedness evidenced by the Note, at the option of
the holder thereof shall at once become due and payable. 
 20. Sale or Transfer. Upon sale or transfer of all or any part of
the Property, Beneficiary may, at its option, declare all of the sums secured by this instrument to be immediately due and payable, and Beneficiary may invoke any remedies provided in this instrument. Notwithstanding the foregoing, said option shall
not apply in case of: (a) sales or transfers when the transferee’s creditworthiness and management ability are satisfactory to Beneficiary, and the transferee has executed, prior to the sale or transfer, a written assumption agreement
containing the same terms as contained in the Loan Documents; (b) sales or transfers of items of Grantor’s personal property which have become obsolete or worn beyond practical use and which have been replaced by adequate substitutes
having a value equal to or greater than the replaced items when new. 
 21. Limitation on Interest. The parties hereto intend
to conform strictly to the applicable usury laws. All agreements between Grantor (and any other party liable for any part of the Note) and Beneficiary, whether now existing or hereafter arising and whether written or oral, are expressly limited so
that in no event whatsoever, whether by reason of acceleration of the maturity of the Note or otherwise, shall the interest contracted for, charged or received by Beneficiary hereunder or otherwise exceed the maximum amount permissible under
applicable law. If from any circumstances whatsoever interest would otherwise be payable to Beneficiary in excess of the maximum lawful amount, the interest payable to Beneficiary shall be reduced automatically to the maximum amount permitted under
applicable law. If Beneficiary shall ever receive anything of value deemed interest under applicable law which would apart from this provision be in excess of the maximum lawful amount, the amount which would have been excessive interest shall be
applied to the reduction of the principal amount owing on the Note in inverse order of maturity and not to the payment of interest, or if such amount which would have been excessive interest exceeds the unpaid principal balance of the Note, such
excess shall be refunded to Grantor, or to the maker of the Note or other evidence of indebtedness if other than Grantor. All interest paid or agreed to be 

  

	
	
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paid to Beneficiary shall, to the extent permitted by applicable law, be amortized, prorated, allocated and spread throughout the full stated term, including
any renewal or extension, of such indebtedness so that the amount of interest on account of such indebtedness does not exceed the maximum permitted by applicable law. The terms and provisions of this section shall control and supersede every other
provision of all existing and future agreements between Grantor, the maker of the Note or other evidence of indebtedness if other than Grantor, and Beneficiary 
 22. Binding Effect. The covenants herein contained shall bind, and the benefits and advantages shall inure to, the respective heirs, executors, administrators, personal representatives, successors, and
assigns of the parties hereto and shall be covenants running with the Property. The term “Grantor” shall include in their individual capacities and jointly all parties hereinabove named a Grantor. The duties, covenants, conditions,
obligations, and warranties of Grantor in this Deed of Trust shall be joint and several obligations of Grantor and, if more than one, of each party named a Grantor hereinabove, and each such party’s heirs, personal representatives, successors
and assigns. Each party who executes this Deed of Trust and each subsequent owner of the Property or any part thereof (other than Beneficiary), covenants and agrees that it will perform, or cause to be performed, each term, provision, covenant and
condition of this Deed of Trust. Words of any gender used in this Deed of Trust shall be held and construed to include any other gender and words in the singular number shall be held to include the plural, and vice versa, unless the context requires
otherwise. 
 23. Environmental Matters, Compliance with Laws. Grantor warrants and represents to Beneficiary that (a) the
occupancy, operation, and use of the Property shall not violate any applicable law, statute, ordinance, rule, regulation, order, or determination of any governmental authority or any board of fire underwriters (or other body exercising similar
functions), or any restrictive covenant or deed restriction (of record or otherwise) affecting the Property, including, without limitation, applicable zoning ordinances and building codes, the Americans with Disabilities Act of 1990, flood disaster
laws and health and environmental laws and regulations (hereinafter sometimes collectively called the “Applicable Regulations”) (b) neither Grantor nor any lessee of space from Grantor in the Property shall obtain or be required to
obtain any permits, licenses, or similar authorizations to occupy, operate, or use any buildings, improvements, fixtures, and equipment forming a part of the Property as intended by Grantor to be used and operated by reason of any Applicable
Regulations pertaining to health or the environment (hereinafter sometimes collectively called “Applicable Environmental Laws”), including, without limitation, the Comprehensive Environmental Response, Compensation, and Liability Act of
1980 (“CERCLA”) and the Resource Conservation and Recovery Act of 1976 (“RCRA”), as each is amended from time to time; and (c) the use that Grantor intends to make, or intends to allow, of the Property will not result in the
disposal of or release of any hazardous substance or solid waste onto or into the Property, or any part thereof. The terms (as used in this Deed of Trust) “hazardous substance” and “release” have the meanings specified in CERCLA,
and the terms “solid waste” and “disposal” (or “disposed”) have the meanings specified in RCRA. If either CERCLA or RCRA is amended to broaden the meaning of any term defined thereby, the broader meaning shall apply to
this provision after the effective date of the amendment. Moreover, to the extent that Texas law establishes a meaning for “hazardous substance”, “release”, “solid waste”, or “disposal” that is broader than
that specified in either CERCLA or RCRA, the broader meaning shall apply. 
  

	
	
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 Beneficiary (through its officers, employees and agents) at any reasonable time and from time to time,
either prior to or after default in this Deed of Trust or under the Note, may employ persons (the ‘Site Reviewers”) to conduct environmental site assessments (“Site Assessments”) on the Property to determine whether or not
there exists on the Property any environmental condition which might result in any liability, cost or expense to the owner, occupier or operator of the Property arising under the Applicable Environmental Laws. The Site Assessments may be performed
at any time or times, upon reasonable notice, and under reasonable conditions established by Beneficiary (so as not to unreasonably interfere with the operation of the Property). The Site Reviewers are authorized at their own risk to enter upon the
Property and to perform above and below-the-ground testing (including, without limitation, taking of core samples) to determine environmental damage or presence of any hazardous substance or solid waste in, on or under the Property and such other
tests as may be necessary or desirable, in the opinion of the Site Reviewers, to conduct Site Assessments. Grantor will supply to the Site Reviewers such historical and operational information available to Grantor regarding the Property as may be
requested by the Site Reviewers to facilitate the Site Assessments and will make available for meetings with the Site Reviewers appropriate personnel having knowledge of such matters. 
 Grantor shall indemnify, defend (with counsel selected by Beneficiary) and hold Beneficiary harmless from and against, and reimburse Beneficiary with
respect to, any and all claims, demands, causes of action, loss, damage, liabilities, costs, and expenses (including attorney’s fees and court costs) of every kind or character, known or unknown, fixed or contingent, asserted against or
incurred by Beneficiary at any time and firm time to time by reason of or arising out of any violation of an Applicable Environmental Law and all matters arising out of acts, omissions, events, or circumstances relating to the Property (including,
without limitation, the presence on the Property or release from or to the Property of hazardous substances or solid wastes disposed of or otherwise released and Grantor’s breach of any of its covenants, representations or indemnities under
this provision), regardless of whether the act, omission, event, or circumstance constituted a violation of any Applicable Environmental Law at the time of the existence or occurrence. 
 24. Waiver of Deficiency Statute. (a) In the event an interest in any of the Property is foreclosed upon pursuant to a judicial or
nonjudicial foreclosure sale, Grantor agrees as follows. Notwithstanding the provisions of Section 51.003, 51.004 and 51.005 of the Texas Property Code (as the same may be amended from time to time), and to the extent permitted by law, Grantor
agrees that Beneficiary shall be entitled to seek a deficiency judgment from Grantor and any other party obligated on the Note equal to the difference between the amount owing on the Note and the amount for which the Property was sold pursuant to
judicial or noniudicial foreclosure sale. Grantor expressly recognizes that this section constitutes a waiver of the above-cited provisions of the Texas Property Code which would otherwise permit Grantor and other persons against whom recovery of
deficiencies is sought or any guarantor independently (even absent the initiation of deficiency proceedings against them) to present competent evidence of the fair market value of the Property as of the date of the foreclosure sale and offset
against any deficiency the amount by which the foreclosure sale price is determined to be less than such fair market value. Grantor further recognizes and agrees that this waiver creates an irrebuttable presumption that the foreclosure sale 

  

	
	
	/s/ MO

 11 

 
price is equal to the fair market value of the Property for purposes of calculating deficiencies owed by Grantor, any guarantor, and others against whom
recovery of a deficiency is sought. 
 (b) Alternatively, in the event the waiver provided for in subsection (a) above is determined by
a court of competent jurisdiction to be unenforceable, the following shall be the basis for the finder of fact’s determination of the fair market value of the Property as of the date of the foreclosure sale in proceedings governed by Sections
51.003, 51.004 and 51.005 of the Texas Property Code (as amended from time to time): (i) the Property shall be valued in an “as is” condition as of the date of the foreclosure sale, without any assumption or expectation that the
Property will be repaired or improved in any manner before a resale of the Property after foreclosure; (ii) the valuation shall be based upon an assumption that the foreclosure purchaser desires a resale of the Property for cash promptly (but
no later than twelve (12) months) following the foreclosure sale; (iii) all reasonable closing costs customarily borne by the seller in commercial real estate transactions should be deducted from the gross fair market value of the
Property, including, without limitation, brokerage commissions, title insurance, a survey of the Property, tax prorations, attorneys’ fees, and marketing costs; (iv) the gross fair market value of the Property shall be further discounted
to account for any estimated holding costs associated with maintaining the Property pending sale, including, without limitation, utilities expenses, property management fees, taxes and assessments (to the extent not accounted for in
(iii) above), and other maintenance, operational and ownership expenses; and (v) any expert opinion testimony given or considered in connection with a determination of the fair market a1ue of the Property must be given by persons having at
lease five (5) years experience in appraising property similar to the Property and who have conducted and prepared a complete written appraisal of the Property taking into consideration the factors set forth above. 
 25. Manana Entertainment, Inc., a Texas corporation d/b/a Jaguar’s Gold Club Dallas, joins herein to evidence its agreement to guarantee the payment
and performance of all of the obligations secured hereby. 
 EXECUTED as of the date first above written. 
  

			
	GRANTOR:
	
	VCG HOLDNG CORP.
		
	By:	 	/s/ Micheal L. Ocello
	Printed Name: Micheal L. Ocello
	Title:	 	President

  

 12 

			
	MANANA ENTERTAINMENT, INC.
		
	By:	 	/s/ Micheal L. Ocello
	Printed Name: Micheal L. Ocello
	Title:	 	Vice President

  

 13 

							
	THE STATE OF TEXAS	  	§	  		  	
		  	§	  		  	
	COUNTY OF DALLAS	  	§	  		  	

 This instrument was acknowledged before me on the
11th day of April, 2008, by Micheal Ocello, President of VCG Holding Corp., a Colorado corporation, on behalf of said corporation. 

	
	
	/s/ Jedonna Adams
	Notary Public in and for the State of Texas

  

							
	THE STATE OF TEXAS	  	§	  		  	
		  	§	  	 (NOTARY STAMP: JEDONNA ADAMS, NOTARY
 PUBLIC, STATE OF TEXAS, MY COMMISSION
 EXPIRES JULY 12, 2008)

	COUNTY OF DALLAS	  	§	  		  	

 This instruments was acknowledged before me
on the 11th day of April 2008, by Micheal L. Ocello, Vice President of Manana Entertainment, Inc., a Texas Corporation, on behalf of said
corporation. 
  

	
	
	/s/ Jedonna Adams
	Notary Public in and for the State of Texas

  

							
		  		  	 (NOTARY STAMP: JEDONNA ADAMS, NOTARY
 PUBLIC, STATE OF TEXAS, MY COMMISSION
 EXPIRES JULY 12, 2008)

 PREPARED IN THE LAW OFFICE OF: 
 Charles F. Baum 
 Quillirig, Selander, Cummiskey & Lownds, P.C. 
 2001 Bryan Street, Suite 1800 
 Dallas, TX 75201 
 When Recorded, R 
 When Recorded, Return To: 
 Charles F. Baum 
 Quihing, Selander,Cummiskey& Lownds,P.C. 
 2001 Bryan Street, Suite 1800 
 Dallas, TX 75201 
  

 14 

 EXHIBIT A — Part I 
 TRACT I 
 Being Lot 5, Block D/6508, of C.W.F. ADDITION, an addition to the City of Dallas, Dallas County, Texas according
to the Amended Plat thereof recorded in County Clerk File No. 200600205073, of the Map Records of Dallas County, Texas. 
 TRACT II: 
 BEING a tract of land situated, in the J.L. Hunt Survey. Abstract No. 588, and being a portion of a tract of land described in a deed to Second Century Investments,
as recorded in Volume 2000245, Page 2769, of the Deed Records of Dallas County, Texas (DRDCT) and being more particularly described as follows: 
 COMMENCING
from a point in the north right-of-way line of Manana Drive, (60 feet right-of-way), said point being in the southwest corner of said Second Century Investments tract, and being in the southeast corner of a tract of land conveyed to Miriam L.
Barnett, by deed, as recorded in Volume 84243, Page 1759, of the Deed Records of Dallas County, Texas; 
 THENCE, along said north right-of-way line of
Manana Drive, (60 feet right-of-way) North 89 deg. 22’51” East, a distance of 199.81 feet, to a 1/2 inch iron rod set for corner and POINT OF BEGINNING; 
 THENCE, departing said north right of way of Manana Drive, (60 feet right-of-way), North 00 deg. 16’28” West, a distance of 498.72 feet to a 1/2 inch iron rod set for corner in the north line of said Second Century Investments
tract; 
 THENCE, along said north line of Second Century Investments tract, North 89 deg. 43’32” East, a distance of 165.00 feet to a 1/2 inch
iron rod set for corner; 
 THENCE, South 00 deg. 16’28” East, a distance of 497.73 feet to a 1/2 inch rod set for corner in said north
right-of-way line of Manana Drive, (60 feet right-of-way); 
 THENCE, along said north right-of-way line of Manana Drive, (60 feet right-of-way), South 89
deg. 22’51” West, distance of 165.00 feet to the POINT OF BEGINNING; containing within these metes and bounds 1.887 Acres or 82,206 Square Feet of land more or less. 
 NOTE: The Company is prohibited from insuring the area or quantity of the land described herein. Any statement in the legal description contained in Schedule “A” as to area or quantity of land is not a
representation that such area or quantity is correct, but is made only for informal identification purposes and does not override Item 2 of Schedule “B” hereof. 
  

