Document:

Filed by Bowne Pure Compliance

Exhibit 10.1

UST INC.

1992 STOCK OPTION PLAN

Effective as of May 5, 1992

Restated as of May 5, 1992; December 12, 1996;

January 1, 1999; December 9, 1999; and September 7, 2008

1. Purpose.

UST Inc. (hereinafter referred to as the “Company”) has adopted this UST Inc. 1992 Stock
Option Plan (hereinafter referred to as the “Plan”), effective as of May 5, 1992, subject to
approval by stockholders at the annual stockholders’ meeting held on May 5, 1992. The purposes of
the Plan are to further the long-term growth in earnings of the Company by providing incentives to
those employees of the Company and its Subsidiaries (as defined below) who are or will be
responsible for such growth; to facilitate the ownership of Company stock by such employees,
thereby increasing the identity of their interest with those of the Company’s stockholders; and to
assist the Company in attracting and retaining employees with experience and ability.

2. Administration.

The Plan shall be administered and interpreted by a Stock Option Committee or any successor
committee (the “Committee”) as designated by the Board of Directors of the Company (the “Board”) of
not less than two members as appointed from time to time by the Board. Each member of the
Committee shall be a member of the Board. Unless otherwise determined by the Board, the Committee
shall consist solely of members who are “nonemployee directors” within the meaning of Rule 16b-3,
as from time to time amended, promulgated under Section 16 of the Securities Exchange Act of 1934,
as amended (the “Exchange Act”), and who are “outside directors” within the meaning of Section
162(m) of the Internal Revenue Code of 1986, as amended (the “Code”). The Committee shall have
full authority to establish guidelines for the administration of the Plan and to make any other
determination it deem necessary to administer the Plan, which determinations shall be binding and
conclusive on all parties.

3. Eligibility.

Any employee of the Company or a Subsidiary (as defined herein) or an affiliate (whether or
not incorporated) of the Company who is determined by the Committee to be making or to be expected
to make a contribution to the success of the Company (an “Employee”) shall be eligible to receive
grants of stock options under this Plan. For the purposes of this Plan, a Subsidiary shall be
deemed to be any company of which the Company owns, directly or indirectly, fifty percent (50%) or
more of the stock. No employee may be granted options covering more than 250,000 shares of Common
Stock (as defined in Section 4 hereof) during any fiscal year of the Company, commencing with the
Company’s 1997 fiscal year.

 

 

 

4. Stock.

(a) A maximum of 15,400,000 shares of the common stock of the Company, par value $.50 per
share (“Common Stock”), shall be reserved for issuance in accordance with the terms of the Plan.
Such reserved shares may be authorized but unissued shares or any issued shares which have been
acquired by the Company and are held in its treasury, as the Board may from time to time determine.

(b) If any change in the outstanding shares of Common Stock occurs or takes effect on or after
December 19, 1991, through declaration of stock or other dividends or distributions with respect to
such shares, through restructuring, recapitalization or other similar event or through stock
splits, change in par value, combination or exchange of shares, or the like, then the number and
kind of shares reserved for options, the number and kind of shares subject to outstanding options
and the option price, as appropriate, of such optioned shares shall be adjusted as necessary to
reflect equitably such change; provided, however, that any fractional shares resulting from such
adjustment shall be eliminated.

(c) If an option granted under this Plan is surrendered, expires, lapses or for any other
reason ceases to be exercisable in whole or in part, the shares which were subject to any such
option, but as to which the option ceases to be exercisable, shall again be available for the
purposes of this Plan; provided, however, that to the extent any option is cancelled pursuant to
the provisions of Section 7 hereof, the shares subject to such option shall no longer be available
for the purposes of this Plan.

5. Granting of Options.

(a) The Committee may grant incentive stock options (“Incentive Stock Options”) (within the
meaning of Section 422 of the Code), or options which do not qualify as Incentive Stock Options
(“Nonstatutory Stock Options”), or both, as follows:

(i) Incentive Stock Options may be granted to any Employee, provided that the aggregate Fair
Market Value (determined as of the effective date of grant of the Incentive Stock Option) of the
shares of Common Stock with respect to which Incentive Stock Options (under all plans of the
Company and its Subsidiaries) become exercisable for the first time by an Optionee during any
calendar year may not exceed $100,000. The effective date of a grant shall be the day on which the
Committee adopts a resolution expressly granting an option, unless such resolution expressly
provides for a specific later effective date. Any options granted in excess of such limitation
shall be treated for all purposes as Nonstatutory Stock Options.

(ii) Nonstatutory Stock Options may be granted to any Employee without regard to the
limitations stated in subparagraph (i) hereof.

(b) The option price per share for each option granted shall be determined by the Committee
and shall not be less than the Fair Market Value of the shares on the date the option is granted.
Effective prior to January 1, 2005, for purposes of this Plan, the Fair Market Value of such shares
on any given day shall be the average of the high and low sales prices per share of Common Stock as
reported on the New York Stock Exchange Composite Tape for such date, or,
if there was no trading of Common Stock on such date, for the next preceding date on which
there was trading. Effective on and after January 1, 2005, for purposes of this Plan, the Fair
Market Value of such shares on any given day shall be the average of the high and low sales prices
per share of Common Stock as reported on the New York Stock Exchange Composite Tape for such date,
or, if there was no trading of Common Stock on such date, for the next preceding date on which
there was trading, or, alternatively, in the discretion of the Committee in the case of an option
that is intended to be exempt from Section 409A of the Code, fair market value as determined by the
Committee in accordance with Section 409A of the Code.

 

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6. Exercise of Option.

(a) Each option shall be granted for, and by its terms shall not be exercisable after the
expiration of, a period of ten years from the date the option is granted or such lesser period as
the Committee may determine.

(b) No option shall be transferable other than by will or the laws of descent and
distribution, and each option shall be exercisable during the Employee’s lifetime only by him or by
his guardian or legal representative.

(c) Subject to the provisions of Section 7 hereof and of paragraph (e) of this Section 6, no
option shall be exercisable by its terms prior to the expiration of the one-year period beginning
on the date of its grant. An option shall become exercisable over a period of one to five years,
in ratable installments or otherwise, such period and method to be determined by the Committee.
Subject to the first sentence of this Section 6(c), the Committee may accelerate the exercisability
of any option or portion thereof at any time. An option may be exercised either for the total
number of shares stated in the grant or, from time to time, for less than the total number, in
multiples of 100 shares; provided, however, if an option holder makes a “hardship withdrawal”
pursuant to Section 6.02 (Option V) of the UST Inc. Employees’ Savings Plan, such holder’s right of
exercise shall be suspended during the 12-month period beginning on the date of such withdrawal,
except that this proviso shall not apply if for any reason such suspension is not required under
Section 401(k) of the Code or any final regulations issued thereunder.

