Document:

Unassociated Document

    Exhibit
      10.04

    

    CAROLINA
      GROUP

    2002
      STOCK OPTION PLAN

    (Amended
      and Restated as of November 15, 2005)

    

    
      	
              Section
                1.

            	
              General

            

    

    

    1.1  Purpose.  The
      Carolina Group 2002 Stock Option Plan (the “Plan”) has been established by Loews
      Corporation (the “Company”) to (i) attract and retain persons eligible to
      participate in the Plan, (ii) motivate Participants, by means of appropriate
      incentives, to achieve long-term goals of the Carolina Group, and reward
      Participants for achievement of those goals, and (iii) provide incentive
      compensation opportunities that are competitive with those of other similar
      companies, and thereby promote the financial interest of Lorillard, Inc. and
      its
      subsidiaries and any companies attributed to the Carolina Group in the
      future.

    

    1.2  Operation
      and Administration.  The
      operation and administration of the Plan shall be subject to the provisions
      of
      Section 4 (relating to operation and administration). Capitalized terms in
      the
      Plan shall be defined as set forth in the Plan (including the definition
      provisions of Section 7 of the Plan).

    

    
      	
              Section
                2.

            	
              Options

            

    

    

    2.1  Option
      Grant.  The
      Committee may grant Options in accordance with this Section 2.

    

    2.2  Definitions.  The
      grant of an “Option” permits the Participant to purchase shares of Stock at an
      Exercise Price established by the Committee. Any Option granted under the Plan
      may be either an incentive stock option (an “ISO”) or a non-qualified option (an
“NQO”), as determined in the discretion of the Committee. An “ISO” is an Option
      that is intended to be an “incentive stock option” described in section 422(b)
      of the Code and does in fact satisfy the requirements of that section. An “NQO”
is an Option that is not intended to be an “incentive stock option” as that term
      is described in section 422(b) of the Code, or that fails to satisfy the
      requirements of that section.

    

    2.3  Exercise
      Price.  The
      “Exercise Price” of each Option granted under this Section 2 shall be
      established by the Committee or shall be determined by a method established
      by
      the Committee at the time the Option is granted; except that the Exercise Price
      shall not be less than 100% of the Fair Market Value of a share of Stock on
      the
      date of grant (or, if greater, the par value of a share of Stock). In no event
      may any Option granted under this Plan be amended, other than pursuant to
      Section 4.2(e), to decrease the Exercise Price thereof, be cancelled in
      conjunction with the grant of any new Option with a lower Exercise Price, or
      otherwise be subject to any action that would be treated, for accounting
      purposes, as a “repricing” of such Option, unless such amendment, cancellation,
      or action is approved by the Company’s shareholders.

    

    2.4  Vesting
      and Exercise.  An
      Option shall be exercisable in accordance with such terms and conditions and
      during such periods as may be established by the Committee.

    
      
         

        

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              (a)

            	
              Unless
                otherwise provided by the Committee at the time of grant or thereafter,
                each Option shall vest and become exercisable in four equal annual
                installments beginning on the first anniversary of the date of grant,
                and
                shall thereafter remain exercisable during the Option
                Term.

            
	 	 
	
              (b)

            	
              Unless
                otherwise provided by the Committee at the time of grant or thereafter,
                the Option Term of each Option shall end on the earliest of (1) the
                date
                on which such Option has been exercised in full, (2) the date on
                which the
                Participant experiences a Termination for Cause or a voluntary
                Termination, (3) the one-year anniversary of the date on which the
                Participant experiences a Termination due to death or Disability,
                (4) the
                three-year anniversary of the date on which the Participant experiences
                a
                Termination due to such person’s Retirement, and (5) the 90th day after
                the Participant experiences a Termination for any other reason;
                provided,
                that in no event may the Option Term exceed ten (10) years from the
                date
                of grant of the Option. Except as otherwise determined by the Committee
                at
                the time of grant or thereafter, upon the occurrence of a Termination
                of a
                Participant for any reason, the Option Term of all outstanding Options
                held by the Participant that are unvested as of the date of such
                Termination shall thereupon end and such unvested Options shall be
                forfeited immediately; provided,
                however,
                that the Committee may, in its sole discretion, accelerate the vesting
                of
                any Option and/or extend the exercise period of any Option (but not
                beyond
                the ten-year anniversary of the grant date).

            
	 	 
	
              (c)

            	
              An
                Option may be exercised and the underlying shares purchased in accordance
                with this Section 2 at any time after the Option with respect to
                those
                shares vests and before the expiration of the Option Term. To exercise
                an
                Option, the Participant shall give written notice to the Company
                stating
                the number of shares with respect to which the Option is being
                exercised.