	
	
	/s/ MO

 15 

 SAVE AND EXCEPT 
 Being a
1.34 acre tract of land situated in the J.L. Hunt SURVEY, ABSTRACT NO. 588, being a portion of that certain tract of land conveyed to Curtis Wise Finance, L.P. by deed as recorded in Volume 2003051, Page 9284, Deed Records, Dallas County, Texas and
being more particularly described by metes and bounds as follows: 
 COMMENCING at an “X” cut in concrete set for corner, said point being in the
southeast corner of Lot 5, Block D/6508, C.W.F. Addition, and addition to the City of Dallas, according to the plat thereof recorded in Instrument No 200600205073, Official Public, Records, Dallas County, Texas, same point being the southwest corner
of said Curtis Wise Finance, L.P. tract, said point also being in the northerly right-of-way line of Manana Drive (a 60.0’ Right-of-Way); 
 THENCE North 00 degrees 16 minutes 28 seconds West, along the common line of said Curtis Wise Finance, L.P. tract,
and said Lot 5, Block D/6508, a distance of 145.00 feet to a  1/2 inch iron rod set for the POINT OF BEGINNING;

 THENCE North 00 degrees 16 minutes 28 seconds West, continuing along the common line of said Curtis Wise Finance, LP. tract, and said Lot 5, Block
D/6508, a distance of 353.72 feet to a 3” aluminum disk stamped “R.P.L.S No 3047” set for corner, said point being the northwest corner of said Curtis Wise Finance, L.P. tract, same being the northeast corner of said Lot 5, Block
D/6508, same point being in the southerly line of a tract of land conveyed to the City of Dallas by deed as recorded in Volume 2004224, Page 12443, Deed Records, Dallas County, Texas; 
 THENCE North 89 degrees 43 minutes 32 seconds East, along the common line of said Curtis Wise Finance, L.P. tract and said City of Dallas tract, a distance of 165.00 feet to a Rail Road Spike found for corner, said
point being the northeast corner of said Curtis Wise Finance, L.P. tract, same point being the northwest corner of Lot 4, Block D/6508, C.MG. Addition, an addition to the City of Dallas, according to the plat thereof recorded in Volume 2004028, Page
00141, Map Records, Dallas County, Texas; 
 THENCE South 00 degrees 16 minutes 28 seconds East, along
the common line of said Curtis Wise Finance, L.P. tract, and said Lot 4, Block D/6508, a distance of 352.73 feet to a  1/2 inch
iron rod set for corner; 
 THENCE South 89 degrees 22 minutes 51 seconds West, through the interior of said Curtis Wise Finance, L.P. tract, a
distance of 165.00 feet to the POINT of BEGINNING and containing 58,28l square feet or 1.34 acres of computed land. 
  

	
	
	/s/ MO

 16 

 EXHIBIT A — Part II 
  

	a	One hundred (100%) percent of the common stock of Manana Entertainment, Inc. 

  

	b.	All asset of Manana Entertainment, Inc., including but not limited to, the following: 

  

	 	(i)	inventory; 

  

	 	(ii)	all machinery, equipment, furniture, fixtures and furnishings; 

  

	 	(ii)	all operating agreements, licenses and permits, including but not limited to the License issued by the City of Dallas pursuant to Dallas City Code, Section 4lA-4, and including
sewer and utility permits in connection therewith; 

  

	c.	an assignment of Debtor’s and the Business’ interest in and to that certain Ground Lease Agreement between VCG Holding Company (sic) Corp. and Bryan S. Foster dated
October 26, 2007, for the premises commonly known as 2151 Manana Drive, Dallas, Texas; 

  

	d.	All of Debtors’ interest in the Building and improvements on the premises which is the subject of the Ground Lease Agreement in (c) above. 

  

	
	
	/s/ MO

 17Form of Separation Agreement between Loews Corporation and Lorillard, Inc.

 Exhibit 10.1 
 FORM OF 
 SEPARATION AGREEMENT 
 by and among 
 LOEWS CORPORATION, 
 LORILLARD, INC., 
 LORILLARD TOBACCO COMPANY, 
 LORILLARD LICENSING COMPANY, LLC, 
 ONE PARK
MEDIA SERVICES, INC. 
 and 
 PLISA S.A. 
 Dated as of
                    , 2008. 

 TABLE OF CONTENTS 
  

					
	 	  	Page
	ARTICLE I
	
	DEFINITIONS
			
	 Section 1.1
	  	Certain Definitions	  	2
	 Section 1.2
	  	Other Definitions	  	7
			
		  	ARTICLE II	  	
			
		  	ALLOCATION OF COSTS AND EXPENSES	  	
			
	 Section 2.1
	  	Allocation of Costs and Expenses	  	8
	
	ARTICLE III
	
	RELEASE AND INDEMNIFICATION
			
	 Section 3.1
	  	Release of Pre-Separation Claims	  	10
	 Section 3.2
	  	General Cross Indemnification	  	11
	 Section 3.3
	  	Registration Statement Indemnification	  	13
	 Section 3.4
	  	Notice and Defense of Claims	  	14
	 Section 3.5
	  	Contribution	  	16
	 Section 3.6
	  	Subrogation	  	17
	 Section 3.7
	  	Other Matters	  	17
	 Section 3.8
	  	Covenant to Remove Indemnified Party	  	18
	 Section 3.9
	  	Tax Matters	  	18
	
	ARTICLE IV
	
	TAX RELATED PROVISIONS
			
	 Section 4.1
	  	Non-Taxable Transaction	  	18
	 Section 4.2
	  	Tax Returns and Tax Payments	  	18
	 Section 4.3
	  	Representations and Covenants	  	23
	 Section 4.4
	  	Indemnity Obligations and Payments	  	26
	 Section 4.5
	  	Tax Contests	  	27
	 Section 4.6
	  	Cooperation; Retention of Records; Access; Confidentiality	  	29
	 Section 4.7
	  	Further Assurances	  	30
	 Section 4.8
	  	Dispute Resolution	  	30

  

 i 

					
	
	ARTICLE V
	
	 CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER, DISPOSITION AND
 DIVESTITURE

			
	Section 5.1	  	Consolidation, Merger, Conveyance, Transfer, Disposition and Divestiture	  	30
	
	ARTICLE VI
	
	DISPUTE RESOLUTION
			
	Section 6.1	  	Negotiation	  	31
	Section 6.2	  	Arbitration	  	32
	Section 6.3	  	Costs and Expenses	  	33
	Section 6.4	  	Confidentiality of Arbitration Proceedings	  	33
	Section 6.5	  	Tax Matters	  	33
	
	ARTICLE VII
	
	OTHER PROVISIONS
			
	Section 7.1	  	Treatment of Carolina Group 2002 Stock Option Plan	  	34
	Section 7.2	  	Provision of Information	  	34
	Section 7.3	  	Binding Effect	  	34
	Section 7.4	  	No Assignment	  	34
	Section 7.5	  	No Third Party Beneficiaries	  	35
	Section 7.6	  	Notices	  	35
	Section 7.7	  	Governing Law	  	35
	Section 7.8	  	Counterparts	  	35
	Section 7.9	  	Severability	  	36
	Section 7.10	  	Amendment, Modification and Termination	  	36
	Section 7.11	  	Entire Agreement	  	36
	Section 7.12	  	No Circumvention	  	36
	Section 7.13	  	Descriptive Headings	  	36
	Section 7.14	  	Drafting of Language	  	36

  

 ii 

 FORM OF SEPARATION AGREEMENT 
 SEPARATION AGREEMENT, dated as of
                    , 2008, by and among LOEWS CORPORATION, a Delaware corporation (“Loews”), LORILLARD, INC., a Delaware
corporation (“Lorillard”), LORILLARD TOBACCO COMPANY, a Delaware corporation, LORILLARD LICENSING COMPANY, LLC, a North Carolina limited liability company, ONE PARK MEDIA SERVICES, INC., a Delaware corporation, and PLISA S.A., a
Swiss société anonyme. 
 WHEREAS, Loews is and will remain the owner of all of the issued and outstanding shares of common
stock of Lorillard until the Effective Date (as defined below); and 
 WHEREAS, in accordance with its certificate of incorporation and
applicable law, the Board of Directors of Loews has determined to distribute Loews’s entire ownership interest in Lorillard to the holders of Loews’s Carolina Group stock (“CG Stock”) and Loews common stock in several
integrated transactions by which Lorillard will become a separate public company; and 
 WHEREAS, Loews and Lorillard acknowledge and agree
that the Separation will benefit both Loews and the Lorillard Group as more fully described in the Registration Statement; and 
 WHEREAS,
Loews and Lorillard acknowledge and agree that Lorillard has always operated as an independent subsidiary of Loews, although from time to time plaintiffs have named Loews as a defendant in Actions allegedly arising out of the business and activities
of Lorillard and other members of the Lorillard Group, and may do so in the future; and 
 WHEREAS, each member of the Lorillard Group
acknowledges that Loews is not a proper party in any Action of the type referred to in the preceding clause, and is not responsible for any costs or damages which may arise from any such Action and, accordingly, it would be appropriate to indemnify
the Loews Group in respect thereof; and 
 WHEREAS, Loews acknowledges that Lorillard, as an independent company, would not be a proper party
to any Action based on the actions of Loews, and, accordingly, it would be appropriate to indemnify the Lorillard Group in respect thereof. 

 NOW, THEREFORE, in contemplation of Lorillard ceasing to be wholly-owned by Loews and for good and
valuable consideration, the receipt and adequacy of which are acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows: 
 ARTICLE I 
 DEFINITIONS 
 Section 1.1 Certain Definitions. In addition to the terms defined elsewhere in this Agreement, the following terms have the following meanings: 
 “Action” means any claim, action, cause of action, suit, proceeding, demand or investigation, whether civil, criminal, administrative, investigative or other. 
 “Agreement” and “hereof” and “herein” means this Separation Agreement, including all amendments,
modifications and supplements and any exhibits or schedules to any of the foregoing, and refers to the Agreement as the same may be in effect at the time such reference becomes operative. 
 “Business Day” means each Monday, Tuesday, Wednesday, Thursday and Friday which is not a day on which banking institutions in New York
City are authorized or obligated by law or executive order to close. 
 “Carryback Item” means any net operating loss, net
capital loss, excess tax credit or other similar Tax item which may or must be carried from one taxable period to another taxable period under the Code or other applicable Tax law. 
 “Code” means the Internal Revenue Code of 1986, as amended. 
 “Contingent Dividend” shall have the meaning ascribed to such term in the Registration Statement. 
 “Deconsolidation Date” means the date of the Deconsolidation Event. 
 “Deconsolidation Event” means any event or transaction occurring on or after the Effective Date, including the Separation or any
component thereof, that causes Lorillard to no longer be eligible to be included in the Loews Consolidated Group for Federal Income Tax purposes. 
 “Effective Date” shall mean the closing date of the Redemption. 
 “Exchange Act” means the
Securities Exchange Act of 1934. 
  