(d) Each exercise of an option, in whole or in part, shall be effected by a notice in writing
to the Company, accompanied by one of the following:

(i) by payment in cash of the full option price of the shares purchased;

(ii) if authorized by the Committee, by tendering to the Company, in whole or in part, in lieu
of cash, shares of Common Stock owned by such purchaser, accompanied by the certificates therefore
registered in the name of such purchaser and properly endorsed for transfer, having a Fair Market
Value equal to the cash exercise price applicable to the portion of such option being so exercised;
or

 

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(iii) if the purchaser is an employee of the Company or a Subsidiary or affiliate at the time
of purchase, by payment in cash of at least $1.00 per share, with the remainder of the option price
being borrowed from the Company as described below. In such case the Company, unless otherwise
determined by the Committee, will lend to such purchaser an amount up to the
excess of the full option price of the shares purchased over such down payment, but not more
than the excess of such price over the par value of such shares, such loan to be evidenced by the
purchaser’s delivery to the Company of his unconditional promissory note to pay the amount of the
loan within ten years, in such manner as is determined by the Committee. Any such note shall be
dated the date of the notice of exercise of the option, shall provide for the payment of equal
installments of principal through appropriate payroll deductions or on an annual, semiannual or
quarterly basis, as selected by the purchaser, shall provide for the quarterly payment of interest
on such indebtedness at the applicable federal rate in effect under Section 1274(d) of the Code on
the date on which the loan was made, compounded semiannually (or the equivalent thereof), or if no
such rate is in effect, 8% or such other rate as the Committee may determine is necessary to comply
with the requirements of applicable law, and shall be in such form and contain such other
provisions as the Committee may determine from time to time. If the employment of the purchaser is
terminated by reason of his death or “disability,” as defined in the Company’s Long-Term Disability
Plan (“Disability”), or upon his “retirement” from the Company, as defined in any employee
retirement plan of the Company in which the purchaser participates (“Retirement”), or if the
Committee otherwise consents, any unpaid balance of such indebtedness shall become due and payable
on the earlier to occur of (A) five years after the date of such termination, or (B) ten years
after the date of purchase, unless otherwise determined by the Committee. If the employment of the
purchaser is terminated for any other reason, any unpaid balance of such indebtedness shall become
due and payable three months from the date of such termination, unless otherwise determined by the
Committee.

In connection with any such loan, the purchaser shall deposit with and pledge to the Company
the certificate or certificates evidencing all of the shares so purchased, to be held by the
Company as collateral security for such loan. Cash dividends paid on shares held by the Company as
security shall be paid to the purchaser. Voting rights and other stockholders’ rights with respect
to all shares shall vest in the purchaser although the shares are held by the Company as security.
Upon default in the payment of principal or interest on a loan provided for in this subparagraph
(iii), the Company, to the extent then permitted by law and without demand or notice to the debtor,
may sell any pledged shares through the facilities of the New York Stock Exchange (or other
Exchange upon which the Company’s shares may then be listed) for the benefit of the debtor and
apply the net proceeds of such sale to the then unpaid principal and interest on such loan, and any
remainder of such proceeds shall be paid to the debtor.

(e) Termination of Employment.

(i) Death, Disability and Retirement. If the employment of an option holder is
terminated by reason of his death or Disability, or upon his Retirement, or for any other reason if
the Committee so determines, all outstanding options then held by such option holder that have not
theretofore become exercisable according to their terms (“Unexercisable Options”) shall become
exercisable as of the date of such termination of employment.

 

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(ii) Cause. With respect to any option granted on or after December 12, 1996 (“New
Option”), if (A) the employment of the option holder is terminated for Cause (as defined in
paragraph (iv) of this Section 6(e)); or (B) after the option holder’s termination of employment
with the Company other than for Cause, the Company discovers the occurrence of an act or failure to
act by the option holder that would have enabled the Company to terminate the option
holder’s employment for Cause had the Company known of such act or failure to act at the time
of its occurrence; or (C) subsequent to his termination of employment, the option holder commits a
Competitive Act (as defined in clause (iv)(A) of this Section 6(e)) and, in each case, if the act
constituting Cause is a Competitive Act or Willful Misconduct (as defined in clause (iv)(C) of this
Section 6(e)), such act is discovered by the Company within three years of its occurrence, then,
unless otherwise determined by the Committee, (x) any and all outstanding New Options held by such
option holder as of the date of such termination or discovery shall terminate and be forfeited; (y)
if the act constituting Cause is a Competitive Act or Willful Misconduct, the option holder (or, in
the event of the option holder’s death following the commission of such act, his beneficiaries or
estate) shall (1) sell back to the Company all shares that are held, as of the date of such
termination or discovery, by the option holder (or, if applicable, his beneficiaries or estate) and
that were acquired upon exercise of the New Option on or after the date which is 180 days prior to
the option holder’s termination of employment (the “Acquired Shares”), for a per share price equal
to the per share exercise price of such option, and (2) to the extent such Acquired Shares have
previously been sold or otherwise disposed of by the option holder (other than by reason of death)
or, if applicable, by his beneficiaries or estate, repay to the Company the excess of the aggregate
Fair Market Value of such Acquired Shares on the date of such sale or disposition over the
aggregate exercise price of such Acquired Shares.

For purposes of clause (ii)(y)(2) of this subsection (e), (A) the amount of the repayment
described therein shall not be affected by whether the option holder or, if applicable, his
beneficiaries or estate actually received such Fair Market Value with respect to such sale or other
disposition, and (B) repayment may, without limitation, be effected, at the discretion of the
Company, by means of offset against any amount owed by the Company to the option holder or, if
applicable, his beneficiaries or estate.

(iii) If the employment of an option holder is terminated for any other reason and if the
Committee does not determine otherwise, all Unexercisable Options held by such option holder shall
be forfeited and shall lapse.

(iv) For purposes of this Section 6(e), “Cause” shall mean (A) prior to the expiration of any
Employee and Secrecy Agreement or any agreement containing noncompetition provisions between the
option holder and the Company, the violation of either such agreement (“Competitive Act”); (B) the
willful and continued failure by the option holder to substantially perform his job duties (other
than any such failure resulting from the option holder’s incapacity due to physical or mental
illness), after demand for substantial performance is delivered by the Company that specifically
identifies the manner in which the Company believes the option holder has not substantially
performed his duties; or (C) the willful engaging by the option holder in misconduct that is
materially injurious to the Company, monetarily or otherwise (“Willful Misconduct”).

(f) No optioned shares shall be issued or transferred to an optionee until purchased as
provided in paragraph (d) above, and an optionee shall have none of the rights of a stockholder
with respect to such optioned shares until the certificates therefor are registered in the name of
such optionee upon exercise of the option.

 

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7. Effect of Certain Changes.

