Document:

Unassociated Document

    EXECUTION
      VERSION

    

    Loews
      Corporation

    

    

    15,000,000
      Shares

    Carolina
      Group Stock

    ($0.01
      par value)

    Underwriting
      Agreement

    

    

    
      	 	
              New
                York, New York

            
	 	
              August
                15, 2006

            

    

    

    J.P.
      Morgan Securities Inc.

    

    As
      Representatives of the several Underwriters, 

    

    c/o
      J.P.
      Morgan Securities Inc.

    277
      Park
      Avenue

    New
      York,
      New York 10172

    

    Ladies
      and Gentlemen:

     

        Loews
      Corporation, a corporation organized under the laws of Delaware (the “Company”),
      proposes to sell to the several underwriters named in Schedule II hereto (the
      “Underwriters”), for whom you (the “Representatives”) are acting as
      representatives, 15,000,000 shares of Carolina Group Stock, $0.01 par value
      (“Carolina Group Stock”) of the Company (said shares to be issued and sold by
      the Company being hereinafter called the “Securities”). To the extent there are
      no additional Underwriters listed on Schedule II other than you, the term
      Representatives as used herein shall mean you, as Underwriters, and the terms
      Representatives and Underwriters shall mean either the singular or plural as
      the
      context requires. Any reference herein to the Registration Statement, the Basic
      Prospectus, any Preliminary Final Prospectus or the Final Prospectus shall
      be
      deemed to refer to and include the documents incorporated by reference therein
      pursuant to Item 12 of Form S-3 which were filed under the Exchange Act on
      or
      before the Effective Date of the Registration Statement or the issue date of
      the
      Basic Prospectus, any Preliminary Final Prospectus or the Final Prospectus,
      as
      the case may be; and any reference herein to the terms “amend”, “amendment” or
“supplement” with respect to the Registration Statement, the Basic Prospectus,
      any Preliminary Final Prospectus or the Final Prospectus shall be deemed to
      refer to and include the filing of any document under the Exchange Act after
      the
      Effective Date of the Registration Statement, or the issue date of the Basic
      Prospectus, any Preliminary Final Prospectus or the Final Prospectus, as the
      case may be, deemed to be incorporated therein by reference. Certain terms
      used
      herein are defined in Section 20 hereof.

    

    1. Representations
      and Warranties.  The
      Company represents and warrants to, and agrees with, each Underwriter as set
      forth below in this Section 1.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    2

     

        (a)  The
      Company meets the requirements for use of Form S-3 under the Act and has
      prepared and filed with the Commission an automatic shelf registration
      statement, as defined in Rule 405 (the file number of which is set forth in
      Schedule I hereto) on Form S-3, including a related basic prospectus, for
      registration under the Act of the offering and sale of the Securities. Such
      Registration Statement, including any amendments thereto filed prior to the
      Execution Time, became effective upon filing. The Company may have filed with
      the Commission, as part of an amendment to the Registration Statement or
      pursuant to Rule 424(b), one or more Preliminary Final Prospectuses, each of
      which has previously been furnished to you. The Company will file with the
      Commission a final prospectus supplement relating to the Securities in
      accordance with Rule 424(b). As filed, such final prospectus supplement shall
      contain all information required by the Act and the rules thereunder, and,
      except to the extent the Representatives shall agree in writing to a
      modification, shall be in all substantive respects in the form furnished to
      you
      prior to the Execution Time or, to the extent not completed at the Execution
      Time, shall contain only such specific additional information and other changes
      (beyond that contained in the Basic Prospectus and any Preliminary Final
      Prospectus) as the Company has advised you, prior to the Execution Time, will
      be
      included or made therein. The Registration Statement, at the Execution Time,
      meets the requirements set forth in Rule 415(a)(1)(x).

    

    (b)  On
      the Effective Date, the Registration Statement did or will, and when the Final
      Prospectus is herein), the Final Prospectus (and any supplement thereto) will,
      comply in all material respects with the applicable requirements of the Act
      and
      the Exchange Act and the respective rules thereunder; on the Effective Date
      and
      at the Execution Time, the Registration Statement did not contain any untrue
      statement of a material fact or omit to state any material fact required to
      be
      stated therein or necessary in order to make the statements therein not
      misleading; and on the date of any filing pursuant to Rule 424(b) and on the
      Closing Date, the Final Prospectus (together with any supplement thereto) will
      not, include any untrue statement of a material fact or omit to state a material
      fact necessary in order to make the statements therein, in the light of the
      circumstances under which they were made, not misleading; provided,
      however,
      that
      the Company makes no representations or warranties as to the information
      contained in or omitted from the Registration Statement or the Final Prospectus
      (or any supplement thereto) in reliance upon and in conformity with information
      furnished in writing to the Company by or on behalf of any Underwriter through
      the Representatives specifically for inclusion in the Registration Statement
      or
      the Final Prospectus (or any supplement thereto), it being understood and agreed
      that the only such information furnished by or on behalf of any Underwriters
      consists of the information described as such in Section 8 hereof.

    

    (c)  The
      Disclosure Package, when taken together as a whole, does not contain any untrue
      statement of a material fact or omit to state any material fact necessary in
      order to make the statements therein, in the light of the circumstances

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    3

    

    under
      which they were made, not misleading. The preceding sentence does not apply
      to
      statements in or omissions from the Disclosure Package based upon and in
      conformity with written information furnished to the Company by any Underwriter
      through the Representatives specifically for use therein, it being understood
      and agreed that the only such information furnished by or on behalf of any
      Underwriter consists of the information described as such in Section 8
      hereof.

    

    (d)  (i)
      At the time of filing the Registration Statement, (ii) at the time of the most
      recent amendment thereto for the purposes of complying with Section 10(a)(3)
      of
      the Act (whether such amendment was by post-effective amendment, incorporated
      report filed pursuant to Sections 13 or 15(d) of the Exchange Act or form of
      prospectus), (iii) at the time the Company or any person acting on its behalf
      (within the meaning, for this clause only, of Rule 163(c)) made any offer
      relating to the Securities in reliance on the exemption in Rule 163, the Company
      was a “well-known seasoned issuer” as defined in Rule 405. The Company agrees to
      pay the fees required by the Commission relating to the Securities within the
      time required by Rule 456(b)(1) without regard to the proviso therein relating
      to the four-business day extension to the payment deadline and otherwise in
      accordance with Rules 456(b) and 457(r). 

    

    (e)  (i)
      At the earliest time after the filing of the Registration Statement that the
      Company or another offering participant made a bona
      fide
      offer
      (within the meaning of Rule 164(h)(2)) relating to the Securities, the Company
      was not and is not an Ineligible Issuer (as defined in Rule 405), without taking
      account of any determination by the Commission pursuant to Rule 405 that it
      is
      not necessary that the Company be considered an Ineligible Issuer.

    

        (f)  Each
      Issuer Free Writing Prospectus does not include any information that conflicts
      with the information contained in the Registration Statement, including any
      document incorporated therein and any prospectus supplement deemed to be a
      part
      thereof that has not been superseded or modified. The foregoing sentence does
      not apply to statements in or omissions from the Disclosure Package based upon
      and in conformity with written information furnished to the Company by any
      Underwriter through the Representatives specifically for use therein, it being
      understood and agreed that the only such information furnished by or on behalf
      of any Underwriter consists of the information described as such in Section
      8
      hereof.

    

    (g)  Each
      of the Company and its Material Subsidiaries has been duly incorporated and
      is
      validly existing as a corporation in good standing under the laws of the
      jurisdiction in which it is chartered or organized with full corporate power
      and
      authority to own or lease, as the case may be, and to operate its properties
      and
      conduct its business as described in the Disclosure Package and the Final
      Prospectus, and other than as could not, individually or in the aggregate,
      reasonably be expected to have a Material Adverse Effect, is duly qualified
      to
      do business as a foreign corporation and is in good standing under the laws
      of
      each jurisdiction which requires such qualification;

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    4

    

    (h)  All
      the outstanding shares of capital stock of each Material Subsidiary have been
      duly and validly authorized and issued and are fully paid and nonassessable,
      and, except as otherwise set forth in the Disclosure Package and the Final
      Prospectus, all outstanding shares of capital stock of the Material Subsidiaries
      are owned by the Company either directly or through wholly owned subsidiaries
      free and clear of any security interests, claims, liens or encumbrances, except
      where the existence of any such security interest, claim, lien or encumbrance,
      could not, individually or in the aggregate, reasonably be expected to have
      a
      Material Adverse Effect;

     

        (i)  The
      Company’s authorized equity capitalization is as set forth in the Disclosure
      Package and the Final Prospectus; the capital stock of the Company conforms
      in
      all material respects to the description thereof contained in the Disclosure
      Package and the Final Prospectus; the Securities have been duly and validly
      authorized, and, when issued and delivered to and paid for by the Underwriters
      pursuant to this Agreement, will be fully paid and nonassessable; the Securities
      are duly listed, and admitted and authorized for trading and subject to official
      notice of issuance on the New York Stock Exchange; the certificates for the
      Securities are in valid and sufficient form; the holders of outstanding shares
      of capital stock of the Company are not entitled to preemptive or other rights
      to subscribe for the Securities; and, except as set forth in the Disclosure
      Package and the Final Prospectus, no options, warrants or other rights to
      purchase, agreements or other obligations to issue, or rights to convert any
      obligations into or exchange any securities for, shares of capital stock of
      or
      ownership interests in the Company are outstanding;

    

    (j)  There
      is no franchise, contract or other document of a character required to be
      described in the Registration Statement, the Disclosure Package or the Final
      Prospectus, or to be filed as an exhibit thereto, which is not described or
      filed as required; and the statements in:

    

    (1)  the
      Company’s Annual Report on Form 10-K for the year ended December 31, 2005 (the
“Annual Report”) under the headings “Business -- Lorillard, Inc. -- Legislation
      and Regulation,” “Business -- Lorillard, Inc. -- Federal Regulation,” “Business
      -- Lorillard, Inc. -- State and Local Regulation,” together with “Business -
      Lorillard, Inc. -- Advertising and Marketing;”

    

    (2)  the
      Annual Report under the headings “Legal Proceedings -- Tobacco Related,” “Notes
      to Consolidated Financial Statements -- Note 20. Legal Proceedings -- Tobacco
      Related” and in Exhibit 99.01 to the Annual Report, together with the statements
      in the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30,
      2006 (the “Quarterly Report”) under the headings “Notes to Consolidated
      Condensed Financial Statements -- Note 13. Legal Proceedings -- Tobacco Related”
and “Part II. Other Information. Item 1. Legal Proceedings. 2. Tobacco
      Related”;

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    5

     

          (3)  the
      Basic
      Prospectus under the headings “Description of Loews Capital Stock” and
“Relationship
      between the Loews Group and the Carolina Group;” and 

    

                     
      (4)  the Final Prospectus under the heading “Certain U.S. Federal Tax
      Consequences”

    

    insofar
      as such statements summarize legal matters, agreements, documents or proceedings
      discussed therein, are, in all material respects, accurate summaries of such
      legal matters, agreements, documents or proceedings, taken as a whole, in the
      context provided. 

    

    (k)  This
      Agreement has been duly authorized, executed and delivered by the Company and
      constitutes a valid and binding obligation of the Company enforceable in
      accordance with its terms (except as rights to indemnification and contribution
      hereunder may be limited by applicable law and subject, as to the enforcement
      of
      remedies, to applicable bankruptcy, reorganization, insolvency, moratorium
      or
      other laws affecting creditors’ rights generally from time to time in effect and
      to general principles of equity, including, without limitation, concepts of
      materiality, reasonableness, good faith and fair dealing, regardless of whether
      considered in a proceeding in equity or at law).

     

        (l)  The
      Company is not and, after giving effect to the offering and sale of the
      Securities and the application of the proceeds thereof as described in the
      Prospectus, will not be an “investment company” as defined in the Investment
      Company Act of 1940, as amended.

    

    (m)  No
      consent, approval, authorization, filing with or order of any court or
      governmental agency or body is required to be obtained by the Company in
      connection with the transactions contemplated herein, except such as have been
      or will be obtained under the Act and the Exchange Act and such as may be
      required under the blue sky laws of any jurisdiction in connection with the
      purchase and distribution of the Securities by the Underwriters in the manner
      contemplated herein and in the Disclosure Package and the Final
      Prospectus.

    

    (n)  Neither
      the issue and sale of the Securities nor the consummation of any other of the
      transactions herein contemplated nor the fulfillment of the terms hereof will
      conflict with, result in a breach or violation or imposition of any lien, charge
      or encumbrance upon any property or assets of the Company or any of its Material
      Subsidiaries pursuant to, (i) the charter or by-laws of the Company or any
      of
      its Material Subsidiaries, (ii) the terms of any indenture, contract, lease,
      mortgage, deed of trust, note agreement, loan agreement or other agreement,
      obligation, condition, covenant or instrument to which the Company or any of
      its
      Material Subsidiaries is a party or bound or to which its or their property
      is
      subject, or (iii) any statute, law, rule, regulation, judgment, order or decree
      applicable to the Company or any of its Material Subsidiaries of any court,
      regulatory body, administrative agency, governmental body, arbitrator or other
      

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    6

    

    authority
      having jurisdiction over the Company or any of its Material Subsidiaries or
      any
      of its or their properties, except, with respect to clauses (ii) and (iii)
      above, for such conflicts, breaches, violations or impositions that could not,
      individually or in the aggregate, reasonably be expected to have a Material
      Adverse Effect.

    

    (o)  No
      holders of securities of the Company have rights to the registration of such
      securities under the Registration Statement.

    

    (p)  The
      consolidated historical financial statements of the Company and its consolidated
      subsidiaries included or incorporated by reference in the Final Prospectus,
      the
      Disclosure Package and the Registration Statement present fairly in all material
      respects the financial condition, results of operations and cash flows of the
      Company as of the dates and for the periods indicated, comply as to form with
      the applicable accounting requirements of the Act and the Exchange Act and
      have
      been prepared in conformity with generally accepted accounting principles
      applied on a consistent basis throughout the periods involved (except as
      otherwise noted therein). The selected financial data set forth under the
      caption “Selected Financial Data” in the Annual Report fairly present in all
      material respects, on the basis stated in the Annual Report, the information
      included therein. 