 2 

 “Exchange Offer” shall have the meaning ascribed to such term in the Registration
Statement. 
 “Federal Income Tax” means any Tax imposed under Subtitle A of the Code and any related interest and any
penalties, additions to such Tax, or additional amounts imposed with respect thereto. 
 “Filings” means annual audited
financial statements, annual reports to stockholders, annual, quarterly and current reports issued or filed pursuant to or under the Exchange Act and any registration statements, prospectuses and other filings made with the SEC prior to, on or after
the Effective Date, other than the Registration Statement. 
 “Final Determination” means a determination within the meaning
of Section 1313(a) of the Code or any similar provision of state or local Tax law. 
 “Governmental Entity” means any
federal, national, state, provincial, local, foreign, international or other court, government, department, commission, board, bureau or agency, authority (including, but not limited to, any central bank or taxing authority) or instrumentality
(including, but not limited to, any court, tribunal or grand jury). 
 “Group” means either the Loews Group or the Lorillard
Group, as applicable. 
 “IRS” means the Internal Revenue Service. 
 “Keepwell” means any guaranty, keepwell, net worth or financial condition maintenance agreement of or by any member of the Loews Group
provided to any Person with respect to any actual or contingent obligation of any member of the Lorillard Group. 
 “Liabilities” means any and all debts, liabilities, costs, expenses and obligations, whether accrued or fixed, absolute or contingent, matured or unmatured, reserved or unreserved, known or unknown, or determined or
determinable, including those arising under any law, claim, demand or Action (whether asserted or unasserted), or order, writ, judgment, injunction, decree, stipulation, determination or award entered by or with any governmental entity, and those
arising under any contract, in tort or otherwise, or any fines, damages or equitable relief which may be imposed, and including all costs and expenses related thereto. 
 “Loews Consolidated Group” means an affiliated group of corporations within the meaning of Section 1504(a) of the Code, of which Loews is the common parent corporation, that has filed
consolidated Federal Income Tax Returns. 
  

 3 

 “Loews Group” means, collectively, Loews and all of its direct and indirect Subsidiaries
now or hereafter existing and their respective successors, other than members of the Lorillard Group. 
 “Lorillard Group”
means, collectively, Lorillard, Lorillard Tobacco Company, Lorillard Licensing Company, LLC, One Park Media Services, Inc., Plisa S.A., all of Lorillard’s other direct and indirect Subsidiaries now or hereafter existing and each of their
respective predecessors and successors. 
 “Losses” means with respect to any Person, all losses, damages (whether
compensatory, punitive, consequential, multiple or other), judgments, settlements, assessments, equitable or injunctive relief or disgorgements, Taxes and, to the extent incurred, other Liabilities, including all punitive damages and criminal and
civil fines and penalties suffered by such Person, and including all costs, expenses and interest relating thereto (including, but not limited to, all expenses of investigation and preparation for defense, all accountant or attorneys’ fees and
all other out-of-pocket expenses incurred), regardless of whether any such Losses relate to or arise out of such Person’s own alleged or actual negligent or grossly negligent conduct, reckless conduct or intentional misconduct. 
 “Person” means any individual, corporation, partnership, joint venture, limited liability company, association or other entity and any
trust, unincorporated organization or government or any agency or political subdivision thereof or any other Governmental Entity. 
 “Post-Deconsolidation Period” means any taxable year or other taxable period beginning after the Deconsolidation Date and, in the case of any taxable year or other taxable period that begins on or before and ends after the
Deconsolidation Date, that part of the taxable year or other taxable period that begins after the Deconsolidation Date. 
 “Pre-Deconsolidation Period” means any taxable year or other taxable period that ends on or before the Deconsolidation Date and, in the case of any taxable year or other taxable period that begins on or before and ends
after the Deconsolidation Date, that part of the taxable year or other taxable period that ends on the Deconsolidation Date. 
 “Prime Rate” means the rate of interest per annum published in The Wall Street Journal as the Prime Rate, as in effect from time to time. 
 “Proposed Acquisition Transaction” means a transaction or series of related transactions (or any agreement, understanding, arrangement or substantial negotiations, within the meaning of
Section 355(e) of the Code and Regulations, to enter into a transaction or series of related transactions), as a result of which (i) Lorillard would merge or consolidate with any other Person or (ii) any Person or group of Persons
would (directly or indirectly) acquire, or have 

  

 4 

 
the right to acquire (through an option or otherwise) from Lorillard and/or one or more of its stockholders, respectively, any amount of stock of Lorillard,
that would, when combined with any other changes in ownership of the stock of Lorillard pertinent for purposes of Section 355(e) of the Code and Regulations, comprise more than 35% of the total combined voting power or total value of all
outstanding stock of Lorillard as of the date of such transaction or, in the case of a series of transactions, the date of the last transaction of such series. In determining whether a transaction constitutes an indirect acquisition for purposes of
the preceding sentence, any recapitalization resulting in a shift of voting power or any redemption of shares of stock (including any redemption of Lorillard equity pursuant to the exception in Section 4.3(b)(iii)) shall be treated as an
indirect acquisition of stock by the non-exchanging stockholders. This definition and the application thereof is intended to monitor compliance with Section 355(e) of the Code and Regulations and shall be interpreted accordingly by Loews, in
its sole and absolute discretion, which discretion shall be exercised in good faith. 
 “Prospectus” means, collectively,
the prospectuses included in the Registration Statement, and in the form filed with the SEC pursuant to Rule 424 under the Securities Act, as amended or supplemented by any prospectus supplement and by all other amendments and supplements to such
prospectuses, including post-effective amendments and all material incorporated by reference in such prospectuses. 
 “Redemption” shall have the meaning ascribed to such term in the Registration Statement. 
 “Registration
Statement” means the registration statement on Form S-4 of Lorillard (No. 333-149051) filed with the SEC under the Securities Act, including the Prospectus relating thereto, amendments and supplements to such Registration Statement,
including post-effective amendments, all exhibits and all materials incorporated by reference in such Registration Statement and Prospectus. 
 “Regulations” means the regulations promulgated from time to time under the Code as in effect for the relevant taxable year or other taxable period. 
 “Regulation S-K” means Regulation S-K of the General Rules and Regulations under the Securities Act. 
 “Regulation S-X” means Regulation S-X of the General Rules and Regulations under the Securities Act. 
 “Ruling Request” means the request for rulings submitted by Loews to the IRS dated December 19, 2007, including the exhibits
attached thereto, and all related supplements. 
  

 5 

 “SEC” means the Securities and Exchange Commission. 
 “Securities Act” means the Securities Act of 1933. 
 “Separation” has the meaning set forth in the Registration Statement. 
 “Separation
Date” shall mean the latest of (i) the Effective Date, (ii) the day of the closing of the Exchange Offer, or (iii) the day of the distribution of the Contingent Dividend. 
 “Separation Tax Liability” shall mean (i) any Taxes imposed on, increase in Taxes incurred by, or reduction of a Tax Asset of any
member of the Loews Group, pursuant to a Final Determination resulting from, or arising in connection with, the failure of the Separation to qualify as tax-free under Section 355 of the Code (including, without limitation, any Tax resulting
from the application of Section 355(d) or Section 355(e) of the Code to the Separation) or any corresponding provisions of any successor statute and any similar provision of state or local Tax law, and (ii) any and all Losses of any
member of the Loews Group resulting from, based upon, arising out of or otherwise in respect of the failure of the Separation to qualify as tax-free under the Code (or any similar provision of state or local Tax law). 
 “Subsidiary” means with respect to any Person (i) a corporation, 50% or more of the voting or capital stock of which is, as of the
time in question, directly or indirectly owned by such Person, (ii) any partnership, joint venture, association, limited liability company, joint stock company, trust, unincorporated organization or other entity in which such Person, directly
or indirectly, owns 50% or more of the equity thereof or economic interest therein or has the power to elect or direct the election of 50% or more of the members of the governing body of such entity or otherwise has control (including shared
control) over such entity (e.g., as a general partner of a partnership or a managing member of a limited liability company), or (iii) any other Person which would be considered a subsidiary of such Person within the meaning of Regulation
S-K or Regulation S-X. 
 “Tax” or “Taxes” means all taxes, charges, fees, duties, levies, imposts, rates
or other assessments or governmental charges of any kind imposed by any Governmental Entity, including, without limitation, income, gross receipts, employment, excise, severance, stamp, occupation, premium, windfall profits, environmental,
estimated, custom duties, property, sales, use, license, capital stock, transfer, franchise, registration, payroll, withholding, social security, unemployment, disability, value added, alternative or add-on minimum or other taxes, and including any
interest, penalties, charges or additions attributable thereto. 
 “Tax Asset” means any Tax item of loss, deduction or
credit, or other attribute that has not been used during a taxable period and that could reduce a Tax in another taxable period, including a net operating loss, net capital loss, unused investment tax credit, unused foreign tax credit, research and
experimentation credit, excess charitable deduction, credit related to alternative minimum tax, or any other unused Tax credit. 
  

 6 

 “Tax Certificate” means the officer’s certificate of Loews, dated as of , 2008,
provided to Skadden, Arps, Slate, Meagher & Flom LLP (“Skadden”) in connection with the Tax Opinion. 
 “Tax Contest” means an audit (including the Compliance Assurance Process), claim, dispute, suit, action, proposed assessment, review, examination, or other administrative or judicial proceeding with the purpose or effect of
redetermining Taxes (including any administrative or judicial review of any claim for refund). 
 “Tax Opinion” means the
written opinion to be delivered by Skadden to Loews in connection with the Separation to the effect that the Separation will qualify as tax-free under Section 355 of the Code to Loews and Loews’s stockholders (except with respect to cash
received by Loews’s stockholders in lieu of fractional shares of Lorillard common stock). 
 “Tax Return” means any
return, report, certificate, form or similar statement or document (including any related supporting information or schedule attached thereto and any information return, amended tax return, claim for refund or declaration of estimated tax) required
to be supplied to, or filed with, a Governmental Entity, or any bill for or notice related to ad valorem or other similar Taxes received from a Governmental Entity, in each case, in connection with the determination, assessment or collection of any
Tax or the administration of any laws, regulations or administrative requirements relating to any Tax. 
 “Third Party
Claim” means any Action made against any member of either the Loews Group or the Lorillard Group by any Person that is not a member of either Group. 
 Section 1.2 Other Definitions. 
  

			
	 Term
	  	 Defined in Section

	 “AAA”
	  	6.2
	 “Agreement Disputes”
	  	6.1
	 “CFO”
	  	4.8
	 “CG Option”
	  	7.1
	 “CG SAR”
	  	7.1
	 “CG Stock”
	  	Preamble
	 “Dispute Notice”
	  	6.1
	 “Indemnified Party”
	  	3.4(a)
	 “Indemnifying Party”
	  	3.4(a)
	 “Loews”
	  	Preamble
	 “Loews Filed Tax Return”
	  	4.2(a)(i)
	 “Loews Taxes”
	  	4.2(c)(i)

  

 7 

			
	 “Lorillard”
	  	Preamble
	 “Lorillard Filed Tax Return”
	  	4.2(a)(ii)
	 “Lorillard Taxes”
	  	4.2(c)(ii)
	 “Prohibited Acts”
	  	4.3(b)(viii)
	 “Repayment Amount”
	  	4.2(b)(iii)
	 “Rules”
	  	6.2
	 “Ruling”
	  	4.3(a)(i)
	 “Tax Advisor”
	  	4.8
	 “Tax Benefit”
	  	4.2(b)(iii)
	 “Tax Dispute”
	  	4.8
	 “Tax Materials”
	  	4.3(a)(i)
	 “Tax Records”
	  	4.6(c)

 ARTICLE II 
 ALLOCATION OF COSTS AND EXPENSES 
 Section 2.1 Allocation of Costs and Expenses. 
 (a) Lorillard shall pay (or, to the extent incurred by and paid for by any member of the Loews Group, will promptly reimburse such member of the Loews
Group for any and all amounts so paid) for: 
 (i) all fees, costs and expenses (including fees and expenses of counsel)
related to Lorillard’s organizational documents; 
 (ii) all fees, costs and expenses (including fees and expenses of
counsel) related to the listing of Lorillard common stock on any domestic or foreign securities exchange and associated costs; 
 (iii) all fees, costs and expenses (including fees and expenses of counsel) related to the preparation of (1) documents related to Lorillard’s employee benefit plans, retirement plans and equity-based plans to be in effect
following the Separation, (2) the descriptions thereof in the Registration Statement and Prospectus, and (3) the “Management” section of the Registration Statement and Prospectus; 
 (iv) all fees, costs and expenses (including fees and expenses of counsel) of the independent accountants associated with the financial
statements, management’s discussion and analysis of Lorillard’s financial condition and results of operation and the other financial information of Lorillard set forth in the Registration Statement and Prospectus; and 
  

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 (v) 50% of the fees payable to Lehman Brothers for financial advisory services in
connection with the Separation. 
 (b) Loews shall pay (or, to the extent incurred by and paid for by any member of the Lorillard Group, will
promptly reimburse such member of the Lorillard Group for any and all amounts so paid) for: 
 (i) all fees, costs and
expenses (including fees and expenses of counsel) related to the Ruling Request; 
 (ii) all fees, costs and expenses
(including fees and expenses of counsel) of the independent accountants associated with the pro forma financial information of Loews set forth in the Registration Statement and Prospectus, and with the issuance of a comfort letter with respect to
the Registration Statement; 
 (iii) 50% of the fees payable to Lehman Brothers for financial advisory services in connection
with the Separation; 
 (iv) 100% of the fees payable to Morgan Stanley & Co. Incorporated and J.P. Morgan for
financial advisory services in connection with the Separation; and 
 (v) 100% of the fees payable to any dealer manager in
the Exchange Offer. 
 (c) Except as otherwise provided in Section 2.1(a) and Section 2.1(b), Lorillard and Loews
shall each pay 50% of the aggregate fees, costs and expenses (including fees and expenses of counsel) incurred by them and their Subsidiaries in connection with the Separation, including, but not limited to: 
 (i) all fees, costs and expenses (including fees and expenses of counsel) related to the preparation, negotiation, execution, printing and
filing, as required, of this Agreement and all of the other documents, agreements, forms, applications, contracts or consents related to the Separation; 
 (ii) all fees, costs and expenses (including fees and expenses of counsel) related to the preparation, printing, filing and distribution, as required, of the Registration Statement and Prospectus, including all fees,
costs and expenses of complying with applicable federal, state or foreign securities laws and domestic or foreign securities exchange rules and regulations; and 
  

 9 

 (iii) all registration fees paid to the SEC in connection with the Registration
Statement. 
 To the extent that Loews or Lorillard previously shall have paid an amount in excess of its 50% share of the fees, costs and expenses referred
to in this Section 2.1(c), Lorillard or Loews, as the case may be, shall reimburse the other for such excess payment. 
 (d) The
allocations provided for in this Section 2.1 shall not apply to the extent that Article III, Article IV or Article VI otherwise address the responsibilities of any party with respect to any fees, costs or expenses.