If while unexercised options remain outstanding under this Plan (a) any “Person” (as such term
is used in Sections 13(d) and 14(d) of the Exchange Act), other than the Company, any person who on
the date hereof is a director or officer of the Company, any trustee or other fiduciary holding
securities under an employee benefit plan of the Company, or any corporation owned, directly or
indirectly, by the stockholders of the Company in substantially the same proportions as their
ownership of stock of the Company, is or becomes the “beneficial owner” (as defined in Rule 13d-3
under the Exchange Act), directly or indirectly, of securities of the Company representing 20% or
more of the combined voting power of the Company’s then outstanding securities; (b) during any
period of two consecutive years, individuals who at the beginning of such period constitute the
Board, and any new director (other than a director designated by a person who has entered into an
agreement with the Company to effect a transaction described in clause (a) or (c) of this Section
7) whose election by the Board or nomination for election by the Company’s stockholders was
approved by a vote of at least two-thirds (2/3) of the directors then still in office who either
were directors at the beginning of the period or whose election or nomination for election was
previously so approved, cease for any reason to constitute at least a majority thereof; or (c) the
stockholders of the Company approve a merger or consolidation of the Company with any other
corporation, other than a merger or consolidation which would result in the voting securities of
the Company outstanding immediately prior thereto continuing to represent (either by remaining
outstanding or by being converted into voting securities of the surviving entity) more than 80% of
the combined voting power of the voting securities of the Company or such surviving entity
outstanding immediately after such merger or consolidation, or the stockholders of the Company
approve a plan of complete liquidation of the Company or an agreement for the sale or disposition
by the Company of all or substantially all of the Company’s assets (an “Acceleration Event”), then
each outstanding option that has not theretofore become exercisable according to its terms shall
become exercisable. Upon the occurrence of an Acceleration Event, the Committee shall provide for
the cancellation of all options outstanding as of the effective date of such event. Effective (i)
prior to September 7, 2008, and (ii) on and after September 7, 2008, with respect to any stock
options outstanding on September 7, 2008, that were both earned and vested within the meaning of
Section 409A of the Code on December 31, 2004, upon such cancellation, the Company shall make, in
exchange therefor, a cash payment under any such option in an amount per share equal to the
difference between the per share exercise price of such option and (x) in the case of a
Nonstatutory Stock Option, the Fair Market Value of a share of Common Stock on the date during the
prior sixty-day period that produces the highest Fair Market Value, and (y) in the case of an
Incentive Stock Option, such Fair Market Value on the effective date of the transaction. Effective
on and after September 7, 2008, with respect to all awards other than stock options outstanding on
September 7, 2008, that were both earned and vested within the meaning of Section 409A of the Code
on December 31, 2004, upon such cancellation, the Company shall make, in exchange therefor, a cash
payment under any such option in an amount per share equal to the difference (if any) between the
per share exercise price of such option and the value of the consideration that would be received
per share of Common Stock in the Acceleration Event or, if no consideration is to be received by
the Company’s stockholders in connection with the Acceleration Event, the Fair Market Value of a
share of Common Stock on the date of the Acceleration Event (except that such payment shall be
limited as necessary to prevent the option from being subject to Section 409A of the Code).

 

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8. Laws and Regulations.

No shares of Common Stock shall be issued under this Plan unless and until all legal
requirements applicable to the issuance of such shares have been complied with to the satisfaction
of the Committee. The Committee shall have the right to condition any issuance of shares to any
Employee hereunder on such Employee’s undertaking in writing to comply with such restrictions on
the subsequent disposition of such shares as the Committee shall deem necessary or advisable as a
result of any applicable law or regulation. The Company or a Subsidiary shall have the right to
deduct from all awards hereunder paid in cash any federal, state or local taxes required by law to
be withheld with respect to such cash awards. In the case of Common Stock issued upon exercise of
options or in the case of any other applicable tax withholding requirement, the Employee or other
person receiving such stock or otherwise subject to tax shall be required to pay to the Company or
a Subsidiary the amount of any such taxes which the Company or a Subsidiary is required to withhold
with respect to such stock. The provisions of this Plan shall be interpreted so as to comply with
the conditions and requirements of Rule16b-3, and, if the option is an Incentive Stock Option, with
Sections 422 and 424 of the Code, unless the Committee determines otherwise.

9. Other Terms and Conditions.

Options may contain such other terms, conditions or provisions, which shall not be
inconsistent with this Plan, as the Committee shall deem appropriate.

10. Amendment or Termination of the Plan.

The Board may at any time, and from time to time, terminate, modify, amend or interpret the
Plan in any respect; provided, however, that unless otherwise determined by the Board, an amendment
that requires stockholder approval in order for the Plan to continue to comply with Section 162(m)
of the Code or any other law, regulation or stock exchange requirement shall not be effective
unless approved by the requisite vote of stockholders.

The termination or any modification or amendment of the Plan shall not, without the consent of
an Employee, adversely affect his rights under an option previously granted to him.

11. Effective Date and Term of the Plan.

The adoption of the Plan shall become effective on May 5, 1992, subject to the approval of
stockholders. No option shall be granted pursuant to this Plan later than May 4, 2002, but options
theretofore granted may extend beyond that date in accordance with their terms.

12. Compliance with Section 409A of the Code.

Effective January 1, 2005, at all times this Plan shall be interpreted and operated (i) with
respect to 409A Awards (as defined below), in accordance with the requirements of Section 409A of
the Code, unless an exemption is available and applicable, (ii) to maintain the exemptions from
Section 409A of the Code of options granted under the Plan, and (iii) to preserve the status of
deferrals made prior to the effective date of Section 409A of the Code (“Prior Deferrals”), if any,
as exempt from Section 409A of the Code, i.e., to preserve the grandfathered status of Prior
Deferrals. For purposes of this Section 12, “409A Awards” include all options that were not both
earned and vested as of December 31, 2004, and all options that
were materially modified after October 3, 2004, determined in each case within the meaning of
Section 409A of the Code. To the extent there is a conflict between the provisions of the Plan
relating to compliance with Section 409A of the Code and the provisions of any award agreement
issued under the Plan, the provisions of the Plan control.

 

7Filed by Bowne Pure Compliance

Exhibit 10.2

UST INC.

AMENDED AND RESTATED

STOCK INCENTIVE PLAN

	1.	 	Purpose.

	 
	 	 	UST Inc. (the “Company”) adopted the UST Inc. 2001 Stock Option Plan effective as of May 1,
2001, adopted an amendment and restatement effective as of February 20, 2003, subject to
approval by stockholders at the annual stockholders’ meeting held on May 6, 2003 (the
“Effective Date”), and has adopted this restatement effective September 7, 2008. The name
of the plan as amended and restated effective May 6, 2003 is the UST Inc. Amended and
Restated Stock Incentive Plan (the “Plan”). The purposes of the Plan are to further the
long-term growth in earnings of the Company by providing incentives to those employees of
the Company and its Subsidiaries (as defined below) who are or will be responsible for such
growth; to facilitate the ownership of Company stock by such employees, thereby increasing
the identity of their interest with those of the Company’s stockholders; and to assist the
Company in attracting and retaining employees with experience and ability.