    

    (q)  No
      action, suit or proceeding by or before any court or governmental agency,
      authority or body or any arbitrator involving the Company or any of its
      subsidiaries or its or their property is pending or, to the best knowledge
      of
      the Company, threatened that (i) could reasonably be expected to have a material
      adverse effect on the performance of this Agreement or the consummation of
      any
      of the transactions contemplated hereby or (ii) could reasonably be expected
      to
      have a Material Adverse Effect except, in the case of (i) and (ii), as set
      forth
      in or contemplated in the Disclosure Package and the Final Prospectus (exclusive
      of any supplement thereto).

    

    (r)  Except
      as could not reasonably be expected to have a Material Adverse Effect, each
      of
      the Company and each of its Material Subsidiaries owns or leases all such
      properties as are necessary to the conduct of its operations as presently
      conducted.

    

    (s)  Neither
      the Company nor any subsidiary is in violation or default of (i) any provision
      of its charter or bylaws, (ii) the terms of any indenture, contract, lease,
      mortgage, deed of trust, note agreement, loan agreement or other agreement,
      obligation, condition, covenant or instrument to which it is a party or bound
      or
      to which its property is subject (except in any case in which such violation
      or
      default could not reasonably be expected to have a Material Adverse Effect,
      and
      except as set forth in or contemplated in the Disclosure Package and the Final
      Prospectus (exclusive of any supplement thereto)), or (iii) any statute, law,
      rule, regulation, judgment, order or decree of any court, regulatory body,
      administrative agency, governmental body, arbitrator or other authority having
      jurisdiction over the Company or such subsidiary or any of its properties,
      as
      applicable (except in any case in which such violation or default could not
      

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    7

    

    reasonably
      be expected to have a Material Adverse Effect, and except as set forth in or
      contemplated in the Disclosure Package and the Final Prospectus (exclusive
      of
      any supplement thereto)).

    

    (t)  Deloitte
      & Touche LLP, who have certified certain financial statements of the Company
      and its consolidated subsidiaries and delivered their reports with respect
      to
      the audited consolidated financial statements and schedules included or
      incorporated by reference in the Disclosure Package and the Final Prospectus,
      are independent registered public accountants with respect to the Company within
      the meaning of the Act and the applicable published rules and regulations
      thereunder.

    

    (u)  There
      are no transfer taxes or other similar fees or charges under Federal law or
      the
      laws of any state, or any political subdivision thereof, required to be paid
      by
      the Company in connection with the execution and delivery of this Agreement
      or
      the issuance by the Company or sale by the Company of the
      Securities.

    

    (v)  Except
      as could not reasonably be expected to have a Material Adverse Effect, and
      except as set forth in or contemplated in the Disclosure Package and the Final
      Prospectus (exclusive of any supplement thereto), no labor problem or dispute
      with the employees of the Company or any of its Material Subsidiaries exists
      or,
      to the Company’s knowledge, is threatened or imminent, and the Company is not
      aware of any existing or imminent labor disturbance by the employees of any
      of
      its or its Material Subsidiaries’ principal suppliers, contractors or
      customers.

    

    (w)  No
      subsidiary of the Company is currently prohibited, directly or indirectly,
      from
      paying any dividends to the Company, from making any other distribution on
      such
      subsidiary’s capital stock, from repaying to the Company any loans or advances
      to such subsidiary from the Company or from transferring any of such
      subsidiary’s property or assets to the Company or any other subsidiary of the
      Company, except as described in or contemplated by the Disclosure Package and
      the Final Prospectus.

    

    (x)  The
      Company and its Material Subsidiaries possess all licenses, certificates,
      permits and other authorizations issued by the appropriate federal, state or
      foreign regulatory authorities necessary to conduct their respective businesses,
      except where the failure to possess such a license, certificate, permit and
      other authorization could not, individually or in the aggregate, reasonably
      be
      expected to have a Material Adverse Effect, and neither the Company nor any
      such
      subsidiary has received any notice of proceedings relating to the revocation
      or
      modification of any such certificate, authorization or permit which, singly
      or
      in the aggregate, if the subject of an unfavorable decision, ruling or finding,
      could reasonably be expected to have a Material Adverse Effect, except as set
      forth in or contemplated in the Disclosure Package and the Final Prospectus
      (exclusive of any supplement thereto). 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    8

     

        (y)  Except
      as disclosed in the Disclosure Package and the Final Prospectus, the Company
      has
      not taken, directly or indirectly, any action designed to or that would
      constitute or that might reasonably be expected to cause or result in, under
      the
      Exchange Act or otherwise, stabilization or manipulation of the price of any
      security of the Company to facilitate the sale or resale of the Securities.
      

    

    (z)  The
      Company, its Material Subsidiaries and Lorillard Tobacco Company are (i) in
      compliance with any and all applicable foreign, federal, state and local laws
      and regulations relating to the protection of human health and safety, the
      environment or hazardous or toxic substances or wastes, pollutants or
      contaminants (“Environmental Laws”), (ii) have received and are in compliance
      with all permits, licenses or other approvals required of them under applicable
      Environmental Laws to conduct their respective businesses and (iii) have not
      received notice of any actual or potential liability for the investigation
      or
      remediation of any disposal or release of hazardous or toxic substances or
      wastes, pollutants or contaminants, except where such non-compliance with
      Environmental Laws, failure to receive required permits, licenses or other
      approvals, or liability could not, individually or in the aggregate, have a
      Material Adverse Effect, and except as set forth in or contemplated in the
      Disclosure Package and the Final Prospectus (exclusive of any supplement
      thereto). 

    

    (aa)  The
      Company and its Material Subsidiaries own, possess, license or have other rights
      to use, on reasonable terms, all patents, patent applications, trade and service
      marks, trade and service mark registrations, trade names, copyrights, licenses,
      inventions, trade secrets, technology, know-how and other intellectual property
      (collectively, the “Intellectual Property”) necessary for the conduct of the
      businesses of the Company and its Material Subsidiaries as now conducted or
      as
      proposed in the Disclosure Package and the Final Prospectus to be conducted.
      Except as could not reasonably be expected to have a Material Adverse Effect,
      to
      the Company’s knowledge: (a) there are no rights of third parties to any such
      Intellectual Property; (b) there is no material infringement by third parties
      of
      any such Intellectual Property; (c) there is no pending or, to the Company’s
      knowledge, threatened action, suit, proceeding or claim by others challenging
      the rights of the Company or any of its Material Subsidiaries in or to any
      such
      Intellectual Property, and the Company and each of its Material Subsidiaries
      is
      unaware of any facts which would form a reasonable basis for any such claim;
      (d)
      there is no pending or threatened action, suit, proceeding or claim by others
      challenging the validity or scope of any such Intellectual Property, and the
      Company and each of its Material Subsidiaries is unaware of any facts which
      would form a reasonable basis for any such claim; and (e) there is no pending
      or, to the Company’s knowledge, threatened action, suit, proceeding or claim by
      others that the Company or any of its Material Subsidiaries infringes or
      otherwise violates any patent, trademark, copyright, trade secret or other
      proprietary rights of others, and the Company and each of its Material
      Subsidiaries is unaware of any other fact which would form a reasonable basis
      for any such claim.

    

    (bb)  Except
      as disclosed in the Registration Statement, the Disclosure Package and the
      Final
      Prospectus, the Company does not intend to use any of the

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    9

    

    proceeds
      from the sale of the Securities hereunder to repay any outstanding debt owed
      to
      any affiliate of any of the Underwriters.

    

    (cc)  There
      has been no failure in any material respect on the part of the Company and,
      to
      the Company’s knowledge, any of the Company’s directors or officers, in their
      capacities as such, to comply with any provision of the Sarbanes Oxley Act
      of
      2002 and the rules and regulations promulgated in connection therewith (the
      “Sarbanes Oxley Act”), including Section 402 related to loans and Sections 302
      and 906 related to certifications.

    

    (dd)  Except
      as disclosed in the Registration Statement, the Disclosure Package and the
      Final
      Prospectus, the Company maintains disclosure controls and procedures (as such
      term is defined in Rule 13a-15 under the Exchange Act) that are effective in
      all
      material respects in providing reasonable assurance that information required
      to
      be disclosed by the Company in the reports that it files or submits under the
      Exchange Act is recorded, processed, summarized and reported, within the time
      periods specified in the rules and forms of the Commission, including, without
      limitation, controls and procedures designed to ensure that information required
      to be disclosed by the Company in the reports that it files or submits under
      the
      Exchange Act is accumulated and communicated to the Company’s management,
      including its principal executive officer or officers and its principal
      financial officer or officers, as appropriate to allow timely decisions
      regarding required disclosure. Except as disclosed in the Registration
      Statement, the Disclosure Package and the Final Prospectus, the Company
      maintains a system of internal control over financial reporting sufficient
      to
      provide reasonable assurance that (i) transactions are executed in
      accordance with management’s general or specific authorization;
      (ii) transactions are recorded as necessary to permit preparation of
      financial statements in conformity with GAAP and to maintain accountability
      for
      assets; (iii) access to assets is permitted only in accordance with
      management’s general or specific authorization; and (iv) the recorded
      accountability for assets is compared with existing assets at reasonable
      intervals and appropriate action is taken with respect to any
      differences.

    

    (ee)  Any
      certificate signed by any officer of the Company and delivered to the
      Representatives or counsel for the Underwriters in connection with the offering
      of the Securities shall be deemed a representation and warranty by the Company,
      as to matters covered thereby, to each Underwriter.

     

    2.    
      Purchase and Sale. Subject to the terms and conditions and in reliance
      upon the representations and warranties herein set forth,the Company agrees
      to
      sell to each, Underwriter and
      each Underwriter agrees, severally and not jointly, to purchase from the
      Company, at the purchase price set forth in Schedule I hereto, the number of
      Securities set forth opposite such Underwriter’s name in Schedule II
      hereto.

    

    
      	 	
              3.

            	
              Delivery
                and Payment.
                Delivery of and payment for the Securities shall be made on the date
                and
                at the time specified in Schedule I hereto,

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    10

    

    or
      at
      such time on such later date not more than three Business Days after the
      foregoing date as the Representatives shall designate, which date and time
      may
      be postponed by agreement between the Representatives and the Company or as
      provided in Section 9 hereof (such date and time of delivery and payment for
      the
      Securities being herein called the “Closing Date”). Delivery of the Securities
      shall be made to the Representatives for the respective accounts of the several
      Underwriters against payment by the several Underwriters through the
      Representatives of the purchase price thereof to or upon the order of the
      Company by wire transfer payable in same-day funds to an account specified
      by
      the Company. Delivery of the Securities shall be made through the facilities
      of
      The Depository Trust Company unless the Representatives shall otherwise
      instruct.

    

    
      	 	
              4.

            	
              Offering
                by Underwriters.
                It
                is understood that the several Underwriters propose to offer the
                Securities for sale to the public as set forth in the Final
                Prospectus.

            

    

     

    
      	 	
              5.

            	
              Agreements.
                The Company agrees with the several Underwriters
                that:

            

    

    

    (a)  Prior
      to the termination of the offering of the Securities, the Company will not
      file
      any amendment of the Registration Statement or supplement (including the Final
      Prospectus or any Preliminary Final Prospectus) to the Basic Prospectus unless
      the Company has furnished you a copy for your review prior to filing and will
      not file any such proposed amendment or supplement to which you reasonably
      object. The Company will cause the Final Prospectus, properly completed, and
      any
      supplement thereto to be filed in a form approved by the Representatives (which
      approval shall not be unreasonably withheld) with the Commission pursuant to
      the
      applicable paragraph of Rule 424(b) (without reliance on Rule 424(b)(8)) within
      the time period therein prescribed and will provide evidence satisfactory to
      the
      Representatives of such timely filing. The Company will promptly advise the
      Representatives (1) when the Final Prospectus, and any supplement thereto,
      shall
      have been filed (if required) with the Commission pursuant to Rule 424(b),
      (2)
      when, prior to termination of the offering of the Securities, any amendment
      to
      the Registration Statement shall have been filed or become effective, (3) of
      any
      request by the Commission or its staff for any amendment of the Registration
      Statement, or for any supplement to the Final Prospectus or for any additional
      information, (4) of the issuance by the Commission of any stop order suspending
      the effectiveness of the Registration Statement or of any notice pursuant to
      Rule 401(g)(2) of the Act that would prevent its use or the institution or
      threatening of any proceeding for that purpose and (5) of the receipt by the
      Company of any notification with respect to the suspension of the qualification
      of the Securities for sale in any jurisdiction or the institution or threatening
      of any proceeding for such purpose. The Company will use its reasonable best
      efforts to prevent the issuance of any such stop order or the occurrence of
      any
      such suspension or prevention and, upon such issuance, occurrence or prevention,
      to obtain as soon as possible the withdrawal of such stop order or relief from
      such occurrence or prevention, including, if necessary, by filing an amendment
      to the Registration Statement or a new registration

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    11

    

    statement
      and using its reasonable best efforts to have such amendment or new registration
      statement declared effective as soon as practicable. 

    

    (b)  If
      there occurs an event or development as a result of which the Disclosure Package
      would include an untrue statement of a material fact or would omit to state
      a
      material fact necessary in order to make the statements therein, in the light
      of
      the circumstances then prevailing, not misleading, the Company will notify
      promptly the Representatives so that any use of the Disclosure Package may
      cease
      until it is amended or supplemented.

    

    (c)  If,
      at any time when a prospectus relating to the Securities is required to be
      delivered under the Act (including in circumstances where such requirement
      may
      be satisfied pursuant to Rule 172), any event occurs as a result of which the
      Final Prospectus as then supplemented would include any untrue statement of
      a
      material fact or omit to state any material fact necessary to make the
      statements therein in the light of the circumstances under which they were
      made
      not misleading, or if it shall be necessary to amend the Registration Statement,
      file a new registration statement or supplement the Final Prospectus to comply
      with the Act or the Exchange Act or the respective rules thereunder, including
      in connection with use or delivery of the Final Prospectus, the Company promptly
      will (1) notify the Representatives of such event, (2) prepare and file with
      the
      Commission, subject to the second sentence of paragraph (a) of this Section
      5,
      an amendment or supplement or new registration statement which will correct
      such
      statement or omission or effect such compliance, (3) use its reasonable best
      efforts to have any amendment to the Registration Statement or new registration
      statement declared effective as soon as practicable in order to avoid any
      disruption in use of the Final Prospectus and (4) supply any supplemented Final
      Prospectus to you in such quantities as you may reasonably request.