 ARTICLE III 
 RELEASE AND
INDEMNIFICATION 
 Section 3.1 Release of Pre-Separation Claims. 
 (a) Except as otherwise provided in this Agreement, each member of the Lorillard Group remises, releases and forever discharges Loews and all Persons who at any time prior to the Effective Date have been stockholders,
directors, officers, or employees of Loews (in their respective capacities as such) (the “Loews Releasees”), and their respective heirs, executors, administrators, successors and assigns, from any and all Liabilities owed by Loews or any
of the Loews Releasees to any member of the Lorillard Group, whether at law or in equity (including any right of contribution), whether arising under any contract or agreement, by operation of law or otherwise, existing or arising from any acts or
events occurring or failing to occur or alleged to have occurred or to have failed to occur or any conditions existing or alleged to have existed on or before the Effective Date, including in connection with all activities to implement the
Separation. 
 (b) Except as otherwise provided in this Agreement, Loews remises, releases and forever discharges each member of the
Lorillard Group and all Persons who at any time prior to the Effective Date have been directors, officers, or employees of any member of the Lorillard Group (in each case, in their respective capacities as such)(the “Lorillard Releasees”),
and their respective heirs, executors, administrators, successors and assigns, from any and all Liabilities owed by any member of the Lorillard Group or any of the Lorillard Releasees to Loews, whether at law or in equity (including any right of
contribution), whether arising under any contract or agreement, by operation of law or otherwise, existing or arising from any acts or events occurring or failing to occur or alleged to have occurred or to have failed to occur or any conditions
existing or alleged to have existed on or before the Effective Date, including in connection with all activities to implement the Separation. 
  

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 (c) Lorillard shall not make, and shall not permit any member of the Lorillard Group to make, any claim
or demand or commence any Action asserting any claim or demand, including any claim of contribution or any indemnification, against Loews or any other Person released pursuant to Section 3.1(a) with respect to any Liabilities released
pursuant to Section 3.1(a). Loews shall not make any claim or demand, or commence any Action asserting any claim or demand, including any claim of contribution or any indemnification, against Lorillard or any member of the Lorillard
Group, or any other Person released pursuant to Section 3.1(b), with respect to any Liabilities released pursuant to Section 3.1(b). 
 (d) It is the intent of each of Loews and Lorillard by virtue of the provisions of this Section 3.1 to provide for a full and complete release and discharge of all Liabilities existing or arising from all
acts and events occurring or failing to occur or alleged to have occurred or to have failed to occur and all conditions existing or alleged to have existed on or before the Effective Date between or among Lorillard or any member of the Lorillard
Group, on the one hand, and Loews, on the other hand (including any contractual agreements or arrangements existing or alleged to exist between or among any such members on or before the Effective Date), except as expressly set forth in
Section 3.1(e). At any time, at the request of Loews or Lorillard, as the case may be, any party shall execute and deliver a release reflecting the provisions of this Section 3.1. 
 (e) Notwithstanding the foregoing, nothing contained in this Section 3.1 shall impair any right of any Person to enforce this Agreement in
accordance with its terms. 
 (f) This Section 3.1 shall not apply to any matters to which Article IV applies. 

Section 3.2 General Cross Indemnification. 
 (a) Each member of the Lorillard Group, jointly and severally, shall indemnify and hold harmless each member of the Loews Group and each of its officers, directors, and employees against any and all Losses arising out of Actions, including,
without limitation, Losses arising out of, resulting from or in connection with any Action, whether grounded in tort, contract, statute or otherwise, whether now pending or hereafter asserted, which may arise out of, pertain to or be in connection
with any of the following, and whether occurring before, on or after the Effective Date: 
 (i) any breach by any member of
the Lorillard Group of all or any portion of this Agreement, or any other acts or omissions by any member of the Lorillard Group arising out of the performance of its obligations under this Agreement; 
  

 11 

 (ii) the ownership or the operation of the assets or properties of, and the operation or
conduct of the business of, including contracts entered into by, any member of the Lorillard Group; 
 (iii) any matter
relating, directly or indirectly, to the tobacco or cigarette business, including without limitation any health-related claim, the use of any tobacco products (including, without limitation, flavorings, filters, wrappers, or other elements used in
the manufacturing of tobacco products), the manufacture, sale, promotion, distribution, or marketing of any tobacco products, or exposure to tobacco products, such as environmental tobacco smoke, whether or not such products relate to any member of
the Lorillard Group; 
 (iv) any employee, former employee, or independent contractor of any member of the Lorillard Group (or
the termination of any such relationship), or any employee benefit plan, program, agreement or arrangement sponsored by or contributed to by any member of the Lorillard Group or to which any member of the Lorillard Group is, or at any time was, a
party; 
 (v) any other activities, action or inaction on the part of any member of the Lorillard Group or its officers,
directors, employees, affiliates acting as such (other than a member of the Loews Group acting as such), fiduciaries or agents, excluding any action expressly permitted hereunder; 
 (vi) any Keepwell; and 
 (vii) any untrue statement or alleged untrue statement of a material fact contained in any Filing of any member of the Loews Group, or any omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein not misleading, but only with respect to information, if any, relating to a member of the Lorillard Group and provided to Loews by or on behalf of a member of the Lorillard Group or derived
from the records of any member of the Lorillard Group. 
 (b) Loews shall indemnify and hold harmless each member of the Lorillard Group and
each of its officers, directors, and employees against any and all Losses arising out of Actions, including, without limitation, Losses arising out of, resulting from or in connection with any Action, whether grounded in tort, contract, statute or
otherwise, whether now pending or hereafter asserted, which may arise out of, pertain to or be in connection with any of the following, and whether occurring before, on or after the Effective Date: 
 (i) any breach by Loews of all or any portion of this Agreement, or any other acts or omissions by Loews arising out of the performance of
its obligations under this Agreement; 
  

 12 

 (ii) any other activities, action or inaction on the part of Loews or its officers,
directors, employees, fiduciaries or agents, excluding any action expressly permitted hereunder; and 
 (iii) any untrue
statement or alleged untrue statement of a material fact contained in any Filing of any member of the Loews Group, or any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements
therein not misleading, but only with respect to information, if any, not relating to any member of the Lorillard Group. 
 (c) The
indemnification obligations contained in this Section 3.2 shall be applicable whether or not any Action or the facts or transactions giving rise to such Action arose prior to, on or subsequent to the Effective Date and whether or not the
Action giving rise to any claim for indemnification is valid. 
 Section 3.3 Registration Statement Indemnification. 
 (a) Each member of the Lorillard Group, jointly and severally, shall indemnify and hold harmless each member of the Loews Group and each of its directors,
officers, and employees from and against any and all Losses arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement or Prospectus, or any omission or alleged omission
to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, except insofar as such untrue statement or omission or alleged untrue statement or omission was made in reliance upon and in
conformity with information relating to Loews and furnished in writing by Loews expressly for use in the Registration Statement or Prospectus. 
 (b) Loews shall indemnify and hold harmless Lorillard and each of its directors, officers, and employees from and against any and all Losses arising out of or based upon any untrue statement or alleged untrue statement of a material fact
contained in the Registration Statement or Prospectus, or any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, but only insofar as such untrue
statement or omission or alleged untrue statement or omission was made in reliance upon and in conformity with information relating to Loews and furnished in writing by Loews expressly for use in the Registration Statement or Prospectus. 

 

 13 

 (c) The parties agree that the statements set forth in the Registration Statement and Prospectus under
the following captions constitute the only information relating to Loews furnished in writing by Loews expressly for use in the Registration Statement or Prospectus: 
  

	 	(i)	“Summary—Loews”,”—The Carolina Group” and “The Redemption”; 

  

	 	(ii)	“Transaction Background”; 

  

	 	(iii)	“The Redemption”, excluding “-Listing and Trading of Lorillard Common Stock”; 

  

	 	(iv)	“Market Price of and Dividends on Common Equity and Related Matters—Historical Market Value of Loews Common Stock”, “—Historical Market Value of Carolina
Group Stock” and “—Holders”; 

  

	 	(v)	“Documents Incorporated by Reference”; 

  

	 	(vi)	“Loews Corporation and Subsidiaries Pro Forma Financial Information”; 

  

	 	(vii)	the cover page of the Offer to Exchange; 

  

	 	(viii)	“Questions and Answers About the Exchange Offer”; 

  

	 	(ix)	“Summary—The Exchange Offer”, “—Effects of the Separation on Loews” and “—Summary Pro Forma Financial Information of Loews”;

  

	 	(x)	“Risk Factors Relating to the Exchange Offer”; 

  

	 	(xi)	“The Exchange Offer”; 

  

	 	(xii)	“Contingent Dividend Distribution”; 

  

	 	(xiii)	“Transactions Concerning Loews Common Stock”; 

  

	 	(xiv)	“Comparison of Rights of Holders of Loews Common Stock and Lorillard Common Stock”, except for the description of Lorillard common stock; 

  

	 	(xv)	“Capitalization of Loews” and, 

  

	 	(xvi)	Certain U.S. Federal Income Tax Consequences”. 

 Section 3.4
Notice and Defense of Claims. 
 (a) If any Action shall be brought against any Person entitled to indemnification pursuant to this
Agreement (each, an “Indemnified Party”) in respect of which indemnity may be sought, such Indemnified Party shall promptly notify the applicable party or parties obligated under this Agreement to indemnify such Indemnified Party
(each, an “Indemnifying Party”), and such Indemnifying Party shall assume the defense thereof, including 

  

 14 

 
employment of counsel and payment of all fees and expenses. The failure of the Indemnified Party to give notice as provided in this Section 3.4
shall not relieve the Indemnifying Party of its obligations under this Agreement, except to the extent that the Indemnifying Party is materially prejudiced by the failure to give notice. 
 (b) When an Indemnified Party reasonably determines that an Action is likely to proceed to trial or that it is otherwise appropriate that the Indemnified
Party be separately represented, such Indemnified Party shall have the right to employ separate counsel in such Action and to participate in the defense thereof at the expense of the Indemnifying Party. Prior to employing separate counsel, the
Indemnified Party shall provide notice to the Indemnifying Party of its intention to employ separate counsel. It is understood, however, that Indemnifying Party shall, in connection with any one such Action or separate but substantially similar or
related Actions in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the fees and expenses of only one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnified
parties not having actual or potential differing interests among themselves. 
 (c) The Indemnified Party shall submit to the Indemnifying
Party not less frequently than quarterly, copies of invoices from separate counsel, and the Indemnifying Party shall reimburse the Indemnified Party for uncontested fees and expenses within thirty (30) days of the receipt of such invoices. Any
fees and expenses objected to by the Indemnifying Party as not reasonable shall be subject to the dispute resolution provisions of Article VI of this Agreement. 
 (d) All indemnification payments due under this Agreement shall be made by wire transfer of immediately available funds to a bank account of the Indemnified Party. Late payments shall be subject to interest at a rate
per annum equal to the then effective Prime Rate plus two hundred (200) basis points (or the maximum legal rate, whichever is lower), calculated for the actual number of days elapsed, accrued from the date on which such payment was due up to
the date of the actual receipt of payment. 
 (e) An Indemnified Party shall not settle or compromise any Action for which indemnification
hereunder has been sought by the Indemnified Party without first providing notice to the Indemnifying Party, unless the Indemnifying Party has failed to assume and prosecute the defense of such Action in accordance with this Agreement. Such notice
to be provided by the Indemnified Party will include a reasonable opportunity for the Indemnifying Party to consent to the settlement or compromise, or to object on the basis that the settlement or compromise will materially impair the rights or
defenses of the Indemnifying Party in the same or similar Actions. 
  