            
	 	 
	
              (d)

            	
              The
                full Exercise Price for shares of Stock purchased upon the exercise
                of any
                Option shall be paid at the time of such exercise (except that, in
                the
                case of an exercise arrangement approved by the Committee and described
                in
                the last sentence of this paragraph (d), payment may be made as soon
                as
                practicable after the exercise). The Exercise Price shall be payable
                by
                check, or such other instrument as the Committee may accept. The
                Committee
                may permit a Participant to elect to pay the Exercise Price upon
                the
                exercise of an Option by irrevocably authorizing a third party to
                sell
                shares of Stock (or a sufficient portion of the shares) acquired
                upon
                exercise of the Option and remit to the Company a sufficient portion
                of
                the sale proceeds to pay the entire Exercise Price and any tax withholding
                resulting from such exercise. In the case of any ISO such permission
                must
                be provided for at the time of grant and set forth in an Award
                Certificate. In addition, if approved by the Committee, payment,
                in full
                or in part, may also be made in the form of unrestricted Mature Shares,
                based on the Fair Market Value of the Mature Shares on the date the
                Option
                is exercised; provided,
                however,
                that, in the case of an ISO the right to make a payment in such Mature
                Shares may be authorized only at the time the Option is
                granted.

            

    

    

     

    
      
         

        

        
        

      

      
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              Section
                3.

            	
              Stock
                Appreciation Rights

            

    

    

    3.1  Types
      and Nature of Stock Appreciation Rights.  A
      “Stock Appreciation Right” is the right to receive an amount equal in value to
      the excess, if any, on the date of exercise, of the Fair Market Value of a
      share
      of Stock over the Exercise Price of the Stock Appreciation Right. Stock
      Appreciation Rights may be “Tandem SARs,” which are granted in conjunction with
      an Option, or “Free-Standing SARs,” which are not granted in conjunction with an
      Option. Upon the exercise of a Stock Appreciation Right, the Participant shall
      be entitled to receive an amount equal to the product of (i) the excess of
      the
      Fair Market Value of one share of Stock over the Exercise Price of the
      applicable Stock Appreciation Right, multiplied by (ii) the number of shares
      of
      Stock in respect of which the Stock Appreciation Right has been exercised.
      Such
      amount shall be paid in cash, Stock, or a combination thereof (with the amount
      of such cash being determined based upon the Fair Market Value of the Stock
      on
      the date of exercise). As determined by the Committee, the applicable Award
      Certificate shall specify whether such payment is to be made in cash or Stock
      or
      both, or shall reserve to the Committee or the Participant the right to make
      that determination prior to or upon the exercise of the Stock Appreciation
      Right.

    

    3.2  Tandem
      SARs.  A
      Tandem SAR may be granted on the grant date of the related Option or, in the
      case of a related NQO, at any time after the grant date thereof while the
      related NQO remains outstanding. A Tandem SAR shall be exercisable only at
      such
      time or times and to the extent that the related Option is exercisable in
      accordance with the provisions of Section 2, and shall at all times have the
      same Exercise Price as the related Option. A Tandem SAR shall terminate or
      be
      forfeited upon the exercise or forfeiture of the related Option, and the related
      Option shall terminate or be forfeited upon the exercise or forfeiture of the
      Tandem SAR.

    

    3.3  Exercise
      Price.  The
      “Exercise Price” per share of Stock subject to a Free-Standing SAR shall be
      determined by the Committee and set forth in the applicable Award Certificate,
      and shall not be less than 100% of the Fair Market Value of a share of Stock
      on
      the applicable grant date. In no event may any Free-Standing SAR granted under
      this Plan be amended, other than pursuant to Section 4.2 (e), to decrease the
      Exercise Price thereof, be cancelled in conjunction with the grant of any new
      Option or Free-Standing SAR with a lower Exercise Price, or otherwise be subject
      to any action that would be treated, for accounting purposes, as a “repricing”
of such Free-Standing SAR, unless such amendment, cancellation, or action is
      approved by the Company’s shareholders.

    

    3.4  Term.  Unless
      otherwise provided by the Committee at the time of grant or thereafter, the
      Term
      of each Free-Standing SAR shall end on the earliest of (1) the date on which
      such Free-Standing SAR has been exercised in full, (2) the date on which the
      Participant experiences a Termination for Cause or a voluntary Termination,
      (3)
      the one-year anniversary of the date on which the Participant experiences a
      Termination due to death or Disability, (4) the three-year anniversary of the
      date on which the Participant experiences a Termination due to such person’s
      Retirement, and (5) the 90th day after the Participant experiences a Termination
      for any other reason; provided, that in no event may the Term exceed ten (10)
      years from the date of grant of the Free-Standing SAR. Except as otherwise
      determined by the Committee at the time of grant, upon the occurrence of a
      Termination of a Participant for any reason, the Term of all outstanding
      Free-Standing SARs held by the Participant that are unvested as of the date
      of
      such Termination shall thereupon end and such unvested Free-Standing SARs shall
      be forfeited immediately provided, however, that the Committee may, in its
      sole
      discretion, accelerate the vesting of any Stock Appreciation Right and/or extend
      the exercise period of any Stock Appreciation Right (but not beyond the ten-year
      anniversary of the grant date).