    

    (d)  As
      soon as practicable, the Company will make generally available to its security
      holders and to the Representatives an earnings statement or statements of the
      Company and its subsidiaries which will satisfy the provisions of
      Section 11(a) of the Act and Rule 158.

    

    (e)  The
      Company will furnish to the Representatives and counsel for the Underwriters,
      without charge, signed copies of the Registration Statement (including exhibits
      thereto) and to each other Underwriter a copy of the Registration Statement
      (without exhibits thereto) and, so long as delivery of a prospectus by an
      Underwriter or dealer may be required by the Act (including in circumstances
      where such requirement may be satisfied pursuant to Rule 172), as many copies
      of
      each Preliminary Final Prospectus, if any, the Final Prospectus and each Issuer
      Free Writing Prospectus and any supplement thereto as the Representatives may
      reasonably request. 

    

    (f)  The
      Company will use its reasonable best efforts to arrange, if necessary, for
      the
      qualification of the Securities for sale under the laws of such jurisdictions
      as
      the Representatives may designate and will maintain such qualifications in
      effect so long as required for the distribution of the
      Securities;

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    12

    

    provided
      that in no event shall the Company be obligated to qualify to do business in
      any
      jurisdiction where it is not now so qualified or to take any action that would
      subject it to service of process in suits, other than those arising out of
      the
      offering or sale of the Securities, in any jurisdiction where it is not now
      so
      subject or take any action which would subject the Company to taxation in any
      jurisdiction where it is not already subject to taxation.

    

    (g)  The
      Company agrees that, unless it obtains the prior written consent of the
      Representatives, and each Underwriter, severally and not jointly, agrees with
      the Company that, unless it obtains the prior written consent of the Company,
      it
      has not made and will not make any offer relating to the Securities that would
      constitute an Issuer Free Writing Prospectus or that would otherwise constitute
      a “free writing prospectus” (as defined in Rule 405) required to be filed by the
      Company with the Commission or retained by the Company under Rule 433; provided
      that the prior written consent of the parties hereto shall be deemed to have
      been given in respect of the Free Writing Prospectuses included in Schedule
      III
      hereto. Any such free writing prospectus consented to by the Representatives
      or
      the Company is hereinafter referred to as a “Permitted Free Writing Prospectus.”
The Company agrees that (x) it has treated and will treat, as the case may
      be,
      each Permitted Free Writing Prospectus as an Issuer Free Writing Prospectus
      and
      (y) it has complied and will comply, as the case may be, with the requirements
      of Rules 164 and 433 applicable to any Permitted Free Writing Prospectus,
      including in respect of timely filing with the Commission, legending and record
      keeping.

    

    (h)  The
      Company will not, without the prior written consent of J.P. Morgan Securities
      Inc., offer, sell, contract to sell, pledge, or otherwise dispose of (or enter
      into any transaction which is designed to, or might reasonably be expected
      to,
      result in the disposition (whether by actual disposition or effective economic
      disposition due to cash settlement or otherwise) by the Company or any affiliate
      of the Company or any person in privity with the Company or any affiliate of
      the
      Company) directly or indirectly, including the filing (or participation in
      the
      filing) of a registration statement with the Commission in respect of, or
      establish or increase a put equivalent position or liquidate or decrease a
      call
      equivalent position within the meaning of Section 16 of the Exchange Act, any
      other shares of Carolina Group Stock or any securities convertible into, or
      exercisable, or exchangeable for, shares of Carolina Group Stock; or publicly
      announce an intention to effect any such transaction, for a period of 180 days
      after the date of the Underwriting Agreement, provided,
      however,
      that
      the Company may issue options, grant stock appreciation rights and sell Carolina
      Group Stock pursuant to any employee stock option plan, stock ownership plan
      or
      dividend reinvestment plan of the Company in effect at the Execution Time or
      as
      described in the Disclosure Package and the Final Prospectus.

    

    (i)  Except
      as disclosed in the Disclosure Package and the Final Prospectus, the Company
      will not take, directly or indirectly, any action designed to or that would
      constitute or that might reasonably be expected to cause or
      result

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    13

    

    in,
      under
      the Exchange Act or otherwise, stabilization or manipulation of the price of
      any
      security of the Company to facilitate the sale or resale of the
      Securities.

    

    (j)  The
      Company agrees to pay the costs and expenses relating to the following matters:
      (i) the preparation, printing or reproduction and filing with the Commission
      of
      the Registration Statement (including financial statements and exhibits
      thereto), the Basic Prospectus, each Preliminary Final Prospectus, if any,
      the
      Final Prospectus and each Issuer Free Writing Prospectus, and each amendment
      or
      supplement to any of them; (ii) the printing (or reproduction) and delivery
      (including postage, air freight charges and charges for counting and packaging)
      of such copies of the Registration Statement, the Basic Prospectus, each
      Preliminary Final Prospectus, the Final Prospectus and each Issuer Free Writing
      Prospectus, and all amendments or supplements to any of them, as may, in each
      case, be reasonably requested for use in connection with the offering and sale
      of the Securities; (iii) the preparation, printing, authentication, issuance
      and
      delivery of certificates for the Securities, including any stamp or transfer
      taxes in connection with the original issuance and sale of the Securities;
      (iv)
      the printing (or reproduction) and delivery of this Agreement, any blue sky
      memorandum and all other agreements or documents printed (or reproduced) and
      delivered in connection with the offering of the Securities; (v) the listing
      of
      the Securities on the New York Stock Exchange; (vi) any registration or
      qualification of the Securities for offer and sale under the securities or
      blue
      sky laws of the several states (including filing fees and the reasonable fees
      and expenses of counsel, up to $5,000, for the Underwriters relating to such
      registration and qualification); (vii) any filings required to be made with
      the
      National Association of Securities Dealers, Inc. (including filing fees and
      the
      reasonable fees and expenses of counsel to the Underwriters related to such
      filings; (viii) the fees and expenses of the Company’s accountants and the fees
      and expenses of counsel (including local and special counsel) for the Company;
      and (ix) all other costs and expenses incident to the performance by the Company
      of its obligations hereunder.

    

            
      6.  Conditions to the Obligations of the Underwriters.
      The
      obligations of the Underwriters to purchase the Securities shall be
      subject to the accuracy of the representations and warranties on the part of
      the
      Company contained herein as of the Execution Time and the Closing Date, to
      the
      accuracy of the statements of the Company made in any certificates pursuant
      to
      the provisions hereof, to the performance by the Company of its obligations
      hereunder and to the following additional conditions:

    

    (a)  The
      Final Prospectus, and any supplement thereto, have been filed in the manner
      and
      within the time period required by Rule 424(b) (without reliance on Rule
      424(b)(8)); any other material required to be filed by the Company pursuant
      to
      Rule 433(d) under the Act, shall have been filed with the Commission within
      the
      applicable time periods prescribed for such filings by Rule 433; and no stop
      order suspending the effectiveness of the Registration Statement or any notice
      pursuant to Rule 401(g)(2) of the Act that would prevent its use shall have
      been
      issued and no proceedings for that purpose shall have been instituted or, to
      the
      Company’s knowledge, threatened.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    14

    

     

        (b)  The
      Company shall have requested and caused Skadden, Arps, Slate, Meagher &
Flom, LLP, counsel for the Company, to have furnished to the Representatives
      their opinion
      and letter, in each case dated the Closing Date and addressed to the
      Representatives, in the forms of Exhibit B and Exhibit C,
      respectively.

    

    In
      rendering such opinion, such counsel may rely (A) as to matters involving
      the application of laws of any jurisdiction other than the state of New York,
      the General Corporation Law of Delaware or the Federal laws of the United
      States, to the extent they deem proper and specified in such opinion, upon
      the
      opinion of other counsel of good standing whom they believe to be reliable
      and
      who are satisfactory to counsel for the Underwriters; and (B) as to matters
      of fact, to the extent they deem proper, on certificates of responsible officers
      of the Company and public officials. Such opinion may contain customary
      assumptions, exceptions, limitations, qualifications and comments. In addition,
      such opinion may contain statements to the effect that: (A) such counsel is
      expressing no opinion regarding, nor is such counsel predicting or guaranteeing,
      the outcome of any tobacco-related product liability case, and (B) such counsel
      is expressing no opinion regarding the effect of the outcome, whether financial
      or otherwise, of any tobacco-related product liability case on the Company
      or
      the Carolina Group Stock. 

    

    (c)  The
      Company shall have requested and caused Gary W. Garson, general counsel for
      Loews Corporation, to have furnished his opinion, dated the Closing Date and
      addressed to the Representatives, to the effect that: 

    

    (i)  the
      Company is duly qualified to do business as a foreign corporation and is in
      good
      standing under the laws of each jurisdiction which requires such qualification,
      except where the failure to be so qualified could not, individually or in the
      aggregate, reasonably be expected to have a Material Adverse
      Effect;

    

    (ii)  each
      of the Material Subsidiaries is validly existing as a corporation or a limited
      liability company, as the case may be, in good standing under the laws of the
      jurisdiction in which it is chartered or organized, with the requisite power
      and
      authority to own or lease, as the case may be, and to operate its properties
      and
      conduct its business as described in the Disclosure Package and the Final
      Prospectus, and is duly qualified to do business as a foreign corporation or
      limited liability company and is in good standing under the laws of each
      jurisdiction which requires such qualification, except where the failure to
      be
      so qualified could not, individually or in the aggregate, reasonably be expected
      to have a Material Adverse Effect;

    

    (iii)  all
      the outstanding shares of capital stock of, or other ownership interests in,
      each Material Subsidiary and each Carolina Group

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    15

    
 

    Company
      have been duly and validly authorized and issued and, with respect to the shares
      of capital stock of such Material Subsidiaries that are corporations, are fully
      paid and nonassessable, and, except as otherwise set forth in the Disclosure
      Package and the Final Prospectus, all outstanding shares of capital stock of
      or
      other ownership interests in, the Material Subsidiaries are owned by the Company
      either directly or through wholly owned subsidiaries free and clear of any
      perfected security interest and, to the knowledge of such counsel, after due
      inquiry, any other security interest, claim, lien or encumbrance;

    

    (iv)  except
      as set forth in the Disclosure Package and the Final Prospectus and to the
      knowledge of such counsel, no options, warrants, preemptive rights or other
      rights to purchase, agreements or other obligations to issue, or rights to
      convert any obligations into or exchange any securities for, shares of Carolina
      Group Stock are outstanding;

    

    (v)  to
      the knowledge of such counsel, there is no pending or threatened action, suit
      or
      proceeding by or before any court or governmental agency, authority or body
      or
      any arbitrator involving the Company or any of its subsidiaries or its or their
      property of a character required to be disclosed in the Registration Statement
      which is not adequately disclosed in the Disclosure Package and the Final
      Prospectus, and there is no franchise, contract or other document of a character
      required to be described in the Registration Statement or Final Prospectus,
      or
      to be filed as an exhibit thereto, which is not described or filed as
      required;

    

    (vi)  neither
      the issue and sale of the Securities, nor the consummation of any other of
      the
      transactions herein contemplated nor the fulfillment of the terms hereof will
      conflict with, result in a breach or violation of or imposition of any lien,
      charge or encumbrance upon any property or assets of the Company or its Material
      Subsidiaries pursuant to, (i) the charter or by-laws of the Company or its
      Material Subsidiaries, (ii) the terms of any indenture, contract, lease,
      mortgage, deed of trust, note agreement, loan agreement or other agreement,
      obligation, condition, covenant or instrument to which the Company or any of
      its
      Material Subsidiaries is a party or bound or to which its or their property
      is
      subject, or (iii) any statute, law, rule, regulation, judgment, order or decree
      applicable to the Company or its Material Subsidiaries of any court, regulatory
      body, administrative agency, governmental body, arbitrator or other authority
      having jurisdiction over the Company or its Material Subsidiaries or any of
      its
      or their properties, except, with respect to clauses (ii) and (iii) above,
      for
      such conflicts, breaches, violations or impositions that could not, individually
      or in the aggregate, reasonably be expected to have a Material Adverse Effect;
      

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    16

    

    (vii)  to
      the knowledge of such counsel, no holders of securities of the Company have
      rights to the registration of such securities under the Registration Statement;
      

    

    (viii)  although
      he has not independently verified the accuracy, completeness or fairness of
      the
      statements made or included in the Registration Statement or the Final
      Prospectus and takes no responsibility therefor, such counsel has no reason
      to
      believe that on the Effective Date the Registration Statement contained any
      untrue statement of a material fact or omitted to state any material fact
      required to be stated therein or necessary to make the statements therein not
      misleading, or that the Final Prospectus as of its date or on the Closing Date
      included or includes any untrue statement of a material fact or omitted or
      omits
      to state a material fact necessary to make the statements therein, in the light
      of the circumstances under which they were made, not misleading (in each case,
      other than the financial statements and other financial information contained
      therein, as to which such counsel need express no opinion); 

    

    (xi)  although
      he has not independently verified the accuracy, completeness or fairness of
      the
      statements made or included in the Disclosure Package and takes no
      responsibility therefor, such counsel has no reason to believe that the
      documents specified in a schedule to such counsel’s letter, consisting of those
      included in the Disclosure Package, when taken together as a whole, contained
      any untrue statement of a material fact or omitted to state any material fact
      necessary in order to make the statements therein, in the light of circumstances
      under which they were made, not misleading; and

    

    (x)  no
      consent, approval, authorization, filing with or order of any court or
      governmental agency or body is required in connection with the performance
      by
      the Company of its obligations under this Agreement, except such as have been
      obtained under the Act and such as may be required to be obtained by the Company
      under the blue sky laws of any jurisdiction in connection with the purchase
      and
      distribution of the Securities by the Underwriters in the manner contemplated
      in
      this Agreement and in the Preliminary Prospectus, if any, and the Final
      Prospectus and such other approvals (specified in such opinion) as have been
      obtained.