 15 

 (f) (i) If an Action for which indemnification hereunder has been sought by the Indemnified Party is
settled or compromised by the Indemnified Party despite the assumption of the defense by the Indemnifying Party and the written objection of the Indemnifying Party that such settlement or compromise will materially impair the rights and defenses of
the Indemnifying Party in the same or similar Actions, the Indemnified Party shall not be entitled to indemnification pursuant to this Agreement for any amounts paid pursuant to such settlement or compromise unless it shall be determined thereafter
in accordance with Article VI hereof that such settlement or compromise did not materially impair the rights and defenses of the Indemnifying Party in the same or similar Actions. 
 (ii) If an Action for which indemnification hereunder has been sought by the Indemnified Party is settled or compromised by the
Indemnified Party either with the consent of the Indemnifying Party or where the Indemnifying Party has failed to assume and prosecute the defense of such Action in accordance with this Agreement, the Indemnifying Party shall indemnify and hold
harmless each Indemnified Party, to the extent provided by this Article III, from and against any Losses relating to such Action, including Losses incurred by reason of such settlement. 
 (iii) If a final judgment for plaintiff is entered in any Action for which indemnification hereunder has been sought by the Indemnified
Party, the Indemnifying Party shall indemnify and hold harmless each Indemnified Party, to the extent provided in this Article III, from and against any Losses relating to such Action, including Losses incurred by reason of such judgment.

 (g) The provisions of this Article III shall determine the respective indemnification obligations and rights of the parties to this
Agreement, but shall not be deemed to prevent or impair the absolute right of any member of the Loews Group or the Lorillard Group from assuming the defense of, or effecting any settlement or compromise of, any Action to which it is a party, which
rights are expressly permitted hereunder. 
 Section 3.5 Contribution. 
 (a) If the indemnification provided for in this Article III is unavailable to an Indemnified Party under Section 3.3 in respect of any
Losses referred to therein, or if such indemnification is insufficient to hold the Indemnified Party harmless, then an Indemnifying Party, in lieu of or in addition to indemnifying such Indemnified Party, as the case may be, shall contribute to the
amount paid or payable by such Indemnified Party as a result of such Losses as is appropriate to reflect the relative fault of the Indemnifying Party on the one hand and the Indemnified Party on the other hand in connection with the statements or
omissions that resulted in such Losses, as well as any other relevant equitable considerations. The relative fault of the 

  

 16 

 
Indemnifying Party on the one hand and the applicable Indemnified Party on the other hand shall be determined by reference to, among other things, whether
the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Indemnifying Party on the one hand or Indemnified Party on the other hand, and the
parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. 
 (b) The
parties agree that it would not be just and equitable if contribution pursuant to this Section 3.5 were determined by a pro rata allocation or by any other method of allocation that does not take account of the equitable
considerations referred to in Section 3.5(a). The amount paid or payable by an Indemnified Party as a result of the Losses referred to in Section 3.5(a) shall be deemed to include, subject to the limitations set forth above,
any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating any claim or defending any such Action. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. 
 Section 3.6
Subrogation. 
 Upon indemnification of the Losses under this Agreement, the Indemnifying Party shall be subrogated to the rights of
the Indemnified Party against insurers or other third parties with respect to such assumed or indemnified amount. It is expressly agreed that no insurer or any other third party shall be (i) entitled to a benefit (as a third party beneficiary
or otherwise) it would not be entitled to receive in the absence of Section 3.2 or Section 3.3 of this Agreement, (ii) relieved of the responsibility to pay any insured claims or indemnified claims or any other claims
for which it is obligated or (iii) entitled to any subrogation rights with respect to any obligation hereunder. The Indemnified Party shall, upon request, provide a formal assignment of a claim against an insurer or other third party to the
Indemnifying Party with respect to the assumed or indemnified amount or shall otherwise reasonably cooperate at the Indemnifying Party’s request and expense, with any attempt by the Indemnifying Party to recoup assumed or indemnified amounts
from insurers or other third parties. 
 Section 3.7 Other Matters. 
 (a) No Indemnifying Party shall, without the prior written consent of the Indemnified Party, effect any settlement of any pending or threatened Action in respect of which any Indemnified Party is a party and indemnity
could have been sought hereunder by such Indemnified Party, unless such settlement includes an unconditional release of such Indemnified Party and each of its officers, directors, and employees from any liability, penalty, admission of wrongdoing,
restraint or other obligation with respect to claims that are the subject matter of such Action at least to the same extent as the Indemnifying Party is itself released. 
  

 17 

 (b) The indemnity and contribution obligations contained in this Article III shall remain
operative and in full force and effect regardless of any investigation made by or on behalf of any Indemnified Party or Indemnifying Party. 
 (c) The parties hereto shall, and shall cause their respective Subsidiaries to, cooperate with each other in a reasonable manner with respect to access to unprivileged information and similar matters in connection with any Action. The
provisions of this Article III are for the benefit of, and are intended to create third party beneficiary rights in favor of, each of the Indemnified Parties referred to herein. 
 Section 3.8 Covenant to Remove Indemnified Party. 
 Loews and each member of the Lorillard Group
agree that at all times henceforth, if an action is commenced by a third party with respect to which any member of either the Loews Group or the Lorillard Group is indemnified pursuant to this Article III, then such member of the Loews Group
or the Lorillard Group, as the case may be, shall use its best commercial efforts to cause such defendant to be removed from such Action. However, nothing in this Section 3.8 will obligate any party to settle any Action. 
 Section 3.9 Tax Matters. 
 This Article
III shall not apply to any matters to which Article IV applies. 
 ARTICLE IV 
 TAX RELATED PROVISIONS 
 Section 4.1 Non-Taxable
Transaction. 
 Loews and Lorillard intend that the Separation will qualify as a non-taxable transaction under Section 355 of the
Code, after which none of Lorillard or its Subsidiaries will be a member of the Loews Consolidated Group. 
 Section 4.2 Tax Returns and Tax
Payments. 
 (a) Filing of Tax Returns. 
 (i) Loews shall have the sole and exclusive responsibility for preparing and filing each Tax Return required to be filed after the Deconsolidation Date that includes any member of the Loews Group (each, a
“Loews Filed Tax Return”). Lorillard shall prepare and deliver (at its own cost and expense) to Loews in a manner consistent with past practice pro forma Tax Returns (including work papers) and any other information that Loews deems

  

 18 

 
necessary to prepare and timely file any Loews Filed Tax Return with respect to each member of the Lorillard Group included in, or reflected on, a Loews
Filed Tax Return no later than ninety days before the due date for the filing of the relevant Tax Return (giving effect to valid extensions thereof), provided, however, that with respect to the Loews Filed Tax Return of the Loews
Consolidated Group for the taxable period ending on December 31, 2008, Lorillard shall prepare and deliver such pro forma Tax Returns and information no later than ninety days after the Deconsolidation Date. Each member of the Lorillard Group
hereby irrevocably authorizes and designates Loews as its agent, coordinator and administrator for the purpose of taking any and all actions necessary or incidental to the filing of any such Loews Filed Tax Returns and, except as otherwise provided
in this Article IV, for the purpose of making payments to, or collecting refunds from, any Governmental Entity in respect of a Loews Filed Tax Return. Except as otherwise provided in this Article IV, Loews shall have the exclusive
right to file, prosecute, compromise or settle any claim for, or refund of, Taxes in respect of a Loews Filed Tax Return and to determine whether any refunds of Taxes shall be received by way of refund or credit against a current or future Tax
liability. 
 (ii) Lorillard shall have the sole and exclusive responsibility for preparing and filing each Tax Return
required to be filed after the Deconsolidation Date that includes any member of the Lorillard Group which is not a Loews Filed Tax Return (each, a “Lorillard Filed Tax Return”). Except as otherwise required by law, Lorillard shall
prepare and file all Lorillard Filed Tax Returns on a basis that is consistent with the Tax Materials and shall not take any position (or make any election) in the preparation and filing of such Lorillard Filed Tax Returns that is inconsistent with
any position or election made by Loews in connection with the preparation and filing of any Tax Return of the Loews Consolidated Group that includes any Pre-Deconsolidation Period. 
 (b) Obligation to Remit Taxes. 
 (i) Loews and Lorillard shall each remit or cause to be remitted to the applicable Governmental Entity in a timely manner any Taxes due in respect of any Tax Return that such party is required to file. In the case of any Loews Filed Tax
Return or Lorillard Filed Tax Return, for which the party not required to file such Tax Return is obligated under this Article IV to pay all or a portion of the Taxes reported as due on such Tax Return, the party filing such Tax Return shall
notify the other party in writing of its obligation to pay such Taxes and the party receiving such notice shall pay such amount to the party filing such Tax Return in accordance with the notice provisions contained in Section 4.4(b).

  

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 (ii) Not later than thirty days after the Deconsolidation Date, the Lorillard Group shall
calculate its Federal Income Tax liability based upon its actual taxable income for its taxable period ending on the Deconsolidation Date and shall pay such amount to Loews, net of any previous estimated Federal Income Tax payments to Loews in
respect of the same taxable period. If Loews and Lorillard determine not later than thirty days after the Deconsolidation Date that the Lorillard Group has, through previous estimated Federal Income Tax payments to Loews, made an overpayment of
Federal Income Tax for the taxable period of the Lorillard Group ending on the Deconsolidation Date, Loews will pay an amount equal to such overpayment to the Lorillard Group, but only at such time and only to the extent that Loews is able to apply
such overpayment to offset a future estimated Federal Income Tax payment of the Loews Consolidated Group for the taxable period ending on December 31, 2008. Upon the filing of the relevant Loews Filed Tax Return, a final adjustment payment
shall be made by Loews to the Lorillard Group or vice versa, as appropriate, reflecting any difference between the amounts previously paid by the Lorillard Group to Loews in respect of the taxable period of the Lorillard Group ending on the
Deconsolidation Date (including any estimated Federal Income Tax payments), any amounts previously paid by Loews to the Lorillard Group relating to overpayments of Federal Income Tax for the taxable period of the Lorillard Group ending on the
Deconsolidation Date, and the Federal Income Tax liability of the Lorillard Group for such taxable period as reflected on such Loews Filed Tax Return. 
 (iii) In the event that the Lorillard Group generates a net operating loss during its taxable period ending on the Deconsolidation Date and the Loews Consolidated Group receives a refund from a Governmental Entity or
realizes a reduction in otherwise required Tax payments (a “Tax Benefit”) as a result of the use of such net operating loss, not later than 90 days after Loews files the Tax Return of the Loews Consolidated Group in respect of
Federal Income Taxes for the taxable period ending on December 31, 2008, Loews shall pay to Lorillard an amount equal to such refund received or Tax Benefit realized; provided, that Loews shall be entitled to reduce the amount of any
such payment for its reasonable costs and expenses in obtaining such refund or realizing such Tax Benefit, including any Taxes imposed on the receipt of such refund or realization of such Tax Benefit; provided, further, that in the
event, and to the extent, that Loews is required to repay such refund or Tax Benefit, plus any interest, penalties, charges or additions attributable thereto (a “Repayment Amount”), to a Governmental Entity, Lorillard shall pay
Loews such Repayment Amount within five Business Days of receiving a written request therefor from Loews. 
  

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 (c) Tax Sharing Obligations and Prior Agreements. 
 (i) Loews and the other members of the Loews Group shall be responsible for the payment of (and shall be entitled to any refund of,
whether received in cash or applied against future Tax obligations) (1) all Taxes attributable to any member of the Loews Group for any Pre-Deconsolidation Period or Post-Deconsolidation Period other than the Separation Tax Liability and
(2) the Separation Tax Liability but only to the extent such Taxes arise solely as a result of any breach of any covenant or any other obligation contained in the Tax Materials or this Agreement by Loews, any other member of the Loews Group or
any stockholder of Loews (collectively, the “Loews Taxes”). 
 (ii) Lorillard and the other members of the
Lorillard Group shall be responsible for the payment of (and shall be entitled to any refund of, whether received in cash or applied against future Tax obligations) (1) all Taxes attributable to any member of the Lorillard Group and
(2) the Separation Tax Liability, except to the extent that the Separation Tax Liability arises solely as a result of any breach of any covenant or any other obligation contained in the Tax Materials or this Agreement by Loews, any other member
of the Loews Group or any stockholder of Loews (collectively, the “Lorillard Taxes”). 
 (iii) For purposes
of this Article IV, the liability for Federal Income Tax attributable to the members of the Lorillard Group means, for any Pre-Deconsolidation Period, an amount equal to the Federal Income Tax which would have been payable by the Lorillard
Group for such taxable period if the Lorillard Group had filed its own consolidated Tax Return in respect of Federal Income Taxes for such taxable period and all prior taxable periods. In the case of any Loews Filed Tax Return that includes any
member of the Lorillard Group only for the portion of the relevant taxable period that ends on the Deconsolidation Date, taxable income, assets or other attributes of the Lorillard Group shall be allocated by Loews to such portion of such taxable
period based on an actual or hypothetical closing of the books at the close of the Deconsolidation Date performed by Loews, unless otherwise required by applicable Tax law. 
 (iv) Except to the extent of a Final Determination to the contrary, no member of the Lorillard Group shall take any position on any Tax
Return, in connection with any Tax Contest or otherwise that any member of the Loews Group (1) is or has been a member of a combined, consolidated or unitary group of corporations for any Tax purpose that includes a member of the Lorillard
Group other than the Loews Consolidated Group or (2) has any liability for any Taxes attributable to any member of the Lorillard Group other than liability imposed under Regulations Section 1.1502-6 with respect to Federal Income Taxes of
the Loews Consolidated Group. In the event that any Governmental Entity challenges such position, (x) Lorillard shall promptly notify Loews of such challenge, (y) Lorillard shall, at its own cost and expense, use its best efforts to