    

    3.5  Vesting
      and Exercise.  Except
      as otherwise provided herein, Free-Standing SARs shall vest and be exercisable
      at such time or times and subject to such terms and conditions as

    
      
         

        

        
        

      

      
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    shall
      be
      determined by the Committee and set forth in the applicable Award Certificate.
      

    

    
      	
              Section
                4.

            	
              Operation
                And Administration

            

    

    

    4.1  Effective
      Date.  The
      Plan shall be effective as of January 31, 2002 (the “Effective Date”). The Plan
      shall be unlimited in duration and, in the event of Plan termination, shall
      remain in effect as long as any Options or Stock Appreciation Rights under
      it
      are outstanding.

    

    4.2  Shares
      Subject to Plan.  The
      shares of Stock for which Options and Stock Appreciation Rights may be granted
      under the Plan shall be subject to the following:

    

    
      	
              (a)

            	
              The
                shares of Stock with respect to which Options and Stock Appreciation
                Rights may be granted under the Plan shall be shares currently authorized
                but unissued or currently held or subsequently acquired by the Company
                as
                treasury shares, including shares purchased in the open market or
                in
                private transactions.

            
	 	 
	
              (b)

            	
              Subject
                to the following provisions of this subsection 4.2, the maximum number
                of
                shares of Stock that may be delivered to Participants and their
                beneficiaries under the Plan shall be 1,500,000 shares of
                Stock.

            
	 	 
	
              (c)

            	
              To
                the extent any shares of Stock covered by an Option are not delivered
                to a
                Participant or beneficiary because the Option is forfeited or canceled,
                such shares shall not be deemed to have been delivered for purposes
                of
                determining the maximum number of shares of Stock available for delivery
                under the Plan.

            
	 	 
	
              (d)

            	
              Subject
                to paragraph 4.2(e), the maximum number of shares that may be covered
                by
                Options, and/or Stock Appreciation Rights granted to any one individual
                during any one calendar year period shall be 200,000
                shares.

            
	 	 
	
              (e)

            	
              In
                the event of a corporate transaction involving the Stock and/or the
                Company (including, without limitation, any stock dividend, stock
                split,
                extraordinary cash dividend, recapitalization, reorganization, merger,
                consolidation, split-up, spin-off, combination or exchange of shares),
                the
                Committee may make adjustments to preserve the benefits or potential
                benefits of the Plan and outstanding Options and/or Stock Appreciation
                Rights. Action by the Committee may include: (i) adjustment of the
                number
                and kind of shares which may be delivered under the Plan; (ii) adjustment
                of the number and kind of shares referred to in Sections 4.2 (b)
                and (d);
                (iii) adjustment of the number and kind of shares subject to outstanding
                Options and Stock Appreciation Rights; (iv) adjustment of the Exercise
                Price of outstanding Options and Stock Appreciation Rights; (v) settlement
                in cash or Stock in an amount equal to the excess of the value of
                the
                Stock subject to such Option and Stock Appreciation Rights over the
                aggregate Exercise Price (as determined by the Committee) of such
                Options
                and Stock Appreciation Rights; and (vi) any other adjustments that
                the
                Committee determines to be
                equitable.

            

    

    

    
      
         

        

        
        

      

      
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    4.3  General
      Restrictions.  Delivery
      of shares of Stock or other amounts under the Plan shall be subject to the
      following:

    

    
      	
              (a)

            	
              Notwithstanding
                any other provision of the Plan, the Company shall have no liability
                to
                deliver any shares of Stock under the Plan or make any other distribution
                of benefits under the Plan unless such delivery or distribution would
                comply with all applicable laws (including, without limitation, the
                requirements of the Securities Act of 1933 and Code Section 409(A)),
                and
                the applicable requirements of any securities exchange or similar
                entity.

            
	 	 
	
              (b)

            	
              To
                the extent that the Plan provides for issuance of stock certificates
                to
                reflect the issuance of shares of Stock, the issuance may be effected
                on a
                non-certificated basis, to the extent not prohibited by applicable
                law or
                the applicable rules of any stock
                exchange.