	 
	2.	 	Definitions. As used in the Plan, the following terms shall have the meanings set forth
below:

	 	(a)	 	“Award” shall mean any Option, SAR, Restricted Stock Award, Performance Stock
Award, Stock Unit Award or Other Stock-Based Award granted under the Plan.

	 
	 	(b)	 	“Board” shall mean the Board of Directors of UST Inc.

	 
	 	(c)	 	“Cause” shall mean (i) a Competitive Act; (ii) the willful and continued
failure by a Grantee to substantially perform his job duties (other than any such
failure resulting from the Grantee’s incapacity due to physical or mental illness),
after demand for substantial performance is delivered by the Company that specifically
identifies the manner in which the Company believes the Grantee has not substantially
performed his duties; or (iii) Willful Misconduct.

	 
	 	(d)	 	A “Change in Control” shall be deemed to occur upon the occurrence of any of
the following events:

	 	(i)	 	any “Person” (as such term is used in Sections 13(d) and 14(d)
of the Exchange Act), other than the Company, any person who on the date hereof
is a director or officer of the Company, any trustee or other fiduciary holding
securities under an employee benefit plan of the Company, or any corporation
owned, directly or indirectly, by the stockholders of the Company in
substantially the same proportions as their ownership of stock of the Company,
is or becomes the “beneficial owner”
(as defined in Rule 13d-3 under the Exchange Act), directly or indirectly,
of securities of the Company representing 20% or more of the combined voting
power of the Company’s then outstanding securities; or

 

 

 

	 	(ii)	 	during any period of two consecutive years, individuals who at
the beginning of such period constitute the Board, and any new director (other
than a director designated by a person who has entered into an agreement with
the Company to effect a transaction described in clause (i) or (iii) of this
definition) whose election by the Board or nomination for election by the
Company’s stockholders was approved by a vote of at least two-thirds (2/3) of
the directors then still in office who either were directors at the beginning
of the period or whose election or nomination for election was previously so
approved, cease for any reason to constitute at least a majority thereof; or

	 
	 	(iii)	 	consummation of a merger or consolidation of the Company with
any other corporation, other than a merger or consolidation which would result
in the voting securities of the Company outstanding immediately prior thereto
continuing to represent (either by remaining outstanding or by being converted
into voting securities of the surviving entity) more then 80% of the combined
voting power of the voting securities of the Company or such surviving entity
outstanding immediately after such merger or consolidation, or the stockholders
of the Company approve a plan of complete liquidation of the Company or an
agreement for the sale or disposition by the Company of all or substantially
all of the Company’s assets.

	 	(e)	 	“Code” shall mean the Internal Revenue Code of 1986, as amended.

	 
	 	(f)	 	“Committee” shall mean the Compensation Committee of the Board or any successor
committee.

	 
	 	(g)	 	“Common Stock” shall mean the common stock of the Company, par value $.50 per
share.

	 
	 	(h)	 	“Company” shall mean UST Inc., a Delaware corporation, including any successor
thereto.

	 
	 	(i)	 	“Competitive Act” shall mean, prior to the expiration of an Employee and
Secrecy Agreement or any agreement containing noncompetition provisions between a
Grantee and the Company, the violation of either such agreement.

	 
	 	(j)	 	“Effective Date” shall mean May 6, 2003, the date of the Company’s annual
meeting of stockholders or any adjournment thereof.

	 
	 	(k)	 	“Employee” shall mean any employee of the Company or a Subsidiary or an
affiliate (whether or not incorporated) of the Company.

 

 

 

	 	(l)	 	“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

	 
	 	(m)	 	“Fair Market Value”, effective prior to January 1, 2005, shall mean the average
of the high and low sales prices per share of Common Stock as reported on the New York
Stock Exchange Composite Tape for such date, or, if there was no trading of Common
Stock on such date, for the next preceding date on which there was such trading.
Effective on and after January 1, 2005, “Fair Market Value” shall mean the average of
the high and low sales prices per share of Common Stock as reported on the New York
Stock Exchange Composite Tape for such date, or, if there was no trading of Common
Stock on such date, for the next preceding date on which there was such trading, or,
alternatively, in the discretion of the Committee in the case of an Option or SAR that
is intended to be exempt from Section 409A of the Code, fair market value as determined
by the Committee in accordance with Section 409A of the Code.

	 
	 	(n)	 	“Grantee” shall mean an Employee who has been granted an Award under the Plan.

	 
	 	(o)	 	“Incentive Stock Option” shall mean an Option intended to qualify as an
“incentive stock option” under Section 422 of the Code.

	 
	 	(p)	 	“Nonstatutory Stock Option” shall mean an Option not intended to be an
Incentive Stock Option.

	 
	 	(q)	 	“Option” shall mean an Incentive Stock Option or a Nonstatutory Stock Option.

	 
	 	(r)	 	“Other Stock-Based Awards” shall have the meaning set forth in Section 7(a) of
the Plan.

	 
	 	(s)	 	“Performance Goal” shall mean one or more of the following pre-established
criteria, determined in accordance with generally accepted accounting principles, where
applicable: (1) net earnings; (2) earnings per share; (3) net sales growth; (4) net
income (before taxes); (5) net operating profit; (6) return measures (including, but
not limited to, return on assets, capital, equity or sales); (7) cash flow (including,
but not limited to, operating cash flow and free cash flow); (8) earnings before or
after taxes, interest, depreciation, and/or amortization; (9) productivity ratios; (10)
share price (including, but not limited to, growth measures and total stockholder
return); (11) expense targets; (12) operating efficiency; (13) customer satisfaction;
(14) working capital targets; (15) any combination of, or a specified increase in, any
of the foregoing; (16) the achievement of certain target levels of discovery and/or
development of products; and (17) the formation of joint ventures, or the completion of
other corporate transactions. Without limiting the generality of the foregoing, the
Committee shall have the authority to make equitable adjustments in the Performance
Goals in recognition of unusual or non-recurring events affecting the Company, in
response to changes in applicable laws or regulations, or to account for items of gain,
loss or expense determined to be extraordinary or unusual in nature or
infrequent occurrence or related to the disposal of a segment of a business or
related to a change in accounting principles.

 

 

 

	 	(t)	 	“Performance Stock Award” shall mean a right granted under Section 7 of the
Plan to receive shares of Common Stock or its cash equivalent which is contingent on
the achievement of specified Performance Goals or other objectives during a specified
performance period determined by the Committee.