  

 21 

 
contest such challenge, and (z) notwithstanding Lorillard’s control right as set forth in Section 4.5(c), upon request by Loews, Loews
shall, at its own cost and expense, be allowed to participate in the handling of any such challenge and Lorillard shall consult with Loews regarding any such challenge, including any correspondence or filings submitted in connection therewith, and
regarding strategy and settlement decisions with respect to any such challenge. Lorillard shall not settle any such challenge without the consent of Loews, which consent shall not be unreasonably withheld, delayed or conditioned. 
 (v) In connection with the Deconsolidation Event, Loews shall determine in accordance with applicable Tax laws the allocation of
applicable Tax Assets, if any, among Loews, each other member of the Loews Group, Lorillard and each other member of the Lorillard Group. In the absence of controlling legal authority or unless otherwise provided in this Agreement, each Tax Asset,
if any, shall be allocated to the member of the Loews Group or the Lorillard Group who generated such Tax Asset. 
 (vi)
Within thirty days after the Separation Date, Lorillard shall provide such information as Loews reasonably determines is necessary for Loews to calculate the amount of earnings and profits that will be allocated to Lorillard as a result of the
Separation, determined in accordance with Section 312(h) of the Code and applicable Regulations. Loews shall advise Lorillard in writing of an estimate of such amount within ninety days after the Separation Date and shall provide a final
calculation of such amount when available. Each of Loews and Lorillard agrees to use the earnings and profits allocated pursuant to this provision for all Tax purposes. 
 (vii) Except as set forth in this Agreement and in consideration of the mutual indemnities and other obligations under this Agreement, any
and all prior Tax sharing or allocation agreements or practices between any member of the Loews Group and any member of the Lorillard Group shall be terminated as of the Deconsolidation Date, and no member of the Loews Group or the Lorillard Group
shall have any continuing rights or obligations thereunder. 
 (d) Amended Tax Returns. 
 (i) Lorillard shall not, and shall not permit any other member of the Lorillard Group to, file any amended Tax Return that includes any
member of the Loews Group. 
 (ii) Loews shall not, and shall not permit any other member of the Loews Group to, file any
amended Tax Return that includes any member of 

  

 22 

 
the Lorillard Group and that has an adverse effect on Lorillard without the prior written consent of Lorillard, which shall not be unreasonably withheld,
delayed or conditioned. Receipt of consent by Loews or any other member of the Loews Group from Lorillard under the provisions of this Section 4.2(d)(ii) shall not limit or modify Loews’s continuing indemnification obligation under
Section 4.4(a)(i). 
 (e) Carrybacks from Post-Deconsolidation Period. 
 (i) Except as otherwise required by applicable Tax law, each of Lorillard and the other members of the Lorillard Group hereby agrees to
relinquish, and make or cause to be made, any available elections and take any other actions required to relinquish, the right to claim in any Pre-Deconsolidation Period of the Lorillard Group any Carryback Item arising in any Post-Deconsolidation
Period of the Lorillard Group. 
 (ii) Notwithstanding Section 4.2(e)(i), if Lorillard or any other member of the
Lorillard Group is required by applicable Tax law to carry back a Carryback Item arising in a Post-Deconsolidation Period to a Pre-Deconsolidation Period, then (1) any Carryback Item of any member of the Loews Group that may be carried back to
the same Pre-Deconsolidation Period shall be used before any Carryback Item of any member of the Lorillard Group unless expressly prohibited by applicable Tax law, and (2) to the extent the Carryback Item of any member of the Lorillard Group is
used in a Pre-Deconsolidation Period and any member of the Loews Group receives a refund from a Governmental Entity or realizes a Tax Benefit as a result of the use of such Carryback Item, Loews shall pay Lorillard an amount equal to such refund
received or Tax Benefit realized within thirty days following either the receipt of such refund or the filing of the Tax Return reflecting the realization of such Tax Benefit; provided, that Loews shall be entitled to reduce the amount of any
such payment for its reasonable costs and expenses in obtaining such refund or realizing such Tax Benefit, including any Taxes imposed on the receipt of such refund or realization of such Tax Benefit; provided, further, that in the
event, and to the extent, that Loews is required to repay a Repayment Amount to a Governmental Entity, Lorillard shall pay Loews such Repayment Amount within five Business Days of receiving a written request therefor from Loews. 
 Section 4.3 Representations and Covenants. 
 (a)
Compliance with the Ruling and Tax Opinion. 
 (i) Loews hereby represents and warrants that (1) it has examined final
copies (or, if final copies are not available, drafts in substantially finalized form) of (A) the private letter ruling received from the IRS by Loews 

  

 23 

 
on                     , 2008 (the
“Ruling”) with respect to the transactions addressed therein, (B) the Tax Opinion, (C) the Ruling Request, (D) the Tax Certificate and (E) any other materials delivered or deliverable in connection with the
issuance of the Ruling and the rendering of the Tax Opinion (collectively, the “Tax Materials”) and (2) the facts presented and representations made therein, to the extent descriptive of or otherwise relating to Loews or any
other member of the Loews Group, were, at the time presented or represented and from such time until and including the date hereof true, correct and complete in all material respects. Loews hereby reaffirms and agrees to comply with any and all
covenants and agreements in the Tax Materials applicable to Loews or any other member of the Loews Group. 
 (ii) Lorillard
(on behalf of itself and all other members of the Lorillard Group) hereby represents and warrants that (1) it has examined the Tax Materials, (2) the facts presented and representations made therein, to the extent descriptive of or
otherwise relating to Lorillard or any other member of the Lorillard Group, were, at the time presented or represented and from such time until and including the date hereof true, correct and complete in all material respects, and (3) it has
not entered into any agreement, understanding, or arrangement, and has not had substantial negotiations (each within the meaning of Section 355(e) of the Code and applicable Regulations) regarding the acquisition of Lorillard or any other
member of the Lorillard Group at any time during the two-year period ending on the date hereof, and shall neither enter into any such agreement, understanding, or arrangement, nor have any such substantial negotiations, between the date hereof and
the Deconsolidation Date. Lorillard (on behalf of itself and all other members of the Lorillard Group) hereby reaffirms and agrees to comply with any and all covenants and agreements in the Tax Materials applicable to Lorillard or any other member
of the Lorillard Group. 
 (iii) Each party to this Agreement shall deliver a certificate of an officer or other appropriate
authorized representative affirming the truth and accuracy of the representations and warranties of such party and compliance with the covenants of such party set forth in this Section 4.3(a) and such other matters reasonably requested
by another party hereto. Such certificates shall be dated as of the Effective Date and, if requested by any party hereto, the closing date of the Exchange Offer and/or the Contingent Dividend. Skadden shall be entitled to rely on any such
certificate in connection with rendering the Tax Opinion. 
 (b) Prohibited Acts. Except as provided in Section 4.3(c), no member
of the Lorillard Group shall take or permit to be taken any action or fail to take any other action at any time, which action or failure to act may (x) preclude the Separation from qualifying as tax-free under Section 355 of the Code (or
any corresponding provisions of any successor statute and any similar provision of state or local Tax law) or (y) cause Loews, any other member of the Loews Group, or any stockholder of Loews that receives Lorillard common stock in the
Separation to 

  

 24 

 
recognize gain or loss, or otherwise include any amount in income, as a result of the Separation for Tax purposes (except with respect to gain or loss
recognized by Loews’s stockholders with respect to cash received in lieu of fractional shares of Lorillard common stock). Without limiting the generality of the foregoing, except as provided in Section 4.3(c), Lorillard (on behalf
of itself and all other members of the Lorillard Group) hereby covenants and agrees that no member of the Lorillard Group shall take or permit to be taken within two years of the Separation Date the following actions: 
 (i) any Proposed Acquisition Transaction or approval of any Proposed Acquisition Transaction for any purpose; 
 (ii) the issuance of any Lorillard equity (including any instrument that is convertible or exchangeable into such equity) or rights to
acquire any Lorillard equity (other than (1) any such issuance qualifying under Regulations Section 1.355-7(d)(8) in connection with the performance of services or (2) any issuances which, in the aggregate, would not result in a
Proposed Acquisition Transaction); 
 (iii) redemptions or repurchases of any Lorillard equity (except to the extent
consistent with the requirements of Revenue Procedure 96-30, 1996-1 C.B. 696, and statements made with respect thereto in the Tax Materials, provided that Lorillard shall provide written notification to Loews of any such redemptions or repurchases
within twenty (20) days thereof); 
 (iv) recapitalizations or other dispositions of, or modifications to the terms of,
any Lorillard equity; 
 (v) any liquidation, merger or consolidation involving any member of the Lorillard Group; 

(vi) any sale or other disposition of all or substantially all of the assets of any member of the Lorillard Group in a single
transaction or series of related transactions; 
 (vii) the disposition or discontinuance of the operation of the Lorillard
Group’s active trade or business used to satisfy Section 355(b) of the Code in the Ruling; or 
 (viii) actions or
positions inconsistent with any representation or covenant of Lorillard or any member of the Lorillard Group contained in Section 4.3(a)(ii) or Section 4.6(b); (all of such actions in this subsection are collectively referred
to as the “Prohibited Acts”). 
  

 25 

 (c) Requirement for Prohibited Acts. Lorillard or any other member of the Lorillard Group may take any of
the Prohibited Acts if (i) Lorillard provides notification, upon determining that it desires to pursue such action, to Loews of its plans with respect to such action, and promptly responds to any inquiries made by Loews following such
notification, and (ii) prior to taking such action, obtains, at its own cost and expense, either an unqualified written opinion of a nationally recognized law firm, or a supplemental ruling from the IRS, in either case in form and substance
reasonably acceptable to Loews, that the taking of such action will not (x) preclude the Separation from qualifying as tax-free under Section 355 of the Code (or any corresponding provisions of any successor statute and any similar
provision of state or local Tax law) or (y) cause Loews, any other member of the Loews Group, or any stockholder of Loews that receives Lorillard common stock in the Separation to recognize gain or loss, or otherwise include any amount in
income, as a result of the Separation for Tax purposes (except with respect to gain or loss recognized by Loews’s stockholders with respect to cash received in lieu of fractional shares of Lorillard common stock); provided,
however, that (A) no request for a supplemental ruling shall be made prior to obtaining Loews’s prior written consent, which shall not be unreasonably withheld, delayed or conditioned, and (B) Loews shall have the right to
participate in the preparation of all correspondence and in all calls, meetings and similar events related to obtaining such supplemental ruling. Receipt of an opinion or a supplemental ruling by Lorillard or any other member of the Lorillard Group
under the provisions of this Section 4.3(c) shall not limit or modify Lorillard’s continuing indemnification obligation under Section 4.4(a)(ii). 
 Section 4.4 Indemnity Obligations and Payments. 
 (a) Indemnity Obligations. 
 (i) Each member of the Loews Group, jointly and severally, shall indemnify and hold harmless each member of the Lorillard Group and each
of its officers, directors, and employees from and against, and will reimburse such Persons for all Losses attributable to Loews Taxes. 
 (ii) Notwithstanding whether any action is permitted or consented to hereunder and notwithstanding anything to the contrary contained in this Agreement, each member of the Lorillard Group, jointly and severally, shall
indemnify and hold harmless each member of the Loews Group and each of its officers, directors, and employees from and against, and will reimburse such Persons for (1) all Losses attributable to Lorillard Taxes and (2) all Taxes and other
Losses arising out of, based upon or relating or attributable to any breach of any representation, covenant or obligation of any member of the Lorillard Group under this Article IV. 
  