            

    

    

    4.4  Tax
      Withholding.  All
      distributions under the Plan are subject to withholding of all applicable taxes,
      and the delivery of any shares or other benefits under the Plan shall be
      conditioned on satisfaction of the applicable withholding obligations. The
      Committee, in its discretion, and subject to such requirements as the Committee
      may impose prior to the occurrence of such withholding, may permit such
      withholding obligations to be satisfied through cash payment by the Participant,
      through the surrender of shares of Stock which the Participant already owns,
      or
      through the surrender of shares of Stock to which the Participant is otherwise
      entitled under the Plan; provided
      that
      surrender of shares may be used only to satisfy the minimum withholding required
      by law.

    

    4.5  Grant
      and Use of Options and Stock Appreciation Rights.  In
      the discretion of the Committee, more than one Option and/or Stock Appreciation
      Right may be granted to a Participant. Options and Stock Appreciation Rights
      may
      be granted as alternatives to or replacements of Options and Stock Appreciation
      Rights granted or outstanding under the Plan. Subject to the overall limitation
      on the number of shares of Stock that may be delivered under the Plan, the
      Committee may use available shares of Stock as the form of payment for
      compensation, grants or rights earned or due under any other compensation plans
      or arrangements of Lorillard, Inc. or its subsidiaries or any company attributed
      to the Carolina Group in the future, including the plans and arrangements of
      such entities assumed in business combinations. Notwithstanding the foregoing,
      the assumption by the Company of options in connection with the acquisition
      of a
      business or other entity and the conversion of such options into options to
      acquire Stock shall not be treated as a new grant of Options under the Plan
      unless specifically so provided by the Committee.

    

    4.6  Settlement
      of Options and Stock Appreciation Rights.  The
      Committee may from time to time establish procedures pursuant to which a
      Participant may elect to defer, until a time or times later than the exercise
      of
      an Option or Stock Appreciation Right, receipt of all or a portion of the shares
      of Stock subject to such Option or Stock Appreciation Right and/or to receive
      cash at such later time or times in lieu of such deferred shares, all on such
      terms and conditions as the Committee shall determine. If any such deferrals
      are
      permitted, then a Participant who elects such deferral shall not have any rights
      as a stockholder with respect to such deferred shares unless and until shares
      are actually delivered to the Participant with respect thereto, except to the
      extent otherwise determined by the Committee.

    
      
         

        

        
        

      

      
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    4.7  Code
      Section 409A.

    

    
      	
              (a)

            	
              It
                is the intention of the Company that no grant of Options or Stock
                Appreciation Rights shall be “deferred compensation” subject to Code
                Section 409A, unless and to the extent that the Committee specifically
                determines otherwise as provided below, and the Plan and the terms
                and
                conditions of all grants of Options and Stock Appreciation Rights
                shall be
                interpreted accordingly. 

            
	 	 
	
              (b)

            	
              The
                terms and conditions governing any grants of Options and Stock
                Appreciation Rights that the Committee determines will be subject
                to Code
                Section 409A, including any rules for elective or mandatory deferral
                of
                the delivery of cash pursuant thereto, shall be set forth in writing,
                and
                shall comply in all respects with Code Section 409A.
                

            

    

    

    4.8  Other
      Plans.  Amounts
      payable under this Plan shall not be taken into account as compensation for
      purposes of any other employee benefit plan or program of the Company or any
      of
      its Subsidiaries, except to the extent otherwise provided by such plans or
      programs, or by an agreement between the affected Participant and the Company
      or
      Lorillard, Inc. or its subsidiaries or any company attributed to the Carolina
      Group in the future.

    

    4.9  Heirs
      and Successors.  The
      terms of the Plan shall be binding upon, and inure to the benefit of, the
      Company and its successors and assigns, and upon any person acquiring, whether
      by merger, consolidation, purchase of assets or otherwise, all or substantially
      all of the Company’s assets and business.

    

    4.10  Transferability.  Options
      and Stock Appreciation Rights granted under the Plan are not transferable except
      (i) as designated by the Participant by will or by the laws of descent and
      distribution or (ii) in the case of a Free-Standing SAR or NQO and any
      associated Tandem SAR, as otherwise expressly permitted by the Committee
      including, if so permitted, pursuant to a transfer to such Participant’s
      immediate family, whether directly or indirectly or by means of a trust or
      partnership or otherwise. If any rights exercisable by a Participant or benefits
      deliverable to a Participant under any Award Certificate under the Plan have
      not
      been exercised or delivered, respectively, at the time of the Participant’s
      death, such rights shall be exercisable by the Designated Beneficiary, and
      such
      benefits shall be delivered to the Designated Beneficiary, in accordance with
      the provisions of the applicable terms of the Award Certificate and the Plan.
      The “Designated Beneficiary” shall be the beneficiary or beneficiaries
      designated by the Participant to receive benefits under the group term life
      insurance plan of Lorillard, Inc. or any of its subsidiaries or any company
      attributed to the Carolina Group in the future or such other person or persons
      as the Participant may designate by notice to the Company. If a deceased
      Participant fails to have designated a beneficiary, or if the Designated
      Beneficiary does not survive the Participant, any rights that would have been
      exercisable by the Participant and any benefits distributable to the Participant
      shall be exercised by or distributed to the legal representative of the estate
      of the Participant. If a deceased Participant designates a beneficiary and
      the
      Designated Beneficiary survives the Participant but dies before the Designated
      Beneficiary’s exercise of all rights under the Award Certificate or before the
      complete distribution of benefits to the Designated Beneficiary under the Award
      Certificate, then any rights that would have been exercisable by the Designated
      Beneficiary shall be exercised by the legal representative of the estate of
      the
      Designated Beneficiary, and any benefits distributable to 