	 
	 	(u)	 	“Permitted Transferee” means (i) a trust for the benefit of a Grantee; (ii) a
partnership in which a Grantee is the general partner and immediate family members (any
child, stepchild, grandchild, parent, stepparent, grandparent, spouse, sibling,
mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law or
sister-in-law, including adoptive relationships of the Grantee) are the only additional
partners; or (iii) immediate family members of the Grantee.

	 
	 	(v)	 	“Plan” shall mean the UST Inc. Amended and Restated Stock Incentive Plan.

	 
	 	(w)	 	“Restricted Stock Award” shall mean an Award consisting of shares of Common
Stock granted under Section 7 of the Plan that are subject to certain restrictions
determined by the Committee, which may include the achievement of specified Performance
Goals.

	 
	 	(x)	 	“SAR” shall mean a stock appreciation right that is granted pursuant to Section
6 of the Plan.

	 
	 	(y)	 	“Stock Unit Award” shall mean a right granted under Section 7 of the Plan to
receive shares of Common Stock or its cash equivalent in the future, contingent upon
the satisfaction of conditions established by the Committee, which may include the
achievement of specified Performance Goals.

	 
	 	(z)	 	“Subsidiary” shall mean any company of which the Company owns, directly or
indirectly, fifty percent (50%) or more of the stock.

	 
	 	(aa)	 	“Tandem SAR” shall mean an SAR that is related to an Option.

	 
	 	(bb)	 	“Willful Misconduct” shall mean the willful engaging by an individual in
misconduct that is materially injurious to the Company, monetarily or otherwise.

	3.	 	Administration.

	 	(a)	 	The Plan shall be administered and interpreted by the Committee, as designated
by the Board, of not less than two members as appointed from time to time by the Board.
Each member of the Committee shall be a member of the Board. Unless otherwise
determined by the Board, the Committee shall consist solely of members who are
“nonemployee directors” within the meaning of Rule 16b-3, as from time to time amended,
promulgated under Section 16 of the Exchange Act, and who are “outside directors”
within the meaning of Section 162(m) of the
Code. The Committee may delegate its authority to make grants under the Plan,
subject to conditions determined by the 

 

 

 

	 	 	 	Committee, to such person(s) as the
Committee shall determine, provided that in no event shall the Committee delegate
the authority to make or approve Awards to Employees who are officers of the
Company. Notwithstanding the generality of the foregoing, neither the Committee nor
its delegate shall have the authority to reprice (or cancel and regrant) any Option
or SAR at a lower exercise price without first obtaining the approval of the
Company’s stockholders. The Committee shall have full authority to establish
guidelines for the administration of the Plan and to make any other determination it
deems necessary to administer the Plan, which determinations shall be binding and
conclusive on all parties.

	 
	 	(b)	 	Subject to the express provisions of the Plan, the Committee shall have the
authority to determine the persons to whom Awards shall be made, the timing of Awards,
the number of shares of Common Stock to be made subject to each Award, the exercise
price of Options and SARs, the exercisability of Options and SARs, and such other terms
and conditions with respect to any Award, not inconsistent with the Plan, as the
Committee shall deem appropriate. The terms of Awards need not be consistent with one
another.

	4.	 	Eligibility.

Any Employee who is determined by the Committee to be making or to be expected to make a
contribution to the success of the Company shall be eligible to receive Awards under the Plan.

	5.	 	Stock.

	 	(a)	 	Authorized Shares. A maximum of 6,000,000 shares of Common Stock shall be
reserved for issuance in accordance with the terms of the Plan. Such reserved shares
may be authorized but unissued shares or any issued shares which have been acquired by
the Company and are held in its treasury, as the Board may from time to time determine.

	 
	 	(b)	 	Plan and Individual Limits. No Employee may be granted Options covering more
than 250,000 shares of Common Stock during any fiscal year of the Company. No Employee
may be granted an Award under Section 7 of the Plan covering more than 100,000 shares
of Common Stock during any fiscal year of the Company. During the term of the Plan,
the aggregate number of shares of Common Stock that may be made subject to Awards other
than Options shall not exceed 1,000,000.

 

 

 

	 	(c)	 	Adjustments. If any change in the outstanding shares of Common Stock occurs or
takes effect on or after May 1, 2001, through declaration of stock or other dividends
or distributions with respect to such shares, through restructuring, recapitalization
or other similar event or through stock splits, change in par value, combination or
exchange of shares, or the like, then the number and kind of
 shares reserved for Awards, the individual and Plan limits set forth in Section
5(b), the number and kind of shares subject to outstanding Awards and the exercise,
base or purchase price, as appropriate, of such shares shall be equitably adjusted
as necessary to reflect such change; provided, however, that any fractional shares
resulting from such adjustment shall be eliminated.

	 
	 	(d)	 	Reuse of Shares. If an Award granted under the Plan is forfeited, expires,
lapses or for any other reason ceases to be vested or exercisable in whole or in part,
the shares which were subject to any such Award, but as to which the Award ceases to be
vested or exercisable, shall again be available for the purposes of this Plan;
provided, however, that to the extent any Award is cancelled pursuant to the provisions
of Section 9 of the Plan, the shares subject to such Award shall no longer be available
for the purposes of the Plan.

	6.	 	Options and Stock Appreciation Rights (SARs). The Committee may grant Options and SARs as
follows:

	 	(a)	 	General. The terms and conditions applicable to any Option or SAR granted
under the Plan shall be determined by the Committee in its discretion; provided, that
the exercise price per share for each Option and SAR granted shall not be less than the
Fair Market Value of the shares on the date the Option or SAR is granted. No shares
subject to an Option or an SAR that is payable in shares of Common Stock shall be
issued or transferred to a Grantee until such Option or SAR is exercised in accordance
with its terms and, in the case of an Option, such shares have been purchased, and a
Grantee shall have none of the rights of a stockholder with respect to such shares
until the certificates therefor are registered in the name of such Grantee upon
exercise of the Option or SAR. Options and SARs shall be exercised by a Grantee in
accordance with the methods approved by the Committee.

	 
	 	(b)	 	Options. With respect to any grant of an Option, the Option agreement entered
into by the Grantee shall identify the grant as an Incentive Stock Option or a
Nonstatutory Stock Option. Incentive Stock Options shall be subject to such additional
terms and conditions as are necessary to preserve their status as Incentive Stock
Options. To the extent that an Option intended to be an Incentive Stock Option does
not comply with the applicable rules of the Code, it shall be treated as a Nonstatutory
Stock Option. The exercise of an Option, or the cancellation, termination or
expiration of an Option (other than pursuant to Section 6(c) upon exercise of a Tandem
SAR), with respect to a number of shares of Common Stock shall cause the automatic and
immediate cancellation of any related Tandem SARs to the extent of the number of shares
of Common Stock subject to such Option which is so exercised, cancelled, terminated or
expired.