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 (b) Notice. An Indemnified Party making a claim for indemnification under this Article IV shall
provide the Indemnifying Party from whom such indemnification is sought with written notice of such claim describing such claim in reasonable detail and accompanied by reasonable documentation supporting such claim no later than twenty
(20) Business Days after the Indemnified Party (i) files a Tax Return reporting Taxes due which are subject to indemnification or (ii) receives written notice from a Governmental Entity with respect to Taxes that may be subject to
indemnification under this Article IV; provided, however, that the failure of the Indemnified Party to give notice as provided in this Section 4.4(b) shall not relieve the Indemnifying Party of its obligations under
this Agreement, except to the extent that the Indemnifying Party is prejudiced by the failure to give notice. 
 (c) Indemnification
Payments. The Indemnifying Party shall pay the Indemnified Party the amount of any claim made under this Article IV within three Business Days of receipt of written notice of such claim; provided, however, that if such claim is
still subject to the outcome of any Tax Contest, then payment shall not be due until ten (10) Business Days after such claim either is resolved through a Final Determination, or prior to a Final Determination, if the Indemnified Party and the
Indemnifying Party agree on the indemnification obligation under this Article IV with respect to such claim. 
 (d) Treatment of
Payments. Any payment made between the parties pursuant to this Agreement shall be treated, for all Tax purposes and to the extent permitted by law, as a contribution by Loews to Lorillard or a distribution by Lorillard to Loews, as the case may be,
occurring immediately prior to the Deconsolidation Date. If the recipient of such payment (or any member of its Group) is subject to Tax attributable, directly or indirectly, to the receipt of such payment, the payor shall reimburse the recipient
for all Losses attributable to such Tax liability and pay to the recipient an additional amount that, when added to any other payment otherwise required to be made, will result in the recipient receiving and retaining an amount equal to such other
payment, after taking into account all Taxes payable by the recipient (or any member of its Group) that are attributable to the receipt of such other payment and such additional amount. 
 (e) The provisions of this Article IV are for the benefit of, and are intended to create third party beneficiary rights in favor of, each of the
Indemnified Parties referred to herein. 
 Section 4.5 Tax Contests. 
 (a) Notice. 
 (i) If an
Indemnified Party becomes aware of any pending or threatened Tax Contest in respect of which indemnity may be sought under this Article IV, such Indemnified Party shall promptly notify the Indemnifying Party. The failure of the Indemnified
Party to give notice as provided in this Section 4.5(a) shall not relieve the Indemnifying Party of its obligations under this Agreement, except to the extent that the Indemnifying Party is prejudiced by the failure to give notice.

  

 27 

 (ii) The Indemnified Party shall submit to the Indemnifying Party a list of all fees and
expenses at the end of the calendar month in which such fees and expenses are incurred, and the Indemnifying Party shall reimburse the Indemnified Party for such fees and expenses within thirty days of the receipt of such list. 
 (b) Control of Tax Contests by Loews. Loews shall have the sole responsibility and control over the handling of any pending or threatened Tax Contest,
including the exclusive right to communicate with agents of the Governmental Entity and to control, resolve, settle or agree to any deficiency, claim or adjustment proposed, asserted or assessed in connection with or as a result of any such Tax
Contest, involving any Loews Filed Tax Return; provided, however, that Loews shall be obligated to act in good faith with respect to any Tax Contest which involves a Tax or adjustment for which Lorillard is liable pursuant to this
Article IV. Specifically, Loews shall, in good faith, (i) consult with Lorillard regarding its comments with respect to any such Tax Contest, including any correspondence or filings submitted in connection therewith, (ii) consult
with Lorillard as to strategy and settlement decisions with respect to any such Tax Contest, and (iii) use its best efforts to arrive at a settlement of any such Tax Contest that reflects the ultimate merits of the issues without taking into
account the fact that Lorillard is liable for the Tax or adjustment under this Article IV. 
 (c) Control of Tax Contests by
Lorillard. Lorillard shall have the full responsibility and control over the handling of any pending or threatened Tax Contest, including the exclusive right to communicate with agents of the Governmental Entity and to control, resolve, settle or
agree to any deficiency, claim or adjustment proposed, asserted or assessed in connection with or as a result of any such Tax Contest, involving any Lorillard Filed Tax Return; provided, however, that Lorillard shall be obligated to
act in good faith with respect to any Tax Contest which involves a Tax or adjustment for which Loews is liable pursuant to this Article IV. Specifically, Lorillard shall, in good faith, (i) consult with Loews regarding its comments with
respect to any such Tax Contest, including any correspondence or filings submitted in connection therewith, (ii) consult with Loews as to strategy and settlement decisions with respect to any such Tax Contest, and (iii) use its best
efforts to arrive at a settlement of any such Tax Contest that reflects the ultimate merits of the issues without taking into account the fact that Loews is liable for the Tax or adjustment under this Article IV. 
 (d) Exclusivity. The procedures set forth in this Section 4.5 and not in Article III shall govern for all claims for indemnification
relating to Taxes. 
  

 28 

 Section 4.6 Cooperation; Retention of Records; Access; Confidentiality. 
 (a) General. Each party shall fully cooperate, and shall cause all members of such party’s Group (the Loews Group or the Lorillard Group) to fully
cooperate, with the other party in connection with the preparation and filing of any Tax Return or the conduct of any Tax Contest (including, where appropriate or necessary, providing a power of attorney) concerning any issues or any other matter
contemplated under this Article IV. Each party shall make its employees and facilities available on a mutually convenient basis to facilitate such cooperation. 
 (b) Consistent Treatment. Unless and until there has been a Final Determination to the contrary, no member of the Loews Group or the Lorillard Group shall take any position on any Tax Return, in connection with any
Tax Contest or otherwise that is inconsistent with (i) the allocation of Taxes, Tax Assets and earnings and profits between the Loews Group and the Lorillard Group as set forth in this Article IV, (ii) the Ruling or (iii) the
Tax Opinion. 
 (c) Retention of Tax Records. For as long as the contents thereof may become material in the administration of any matter
under applicable Tax law, but in any event until the later of (x) the expiration of any applicable statutes of limitation (as extended), and (y) seven years after the Separation Date, the parties shall retain records, documents, work
papers, accounting data and other information (including computer data) necessary for the preparation and filing of all Tax Returns in respect of Taxes of any member of either the Loews Group or the Lorillard Group for any Pre-Deconsolidation Period
or any Post-Deconsolidation Period or for any Tax Contests relating to such Tax Returns (collectively, the “Tax Records”). At any time after the Deconsolidation Date that Lorillard proposes to destroy any such Tax Records, it shall
first notify Loews in writing and Loews shall be entitled to receive such Tax Records proposed to be destroyed which could affect the liability of any member of the Loews Group for Taxes. At any time after the Deconsolidation Date that Loews
proposes to destroy any such Tax Records, it shall first notify Lorillard in writing and Lorillard shall be entitled to receive that portion of such Tax Records proposed to be destroyed that relates solely to Lorillard Taxes for taxable periods
beginning on or before the Deconsolidation Date and that could reasonably affect the liability of any member of the Lorillard Group for Taxes. 
 (d) Access. Lorillard shall make available, and cause the other members of the Lorillard Group to make available, to members of the Loews Group and their advisors and representatives all Tax Records in their possession that relate to any
taxable period beginning on or before the Separation Date. At Lorillard’s reasonable request, Loews shall provide to Lorillard and its advisors and representatives a copy of that portion, and only that portion, of any Tax Record in its
possession that relates to Lorillard Taxes for taxable periods beginning on or before the Deconsolidation Date and that is reasonably necessary for the preparation of a Tax Return of a member of the Lorillard Group or with respect to a Tax Contest
of such Tax Return. 
 (e) Confidentiality. Each party shall hold and cause its directors, officers, employees, advisors and consultants to
hold in strict confidence, unless compelled to disclose by judicial or administrative process or, in the opinion of its counsel, by other requirements of law, 

  

 29 

 
all information (other than any such information relating solely to the business or affairs of such party) concerning the other party hereto furnished to it
by such other party or its representatives pursuant to this Article IV (except to the extent that such information can be shown to have been (i) in the public domain through no fault of such party, (ii) later lawfully acquired from
other sources not known to be under a duty of confidentiality by the party to which it was furnished, or (iii) independently developed), and each party shall not release or disclose such information to any other Person, except its directors,
officers, employees, auditors, attorneys, financial advisors, bankers and other consultants who shall be advised of and agree to be bound by the provisions of this Section 4.6(e). Each party shall be deemed to have satisfied its
obligation to hold confidential information concerning or supplied by the other party if it exercises the same care as it takes to preserve confidentiality for its own similar information. 
 Section 4.7 Further Assurances. 
 Subject to the
provisions hereof, the parties hereto shall make, execute, acknowledge and deliver such other instruments and documents, and take all such other actions, as may be reasonably required in order to effectuate the purposes of this Article IV.

 Section 4.8 Dispute Resolution. 
 In the event of any disagreement arising under this Article IV, including any dispute in connection with a claim by a third party (a “Tax Dispute”), the parties shall promptly notify the chief financial officer of
each of Loews and Lorillard (each, a “CFO” and, together, the “CFOs”) of such Tax Dispute, who together shall attempt in good faith to resolve such Tax Dispute. If such Tax Dispute is not resolved within seven
Business Days following the date on which the CFOs receive notification, the parties shall jointly retain an independent, nationally recognized law or accounting firm which must be located in New York, New York (the “Tax Advisor”)
to act as an arbitrator in order to resolve the Tax Dispute. The Tax Advisor’s determination as to any Tax Dispute shall be made in accordance with the terms of this Article IV and shall be final and binding on the parties and not
subject to collateral attack for any reason (other than manifest error). All fees and expenses of the Tax Advisor shall be shared equally by Loews and Lorillard. 
 ARTICLE V 
 CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER, DISPOSITION AND 
 DIVESTITURE 
 Section 5.1 Consolidation, Merger,
Conveyance, Transfer, Disposition and Divestiture. 
 (a) If any member of the Lorillard Group enters into a letter of intent, agreement
in principle (or other agreement whether or not subject to conditions) or enters into a binding agreement to (i) consolidate with or merge into any other Person (other than another member of the Lorillard Group that is a party to this
Agreement) or (ii) convey, transfer or otherwise dispose of or divest (including by way of sale, assignment, license, lease, pledge or 

  

 30 

 
hypothecation) all or a significant portion of its properties or assets to any other Person (other than another member of the Lorillard Group that is a party
to this Agreement), then such member of the Lorillard Group shall promptly, but in no event later than one Business Day following such event, provide notice to Loews of such event; provided, however, that the failure of such member of
the Lorillard Group to deliver said notice shall not release such party from its obligations hereunder. 
 (b) If any member of the Lorillard
Group (i) consolidates with or merges into any other Person (other than another member of the Lorillard Group that is a party to this Agreement) or (ii) conveys, transfers or otherwise disposes of or divests (including by way of sale,
assignment, license, lease, pledge or hypothecation) all or a significant portion of its properties or assets to any other Person (other than another member of the Lorillard Group that is a party to this Agreement), then as a condition to the
effectiveness of such consolidation, merger, conveyance, transfer, disposition or divestiture, such other Person shall automatically become jointly and severally bound by all of the obligations hereunder of each party hereto that is a member of the
Lorillard Group, and shall further evidence such obligation by executing and delivering to Loews prior to or at the time of such consolidation, merger, conveyance, transfer, disposition or divestiture a written agreement substantially in the form
attached hereto as Exhibit A. 
 (c) For purposes of this Section 5.1, any equity security or equity interest of Lorillard
Licensing Company, LLC and any interest in the intellectual property owned by Lorillard Licensing Company, LLC will be deemed a “significant portion” of the properties or assets of each of Lorillard and Lorillard Licensing Company, LLC.

 (d) Any consolidation, merger, conveyance, transfer, disposition or divestiture in violation of this Section 5.1 shall be
void. 
 (e) Lorillard shall describe its obligations under this Agreement, including specifically those provided for in this Article
V, in each set of annual audited financial statements or interim unaudited financial statements that is included in any Filing that it makes with the SEC. 
 ARTICLE VI 
 DISPUTE RESOLUTION 
 Section 6.1 Negotiation. 
 In the event of a controversy, dispute or claim arising out of, in
connection with, or in relation to the interpretation, performance, nonperformance, validity, termination or breach of this Agreement or otherwise arising out of, or in any way related to, this Agreement (collectively, “Agreement
Disputes”), the general counsels of Lorillard and Loews and/or such 

  

 31 

 
other executive officer designated by the relevant party shall in good faith negotiate for a reasonable period of time to settle such Agreement Dispute;
provided, that such reasonable period shall not, unless otherwise agreed by the relevant parties in writing, exceed thirty days from the time of receipt by any such party of written notice of such Agreement Dispute (“Dispute
Notice”); provided, further, that in the event of any arbitration in accordance with Section 6.2 hereof, the relevant parties shall not assert the defenses of statute of limitations and laches arising during the
period beginning after the date of receipt of the Dispute Notice, and any contractual time period or deadline under this Agreement to which such Agreement Dispute relates occurring after the Dispute Notice is received shall not be deemed to have
passed until such Agreement Dispute has been resolved. 
 Section 6.2 Arbitration. 
 If the Agreement Dispute has not been resolved for any reason after thirty days have elapsed from the receipt by a party thereto of a Dispute Notice, such
Agreement Dispute shall be determined, at the request of any relevant party, by arbitration conducted in New York City, before and in accordance with the then-existing Commercial Arbitration Rules of the American Arbitration Association
(“AAA”), except as modified herein (the “Rules”). There shall be three arbitrators. Each of Loews and Lorillard shall appoint one arbitrator within thirty (30) days of receipt by respondent of a copy of the demand
for arbitration. The two party-appointed arbitrators shall have thirty (30) days from the appointment of the second arbitrator to agree on a third arbitrator who shall chair the arbitral tribunal. Any arbitrator not timely appointed by the parties
shall be appointed by the AAA upon the written request of either Loews or Lorillard within thirty (30) days of such request in accordance with the listing, ranking and striking method in the Rules, and in any such procedure, each party shall be
given a limited number of strikes, excluding strikes for cause. The hearing shall be held no later than one hundred twenty (120) days following the appointment of the third arbitrator. Any controversy concerning whether an Agreement Dispute is an
arbitrable Agreement Dispute, whether arbitration has been waived, whether any Person is bound to arbitrate, or as to the interpretation of enforceability of this Article VI shall be determined by the arbitrators. In resolving any Agreement
Dispute, the parties intend that the arbitrators shall apply the substantive laws of the State of New York, without regard to any choice of law principles thereof that would mandate the application of the laws of another jurisdiction. The parties
intend that the provisions to arbitrate set forth herein be valid, enforceable and irrevocable, and any award rendered by the arbitrators shall be final and binding on the parties. The parties agree to comply and cause the members of their
applicable Group to comply with any award made in any such arbitration proceedings and agree to enforcement of or entry of judgment upon such award, in any court of competent jurisdiction, including (a) the Supreme Court of the State of New York,
New York County, or (b) the United States District Court for the Southern District of New York. The arbitrators shall be entitled, if appropriate, to award any remedy in such proceedings, including monetary damages, specific performance and all
other forms of legal and equitable relief; provided, however, the arbitrators shall not be entitled to award punitive, exemplary, treble or any other form of non-compensatory damages unless in connection with indemnification for a
Third Party Claim (and in such a case, only to the extent awarded in such Third Party Claim). Without limiting the provisions of the Rules, unless otherwise agreed in writing by or among the relevant parties or permitted by this Agreement, the
relevant parties shall keep, and shall cause the members of their applicable 