     

          In
      rendering such opinion, such
      counsel may rely (A) as to matters involving the application of laws of any
      jurisdiction other than the State of New York, the General Corporate Law of
      Delaware or the Federal laws of the United States, to the extent he deems proper
      and specified in such opinion, upon the opinion of other counsel of good
      standing whom he believes to be reliable and who are satisfactory to counsel
      for
      the Underwriters, (B) as to matters of fact, to the extent he deems proper,
      on
      certificates of responsible officers of the Company and public officials
      and

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    17

     

    (C)
      as to
      opinions involving the Material Subsidiaries, on opinions of the counsels of
      those Material Subsidiaries. Such opinion may
      contain customary assumptions,  exceptions, limitations,
      qualifications
      and comments. In addition, such opinion may contain statements to the effect
      that: (A) such counsel is expressing no opinion regarding, nor is such counsel
      predicting or guaranteeing, the outcome of any tobacco-related product liability
      case or insurance-related case, and (B) such counsel is expressing no opinion
      regarding the effect of the outcome, whether financial or otherwise, of any
      tobacco-related product liability case or insurance-related case on
      the Company or the Carolina Group Stock. References to the Final Prospectus
      in this paragraph (c) include any supplements thereto at the Closing
      Date.

    

    (d)  The
      Company shall have requested and caused Ronald S. Milstein, general counsel
      for
      Lorillard Tobacco Company, to have furnished his opinion, dated the Closing
      Date
      and addressed to the Representatives in the form of Exhibit D.

    

    (e)  The
      Company shall have requested and caused Shook, Hardy & Bacon LLP, litigation
      counsel for Lorillard Tobacco Company, to have furnished their opinion, dated
      the Closing Date and addressed to the Representatives in the form of Exhibit
      E
      hereto.

    

    (f)  The
      Company shall have requested and caused Thompson Coburn LLP, litigation counsel
      for Lorillard Tobacco Company, to have furnished their opinion, dated the
      Closing Date and addressed to the Representatives in the form of Exhibit
      F.

    

    (g)  The
      Company shall have requested and caused Greenberg Traurig LLP, litigation
      counsel for Lorillard Tobacco Company, to have furnished their opinion, dated
      the Closing Date and addressed to the Representatives in the form of Exhibit
      G.

    

    (h)  The
      Representatives shall have received from Cravath, Swaine & Moore LLP,
      counsel for the Underwriters, such opinion or opinions, dated the Closing Date
      and addressed to the Representatives, with respect to the issuance and sale
      of
      the Securities, the Registration Statement, the Disclosure Package, the Final
      Prospectus (together with any supplement thereto) and other related matters
      as
      the Representatives may reasonably require, and the Company shall have furnished
      to such counsel such documents as they reasonably request for the purpose of
      enabling them to pass upon such matters.

    

    (i)  The
      Company shall have furnished to the Representatives a certificate of the
      Company, signed by the Chairman of the Board or the Chief Executive Officer
      and
      the principal financial or accounting officer of the Company, dated the Closing
      Date, to the effect that the signers of such certificate have carefully examined
      the Registration Statement, the Final Prospectus, the
      Disclosure

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    18

    

    Package
      and any supplements or amendments thereto and this Agreement and
      that:

    

    (i)  the
      representations and warranties of the Company in this Agreement are true and
      correct in all material respects on and as of the Closing Date with the same
      effect as if made on the Closing Date, provided,
      however,
      that if
      any such representation or warranty is already qualified by materiality, such
      representation or warranty as so qualified is true and correct in all respects
      on and as of the Closing Date, and the Company has complied with all the
      agreements and satisfied all the conditions on its part to be performed or
      satisfied at or prior to the Closing Date;

    

    (ii)  no
      stop order suspending the effectiveness of the Registration Statement or any
      notice pursuant to Rule 401(g)(2) of the Act that would prevent its use has
      been
      issued and no proceedings for that purpose have been instituted or, to the
      Company’s knowledge, threatened; and

    

    (iii)  since
      the date of the most recent financial statements included or incorporated by
      reference in the Final Prospectus (exclusive of any supplement thereto), there
      has been no Material Adverse Effect, except as set forth in or contemplated
      in
      the Disclosure Package and the Final Prospectus (exclusive of any supplement
      thereto).

    

    (j)  Lorillard
      Tobacco Company shall have furnished to the Representatives a certificate of
      Lorillard Tobacco Company, signed by the Chairman of the Board or the Chief
      Executive Officer and the principal financial or accounting officer of Lorillard
      Tobacco Company, dated the Closing Date, to the effect that the signers of
      such
      certificate have carefully examined the Registration Statement, the Final
      Prospectus, the Disclosure Package and any supplements or amendments thereto
      and
      this Agreement and that since the date of the most recent financial statements
      included or incorporated by reference in the Final Prospectus (exclusive of
      any
      supplement thereto), there has been no material adverse effect on the financial
      condition, earnings, business or properties associated with the Carolina Group,
      whether or not arising from transactions in the ordinary course of business,
      except as set forth in or contemplated in the Disclosure Package and the Final
      Prospectus (exclusive of any supplement thereto).

    

    (k)  Company
      shall have requested and caused Deloitte & Touche LLP to have furnished to
      the Representatives, at the Execution Time and at the Closing Date, letters,
      dated respectively as of the Execution Time and as of the Closing Date, in
      form
      and substance satisfactory to the Representatives, confirming that they are
      independent registered public accountants with respect to the Company within
      the
      meaning of the Act and the Exchange Act and the respective applicable rules
      and
      regulations adopted by the Commission thereunder, and stating in effect
      that:

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    19

    

     

           
      (i)  in their opinion the audited financial statements and financial
      statement schedules included or incorporated by reference in the Registration
      Statement, the Disclosure
      Package and the Final Prospectus and reported on by them comply as to form
      in
      all material respects with the applicable accounting requirements of the Act
      and
      the Exchange Act and the related rules and regulations adopted by the
      Commission;

    

    (ii)  on
      the basis of a reading of the latest unaudited financial statements made
      available by the Company and its subsidiaries; their limited review, in
      accordance with standards established under Statement on Auditing Standards
      No.
      100, of the unaudited interim financial information for the six-month period
      ended June 30, 2006 and as at June 30, 2006 carrying out certain specified
      procedures (but not an examination in accordance with generally accepted
      auditing standards) which would not necessarily reveal matters of significance
      with respect to the comments set forth in such letter; a reading of the minutes
      of the meetings of the shareholders, directors and executive and audit
      committees of the Company and its significant subsidiaries; and inquiries of
      certain officials of the Company who have responsibility for financial and
      accounting matters of the Company and its subsidiaries as to transactions and
      events subsequent to December 31, 2005, nothing came to their attention which
      caused them to believe that:

    

    (1)  any
      unaudited financial statements included or incorporated by reference in the
      Registration Statement and the Final Prospectus do not comply as to form in
      all
      material respects with applicable accounting requirements of the Act and with
      the related rules and regulations adopted by the Commission with respect to
      financial statements included or incorporated by reference in quarterly reports
      on Form 10-Q under the Exchange Act; and said unaudited financial statements
      are
      not in conformity with generally accepted accounting principles applied on
      a
      basis substantially consistent with that of the audited financial statements
      included or incorporated by reference in the Registration Statement and the
      Final Prospectus; 

    

    (2)  with
      respect to the period subsequent to June 30, 2006, there were any changes,
      at a
      specified date not more than five days prior to the date of the letter, in
      the
      long-term debt of the Company and its subsidiaries or of the Carolina Group
      or
      capital stock of the Company or decreases in the stockholders’ equity of the
      Company or decreases in the combined attributed net assets of the Carolina
      Group
      as compared with the corresponding amounts shown on the June 30, 2006 balance
      sheets included or incorporated by reference in the Registration Statement
      and
      the Final Prospectus, or for the period from July 1, 2006 to such specified
      date there were any decreases, as compared with the corresponding period in
      the
      preceding year in net income of the Company and its subsidiaries or of the
      Carolina Group or in operating income of the Company and its
      subsidiaries

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    20

    

    or
      of the
      Carolina Group, in each case, on either a total or per share basis, except
      in
      all instances for changes or decreases set forth in such letter, in which case
      the letter shall be accompanied by an explanation by the Company as to the
      significance thereof unless said explanation is not deemed necessary by the
      Representatives; 

    

    (3)  the
      information included or incorporated by reference in the Registration Statement
      and Final Prospectus in response to Regulation S-K, Item 301 (Selected Financial
      Data), Item 302 (Supplementary Financial Information) and Item 402 (Executive
      Compensation) is not in conformity with the applicable disclosure requirements
      of Regulation S-K;

    

    (iii)  they
      have performed certain other specified procedures as a result of which they
      determined that certain information of an accounting, financial or statistical
      nature (which is limited to accounting, financial or statistical information
      derived from the general accounting records of the Company and its subsidiaries)
      set forth or incorporated by reference in the Registration Statement and the
      Final Prospectus and in Exhibit 12 to the Registration Statement agrees with
      the
      accounting records of the Company and its subsidiaries, excluding any questions
      of legal interpretation.

     

    References
      to the Final Prospectus in this paragraph (k) include any supplement thereto
      at
      the date of the letter.

    

    (1)  Subsequent
      to the Execution Time or, if earlier, the dates as of which information is
      given
      in the Registration Statement (exclusive of any amendment thereof) and the
      Final
      Prospectus (exclusive of any supplement thereto), there shall not have been
      (i)
      any change or decrease specified in the letter or letters referred to in
      paragraph (k) of this Section 6 or (ii) any change, or any development involving
      a prospective change, in or affecting the financial condition, earnings,
      business or properties of the Company and its subsidiaries, taken as a whole,
      or
      the Carolina Group, whether or not arising from transactions in the ordinary
      course of business, except as set forth in or contemplated in the Disclosure
      Package and the Final Prospectus (exclusive of any supplement thereto) the
      effect of which, in any case referred to in clause (i) or (ii) above, is, in
      the
      sole judgment of the Representatives, so material and adverse as to make it
      impractical or inadvisable to proceed with the offering or delivery of the
      Securities as contemplated by the Registration Statement (exclusive of any
      amendment thereof), the Disclosure Package and the Final Prospectus (exclusive
      of any supplement thereto).

    

    (m)  Prior
      to the Closing Date, the Company shall have furnished to the Representatives
      such further information, certificates and documents as the Representatives
      may
      reasonably request.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

      21

      

      (n)  Subsequent
        to the Execution Time, there shall not have been any decrease in the rating
        of
        any of the Company’s debt securities by any “nationally recognized statistical
        rating organization” (as defined for purposes of Rule 436(g) under the Act) or
        any notice given of any intended or potential decrease in any such rating
        or of
        a possible change in any such rating that does not indicate the direction
        of the
        possible change.

      

      (o)  Subject
        to official notice of issuance, the Securities shall have been listed and
        admitted and authorized for trading on the New York Stock Exchange, and
        satisfactory evidence of such actions shall have been provided to the
        Representatives.

      

      (p)  At
        the Execution Time, the Company shall have furnished to the Representatives
        a
        letter substantially in the form of Exhibit A hereto from each executive
        officer
        and director of the Company addressed to the Representatives.

      

      If
        any of
        the conditions specified in this Section 6 shall not have been fulfilled
        in all
        material respects when and as provided in this Agreement, or if any of the
        opinions and certificates mentioned above or elsewhere in this Agreement
        shall
        not be in all material respects reasonably satisfactory in form and substance
        to
        the Representatives and counsel for the Underwriters, this Agreement and
        all
        obligations of the Underwriters hereunder may be canceled at, or at any time
        prior to, the Closing Date by the Representatives. Notice of such cancellation
        shall be given to the Company in writing or by telephone or facsimile confirmed
        in writing.

      

      The
        documents required to be delivered by this Section 6 shall be delivered at
        the
        offices of Cravath, Swaine & Moore LLP, counsel for the Underwriters, at 825
        Eighth Avenue, New York, New York, 10019, on the Closing Date.

      

      7. Reimbursement
        of Underwriters’ Expenses.  If
        the sale of the Securities provided for herein is not consummated because
        any
        condition to the obligations of the Underwriters set forth in Section 6 hereof
        is not satisfied, because of any termination pursuant to Section 10 hereof
        or
        because of any refusal, inability or failure on the part of the Company to
        perform any agreement herein or comply with any provision hereof other than
        by
        reason of a default by any of the Underwriters, the Company will reimburse
        the
        Underwriters severally through J.P. Morgan Securities Inc. on demand for
        all
        reasonable out-of-pocket expenses (including reasonable fees and disbursements
        of counsel) that shall have been incurred by them solely and directly in
        connection with the proposed purchase and sale of the Securities. 

            
        

            
        8. Indemnification
        and Contribution.  (a)
        The Company agrees to indemnify and hold harmless each Underwriter, the
        directors, officers, employees and agents of each Underwriter and each person
        who controls any Underwriter within the meaning of either the Act or the
        Exchange Act against any and all losses, claims, damages or liabilities,
        joint
        or several, to which they or any of them may become subject under the Act,
        the
        Exchange Act or other Federal or state statutory law or regulation, at common
        law or otherwise, insofar as such losses,

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      22

      

      claims,
        damages or liabilities (or actions in respect thereof) arise out of or are
        based
        upon any untrue statement or alleged untrue statement of a material fact
        contained in the registration statement for the registration of the Securities
        as originally filed or in any amendment thereof, or in the Basic Prospectus,
        any
        Preliminary Final Prospectus, the Final Prospectus, any Issuer Free Writing
        Prospectus, or in any amendment thereof or supplement thereto, or arise out
        of
        or are based upon the omission or alleged omission to state therein a material
        fact required to be stated therein or necessary to make the statements therein
        not misleading, and agrees to reimburse each such indemnified party, as
        incurred, for any legal or other expenses reasonably incurred by them in
        connection with investigating or defending any such loss, claim, damage,
        liability or action; provided,
        however,
        that
        the Company will not be liable in any such case to the extent that any such
        loss, claim, damage or liability arises out of or is based upon any such
        untrue
        statement or alleged untrue statement or omission or alleged omission made
        therein in reliance upon and in conformity with written information furnished
        to
        the Company by or on behalf of any Underwriter through the Representatives
        specifically for inclusion therein. This indemnity agreement will be in addition
        to any liability which the Company may otherwise have.