	 
	 	(c)	 	SARs. The exercise of an SAR with respect to any number of shares of Common
Stock shall entitle the Grantee to a payment, for each such share, equal to the excess
of (i) the Fair Market Value of a share of Common Stock on the exercise date over (ii)
the exercise price of the SAR. Such payment shall be made in the
form of cash or shares of Common Stock, or a combination of cash and shares of
Common Stock, in the discretion of the Committee, as soon as practicable after the
effective date of such exercise. The exercise of a Tandem SAR with respect to a
number of shares of Common Stock shall cause the immediate and automatic
cancellation of its related Option with respect to an equal number of shares.

 

 

 

	7.	 	Stock-Based Awards Other Than Options and SARs.

	 	(a)	 	The Committee may, in its discretion, grant shares of Restricted Stock,
Performance Stock Awards or Stock Unit Awards subject to the terms of the Plan and the
restrictions set forth in this Section 7. Other forms of Awards (“Other Stock-Based
Awards”) valued in whole or in part by reference to, or otherwise based on, Common
Stock (which may include, without limitation, restricted stock units) may be granted by
the Committee either alone or in addition to other Awards under the Plan. Subject to
the provisions of the Plan, the Committee shall have sole and complete authority to
determine the persons to whom and the time or times at which such Awards shall be
granted, the number of shares of Common Stock to be subject to such Awards and all
other conditions of such Awards, including whether the vesting of such Awards may be
based on the attainment of one or more Performance Goals.

	 
	 	(b)	 	Restrictions On Awards Other Than Options and SARs. An Award granted pursuant
to this Section 7 shall be subject to such conditions, restrictions and contingencies
as the Committee shall determine. If the Committee shall designate any Award granted
under this Section 7 as an Award intended to qualify as “performance-based
compensation”, within the meaning of Section 162(m) of the Code, such Award shall be
designed and administered by the Committee so to qualify, including, but not limited
to, conditioning the vesting and/or payment of such Award upon the achievement of one
or more Performance Goals and certifying in writing that such conditions have been
satisfied prior to the payment of, or vesting with respect to, such Award.

	 
	 	(c)	 	Performance-Based Restricted Stock Awards. This Section 7(c) is effective
January 1, 2005. The Committee has granted performance-based Restricted Stock Awards
that provide for contingent rights to receive additional shares of Common Stock in the
event that actual performance exceeds target. These contingent rights are subject to
the vesting requirements specified in the applicable Award agreements for the
corresponding Restricted Stock Awards and will be paid upon vesting, except as
specified in Section 7(d) below with respect to payments at Separation from Service to
Specified Employees and Section 9(b) with respect to shares that vest on a Change in
Control that may not trigger payment. If vesting is accelerated from when it would
apply under the original terms of an Award agreement, such accelerated vesting shall
not trigger payment of the contingent rights unless permissible under Section 409A of
the Code and contemplated by the acceleration in vesting. These contingent rights will
be paid in shares of Common Stock.

 

 

 

	 	(d)	 	Section 409A Provisions. This Section 7(d) is effective January 1, 2005.
Notwithstanding any contrary terms in an agreement evidencing a Stock Unit Award
(including a Stock Unit Award that is a contingent right under a Restricted Stock
Award), any Stock Unit Award that is a 409A Award (as defined in Section 14(a) below)
shall be subject to the following:

	 	(i)	 	The vested portion of a Grantee’s Stock Unit Award will be paid
not later than the date on which the Grantee incurs a Separation from Service
(as defined below). Any portion of the Stock Unit Award that is not vested on
the date on which the Grantee incurs a Separation from Service shall be paid
later or forfeited, as required by the terms of the applicable agreement and the
Plan. For purpose of this paragraph, whether or not a Grantee’s Stock Unit
Award is vested on the date on which the Grantee incurs a Separation from
Service will be determined under the terms of the applicable agreement and the
Plan. If vesting is accelerated from when it would apply under the original
terms of an Award agreement, such accelerated vesting shall not trigger payment
of the contingent rights unless permissible under Section 409A of the Code and
contemplated by the acceleration in vesting. If the Grantee is determined to be
a Specified Employee on the date of the participant’s Separation from Service,
the otherwise applicable payment date related to the Separation from Service
(including a retirement) shall be delayed six months after such Separation from
Service.

	 
	 	(ii)	 	For purposes of determining the time of payment of the Stock Unit
Award, a Change in Control shall not be deemed to have occurred unless the
transaction constitutes a change in the ownership or effective control of a
corporation or a change in the ownership of a substantial portion of the assets
of a corporation within the meaning of Treasury Regulation §1.409A-3(i)(5). It
is expressly intended that a Change in Control may occur for vesting purposes
with respect to a Stock Unit Award at a different time than when a Change in
Control occurs for payment purposes. If a Change in Control occurs for vesting
purposes with respect to a Stock Unit Award at a time when a Change in Control
has not occurred for payment purposes with respect to such Stock Unit Award,
then payment of such Stock Unit Award will be made at the earliest of (i) the
date on which payment would have been made if the Grantee had remained in
employment until vesting without regard to a Change in Control or Separation
from Service, (ii) the date on which the Grantee incurs a Separation from
Service, (iii) the date on which a Change in Control occurs for payment purposes
(as described in this subsection), or (iv) the date of the participant’s death.
If payment is made in connection the Grantee’s Separation from Service and the
Grantee is determined to be a Specified Employee on the date of the Grantee’s
Separation from Service, the payment shall be delayed six months after such
Separation from Service.

 

 

 

	 	(iii)	 	For purposes of this Section 7(d), “Specified Employee” has the
meaning set out in Section 409A(a)(2)(B)(i) of the Code.

	 
	 	(iv)	 	For purposes of this Section 7(d), “Separation from Service” has
the meaning set out in Section 409A(a)(2)(A)(i) of the Code.