  

 32 

 
Group to keep, confidential all matters relating to the arbitration or the award, and any negotiations, conferences and discussions pursuant to this
Article VI shall be treated as compromise and settlement negotiations; provided, that such matters may be disclosed (i) to the extent reasonably necessary in any proceeding brought to enforce the award or for entry of a judgment
upon the award and (ii) to the extent otherwise required by law, rule, regulation or legal process. Nothing said or disclosed, nor any document produced, in the course of any negotiations, conferences and discussions that is not otherwise
independently discoverable shall be offered or received as evidence or used for impeachment or for any other purpose in any current or future arbitration. Nothing contained herein is intended to or shall be construed to prevent any party from
applying to any court of competent jurisdiction for interim measures or other provisional relief in connection with the subject matter of any Agreement Disputes. Without prejudice to such provisional remedies as may be available under the
jurisdiction of a court, the arbitral tribunal shall have full authority to grant provisional remedies and to direct the parties to request that any court modify or vacate any temporary or preliminary relief issued by such court, and to award
damages for the failure of any party to respect the arbitral tribunal’s orders to that effect. 
 Section 6.3 Costs and Expenses.

 Loews and Lorillard will bear equally all fees, costs, disbursements and other expenses of the arbitration, and each of them shall be
solely responsible for all fees, costs, disbursements and other expenses incurred in the preparation and prosecution of its case; provided, that in the event that a party fails to comply with the orders or decision of the arbitral tribunal,
then such non-complying party shall be liable for all costs and expenses (including, without limitation, attorneys fees) incurred by the other party in its effort to obtain either an order to compel, or an enforcement of an award, from a court of
competent jurisdiction. 
 Section 6.4 Confidentiality of Arbitration Proceedings. 
 Except to the extent necessary in connection with arbitration of any Agreement Dispute, a court challenge to the arbitration contemplated by
Section 6.2 hereof or for enforcement of an arbitral award, information concerning (i) the existence of an arbitration pursuant to Section 6.2 hereof, (ii) any documentary or other evidence given by a party or a
witness in the arbitration and (iii) the arbitration award may not be disclosed by the tribunal administrator, the arbitrators, any party or its counsel to any Person or entity not connected with the proceeding unless required by law, rule,
regulation or legal process, and then only to the extent of disclosing what is legally required. A party filing any document arising out of or relating to any arbitration in court shall seek from the court confidential treatment for such document.

 Section 6.5 Tax Matters. 
 This
Article VI shall not apply to any matters to which Article IV applies. 
  

 33 

 ARTICLE VII 
 OTHER PROVISIONS 
 Section 7.1 Treatment of Carolina Group 2002 Stock Option Plan. 
 Each of Loews and Lorillard shall take all actions necessary so that each option to purchase shares of CG Stock (each, a “CG Option”) and
each stock appreciation right to be settled in shares of CG Stock (each, a “CG SAR”) issued under the Carolina Group 2002 Stock Option Plan which is outstanding and unexercised immediately prior to the Effective Date shall be
assumed as of such date by Lorillard and shall be converted into, as applicable, either (a) an option to purchase the same number of shares of Lorillard common stock as was subject to the CG Option being assumed, at the same exercise price, for
the same remaining period and subject to the same terms and conditions (including those relating to vesting) applicable to the CG Option being assumed, or (b) a stock appreciation right with respect to the same number of shares of Lorillard
common stock as were subject to the CG SAR being assumed, at the same exercise price, for the same remaining period and subject to the same terms and conditions (including those relating to vesting) applicable to the CG SAR being assumed. Effective
as of the Effective Date, Lorillard shall assume the Carolina Group 2002 Stock Option Plan. 
 Section 7.2 Provision of Information. 

(a) If, from time to time after the Effective Date, Loews determines in good faith that it requires financial or other information related to Lorillard
or any other member of the Lorillard Group for the purpose of complying with its obligations under the federal securities laws, including for use in connection with any Filing, then Lorillard shall promptly provide such information to Loews upon
request. 
 (b) If, from time to time after the Effective Date, Lorillard determines in good faith that it requires financial or other
information related to Loews for the purpose of complying with its obligations under the federal securities laws, including for use in connection with any Filing, then Loews shall promptly provide such information to Lorillard upon request.

 Section 7.3 Binding Effect. 
 This
Agreement shall be binding upon and inure to the benefit of and be enforceable by the parties hereto and their successors and assigns (including, but not limited to, any successor of Loews or Lorillard succeeding to the Tax attributes of such party
under Section 381 of the Code), except as expressly otherwise provided herein. All references in this Agreement to the equity of any member of the Lorillard Group shall also mean and refer to the equivalent securities of or ownership interest
in any successor to such Lorillard Group member. 
 Section 7.4 No Assignment. 
 Except as otherwise provided for in this Agreement, neither this Agreement nor any of the rights, interests or obligations of any party hereto may be
assigned by such party without the prior written consent of the other parties, other than an assignment by any party to this Agreement of all of its rights, interests or obligations hereunder to its successor. 
  

 34 

 Section 7.5 No Third Party Beneficiaries. 
 Nothing in this Agreement shall convey any rights upon any Person or entity which is not a party or a permitted assignee of a party to this Agreement,
except with respect to released Persons and Indemnified Parties under Article III and Article IV. 
 Section 7.6 Notices.

 All notices and other communications provided for hereunder shall be dated and in writing and shall be deemed to have been given
(a) when delivered, if delivered personally, sent by confirmed telecopy or sent by registered or certified mail, return receipt requested, postage prepaid, (b) on the next Business Day if sent by overnight courier, and (c) when
received if delivered otherwise. Such notices shall be delivered to the address set forth below, or to such other address as any party shall furnish to each other party. 
 If to Loews or any other member of the Loews Group, to: 
 General Counsel 
 Loews Corporation 
 667 Madison Avenue

 New York, New York 10065-8087 
 Phone: (212) 521-2000 
 Fax: (212) 521-2997 
 If to Lorillard or any other member of the Lorillard Group, to: 
 General Counsel 
 Lorillard, Inc. 
 714 Green Valley Road 
 Greensboro, North
Carolina 27408-7018 
 Phone: (336) 335-7718 
 Facsimile: (336) 335-7707 
 Section 7.7 Governing Law. 
 This Agreement shall be construed and enforced in accordance with, and the rights and duties of the parties shall be governed by, the laws of the State of
New York without regard to any principles of conflicts of law or choice of law that would mandate the application of laws of another jurisdiction. 
 Section 7.8 Counterparts. 
 This Agreement may be executed in one or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same instrument. 
  

 35 

 Section 7.9 Severability. 
 In the event that any one or more of the provisions contained herein, or the application thereof in any circumstances, is held invalid, illegal or unenforceable in any respect for any reason, the validity, legality
and enforceability of any such provision in every other respect and of the remaining provisions contained herein shall not be in any way impaired thereby, it being intended that all of the rights and privileges of the parties hereto shall be
enforceable to the fullest extent permitted by law. To the extent that any such provision is so held to be invalid, illegal or unenforceable, Loews and Lorillard shall in good faith use their best efforts to find and effect an alternative means to
achieve the same or substantially the same result as that contemplated by such provision. 
 Section 7.10 Amendment, Modification and
Termination. 
 This Agreement may be amended, modified, supplemented or terminated only by written agreement executed by all of the
parties hereto or their respective successors, provided, however, this Agreement may be terminated by Loews at any time and for any reason prior to the Effective Date. 
 Section 7.11 Entire Agreement. 
 This Agreement, including any schedules or exhibits annexed
hereto, embodies the entire agreement and understanding of the parties hereto in respect of the subject matter hereof, and supersedes all previous negotiations, commitments and writings with respect to such subject matter. There are no restrictions,
promises, representations, warranties, covenants or undertakings, other than those expressly set forth or referred to herein. 
 Section 7.12 No
Circumvention. 
 The parties, on behalf of themselves and their successors, agree not to directly or indirectly take any actions, act in
concert with any Person who takes an action, or cause or allow any member of any such party’s Group or any successor to such Person to take any actions (including the failure to take a reasonable action) such that the resulting effect is to
materially undermine the effectiveness of any of the provisions of this Agreement (including adversely affecting the rights or ability of any party to successfully pursue indemnification, contribution or payment pursuant to Article III or
Article IV). 
 Section 7.13 Descriptive Headings. 
 The descriptive headings of the several articles and sections of this Agreement are inserted for reference only and shall not limit or otherwise affect the meaning hereof. 
 Section 7.14 Drafting of Language. 
 Each of the
parties hereto agrees that the drafting of the language contained in this Agreement was a cooperative effort, that each party was equally responsible for such drafting and that it would be inequitable for any party to be deemed the
“drafter” of any specific language contained herein pursuant to any judicial doctrine or presumption relating thereto. 
  

 36 

 IN WITNESS HEREOF, the parties have caused this Agreement to be executed and delivered as of the date
first above written. 
  

			
	LOEWS CORPORATION
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	LORILLARD, INC.
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	LORILLARD TOBACCO COMPANY
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	LORILLARD LICENSING COMPANY, LLC
		
	By:	 	  

	Name:	 	
	Title:	 	

			
	ONE PARK MEDIA SERVICES, INC.
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	PLISA S.A.
		
	By:	 	  

	Name:	 	
	Title:	 	

 Exhibit A 
 Form of Assumption Agreement 
 Date:
                                 
 Loews Corporation 
 Attention: General Counsel 
 667 Madison Avenue 
 New York, New York 10065-8087 
 Ladies and Gentlemen: 
 Reference is made to the Separation
Agreement (the “Separation Agreement”), dated as of                     , 2008, by and among Loews Corporation, a Delaware
corporation (“Loews”), Lorillard, Inc., a Delaware corporation (“Lorillard”), the Subsidiaries of Lorillard named therein and any other Person who later becomes a party to the Separation Agreement by an agreement
substantially similar hereto or otherwise pursuant to Section 5.1 of the Separation Agreement. Capitalized terms used but not defined herein have the meanings given in the Separation Agreement. 
 1. Assumption. The undersigned hereby (i) acknowledges that it has received and reviewed a complete copy of the Separation Agreement, and
(ii) agrees that, upon its execution of this Agreement, it shall become a party to the Separation Agreement as a member of the Lorillard Group and shall be fully bound by, and subject to, all of the terms, conditions and other provisions of the
Separation Agreement that are binding upon a member of the Lorillard Group with all attendant rights, duties and obligations stated therein, with the same force and effect as if the undersigned had executed the Separation Agreement on the date
thereof. 
 2. Notice. Section 7.6 of the Separation Agreement is hereby supplemented to reflect the undersigned
party’s address for notices: 
  

			
	 Contact:
	 	  

	 Entity:
	 	  

	 Address:
	 	  

		 	  

	 Facsimile:
	 	  

  

 Exhibit A-1 

 3. Governing Law. This Agreement shall be construed and enforced in accordance with, and the
rights and duties of the parties hereto shall be governed by, the laws of the State of New York without regard to any principles of conflicts of law or choice of law that would mandate the application of laws of another jurisdiction. 
 4. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together
shall constitute one and the same instrument. 
 5. Amendment and Modification. This Agreement may be amended, modified or
supplemented only by written agreement executed by all of the parties to the Separation Agreement or their respective successors. 
 6.
Descriptive Headings. The descriptive headings of the several sections of this Agreement are inserted for reference only and shall not limit or otherwise affect the meaning of such sections. 
 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date set forth above. 
  

			
	 Entity:
	 	  

		
	 By:
	 	  

	 Name:
	 	
	 Title:
	 	
	
	 Acknowledged by:

	
	 LOEWS CORPORATION

	
	  

	 Name:
	 	
	 Title:
	 	

  

 Exhibit A-2

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