      

      (b)  Each
        Underwriter severally and not jointly agrees to indemnify and hold harmless
        the
        Company, each of its directors, each of its officers who signs the Registration
        Statement, and each person who controls the Company within the meaning of
        either
        the Act or the Exchange Act, to the same extent as the foregoing indemnity
        from
        the Company to each Underwriter, but only with reference to written information
        relating to such Underwriter furnished to the Company by or on behalf of
        such
        Underwriter through the Representatives specifically for inclusion in the
        documents referred to in the foregoing indemnity. This indemnity agreement
        will
        be in addition to any liability which any Underwriter may otherwise have.
        The
        Company acknowledges that the statements set forth in the last paragraph
        of the
        cover page regarding delivery of the Securities and, under the heading
“Underwriting”, (i) the list of Underwriters and their respective participation
        in the sale of the Securities, (ii) the sentences related to concessions
        and
        reallowances and (iii) the paragraph related to stabilization, syndicate
        covering transactions and penalty bids in any Preliminary Final Prospectus
        and
        the Final Prospectus constitute the only information furnished in writing
        by or
        on behalf of the several Underwriters for inclusion in any Preliminary Final
        Prospectus or the Final Prospectus.

      

      (c)  Promptly
        after receipt by an indemnified party under this Section 8 of notice of the
        commencement of any action, such indemnified party will, if a claim in respect
        thereof is to be made against the indemnifying party under this Section 8,
        notify the indemnifying party in writing of the commencement thereof; but
        the
        failure so to notify the indemnifying party (i) will not relieve it from
        liability under paragraph (a) or (b) above unless and to the extent it did
        not
        otherwise learn of such action and such failure results in the forfeiture
        by the
        indemnifying party of substantial rights and defenses and (ii) will not,
        in any
        event, relieve the indemnifying party from any obligations to any indemnified
        party other than the indemnification obligation provided in paragraph (a)
        or (b)
        above. The indemnifying party shall be entitled to appoint counsel of the
        indemnifying party’s choice at the indemnifying party’s expense to represent
        the

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      23

      

      indemnified
        party in any action for which indemnification is sought (in which case the
        indemnifying party shall not thereafter be responsible for the fees and expenses
        of any separate counsel retained by the indemnified party or parties except
        as
        set forth below); provided,
        however,
        that
        such counsel shall be reasonably satisfactory to the indemnified party.
        Notwithstanding the indemnifying party’s election to appoint counsel to
        represent the indemnified party in an action, the indemnified party shall
        have
        the right to employ separate counsel (including local counsel), and the
        indemnifying party shall bear the reasonable fees, costs and expenses of
        such
        separate counsel if (i) the use of counsel chosen by the indemnifying party
        to
        represent the indemnified party would present such counsel with a conflict
        of
        interest, (ii) the actual or potential defendants in, or targets of, any
        such
        action include both the indemnified party and the indemnifying party and
        the
        indemnified party shall have reasonably concluded that there may be legal
        defenses available to it and/or other indemnified parties which are different
        from or additional to those available to the indemnifying party, (iii) the
        indemnifying party shall not have employed counsel reasonably satisfactory
        to
        the indemnified party to represent the indemnified party within a reasonable
        time after notice of the institution of such action or (iv) the indemnifying
        party shall authorize the indemnified party to employ separate counsel at
        the
        expense of the indemnifying party. An indemnifying party will not, without
        the
        prior written consent of the indemnified parties, settle or compromise or
        consent to the entry of any judgment with respect to any pending or threatened
        claim, action, suit or proceeding in respect of which indemnification or
        contribution may be sought hereunder (whether or not the indemnified parties
        are
        actual or potential parties to such claim or action) unless such settlement,
        compromise or consent includes an unconditional release of each indemnified
        party from all liability arising out of such claim, action, suit or proceeding.
        

      

      (d)  In
        the event that the indemnity provided in paragraph (a) or (b) of this Section
        8
        is unavailable to or insufficient to hold harmless an indemnified party for
        any
        reason, the Company and the Underwriters severally agree to contribute to
        the
        aggregate losses, claims, damages and liabilities (including legal or other
        expenses reasonably incurred in connection with investigating or defending
        same)
        (collectively “Losses”) to which the Company and one or more of the Underwriters
        may be subject in such proportion as is appropriate to reflect the relative
        benefits received by the Company on the one hand and by the Underwriters
        on the
        other from the offering of the Securities; provided,
        however,
        that in
        no case shall any Underwriter (except as may be provided in any agreement
        among
        underwriters relating to the offering of the Securities) be responsible for
        any
        amount in excess of the underwriting discount or commission applicable to
        the
        Securities purchased by such Underwriter hereunder. If the allocation provided
        by the immediately preceding sentence is unavailable for any reason, the
        Company
        and the Underwriters severally shall contribute in such proportion as is
        appropriate to reflect not only such relative benefits but also the relative
        fault of the Company on the one hand and of the Underwriters on the other
        in
        connection with the statements or omissions which resulted in such Losses
        as
        well as any other relevant equitable considerations. Benefits received by
        the
        Company shall be deemed to be equal to the total net proceeds from the offering
        (before deducting expenses, but after deducting underwriting discounts and
        commissions) received by it, and benefits received by the Underwriters shall
        be
        deemed to be equal to the total underwriting discounts and commissions, in
        each
        case as set forth on the cover page of the Final Prospectus.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      24

      

      Relative
        fault shall be determined by reference to, among other things, whether any
        untrue or any alleged untrue statement of a material fact or the omission
        or
        alleged omission to state a material fact relates to information provided
        by the
        Company on the one hand or the Underwriters on the other, the intent of the
        parties and their relative knowledge, access to information and opportunity
        to
        correct or prevent such untrue statement or omission. The Company and the
        Underwriters agree that it would not be just and equitable if contribution
        were
        determined by pro rata allocation or any other method of allocation which
        does
        not take account of the equitable considerations referred to above.
        Notwithstanding the provisions of this paragraph (d), no person guilty of
        fraudulent misrepresentation (within the meaning of Section 11(f) of the
        Act)
        shall be entitled to contribution from any person who was not guilty of such
        fraudulent misrepresentation. For purposes of this Section 8, each person
        who
        controls an Underwriter within the meaning of either the Act or the Exchange
        Act
        and each director, officer, employee and agent of an Underwriter shall have
        the
        same rights to contribution as such Underwriter, and each person who controls
        the Company within the meaning of either the Act or the Exchange Act, each
        officer of the Company who shall have signed the Registration Statement and
        each
        director of the Company shall have the same rights to contribution as the
        Company, subject in each case to the applicable terms and conditions of this
        paragraph (d).

      

      9. Default
        by an Underwriter.
        If any
        one or more Underwriters shall fail to purchase and pay for any of the
        Securities agreed to be purchased by such Underwriter or Underwriters hereunder
        and such failure to purchase shall constitute a default in the performance
        of
        its or their obligations under this Agreement, the remaining Underwriters
        shall
        be obligated severally to take up and pay for (in the respective proportions
        which the amount of Securities set forth opposite their names in Schedule
        II
        hereto bears to the aggregate amount of Securities set forth opposite the
        names
        of all the remaining Underwriters) the Securities which the defaulting
        Underwriter or Underwriters agreed but failed to purchase; provided,
        however,
        that in
        the event that the aggregate amount of Securities which the defaulting
        Underwriter or Underwriters agreed but failed to purchase shall exceed 10%
        of
        the aggregate amount of Securities set forth in Schedule II hereto, the
        remaining Underwriters shall have the right to purchase all, but shall not
        be
        under any obligation to purchase any, of the Securities, and if such
        nondefaulting Underwriters do not purchase all the Securities, this Agreement
        will terminate without liability to any nondefaulting Underwriter or the
        Company. In the event of a default by any Underwriter as set forth in this
        Section 9, the Closing Date shall be postponed for such period, not exceeding
        five Business Days, as the Representatives shall determine in order that
        the
        required changes in the Registration Statement and the Final Prospectus or
        in
        any other documents or arrangements may be effected. Nothing contained in
        this
        Agreement shall relieve any defaulting Underwriter of its liability, if any,
        to
        the Company and any nondefaulting Underwriter for damages occasioned by its
        default hereunder.

      

      10. Termination.
        This
        Agreement shall be subject to termination in the absolute discretion of the
        Representatives, by notice given to the Company prior to delivery of and
        payment
        for the Securities, if at any time after the execution of this Agreement
        and
        prior to such time (i) trading in any securities of

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      25

      

      the
        Company shall have been suspended by the Commission or the New York Stock
        Exchange or trading in securities generally on the New York Stock Exchange
        or
        the Nasdaq National Market shall have been suspended or limited or minimum
        prices shall have been established on such Exchange or the Nasdaq National
        Market, (ii) a banking moratorium shall have been declared either by Federal
        or
        New York State authorities or (iii) there shall have occurred any outbreak
        or
        escalation of hostilities, declaration by the United States of a national
        emergency or war, or other calamity or crisis the effect of which on financial
        markets is such as to make it, in the sole judgment of the Representatives,
        impractical or inadvisable to proceed with the offering or delivery of the
        Securities as contemplated by the Final Prospectus (exclusive of any supplement
        thereto).

      

      11. Representations
        and Indemnities to Survive.
        The
        respective agreements, representations, warranties, indemnities and other
        statements of the Company or its officers and of the Underwriters set forth
        in
        or made pursuant to this Agreement will remain in full force and effect,
        regardless of any investigation made by or on behalf of any Underwriter or
        the
        Company or any of the officers, directors, employees, agents or controlling
        persons referred to in Section 8 hereof, and will survive delivery of and
        payment for the Securities. The provisions of Sections 7 and 8 hereof shall
        survive the termination or cancellation of this Agreement.

      

      12. Notices.
        All
        communications hereunder will be in writing and effective only on receipt,
        and,
        if sent to the Representatives, will be mailed, delivered or telefaxed to
        J.P.
        Morgan Securities Inc., 277 Park Avenue, New York, New York 10172 (fax: (212)
        622-8358); Attention: Syndicate Desk;
        or, if
        sent to the Company, will be mailed, delivered or telefaxed to the General
        Counsel, Loews Corporation (fax no.: (212) 521-2997) and confirmed to it
        at
        Loews Corporation, 667 Madison Avenue, 7th
        Floor,
        New York, New York, 10021, Attention: General Counsel.

      

      13. Successors.
        This
        Agreement will inure to the benefit of and be binding upon the parties hereto
        and their respective successors and the officers, directors, employees, agents
        and controlling persons referred to in Section 8 hereof, and no other person
        will have any right or obligation hereunder.

      

      14. Applicable
        Law.
        This
        Agreement will be governed by and construed in accordance with the laws of
        the
        State of New York applicable to contracts made and to be performed within
        the
        State of New York.

      

      15. Counterparts.
        This
        Agreement may be signed in one or more counterparts, each of which shall
        constitute an original and all of which together shall constitute one and
        the
        same agreement.

      

      16. Headings.
        The
        section headings used herein are for convenience only and shall not affect
        the
        construction hereof.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      
26
       

      17. Arms-length
        Transaction.
        The
        Company and the Underwriters acknowledge and agree that (i) the purchase
        and
        sale of the Securities pursuant to this Agreement is an arm's-length commercial
        transaction between the Company, on the one hand, and the Underwriters, on
        the
        other, (ii) in connection therewith and with the process leading to such
        transaction each Underwriter is acting solely as a principal and not the
        agent
        or fiduciary of the Company, (iii) no Underwriter has assumed an advisory
        or
        fiduciary responsibility in favor of the Company with respect to the offering
        contemplated hereby or the process leading thereto (irrespective of whether
        such
        Underwriter has advised or is currently advising the Company on other matters)
        or any other obligation to the Company except the obligations expressly set
        forth in this Agreement and (iv) each of the Company and the Underwriters
        has
        consulted its own legal and financial advisors to the extent it deemed
        appropriate. The Company agrees that it will not claim that the Underwriters,
        or
        any of them, has rendered advisory services of any nature or respect, or
        owes a
        fiduciary or similar duty to the Company, in connection with such transaction
        or
        the process leading thereto.

      

      18. Integration.
        This
        Agreement supersedes all prior agreements and understandings (whether written
        or
        oral) between the Company and the Underwriters, or any of them, with respect
        to
        the subject matter hereof.

      

      19. Waiver
        of Jury Trial.
        The
        Company and each of the Underwriters hereby irrevocably waives, to the fullest
        extent permitted by applicable law, any and all right to trial by jury in
        any
        legal proceeding arising out of or relating to this Agreement or the
        transactions contemplated hereby.

      

      20. Definitions.
        The
        terms which follow, when used in this Agreement, shall have the meanings
        indicated.

      

      “Act”
        shall mean the Securities Act of 1933, as amended, and the rules and regulations
        of the Commission promulgated thereunder.

      

      “Basic
        Prospectus” shall mean the prospectus referred to in paragraph 1(a) above
        contained in the Registration Statement at the Effective Date, including
        any
        documents incorporated by reference therein.

      

      “Business
        Day” shall mean any day other than a Saturday, a Sunday or a legal holiday or
        a
        day on which banking institutions or trust companies are authorized or obligated
        by law to close in New York City.

      

      “Carolina
        Group” shall have the meaning assigned thereto in the Registration
        Statement.

      

      “Carolina
        Group Companies” shall mean, collectively, Lorillard, Inc., and each of its
        direct and indirect subsidiaries.

      

      “Commission”
        shall mean the Securities and Exchange Commission.

      

      “Disclosure
        Package” shall mean (i) the Basic Prospectus, as amended and supplemented to the
        Execution Time, (ii) the other information, if any, identified

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      27

       

                   
        in Schedule IV hereto, (iii) Issuer Free Writing Prospectuses, if any,
        identified in Schedule III hereto, and (iv) any other Free Writing Prospectus
        that the parties hereto shall hereafter expressly agree in writing to treat
        as
        part of the Disclosure Package. 

      

      “Effective
        Date” shall mean each date and time that the Registration Statement, any
        post-effective amendment or amendments thereto became or become effective.
        

      

      “Exchange
        Act” shall mean the Securities Exchange Act of 1934, as amended, and the rules
        and regulations of the Commission promulgated thereunder.

      

      “Execution
        Time” shall mean the date and time that this Agreement is executed and delivered
        by the parties hereto. 

      

      “Final
        Prospectus” shall mean the prospectus supplement relating to the Securities that
        was first filed pursuant to Rule 424(b) after the Execution Time, together
        with
        the Basic Prospectus.

      

      “Free
        Writing Prospectus” shall mean a free writing prospectus, as defined in Rule
        405.

      

      “Issuer
        Free Writing Prospectus” shall mean an issuer free writing prospectus, as
        defined in Rule 433.