    
      
         

        

        
        

      

      
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    the
      Designated Beneficiary shall be distributed to the legal representative of
      the
      estate of the Designated Beneficiary. All Options and Stock Appreciation Rights
      shall be exercisable, subject to the terms of this Plan, only by the Participant
      or any person to whom such Option or Stock Appreciation Right is transferred
      pursuant to this paragraph, it being understood that the term Participant shall
      include such transferee for purposes of the exercise provisions contained
      herein.

    

    4.11  Notices.  Any
      written notices provided for in the Plan or under any Award Certificate shall
      be
      in writing and shall be deemed sufficiently given if either hand delivered
      or if
      sent by confirmed fax or overnight courier, or by postage paid first class
      mail.
      Notice and communications shall be effective when actually received by the
      addressee. Notices shall be directed, if to the Participant, at the
      Participant’s address indicated in the Award Certificate, or if to the Company,
      at the Company’s principal executive office to the attention of the Company’s
      Secretary.

    

    4.12  Action
      by Company.  Any
      action required or permitted to be taken by the Company shall be by resolution
      of the Board, or by action of one or more members of the Board (including a
      committee of the Board) who are duly authorized to act for the Board, or by
      a
      duly authorized officer of the Company.

    

    4.13  Limitation
      of Implied Rights.

    

    
      	
              (a)

            	
              Neither
                a Participant nor any other person shall, by reason of participation
                in
                the Plan, acquire any right in or title to any assets, funds or property
                of the Company whatsoever, including, without limitation, any specific
                funds, assets, or other property which the Company, in its sole
                discretion, may set aside in anticipation of a liability under the
                Plan. A
                Participant shall have only a contractual right to the amounts, if
                any,
                payable under the Plan, unsecured by any assets of the Company, and
                nothing contained in the Plan shall constitute a guarantee that the
                assets
                of the Company shall be sufficient to pay any benefits to any
                person.

            
	 	 
	
              (b)

            	
              The
                Plan does not constitute a contract of employment, and selection
                as a
                Participant will not give any Participant the right to be retained
                in the
                employ of, or as a director or consultant to, the Company or any
                Subsidiary, nor any right or claim to any benefit under the Plan,
                unless
                such right or claim has specifically accrued under the terms of the
                Plan.
                

            

    

    

    4.14  Gender
      and Number.  Where
      the context admits, words in any gender shall include any other gender, words
      in
      the singular shall include the plural and the plural shall include the
      singular.

    

    4.15  Laws
      Applicable to Construction.  The
      interpretation, performance and enforcement of this Plan and all Option
      Certificates shall be governed by the laws of the State of Delaware without
      reference to principles of conflict of laws, as applied to contracts executed
      in
      and performed wholly within the State of Delaware.

    

    4.16  Evidence.  Evidence
      required of anyone under the Plan may be by certificate, affidavit, document
      or
      other information which the person acting on it considers pertinent and
      reliable, and signed, made or presented by the proper party or
      parties.

    
      
         

        

        
        

      

      
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              Section
                5.

            	
              Committee

            

    

    

    5.1  Administration.  The
      authority to control and manage the operation and administration of the Plan
      shall be vested in the Compensation Committee of the Board or such other
      committee of the Board as the Board may from time to time designate (the
“Committee”) in accordance with this Section 4. In addition, the Board may
      exercise any power given to the Committee under the Plan.

    

    5.2  Powers
      of Committee.  The
      Committee’s administration of the Plan shall be subject to the
      following:

    

    
      	
              (a)

            	
              Subject
                to the provisions of the Plan, the Committee will have the authority
                and
                discretion to select from among the Eligible Grantees those persons
                who
                shall receive Options and/or Stock Appreciation Rights, to determine
                the
                grant date of, the number of shares subject to and the Exercise Price
                of
                those Options and Stock Appreciation Rights, to establish all other
                terms
                and conditions of such Options and Stock Appreciation Rights, and
                (subject
                to the restrictions imposed by Section 6) to cancel or suspend Options
                and
                Stock Appreciation Rights.