	8.	 	Termination of Employment; Forfeiture. The terms and conditions applicable to Awards with
respect to the termination for any reason of a Grantee’s employment or service with the
Company and its Subsidiaries shall be determined by the Committee in its discretion and shall
be set forth in the agreement evidencing such Award. Notwithstanding the generality of
foregoing, any Award and/or the proceeds of any Award shall be forfeited, as follows:

	 
	 	 	If (x) the employment of the Grantee is terminated for Cause, or (y) after the
Grantee’s termination of employment with the Company other than for Cause, the Company
discovers the occurrence of an act or failure to act by the Grantee that would have enabled
the Company to terminate the Grantee’s employment for Cause had the Company known of such
act or failure to act at the time of its occurrence, or (z) subsequent to his termination of
employment, the Grantee commits a Competitive Act and, in each case, if the act constituting
Cause is a Competitive Act or Willful Misconduct and such act is discovered by the Company
within three years of its occurrence, then, unless otherwise determined by the Committee,

	 	(a)	 	any and all outstanding Awards held by such Grantee as of the date of such
termination or discovery (whether or not then vested) shall terminate and be forfeited;
and

	 
	 	(b)	 	if the act constituting Cause is a Competitive Act or Willful Misconduct, the
Grantee (or, in the event of the Grantee’s death following the commission of such act,
his beneficiaries or estate) shall (i) to the extent such Award was paid in the form of
 shares of Common Stock, sell back to the Company all shares that are held, as of the
date of such termination or discovery, by the Grantee (or, if applicable, his
beneficiaries or estate) and that were acquired upon the grant, exercise or vesting of
any Award on or after the date which is 180 days prior to the Grantee’s termination of
employment (the “Acquired Shares”), for a per share price equal to the price paid by
the Grantee (or, if applicable his beneficiaries or estate) for such shares (or, if no
consideration was paid for such shares, the shares shall be immediately returned to the
Company for no consideration), (ii) to the extent Acquired Shares have previously been
sold or otherwise disposed of by the Grantee (other than by reason of death) or, if
applicable, by his beneficiaries or estate, repay to the Company the excess of the
aggregate Fair Market Value of such Acquired Shares on the date of such sale or
disposition over the aggregate price paid for such Acquired Shares and (iii) to the
extent such Award was paid in the form of cash, repay to the Company the aggregate cash
received by such Grantee (or, if applicable, his beneficiaries or estate) upon the
exercise or vesting
of any Award on or after the date which is 180 days prior to the Grantee’s
termination of employment.

 

 

 

For purposes of clause (ii) of paragraph (b) above, (A) the amount of the repayment
described therein shall not be affected by whether the Grantee or, if applicable, his
beneficiaries or estate, actually received such Fair Market Value with respect to such sale
or other disposition, and (B) repayment may, without limitation, be effected, at the
discretion of the Company, by means of offset against any amount owed by the Company to the
Grantee or, if applicable, his beneficiaries or estate.

	9.	 	Effect of Certain Changes.

	 	(a)	 	Effective prior to January 1, 2005, unless otherwise determined by the
Committee at the time a grant is made, upon the occurrence of a Change in Control, (i)
each outstanding Award that is subject to time-based vesting or payment conditions
which has not theretofore become vested and/or exercisable according to its terms shall
immediately become 100% vested and/or exercisable and (ii) in the case of each
outstanding Award that is subject to performance-based vesting or payment conditions,
such Award shall become immediately due and payable in respect of the aggregate value
of such Awards (as determined pursuant to Section 9(b)(ii) below) for all then
uncompleted performance periods, assuming the achievement at target level of the
performance goals established with respect to such Awards. Effective on and after
January 1, 2005, subject to limitations in an Award agreement, upon the occurrence of a
Change in Control (i) each outstanding Award that is subject to time-based vesting or
payment conditions shall immediately vest and become exercisable, be released from
restriction, or be paid out to the Grantee, as applicable, and (ii) in the case of each
outstanding Award that is subject to performance-based vesting or payment conditions,
such Award shall immediately vest and become exercisable, be released from restriction,
or be paid out to the Grantee, as applicable, in respect of the aggregate value of such
Award (as determined pursuant to Section 9(b)(ii) below) for all then uncompleted
performance periods assuming the achievement at target level of the performance goals
established with respect to such Award (but only if the Change in Control constitutes a
change in control within the meaning of Section 409A of the Code in the case of a Stock
Unit Award that is subject to Section 409A).

 

 

 

	 	(b)	 	Upon a Change in Control where the Company is not the surviving corporation (or
survives only as a subsidiary of another corporation) or other Change in Control
described in clause (iii) of the definition of “Change in Control”, the Committee shall
provide for the cancellation of all Awards outstanding as of the effective date of such
Change in Control and, in exchange therefor, the Company shall make a cash payment
under any such outstanding Award as follows:

	 	(i)	 	Effective (i) prior to September 7, 2008, and (ii) on and after
September 7, 2008, with respect to any Options outstanding on September 7,
2008, that were both earned and vested within the meaning of Section 409A of
the Code on December 31, 2004, an amount per share equal to the excess
of (A) in the case of a Nonstatutory Stock Option or any SAR, the Fair
Market Value of a share of Common Stock on the date during the prior 60-day
period that produces the highest Fair Market Value, or (B) in the case of an
Incentive Stock Option, the Fair Market Value of a share of Common Stock on
the effective date of the transaction, over the per share exercise price of
such Option or SAR. Effective on and after September 7, 2008, with respect
to all awards other than Options outstanding on September 7, 2008, that were
both earned and vested within the meaning of Section 409A of the Code on
December 31, 2004, an amount per share equal to the excess (if any) of the
value of the consideration that would be received per share of Common Stock
in the Change in Control over the per share exercise price of such Option or
SAR or, if no consideration is to be received by the Company’s stockholders
in connection with the Change in Control, the Fair Market Value of a share
of Common Stock on the date of the Change in Control (except that such
payment shall be limited as necessary to prevent the Option or SAR from
being subject to Section 409A of the Code).

	 
	 	(ii)	 	Effective prior to September 7, 2008, in the case of any other
Award, an amount equal to the Fair Market Value of a share of Common Stock on
the date during the prior 60-day period that produces the highest Fair Market
Value, multiplied by the number of shares of Common Stock subject to such
Award; provided, however, that for purposes of this Section 9(b)(ii), the
amount of the payment in respect of each outstanding Award that is subject to
performance-based vesting or payment conditions shall be calculated by
multiplying (x) the number of shares of Common Stock the Grantee would have
received at the end of all relevant performance periods assuming the
achievement at target level of the performance goals established for such Award
by (y) the Fair Market Value of a share of Common Stock on the date during the
prior 60-day period that produces the highest Fair Market Value. Effective on
and after September 7, 2008, in the case of any other Award, an amount equal to
the value of the consideration that would be received per share of Common Stock
in the Change in Control or, if no consideration is to be received by the
Company’s stockholders in connection with the Change in Control, the Fair
Market Value of a share of Common Stock on the date of the Change in Control,
in either case multiplied by the number of shares of Common Stock subject to
such Award; provided, however, that for purposes of this Section 9(b)(ii), the
amount of the payment in respect of each outstanding Award that is subject to
performance-based vesting or payment conditions shall be calculated by
multiplying (x) the number of shares of Common Stock the Grantee would have
received at the end of all relevant performance periods assuming the
achievement at target level of the performance goals established for such Award
by (y) an amount equal to the value of the consideration that would be received
per share of Common Stock in the Change in Control or, if no consideration is
to be received by the Company’s stockholders in connection with the Change in
Control, the Fair Market Value of a share of Common Stock on the date of the
Change in Control.