      

      “Material
        Adverse Effect” shall mean a material adverse effect on the financial condition,
        earnings, business or properties of the Company and its subsidiaries, taken
        as a
        whole, or the Carolina Group, whether or not arising from transactions in
        the
        ordinary course of business. 

      

      “Material
        Subsidiaries” shall mean CNA Financial Corporation, Lorillard, Inc., Lorillard
        Tobacco Company, Loews Hotels Holding Corporation, Diamond Offshore Drilling,
        Inc., and Boardwalk Pipelines Partners LP.

      

      “Preliminary
        Final Prospectus” shall mean any preliminary prospectus supplement to the Basic
        Prospectus which describes the Securities and the offering thereof and is
        used
        prior to filing of the Final Prospectus, including any documents incorporated
        by
        reference therein, together with the Basic Prospectus.

      

      “Registration
        Statement” shall mean the registration statement referred to in paragraph 1(a)
        above, including exhibits, financial statements and any documents incorporated
        by reference therein and any prospectus supplement relating to the Securities
        that is filed with the Commission pursuant to Rule 424(b) and deemed part
        of
        such registration statement pursuant to Rule 430B, as amended at the Execution
        Time and, in the event any post-effective amendment thereto becomes effective
        prior to the Closing Date, shall also mean such registration statement as
        so
        amended.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      28

      

      “Rule
        158”, “Rule 163”, “Rule 164”, “Rule 172”, “Rule 405”, “Rule 415”,
“Rule 424”, “Rule 430B”, and “Rule 433” refer to such rules under the
        Act.

      

                 
        “Well-Known Seasoned Issuer” shall mean a well-known seasoned issuer, as defined
        in Rule 405.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      If
        the
        foregoing is in accordance with your understanding of our agreement, please
        sign
        and return to us the enclosed duplicate hereof, whereupon this letter and
        your
        acceptance shall represent a binding agreement among the Company and the
        several
        Underwriters.

      

      

        
          	 	 	
                  Very
                    truly yours,

                
	 	 	
                  Loews
                    Corporation

                
	 	 	 
	 	
                  By

                	
                  Name: 

                
	 	 	
                  Title: 

                
	 	 	 
	 	 	 

 

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      The
        foregoing Agreement is hereby

      confirmed
        and accepted as of the

      date
        first above written.

      

        
          	 	 By:	
                   J.P.
                    Morgan Securities Inc.

                
	 	 	
                   

                
	 	 	 
	 	
                  By

                	
                  Name: 

                
	 	 	
                  Title: 

                
	 	 	 
	 	 	 

        

      

      

       

      For
        themselves and the other

      several
        Underwriters named in

      Schedule
        II to the foregoing

      Agreement.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        A

      

      

      [Form
        of Lock-up Agreement]

      [Letterhead
        of officer or director of Loews Corporation]

      

      Loews
        Corporation

      

      Public
        Offering of Carolina Group Stock

      

      August
        15, 2006

      

      J.P.
        Morgan Securities Inc.

      

      As
        Representatives of the several Underwriters,

      

      c/o
        J.P.
        Morgan Securities Inc.

      277
        Park
        Avenue

      New
        York,
        New York 10172

      

      Ladies
        and Gentlemen:

       

      This
        letter is being delivered to you in connection with the proposed Underwriting
        Agreement (the “Underwriting Agreement”), between Loews Corporation, a Delaware
        corporation (the “Company”), and each of you as representatives of a group of
        Underwriters named therein, relating to an underwritten public offering of
        Carolina Group Stock, $0.01 par value (the “Carolina Group Stock”), of the
        Company. 

      

      In
        order
        to induce you and the other Underwriters to enter into the Underwriting
        Agreement, the undersigned will not, without the prior written consent of
        J.P.
        Morgan Securities Inc., offer, sell, contract to sell, pledge or otherwise
        dispose of (or enter into any transaction which is designed to, or might
        reasonably be expected to, result in the disposition (whether by actual
        disposition or effective economic disposition due to cash settlement or
        otherwise) by the undersigned or any affiliate of the undersigned or any
        person
        in privity with the undersigned or any affiliate of the undersigned), directly
        or indirectly, including the filing (or participation in the filing) of a
        registration statement with the Securities and Exchange Commission in respect
        of, or establish or increase a put equivalent position or liquidate or decrease
        a call equivalent position within the meaning of Section 16 of the Securities
        Exchange Act of 1934, as amended, and the rules and regulations of the
        Securities and Exchange Commission promulgated thereunder with respect to,
        any
        shares of Carolina Group Stock or any securities convertible into or exercisable
        or exchangeable for Carolina Group Stock, or publicly announce an intention
        to
        effect any such transaction, for a period of 90 days after the date of the
        Underwriting Agreement, other than shares of Carolina Group Stock disposed
        of as
        bona fide gifts approved by J.P. Morgan Securities Inc.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      2

      

          If
        for any
        reason the Underwriting Agreement shall be terminated prior to the Closing
        Date
        (as defined in the Underwriting Agreement), the agreement set forth above
        shall
        likewise be terminated.

      

      

      Yours
        very truly,

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        B

      

      Opinion
        of Skadden, Arps, Slate, Meagher & Flom LLP

      

      [Subject
        to Opinion Committee Review]

      

      August
        15, 2006

      

      J.P.
        Morgan Securities Inc.

      277
        Park
        Avenue

      New
        York,
        New York 10172

      

      Re: Loews
        Corporation - Public Offering of 

      Carolina
        Group stock, par value $0.01 per share

      

      Ladies
        and Gentlemen:

       

      We
        have
        acted as special counsel to Loews Corporation, a Delaware corporation (the
        “Company”), in connection with the Underwriting Agreement, dated August 15, 2006
        (the “Underwriting Agreement”), between you (the “Underwriter”) and the Company,
        relating to the sale by the Company to the Underwriter of 15,000,000 shares
        (the
“Securities”) of Carolina Group stock, par value $0.01 per share (the “Carolina
        Group stock”) of the Company.

      

      This
        opinion is being furnished to you pursuant to Section 6(b) of the Underwriting
        Agreement.

      

      In
        rendering the opinions set forth herein, we have examined and relied on
        originals or copies of the following:

      

      (a) the
        registration statement on Form S-3 (File No. 333-132334) of the Company relating
        to the Securities and other securities of the Company filed on March 10,
        2006
        with the Securities and Exchange Commission (the “Commission”) under the
        Securities Act of 1933 (the “Securities Act”) allowing for delayed offerings
        pursuant to Rule 415 under the Securities Act, including the Incorporated
        Documents (as defined below) and the information deemed to be a part of the
        registration statement as of the date hereof pursuant to Rule 430B of the
        General Rules and Regulations under the Securities Act (such registration
        statement, at the time it became effective, being hereinafter referred to
        as the
“Registration Statement”);

      

      (b) the
        prospectus, dated March 10, 2006 (the “Base Prospectus”), relating to the
        offering of securities of the Company, which forms a part of and is included
        in
        the Registration Statement;

      

      (c) the
        prospectus supplement, dated August 15, 2006 (the “Final Prospectus Supplement”
and, together with the Base Prospectus and the Incorporated Documents, the
        “Prospectus”), relating to the offering of the Securities;

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      2

      

      (d) the
        documents identified on Schedule I hereto filed by the Company with the
        Commission pursuant to the Securities Exchange Act of 1934 and incorporated
        by
        reference into the Prospectus as of the date hereof (collectively, the
“Incorporated Documents”);

      

      (e) an
        executed copy of the Underwriting Agreement;

      

      (f) a
        specimen certificate evidencing the Carolina Group stock attached to the
        certificate of Gary W. Garson, Secretary of the Company, referenced in paragraph
        5 below;

      

      (g) the
        Restated Certificate of Incorporation of the Company, as certified by the
        Secretary of State of the State of Delaware (the “Certificate of
        Incorporation”);

      

      (h) the
        By-laws of the Company, as certified by Gary W. Garson, Secretary of the
        Company
        (the “By-laws”);

      

      (i) the
        Carolina Group policy statement, as certified by Gary W. Garson, Secretary
        of
        the Company (the “Policy Statement”);

      

      (j)
         resolutions
        of the Board of Directors of the Company, adopted February 14, 2006, August
        [●],
        2006 and August [●], 2006, and resolutions of the Securities Committee thereof,
        adopted August 15, 2006, in each case as certified by Gary W. Garson, Secretary
        of the Company;

      

      (k) the
        certificate of James S. Tisch, Chief Executive Officer of the Company, and
        Peter
        W. Keegan, Chief Financial Officer of the Company, dated the date hereof,
        a copy
        of which is attached as Exhibit A hereto (the “Company's
        Certificate”);

      

      (l) the
        certificate of Gary W. Garson, Senior Vice President, General Counsel and
        Secretary of the Company, dated the date hereof and the certificate of Peter
        W.
        Keegan, dated the date hereof, copies of which are attached as Exhibit B
        hereto
        (the “Secretary's Certificates”);

      

      (m) a
        certificate, dated August [●], 2006, and a facsimile bringdown thereof, dated
        August 15, 2006, from the Secretary of State of the State of Delaware as
        to the
        Company's existence and good standing in such jurisdiction (the “Delaware
        Certificates”); 

      

      (n) a
        certificate, dated August [●], 2006, and a facsimile bringdown thereof, dated
        August 15, 2006, from the Department of State of the State of New York,
        certifying that the Company is authorized to do business in the State of
        New
        York (the “New York Certificates”); and

      

      (o) an
        executed copy of the Company's Supplemental Listing Application to the New
        York
        Stock Exchange, Inc. (the “NYSE”) with respect to the

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      3

      

      Securities,
        including the acknowledgment of authorization (the “NYSE Authorization”) thereof
        executed by a representative of the NYSE.

      

      We
        have
        also examined originals or copies, certified or otherwise identified to our
        satisfaction, of such records of the Company and such agreements, certificates
        and receipts of public officials, certificates of officers or other
        representatives of the Company and others, and such other documents as we
        have
        deemed necessary or appropriate as a basis for the opinions set forth
        below.

       

      In
        our
        examination, we have assumed the legal capacity of all natural persons, the
        genuineness of all signatures, the authenticity of all documents submitted
        to us
        as originals, the conformity to original documents of all documents submitted
        to
        us as facsimile, electronic, certified or photostatic copies, and the
        authenticity of the originals of such copies. In making our examination of
        executed documents, we have assumed that the parties thereto, other than
        the
        Company, had the power, corporate or other, to enter into and perform all
        obligations thereunder and have also assumed the due authorization by all
        requisite action, corporate or other, and the execution and delivery by such
        parties of such documents and the validity and binding effect thereof on
        such
        parties. As to any facts material to the opinions expressed herein that we
        did
        not independently establish or verify, we have relied upon statements and
        representations of officers and other representatives of the Company and
        others
        and of public officials, including the facts set forth in the Company's
        Certificate.

      

      The
        opinions set forth below are subject to the following further qualifications,
        assumptions and limitations:

      

      (a) the
        opinion set forth in paragraph 1 below with respect to the valid existence
        and
        good standing of the Company is based solely upon the Delaware
        Certificates;

      

      (b) the
        opinion set forth in paragraph 2 below is based solely upon the New York
        Certificates;

      

      (c) in
        rendering the opinions set forth in paragraphs 4 and 5 below, we have assumed
        that the certificate evidencing the Securities will be signed by one of the
        authorized officers of the transfer agent and registrar for the Carolina
        Group
        stock and registered by such transfer agent and registrar and will conform
        to
        the specimen certificate examined by us evidencing the Carolina Group stock;
        and

      

      (d) the
        opinion set forth in paragraph 6 below is based solely upon the NYSE
        Authorization.

      

      We
        do not
        express any opinion as to any laws other than (i) the Delaware General
        Corporation Law (the “DGCL”), (ii) those laws, rules and regulations of the
        State of New York that, in our experience, are normally applicable to
        transactions of the type contemplated by the Underwriting Agreement and (iii)
        the federal laws of the United States of America to the extent referred to
        specifically herein. Insofar as the opinions expressed herein relate to matters
        governed by laws other than those set forth in the

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      4

      

      preceding
        sentence, we have assumed, without having made any independent investigation,
        that such laws do not affect any of the opinions set forth herein. The opinions
        expressed herein are based on laws in effect on the date hereof, which laws
        are
        subject to change with possible retroactive effect.

      

      Based
        upon the foregoing and subject to the limitations, qualifications, exceptions
        and assumptions set forth herein, we are of the opinion that:

      

      1. The
        Company is validly existing in good standing under the laws of the State
        of
        Delaware. The Company has the corporate power and corporate authority to
        carry
        on its business and to own, lease and operate its properties, in each case
        as
        described in the Prospectus.

      

      2. The
        Company is authorized to do business in the State of New York.

      

      3. The
        Company has an authorized capitalization as set forth in the Prospectus,
        and the
        authorized capital stock of the Company conforms as to legal matters to the
        description thereof contained in the Prospectus.

      

      4. The
        Securities have been duly authorized by the Company and, when delivered to
        and
        paid for by you in accordance with the terms of the Underwriting Agreement,
        will
        be validly issued, fully paid and nonassessable. 

      

      5. The
        form
        of certificate used to evidence the Carolina Group stock complies in all
        material respects with the applicable requirements of the Certificate of
        Incorporation and By-laws, the DGCL and the NYSE.

      

      6. The
        Securities have been authorized for listing on the NYSE, subject to official
        notice of issuance.

      

      7. The
        holders of outstanding shares of capital stock of the Company do not have
        any
        preemptive rights or any similar rights arising under the Certificate of
        Incorporation, the By-laws or the DGCL to subscribe for the
        Securities.

      

      8. The
        statements in the Base Prospectus under the headings “Description of Loews
        Capital Stock” and “Relationship between the Loews Group and the Carolina
        Group,” insofar as such statements purport to summarize certain provisions of
        the Certificate of Incorporation, the By-laws, the Policy Statement and the
        DGCL, fairly summarize such provisions in all material respects.

      

      9. The
        statements in the Prospectus Supplement under the heading “Certain U.S. Federal
        Tax Consequences,” insofar as such statements purport to summarize certain legal
        matters referred to therein, fairly summarize such legal matters in all material
        respects.

      

      10. The
        Underwriting Agreement has been duly authorized, executed and delivered by
        the
        Company.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      5

      

      11. The
        Company is not and, solely after giving effect to the offering and sale of
        the
        Securities and the application of the proceeds thereof as described in the
        Prospectus, will not be subject to registration and regulation as an “investment
        company” as such term is defined in the Investment Company Act of 1940, as
        amended. 