            
	 	 
	
              (b)

            	
              The
                Committee will have the authority and discretion to interpret the
                Plan, to
                establish, amend, and rescind any rules and regulations relating
                to the
                Plan, and to make all other determinations that may be necessary
                or
                advisable for the administration of the Plan.

            
	 	 
	
              (c)

            	
              Any
                interpretation of the Plan by the Committee and any decision made
                by it
                under the Plan is final and binding on all persons.

            
	 	 
	
              (d)

            	
              In
                controlling and managing the operation and administration of the
                Plan, the
                Committee shall take action in a manner that conforms to the charter
                and
                by-laws of the Company, and applicable state corporate
                law.

            

    

    

    5.3  Delegation
      by Committee.  Except
      to the extent prohibited by applicable law or the applicable rules of a stock
      exchange, the Committee may allocate all or any portion of its responsibilities
      and powers to any one or more of its members and may delegate all or any part
      of
      its responsibilities and powers to any person or persons selected by it. Any
      such allocation or delegation may be revoked by the Committee at any
      time.

    

    5.4  Information
      to be Furnished to Committee.  The
      Company and Subsidiaries shall furnish the Committee with such data and
      information as it determines may be required for it to discharge its duties.
      The
      records of the Company and Subsidiaries as to an employee’s or Participant’s
      employment, engagement, Termination, leave of absence, reemployment and
      compensation shall be conclusive on all persons unless determined to be
      incorrect. Participants and other persons eligible for benefits under the Plan
      must furnish the Committee such evidence, data or information as the Committee
      considers desirable to carry out the terms of the Plan.

    

    
      	
              Section
                6.

            	
              Amendment
                And Termination

            

    

    

    The
      Board
      may, at any time, amend or terminate the Plan; provided
      that no
      amendment or termination may, in the absence of written consent to the change
      by
      the affected Participant 

    
      
         

        

        
        

      

      
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    (or,
      if
      the Participant is not then living, the affected beneficiary), adversely affect
      the rights of any Participant or beneficiary under any Option or Stock
      Appreciation Right granted under the Plan prior to the date such amendment
      is
      adopted by the Board; and further provided
      that
      adjustments pursuant to paragraph 4.2(e) shall not be subject to the
      foregoing limitations of this Section 6.

    

    
      	
              Section
                7.

            	
              Defined
                Terms

            

    

    

    
      	 	
              As
                used in this Plan, the following definitions shall
                apply:

            
	 	 
	
              (a)

            	
              Award
                Certificate.
                The term “Award Certificate” shall mean a written certificate setting
                forth the terms and conditions of an Option or Stock Appreciation
                Right,
                in such form as the Committee may from time to time
                prescribe.

            
	 	 
	
              (b)

            	
              Board.
                The term “Board” means the Board of Directors of the
                Company.

            
	 	 
	
              (c)

            	
              Carolina
                Group.
                The term “Carolina Group” shall have the meaning set forth in the
                Company’s Restated Certificate of Incorporation, as amended from time to
                time.

            
	 	 
	
              (d)

            	
              Cause.
                The term “Cause” shall have the meaning set forth in the employment or
                engagement agreement between a Participant and Lorillard, Inc. or
                its
                subsidiaries or any company attributed to the Carolina Group in the
                future, if such an agreement exists and contains a definition of
                Cause;
                otherwise Cause shall mean (1) conviction of the Participant for
                committing a felony under Federal law or the law of the state in
                which
                such action occurred, (2) dishonesty in the course of fulfilling
                a
                Participant’s employment, engagement or directorial duties, (3) willful
                and deliberate failure on the part of a Participant to perform the
                Participant’s employment, engagement or directorial duties in any material
                respect or (4) such other events as shall be determined in good faith
                by
                the Committee. The Committee shall, unless otherwise provided in
                the Award
                Certificate or an employment agreement with the Participant, have
                the sole
                discretion to determine whether Cause exists, and its determination
                shall
                be final.

            
	 	 
	
              (e)

            	
              Code.
                The term “Code” means the Internal Revenue Code of 1986, as amended, the
                Treasury Regulations thereunder and other relevant interpretive guidance
                issued by the Internal Revenue Service or the Treasury Department.
                Reference to any specific section of the Code shall be deemed to
                include
                such regulations and guidance, as well as any successor provision
                of the
                Code.

            
	 	 
	
              (f)

            	
              Committee.
                The term “Committee” shall have the meaning set forth in Section
                5.1.