 

 

 

	10.	 	Transferability of Awards.

	 
	 	 	No Award shall be transferable other than by will or the laws of descent and distribution,
and each Option and SAR shall be exercisable during the Grantee’s lifetime only by the
Grantee or by the Grantee’s guardian or legal representative. Notwithstanding the
foregoing, during the Grantee’s lifetime, the Committee may, in its sole discretion, permit
the transfer of certain Awards by a Grantee to a Permitted Transferee, subject to any
conditions that the Committee may prescribe, provided that no such transfer by any Grantee
may be made in exchange for consideration. In the event that the transfer of an Option is
approved by the Committee, the Permitted Transferee shall be required to pay the exercise
price of such Option in cash.

	 
	11.	 	Laws and Regulations.

	 
	 	 	No shares of Common Stock shall be issued under this Plan unless and until all legal
requirements applicable to the issuance of such shares have been complied with to the
satisfaction of the Committee. The Committee shall have the right to condition any issuance
of shares to any Employee hereunder on such Employee’s undertaking in writing to comply with
such restrictions on the subsequent disposition of such shares as the Committee shall deem
necessary or advisable as a result of any applicable law or regulation. The provisions of
this Plan shall be interpreted so as to comply with the conditions and requirements of Rule
16b-3 under the Exchange Act, and, if the Award is an Incentive Stock Option, with Sections
422 and 424 of the Code, unless the Committee determines otherwise.

	 
	12.	 	Withholding.

	 
	 	 	The Company or a Subsidiary shall have the right to deduct from all Awards hereunder paid in
cash any federal, state or local taxes required by law to be withheld with respect to such
cash awards. Unless otherwise specified by the Committee in the Award agreement, in the
case of Common Stock issued upon the vesting or exercise of an Award payable in shares
(whether by the Grantee or a Permitted Transferee) or in the case of any other applicable
tax withholding requirement, the Grantee subject to tax shall be required to pay to the
Company or a Subsidiary the amount of any such taxes which the Company or a Subsidiary is
required to withhold with respect to such stock. Effective prior to September 7, 2008, the
Committee may provide, in the Award agreement or otherwise, that in the event that a Grantee
is required to pay to the Company any amount to be withheld in connection with the vesting
or exercise of an Award that is payable in shares of Common Stock, the Grantee may satisfy
such obligation (in whole or in part) by electing to have the Company withhold a portion of
the shares to be received upon the vesting or exercise of the Award equal in value to the
minimum amount required to be withheld. Effective on and after September 7, 2008, the
Committee may provide, in the Award agreement or otherwise, that in the event that a Grantee
is required to pay to the Company any amount to be withheld in connection with 

 

 

 

	 	 	the exercise
of an Award, upon the Award being earned or upon a Restricted Stock Award becoming nonforfeitable or Stock
Unit Award becoming nonforfeitable and payable, that to the extent the Award is payable in
 shares of Common Stock, the Grantee may satisfy such obligation (in whole or in part) by
electing to have the Company withhold a portion of the shares to be received upon the
exercise of the Award, upon the Award being earned or upon Restricted Stock Awards becoming
nonforfeitable or Stock Unit Awards becoming nonforfeitable and payable equal in value to
the minimum amount required to be withheld. The value of the shares to be withheld shall be
their Fair Market Value on the date that the amount of tax to be withheld is determined.
Any election by a Grantee to have shares withheld under this Section 12 shall be subject to
such terms and conditions as the Committee may specify.

	 
	13.	 	Amendment or Termination of the Plan.

	 
	 	 	The Board may at any time, and from time to time, terminate, modify, amend or interpret the
Plan in any respect; provided, however, that unless otherwise determined by the Board, an
amendment that requires stockholder approval in order for the Plan to continue to comply
with Section 162(m) of the Code or any other law, regulation or stock exchange requirement
shall not be effective unless approved by the requisite vote of stockholders. The
termination or any modification or amendment of the Plan shall not, without the consent of a
Grantee, adversely affect his rights under an Award previously granted to him.

	 
	14.	 	Miscellaneous.

	 	(a)	 	Governing Law; Interpretation. The Plan and Award agreements issued under the
Plan shall be construed, administered, and governed in all respects under the laws of
the State of Delaware, without giving effect to the principles of conflicts of laws
thereof.

	 
	 	(b)	 	Severability. If any provision of the Plan or any Award is or becomes or is
deemed to be invalid, illegal or unenforceable in any jurisdiction or as to any Grantee
or Award, or would disqualify the Plan or any Award under any law deemed applicable by
the Committee, such provisions shall be construed or deemed amended to conform to the
applicable laws, or if it cannot be construed or deemed amended without, in the
determination of the Committee, materially altering the intent of the Plan or the
Award, such provisions shall be stricken as to such jurisdiction, Grantee or Award and
the remainder of the Plan and any such Award shall remain in full force and effect.

	 
	 	(c)	 	No Right to Employment. The grant of an Award shall not be construed as giving
a Grantee the right to be retained in the employ or service of the Company or any of
its affiliates. Further, the Company or any of its affiliates may at any time dismiss
a Grantee from employment or service, free from any liability or any clam under the
Plan, unless otherwise expressly provided in the Plan or in any Award agreement.

 

 

 

	 	(d)	 	Compliance with Code Section 409A. Effective January 1, 2005, at all times
this Plan shall be interpreted and operated (i) with respect to 409A Awards (as defined
below), in compliance with the requirements of Section 409A of the Code, unless an
exemption is available and applicable; (ii) to maintain the exemptions from Section
409A of the Code of Options, SARs and Restricted Stock Awards and awards designed to
meet the short-deferral exception under Section 409A of the Code; and (iii) to preserve
the status of deferrals made prior to the effective date of Section 409A of the Code (“
Prior Deferrals”) as exempt from Section 409A of the Code, i.e., to preserve the
grandfathered status of Prior Deferrals. For purposes of this Section 14(d), “409A
Awards” include all Plan awards that were not both earned and vested on December 31,
2004, and all Plan awards that were materially modified after October 3, 2004,
determined in each case within the meaning of Section 409A of the Code. To the extent
there is a conflict between the provisions of the Plan relating to compliance with
Section 409A of the Code and the provisions of any award agreement issued under the
Plan, the provisions of the Plan control.

	15.	 	Term of the Plan.

	 
	 	 	The UST Inc. 2001 Stock Option Plan was originally established effective as of May 1, 2001,
was amended and restated, effective as of the Effective Date, as the Amended and Restated
Stock Incentive Plan, subject to obtaining the approval of the Company’s stockholders, and
has been restated effective September 7, 2008. No Award shall be granted pursuant to this
Plan later than April 30, 2011, but Awards theretofore granted may extend beyond that date
in accordance with their terms.

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