      

      This
        opinion is furnished only to you and is solely for your benefit in connection
        with the closing occurring today and the offering of the Securities, in each
        case pursuant to the Underwriting Agreement. Without our prior written consent,
        this opinion may not be used, circulated, quoted or otherwise referred to
        for
        any other purpose or relied upon by, or assigned to, any other person for
        any
        purpose, including any other person that acquires any Securities or that
        seeks
        to assert your rights in respect of this opinion (other than your successors
        in
        interest by means of merger, consolidation, transfer of a business or other
        similar transaction). Notwithstanding the foregoing, you (and each of your
        employees, representatives and other agents) may disclose this opinion to
        any
        and all persons, without limitation of any kind, to the extent such disclosure
        may be relevant to understanding the tax treatment or tax structure of any
        transaction contemplated by the Underwriting Agreement.

      

      Very
        truly yours,

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        C

      

      Opinion
        of Skadden, Arps, Slate, Meagher & Flom LLP

      

      

      August
        15, 2006

      

      J.P.
        Morgan Securities Inc.

      277
        Park
        Avenue

      New
        York,
        New York 10172

      

      Re:  Loews
        Corporation - Public Offering of Carolina Group stock, par value $0.01 per
        share

      

      Ladies
        and Gentlemen:

       

             
        We have acted as special counsel to Loews Corporation, a Delaware corporation
        (the “Company”), in connection with the Underwriting Agreement, dated August 15,
        2006 (the “Underwriting Agreement”), between you (the “Underwriter”), and the
        Company, relating to the sale by the Company to the Underwriter of 15,000,000
        shares (the “Securities”) of Carolina Group stock, par value $0.01 per share
        (the “Carolina Group stock”) of the Company.

      

      This
        letter is being furnished to you pursuant to Section 6(b) of the Underwriting
        Agreement. 

      

      In
        the
        above capacity, we have reviewed the registration statement on Form S-3 (File
        No. 333-132334) of the Company relating to the Securities and other securities
        of the Company filed on March 10, 2006 with the Securities and Exchange
        Commission (the “Commission”) under the Securities Act of 1933 (the “Securities
        Act”) allowing for delayed offerings pursuant to Rule 415 under the Securities
        Act, including the Incorporated Documents (as defined below) and the information
        deemed to be a part of the registration statement as of the date hereof pursuant
        to Rule 430B of the General Rules and Regulations under the Securities Act
        (the
“Rules and Regulations”) (such registration statement, at the time it became
        effective, being hereinafter referred to as the “Registration Statement”), and
        (i) the prospectus, dated March 10, 2006 (the “Base Prospectus”), relating to
        the offering of securities of the Company, which forms a part of and is included
        in the Registration Statement and (ii) the prospectus supplement, dated August
        15, 2006 (the “Prospectus Supplement” and, together with the Base Prospectus and
        the Incorporated Documents, the “Prospectus”), relating to the offering of the
        Securities, in the form filed with the Commission pursuant to Rule 424(b)
        of the
        Rules and Regulations. 
        We also
        have reviewed the documents identified on Schedule I hereto filed by the
        Company
        pursuant to the Securities Exchange Act of 1934 and incorporated by reference
        into the Prospectus Supplement as of the date hereof (collectively, the
“Incorporated Documents”) and such other documents as we deemed appropriate.
        Assuming the accuracy of the representations and warranties of the Company
        set
        forth in Section 1(d) of the Underwriting Agreement and that the Company
        has not
        received from the Commission any notice pursuant to Rule 401(g)(2) of the
        Securities Act that would 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      2

      

      prevent
        the use of the Registration Statement, the Registration Statement became
        effective upon filing with the Commission pursuant to Rule 462 of the Securities
        Act, and we have been orally advised by the Commission that (i) no stop order
        suspending the effectiveness of the Registration Statement has been issued
        and
        (ii) no proceedings for that purpose have been instituted or are pending
        or
        threatened by the Commission.

      

      In
        addition, we have participated in conferences with officers and other
        representatives of the Company, the general counsel of the Company, various
        outside counsel to the Company and/or its subsidiaries handling the various
        litigations referred to in the Incorporated Documents and the Prospectus
        Supplement, representatives of the independent accountants of the Company,
        representatives of the Underwriter and Cravath, Swaine & Moore LLP, counsel
        for the Underwriter, at which the contents of the Registration Statement
        and the
        Prospectus, the General Disclosure Package (as defined below) and related
        matters were discussed. We did not participate in the preparation of the
        Incorporated Documents but have, however, reviewed such documents and discussed
        the business and affairs of the Company with officers and other representatives
        of the Company in the course of the conferences referred to above. We do
        not
        pass upon, or assume any responsibility for, the accuracy, completeness or
        fairness of the statements contained or incorporated by reference in the
        Registration Statement, the Prospectus or the General Disclosure Package
        and
        have made no independent check or verification thereof (except to the limited
        extent referred to in paragraphs 8 and 9 of our opinion to you dated the
        date
        hereof).

      

      We
        express no opinion or belief regarding, nor are we predicting or guaranteeing,
        the outcome of any tobacco-related product liability case. We express no
        opinion
        or belief regarding the effect of the outcome, whether financial or otherwise,
        of any tobacco-related product liability case on the Company or the Carolina
        Group stock. 

      

      On
        the
        basis of the foregoing, (i) the Registration Statement, as of March 10, 2006
        and
        as of the date of the Prospectus Supplement, and the Prospectus, as of the
        date
        of the Prospectus Supplement, appeared on their face to be appropriately
        responsive in all material respects to the requirements of the Securities
        Act
        and the Rules and Regulations (except that in each case we do not express
        any
        view as to the financial statements, schedules and other financial information
        included or incorporated by reference therein or excluded therefrom or the
        exhibits to the Registration Statement) and (ii) no facts have come to our
        attention that have caused us to believe that the Registration Statement,
        as of
        March 10, 2006 and as of the date of the Prospectus Supplement, contained
        an untrue statement of a material fact or omitted to state a material fact
        required to be stated therein or necessary to make the statements therein
        not
        misleading or that the Prospectus, as of the date of the Prospectus Supplement
        and as of the date hereof, contained or contains an untrue statement of a
        material fact or omitted or omits to state a material fact necessary in order
        to
        make the statements therein, in light of the circumstances under which they
        were
        made, not misleading (except that in each case we do not express any view
        as to
        the financial statements, schedules and other financial information included
        or
        incorporated by reference therein or excluded therefrom or the statements
        contained in the exhibits to the Registration Statement). In addition, on
        the
        basis of the foregoing, no facts have come to our attention that have caused
        us
        to believe that the General Disclosure Package, as of the Applicable Time,
        contained an untrue 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      3

      

      statement
        of a material fact or omitted to state a material fact necessary in order
        to
        make the statements therein, in the light of the circumstances under which
        they
        were made, not misleading (except that we do not express any view as to the
        financial statements, schedules and other financial information included
        or
        incorporated by reference therein or excluded therefrom or the statements
        contained in the exhibits to the Registration Statement.

      

      As
        used
        herein, “Applicable Time” means 4:15 p.m. (Eastern time) on August 15, 2006 and
“General Disclosure Package” means the Base Prospectus, together with the
        Incorporated Documents and the information included on Schedule IV to the
        Underwriting Agreement.

      

      In
        addition, based on the foregoing, we confirm to you that the Prospectus
        Supplement has been filed with the SEC within the time period required by
        Rule
        424 of the Rules and Regulations.

      

      This
        letter is furnished only to you and is solely for your benefit in connection
        with the closing occurring today and the offering of the Securities, in each
        case pursuant to the Underwriting Agreement. Without our prior written consent,
        this letter may not be used, circulated, quoted or otherwise referred to
        for any
        other purpose or relied upon by, or assigned to, any other person for any
        purpose, including any other person that acquires Securities or that seeks
        to
        assert your rights in respect of this letter (other than your successors
        in
        interest by means of merger, consolidation, transfer of a business or other
        similar transaction). Notwithstanding the foregoing, you (and each of your
        employees, representatives and other agents) may disclose this letter to
        any and
        all persons, without limitation of any kind, to the extent such disclosure
        may
        be relevant to understanding the tax treatment or tax structure of any
        transaction contemplated by the Underwriting Agreement.

      

      Very
        truly yours,

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        D

      

      [Letterhead
        of Lorillard]

      

      [Date]

      

      [Underwriters]

      

      Ladies
        and Gentlemen:

       

      I
        am
        Senior Vice President, Legal and External Affairs, General Counsel and Secretary
        of Lorillard Tobacco Company, a Delaware corporation and a wholly owned
        subsidiary of Lorillard, Inc. (collectively, the “Company”). I have acted as
        counsel for the Company in connection with the purchase by you from Loews
        Corporation (“Parent”), a Delaware corporation and parent corporation of
        Lorillard, Inc., of 15,000,000 shares of Carolina Group Stock, par value
        $0.01
        per share (the “Shares”) of Parent pursuant to the Underwriting Agreement, dated
        August 15, 2006, between you and Parent (the “Underwriting Agreement’). This
        letter is being delivered to you pursuant to Section 6(d) of the Underwriting
        Agreement.

      

      I
        have
        examined: (1) the Registration Statement on Form S-3, as amended (such
        Registration Statement, including the documents incorporated by reference
        therein, at the time it became effective, being hereinafter called the
“Registration Statement”) filed by Parent under the Securities Act of 1933, as
        amended (the “Act”); (2) the basic prospectus dated March 10, 2006, including
        the documents incorporated by reference therein (the “Basic Prospectus”); (3)
        the final prospectus supplement dated August 15, 2006, (the “Final Prospectus”
and, together with the Basic Prospectus, being hereinafter called the
“Prospectus”), filed by Parent pursuant to Rule 424(b); and (4) the other
        information, if any, identified in Schedule IV to the Underwriting Agreement
        and
        the issuer free writing prospectuses, if any, identified in Schedule III
        to the
        Underwriting Agreement (together with the Basic Prospectus, as amended and
        supplemented to the Execution Time, being hereinafter called the “Disclosure
        Package”).

      

      In
        addition, I have examined certain records of the Company relating to the
        matters
        covered by the opinions set forth in the numbered paragraphs below and have
        made
        such other investigations as I have deemed necessary in connection with the
        opinion hereinafter set forth. I have relied, to the extent I deem such reliance
        proper, upon certain factual representations made in certificates given by
        officers of the Company in answer to inquiries.

      

      As
        we
        have discussed, while I have general supervisory responsibility for all legal
        matters involving the Company, I must rely extensively on various attorneys
        at
        the Company and various outside law firms which handle particular matters
        for
        the Company. Accordingly, my personal knowledge of a significant number of
        cases
        and other matters is substantially limited. The opinions contained in this
        letter merely constitute expressions of my professional judgment regarding
        the
        matters of law addressed herein. I am expressing no opinion regarding, nor
        am I
        predicting or guaranteeing, the outcome of any tobacco-related product liability
        case. Further, I am expressing no opinion regarding the effect of the outcome,
        whether financial or 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      2

      

      otherwise,
        of any tobacco-related product liability case on the Company or the Shares.
        For
        purposes of the opinion in the first numbered paragraph below, I have consulted
        with such other attorneys at the Company and outside counsel as I have deemed
        appropriate. 

      

      In
        rendering my opinion, I have assumed the legal capacity of all natural persons,
        the genuineness of all signatures, the authenticity of all documents submitted
        to me as originals, the conformity to original documents of documents submitted
        to me as certified, facsimile, conformed, electronic or photostatic copies
        and
        the authenticity of the originals of such copies. As to all questions of
        fact
        material to this opinion that have not been independently established, I
        have
        relied upon certificates or comparable documents, and oral and written
        statements and representations, of government officials and other officers
        and
        representatives of the Company and Parent and, in certain instances, written
        statements of the Underwriters and upon the representations and warranties
        of
        Parent and, in certain instances, the Underwriters, contained in the
        Underwriting Agreement. I have not independently verified such information
        and
        assumptions.

      

      I
        have
        investigated such questions of law for the purpose of rendering this opinion as
        I have deemed necessary. This opinion is limited to the federal law of the
        United States of America, the laws of the State of North Carolina and the
        General Corporate Law of Delaware. I disclaim any opinion as to any statute,
        rule, regulation, ordinance, order or other promulgation of any other
        jurisdiction or of any regional or local governmental body.

      

      On
        the
        basis of the foregoing, and in reliance thereon, and subject to the limitations,
        qualifications and exceptions set forth above, I am of the opinion
        that:

      

      1. To
        the
        best of my knowledge, the statements set forth

      

      (A)
        in
        the Parent’s Annual Report on Form 10-K for the year ended December 31, 2005
        (“Annual Report”) under the headings “Business -- Lorillard, Inc. -- Legislation
        and Regulation,” “Business -- Lorillard, Inc. -- Federal Regulation,” “Business
        -- Lorillard, Inc. -- State and Local Regulation,” together with “Business -
        Lorillard, Inc. -- Advertising and Marketing,” when considered in their
        entirety; and

      

      (B)
        in
        the Annual Report under the headings “Legal Proceedings -- Tobacco Related” and
“Notes to Consolidated Financial Statements -- Note 20. Legal Proceedings
        --
        Tobacco Related” and in Exhibit 99.01 to the Annual Report together with the
        statements in the Parent’s Quarterly Report on Form 10-Q for the quarter ended
        June 30, 2006 (“Quarterly Report”) under the headings “Notes to Consolidated
        Condensed Financial Statements -- Note 13. Legal Proceedings -- Tobacco Related”
and “Part II. Other Information. Item 1. Legal Proceedings. 2. Tobacco Related”,
        when considered in their entirety,

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      3

      

      incorporated
        by reference into the Registration Statement, the Disclosure Package and
        the
        Prospectus constitute a complete and accurate summary in all material respects
        of the matters referred to therein;

      

      
        	 	
                2.

              	
                To
                  the best of my knowledge, there is no pending or threatened action,
                  suit
                  or proceeding by or before any court or governmental agency, authority
                  or
                  body or any arbitrator involving the Company or any of its subsidiaries
                  or
                  its or their property of a character required to be disclosed in
                  the
                  Registration Statement which is not adequately disclosed in the
                  Disclosure
                  Package and the Prospectus, and there is no franchise, contract
                  or other
                  document of a character required involving the Company or any of
                  its
                  subsidiaries required to be described in the Registration Statement
                  or
                  Prospectus, or to be filed as an exhibit thereto, which is not
                  described
                  or filed as required;

              

      

      

      
        	 	
                3.