            
	 	 
	
              (g)

            	
              Company.
                The term “Company” shall have the meaning set forth in Section
                1.1.

            
	 	 
	
              (h)

            	
              Designated
                Beneficiary.
                The term “Designated Beneficiary” shall have the meaning set forth in
                Section 4.10.

            

    

    

    

    
      
         

        

        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    

    
      	
              (i)

            	
              Disability.
                The term “Disability” shall mean, unless otherwise provided by the
                Committee, (1) “Disability” as defined in any individual Award Certificate
                to which the Participant is a party, or (2) if there is no such Award
                Certificate or it does not define “Disability,” permanent and total
                disability as determined under the long-term disability plan of Lorillard,
                Inc. or any of its subsidiaries or any company attributed to the
                Carolina
                Group in the future applicable to the Participant. 

            
	 	 
	
              (j)

            	
              Effective
                Date.
                The term “Effective Date” shall have the meaning set forth in Section
                4.1.

            
	 	 
	
              (k)

            	
              Eligible
                Grantee.
                The term “Eligible Grantee” shall mean any individual who is employed on a
                full-time or part-time basis by, or who serves as a consultant to,
                Lorillard, Inc. or any of its subsidiaries or any company attributed
                to
                the Carolina Group in the future and any non-employee director of
                Lorillard, Inc. or any of its subsidiaries or any company attributed
                to
                the Carolina Group in the future. An Option or Stock Appreciation
                Right
                may be granted to an individual in connection with such individual’s
                hiring or engagement prior to the date the individual first performs
                services for Lorillard, Inc. or any of its subsidiaries or any company
                attributed to the Carolina Group in the future; provided
                that the individual will be an Eligible Grantee upon his hiring or
                engagement; and further provided
                that such Options and/or Stock Appreciation Rights shall not become
                vested
                prior to the date the individual first performs such
                services.

            
	 	 
	
              (l)

            	
              Exercise
                Price.
                The term “Exercise Price” shall have the meaning set forth in Section 2.3
                and 3.3 as applicable.

            
	 	 
	
              (m)

            	
              Fair
                Market Value.
                The “Fair Market Value” of a share of Stock shall be, as of any given
                date, the mean between the highest and lowest reported sales prices
                during
                normal trading hours on the immediately preceding date (or, if there
                are
                no reported sales on such immediately preceding date, on the last
                date
                prior to such date on which there were sales) of the Stock on the
                New York
                Stock Exchange Composite Tape or, if not listed on such exchange,
                on any
                other national securities exchange on which the Stock is listed or
                on
                NASDAQ. If there is no regular public trading market for such Stock,
                the
                Fair Market Value of the Stock shall be determined by the Committee
                in
                good faith.

            
	 	 
	
              (n)

            	
              Free-Standing
                SAR.
                The term “Free-Standing SAR” shall have the meaning set forth in Section
                3.1.

            
	 	 
	
              (o)

            	
              ISO.
                The term “ISO” shall have the meaning set forth in Section
                2.2.

            
	 	 
	
              (p)

            	
              Mature
                Shares.
                The term “Mature Shares” shall mean shares of Stock that have been owned
                by the Participant in question for at least six months.

            
	 	 
	
              (q)

            	
              NQO.
                The term “NQO” shall have the meaning set forth in Section
                2.2.

            
	 	 
	
              (r)

            	
              Option.
                The term “Option” shall have the meaning set forth in Section
                2.2.

            

    

    
      
         

        

        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    

    
      	
              (s)

            	
              Plan.
                The term “Plan” shall have the meaning set forth in Section
                1.1.

            
	 	 
	
              (t)

            	
              Retirement.
                The term “Retirement” shall mean retirement from active employment with
                Lorillard, Inc. or its subsidiaries or any company attributed to
                the
                Carolina Group in the future pursuant to any retirement plan or program
                of
                Lorillard, Inc. or its subsidiaries or any company attributed to
                the
                Carolina Group in the future in which the Participant participates.
                A
                Termination by a consultant or non-employee director shall in no
                event be
                considered a Retirement.

            
	 	 
	
              (u)

            	
              Stock.
                The term “Stock” shall mean shares of Carolina Group stock, par value,
                $0.01 per share, of the Company.

            
	 	 
	
              (v)

            	
              Stock
                Appreciation Right.
                The term “Stock Appreciation Right “ shall have the meaning set forth in
                Section 3.1.

            
	 	 
	
              (w)

            	
              Subsidiary.
                The term “Subsidiary” means any business or entity in which at any
                relevant time the Company holds at least a 50% equity (voting or
                non-voting) interest.

            
	 	 
	
              (x)

            	
              Tandem
                SAR.
                The term “Tandem SAR” shall have the meaning set forth in Section
                3.1.

            
	 	 
	
              (y)

            	
              Term.
                The term “Term” shall mean the period beginning on the date of grant of an
                Option or Stock Appreciation Right and ending on the date the Option
                or
                Stock Appreciation Right expires pursuant to the Plan and the relevant
                Award Certificate.

            
	 	 
	
              (z)

            	
              Termination.
                A
                Participant shall be considered to have experienced a Termination
                if he or
                she ceases, for any reason, to be an employee, consultant or non-employee
                director of Lorillard, Inc. or any of its subsidiaries or any company
                attributed to the Carolina Group in the future, including, without
                limitation, as a result of the fact that the entity by which he or
                she is
                employed or engaged or of which he or she is a director has ceased
                to be
                affiliated with Lorillard, Inc. or its subsidiaries or any company
                attributed to the Carolina Group in the
                future.

            

    

    

    
      
         

        

        
        

      

      
        11Exhibit 10.44

    
      

    

    Exhibit
      10.44

     

    SECOND
      AMENDMENT TO SUPPLEMENTAL RETIREMENT AGREEMENT

     

    This
      shall constitute the Third Amendment, made as of March 25, 2003, to that
      Supplemental Retirement Agreement made on March 24, 2000, as amended by the
      First Amendment thereto (the “Agreement”), between Loews Corporation (the
“Company”) and Peter Keegan (the “Executive”).

    

    W
      I T N E S S E T H:

    

    WHEREAS,
      the Executive is currently serving as an executive employee of the Company,
      and
      the Company and the Executive desire that the Executive’s retirement benefits be
      supplemented on the terms and conditions set forth therein.

    

    NOW,
      THEREFORE, the parties agree as follows:

    

    Paragraph
      1 of the Agreement is hereby amended by adding the following new clause
      (f):

    

    “(f)
      Effective as of March 31, 2003 the Account shall be credited in an additional
      amount of $150,000. It is intended that the Account shall receive three quarters
      of a year Interest Credit for the 2003 calendar year for such $150,000 amount.
      Interest Credits shall also continue to be made each year under paragraph 1(c)
      for all amounts in the Account. No duplication is hereby intended.”

    

    IN
      WITNESS WHEREOF, the parties hereto have caused these presents to be duly
      executed as of the day and year first above written.

     

    
      	 	 	
              LOEWS
                CORPORATION

            	 
	
                 

            	 	 	 
	
                 

            	 	 	 
	 	
                 

            	
              By:

            	
                 /s/
                James S. Tisch

            	
                 

            
	 	 	 	
                          
                James S. Tisch

            	 
	 	 	 	
                          
                President

            	 

    

    

    
      	
              Accepted
                and Agreed to:

            
	
                 

            
	
                 

            
	
                 

            
	
              /s/
                Peter W. Keegan

            	
                 

            
	
              The
                Executive

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    THIRD
      AMENDMENT TO SUPPLEMENTAL RETIREMENT AGREEMENT

     

    This
      shall constitute the Third Amendment, made as of March 31, 2004, to that
      Supplemental Retirement Agreement made on March 25, 2003, as amended by the
      Second Amendment thereto (the “Agreement”), between Loews Corporation (the
“Company”) and Peter Keegan (the “Executive”).

    

    W
      I T N E S S E T H:

    

    WHEREAS,
      the Executive is currently serving as an executive employee of the Company,
      and
      the Company and the Executive desire that the Executive’s retirement benefits be
      supplemented on the terms and conditions set forth therein.

    

    NOW,
      THEREFORE, the parties agree as follows:

    

    Paragraph
      1 of the Agreement is hereby amended by adding the following new clause
      (f):

    

    “(f)
      Effective as of March 31, 2004 the Account shall be credited in an additional
      amount of $500,000. It is intended that the Account shall receive three quarters
      of a year Interest Credit for the 2004 calendar year for such $500,000 amount.
      Interest Credits shall also continue to be made each year under paragraph 1(c)
      for all amounts in the Account. No duplication is hereby intended.”

    

    IN
      WITNESS WHEREOF, the parties hereto have caused these presents to be duly
      executed as of the day and year first above written.

    
       

      
        	 	 	
                LOEWS
                  CORPORATION

              	 
	
                   

              	 	 	 
	
                   

              	 	 	 
	 	
                   

              	
                By:

              	
                   /s/
                  James S. Tisch

              	
                   

              
	 	 	 	
                            
                  James S. Tisch

              	 
	 	 	 	
                            
                  President

              	 

      

       

    

    
      	
              Accepted
                and Agreed to:

            
	
                 

            
	
                 

            
	
                 

            
	
              /s/
                Peter W. Keegan

            	
                 

            
	
              The
                Executive

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