              	
                Neither
                  the issue and sale of the Shares, nor the consummation of any other
                  of the
                  transactions herein contemplated nor the fulfillment of the terms
                  hereof
                  will conflict with, result in a breach or violation of or imposition
                  of
                  any lien, charge or encumbrance upon any property or assets of
                  the Company
                  or its subsidiaries pursuant to, (i) the charter or by-laws of
                  the Company
                  or its subsidiaries, (ii) the terms of any indenture, contract,
                  lease,
                  mortgage, deed of trust, note agreement, loan agreement or other
                  agreement, obligation, condition, covenant or instrument to which
                  the
                  Company or any of its subsidiaries is a party or bound or to which
                  its or
                  their property is subject, or (iii) any statute, law, rule, regulation,
                  judgment, order or decree applicable to the Company or its subsidiaries
                  of
                  any court, regulatory body, administrative agency, governmental
                  body,
                  arbitrator or other authority having jurisdiction over the Company
                  or its
                  subsidiaries or any of its or their properties, except, with respect
                  to
                  clauses (ii) and (iii) above, for such conflicts, breaches, violations
                  or
                  impositions that could not, individually or in the aggregate, reasonably
                  be expected to have a material adverse effect on the financial
                  condition,
                  earnings, business or properties of the Company and its subsidiaries,
                  taken as a whole, whether or not arising from transactions in the
                  ordinary
                  course of business; 

              

      

      

      
        	 	
                4.

              	
                All
                  the outstanding shares of capital stock of Lorillard, Inc. and
                  Lorillard
                  Tobacco Company have been duly and validly authorized and issued
                  and are
                  fully paid and nonassessable, and, except as otherwise set forth
                  in the
                  Disclosure Package and the Prospectus, all outstanding shares of
                  capital
                  stock of the subsidiaries of Lorillard, Inc. are owned by Lorillard,
                  Inc.
                  either directly or through wholly owned subsidiaries free and clear
                  of any
                  perfected security interest and, to my knowledge, after due inquiry,
                  any
                  other security interest, claim, lien or encumbrance;
                  and

              

      

      

      
        	 	
                5.

              	
                The
                  Company is validly existing as a corporation in good standing under
                  the
                  laws of the jurisdiction in which it is chartered or organized,
                  with full
                  

              

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      corporate
        power and authority to own or lease, as the case may be, and to operate its
        properties and conduct its business as described in the Disclosure Package
        and
        the Prospectus, and is duly qualified to do business as a foreign corporation
        and is in good standing under the laws of each jurisdiction which requires
        such
        qualification, except where the failure to be so qualified could not,
        individually or in the aggregate, reasonably be expected to have a material
        adverse effect on the financial condition, earnings, business or properties
        of
        the Company and its subsidiaries, taken as a whole.

      

      In
        addition, although I have not independently verified the accuracy, completeness
        or fairness of the statements made or included in the Registration Statement,
        the Disclosure Package or the Prospectus and take no responsibility therefor,
        except as and to the extent set forth in paragraph 1 above, I have no reason
        to
        believe that the Registration Statement (except for the financial statements,
        other than the portions of Note 20 to the Consolidated Financial Statements
        in
        the Annual Report and Note 13 to the Consolidated Condensed Financial Statements
        in the Quarterly Report referred to above, and other information of an
        accounting or financial nature included therein, as to which I do not express
        any view), to the extent it relates to the Company, at the time it became
        effective, contained any untrue statement of a material fact or omitted to
        state
        any material fact necessary to make the statements therein not misleading,
        that
        the Disclosure Package, as of the Execution Time, when taken together as
        a
        whole, (except for the financial statements, other than the portions of Note
        20
        to the Consolidated Financial Statements in the Annual Report and Note 13.
        to
        the Consolidated Condensed Financial Statements in the Quarterly Report referred
        to above, and other information of an accounting or financial nature included
        therein, as to which I do not express any view), to the extent it relates
        to the
        Company, includes any untrue statement of a material fact or omits to state
        any
        material fact necessary to make the statements therein, in the light of the
        circumstances under which they were made, not misleading, or that the
        Prospectus, (except for the financial statements, other than the portions
        of
        Note 20 to the Consolidated Financial Statements in the Annual Report and
        Note
        13. to the Consolidated Condensed Financial Statements in the Quarterly Report
        referred to above, and other information of an accounting or financial nature
        included therein, as to which I do not express any view), to the extent it
        relates to the Company, as of its date or the date hereof included or includes
        any untrue statement of a material fact or omitted or omits to state any
        material fact necessary to make the statements therein, in the light of the
        circumstances under which they were made, not misleading.

      

      This
        opinion letter is rendered to you in connection with the above described
        transactions and I specifically do not render any opinions pertaining to
        any
        matter not expressly stated herein. This opinion letter may not be relied
        upon
        by you for any other purpose, or relied upon by, or furnished to, any other
        person, firm or corporation without my prior written consent. The opinions
        contained herein are limited to the matters expressly stated herein, and
        no
        opinion may be inferred or implied beyond the matters expressly stated
        herein.

      

      Very
        truly yours,

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        E

      

      [Form
        of Opinion Shook, Hardy & Bacon LLP]

      

      [Date]

      [Underwriters]

      

      Ladies
        and Gentlemen:

       

      We
        have
        acted as special counsel to Loews Corporation, a Delaware corporation (the
        “Parent”),
        its
        wholly owned subsidiary, Lorillard Inc., a Delaware corporation (“LI”),
        and
        LI’s wholly owned subsidiary Lorillard Tobacco Company, a Delaware corporation
        (“LTC”)
        (Parent, LI, and LTC are referred to collectively as the “Company”
or
        the
“Companies”),
        in
        connection with the purchase by you from Parent of 15,000,000 shares of common
        stock, par value $0.01 per share (the “Carolina
        Group Stock”)
        of
        Parent pursuant to the Underwriting Agreement, dated August 15, 2006, between
        you and Parent (the “Underwriting
        Agreement”).
        This
        letter is being delivered to you pursuant to Section 6(e) of the Underwriting
        Agreement.

      

      We
        have
        examined: (1) the Registration Statement on Form S-3, as amended (such
        Registration Statement, including the documents incorporated by reference
        therein, at the time it became effective (the “Effective
        Date”),
        is
        referred to as the “Registration
        Statement”)
        filed
        by Parent under the Securities Act of 1933, as amended (the “Act”);
        (2)
        the basic prospectus dated March 10, 2006, including the documents incorporated
        by reference therein (the “Basic
        Prospectus”);
        (3)
        the final prospectus supplement dated August 15, 2006, (the “Final Prospectus”
and, together with the Basic Prospectus, is referred to as the “Prospectus”),
        filed
        by Parent pursuant to Rule 424(b) of the rules and regulations of the Securities
        and Exchange Commission (the “Commission”);
        and
        (4) the other information, if any, identified in Schedule IV to the Underwriting
        Agreement and the issuer free writing prospectuses, if any, identified in
        Schedule III to the Underwriting Agreement (together with the Basic Prospectus,
        as amended and supplemented to the Execution Time, is referred to as the
        “Disclosure
        Package”).

      

      In
        addition, we have examined certain records of the Company relating to the
        matters covered by the opinions set forth in the numbered paragraph below
        and,
        subject to the limitations set forth herein, have made such other investigations
        as we have deemed necessary in connection with the opinion set forth in such
        numbered paragraph.

      

      Based
        upon such examination and review, and subject to the other qualifications
        and
        limitations set forth herein, we are of the opinion that:

      

      1. To
        the
        best of our knowledge, the statements set forth in:

      

      A. The
        Parent’s Annual Report on Form 10-K for the year ended December 31, 2005
        (“Annual Report”) in (i) “Part I. Item 3. Legal Proceedings. Tobacco Related;”
(ii) “Notes to Consolidated Financial Statements. Note 20. Legal Proceedings.
        Tobacco Related” in the paragraph subheadings captioned “Conventional
        Product Liability Cases,” “Flight Attendant Cases,” “Class Action Cases,”
“Reimbursement Cases,” “Contribution Claims”
        and“Filter
        Cases;”
        (iii)

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      2

      

          “Notes
        to
        Consolidated Financial Statements. Note 20. Legal Proceedings. Other Tobacco
        Related” in the paragraph subheading captioned “Reparation
        Cases;”
        and
        (iv) Exhibit 99.01. Tobacco
        Pending Litigation in the paragraph subheadings captioned “Class
        Action Cases,” “Reimbursement Cases” and
        “Contribution
        Claims;” 

      

      as
        incorporated by reference into the Registration Statement that describe
        cigarette and chewing tobacco product liability lawsuits (a) pending
        against the Company and for which we act as primary legal counsel of record
        to
        the Company or (b) which have been “overtly threatened “(as such phrase is
        defined in the American Bar Association’s Statement of Policy Regarding Lawyers’
Responses to Auditors’ Requests for Information) against the Company and for
        which we act as primary legal counsel to the Company (the cigarette and chewing
        tobacco product liability lawsuits described in clause 1(a) and 1(b) are
        collectively referred to herein as the “SHB
        Cases”),
        when
        considered in their entirety, (i) as they relate to the Registration
        Statement, at the Effective Date did not contain an untrue statement of a
        material fact or omit to state a material fact necessary to make the statements
        therein not misleading (except for the financial statements, other than the
        portions of Note 20 to the Consolidated Financial Statements in the Annual
        Report referred to above, and other information of an accounting or financial
        nature included therein, if any, as to which we do not express any view);
        and

      

      2. To
        the
        best of our knowledge, the statements set forth in:

      

      A. The
        Parent’s Annual Report on Form 10-K for the year ended December 31, 2005
        (“Annual Report”) in (i) “Part I. Item 3. Legal Proceedings. 2. Tobacco
        Related”; (ii) “Notes to Consolidated Financial Statements. Note 20. Legal
        Proceedings. Tobacco Related” in the paragraph subheadings captioned
“Conventional
        Product Liability Cases,” “Flight Attendant Cases,” “Class Action Cases,”
“Reimbursement Cases,” “Contribution Claims”
        and“Filter
        Cases;”
        (iii)
“Notes to Consolidated Financial Statements. Note 20. Legal Proceedings. Other
        Tobacco-Related” in the paragraph subheading captioned“Reparation
        Cases;” and
        (iv) Exhibit
        99.01. Tobacco
        Pending Litigation in the paragraph subheadings captioned “Class
        Action Cases,” “Reimbursement Cases” and
        “Contribution
        Claims;”
        and in

      

      B. The
        Parent’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2006
        (“Quarterly Report”) in (i) “Notes to Consolidated Condensed Financial
        Statements. Note 13. Legal Proceedings. Tobacco Related. Tobacco Related
        Product
        Liability Litigation” in the paragraph subheadings captioned “Conventional
        Product Liability Cases,” “Flight Attendant Cases,” “Class Action Cases,”
“Reimbursement Cases,” “Contribution Claims”
        and“Filter
        Cases;”
        and (ii)
“Part II. Other Information. Item 1. Legal Proceedings. 2. Tobacco Related” in
        the paragraph subheadings captioned “Class
        Action Cases” and“Reimbursement
        Cases”;

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      3

      

      as
        incorporated by reference into the Disclosure Package and the Prospectus
        that
        describe cigarette and chewing tobacco product liability lawsuits that are
        included in the SHB Cases as they relate to the Disclosure Package, as of
        the
        Execution Time, when taken together as a whole, and the Prospectus, at the
        date
        thereof (except as may be set forth on Schedule A attached to this letter)
        or
        hereof (except as may be set forth on Schedule B attached to this letter)
        did
        not contain an untrue statement of a material fact or omit to state a material
        fact necessary in order to make the statements, in the light of the
        circumstances under which they were made, not misleading (except for the
        financial statements, other than the portions of Note 20 to the Consolidated
        Financial Statements in the Annual Report and Note 13 to the Consolidated
        Condensed Financial Statements in the Quarterly Report referred to above,
        and
        other information of an accounting or financial nature included therein,
        if any,
        as to which we do not express any view).

      

      As
        we
        have discussed, we are primary legal counsel to the Company with respect
        to
        approximately [2,775] SHB Cases. A significant number of product liability
        lawsuits (including cigarette and chewing tobacco lawsuits) are pending against
        the Company, for which we do not act as primary legal counsel of record to
        the
        Company, and may have been “overtly threatened” against the Company, for which
        we do not act as primary legal counsel to the Company (collectively, the
        “NonSHB
        Cases”).
        Our
        knowledge about the NonSHB Cases is substantially more limited than our
        knowledge about the SHB Cases (the SHB Cases and the NonSHB Cases are
        collectively referred to herein as the “Product
        Liability Cases”).
        Further, we do not serve as legal counsel to the Company other than in
        connection with the SHB Cases and as a result we are not corporate, securities,
        regulatory or antitrust counsel to the Company in connection with the
        preparation of the Registration Statement or the Prospectus and we have not
        advised the Company on compliance with the requirements of the applicable
        federal or state securities laws or on the Carolina Group Stock.

      

      We
        have
        not independently verified the accuracy, completeness or fairness of the
        statements made or included in the Registration Statement, the Disclosure
        Package or the Prospectus and take no responsibility therefor, except as
        and to
        the extent set forth in paragraphs 1 and 2 above, subject to the qualifications
        and limitations set forth herein. We confirm that we have read the Prospectus,
        the Disclosure Package and the Registration Statement and we have reviewed
        the
        descriptions of the Product Liability Cases described therein. We confirm
        that
        we have reviewed generally our files relating to the SHB Cases, we have reviewed
        this opinion with the attorneys who currently are partners in or employed
        by
        this firm and who are primarily responsible for the representation of the
        Company in the SHB Cases or who were directly involved in any material respect
        with the preparation of this letter (the “Responsible
        Attorney Group”),
        and
        we have had conversations with representatives of the legal departments of
        the
        Company regarding the contents of this letter, but we have not discussed
        the
        NonSHB Cases with any person or entity, we have not reviewed any files or
        any
        materials (other than the contents of the Prospectus, the Disclosure Package
        and
        the Registration Statement) relating to the NonSHB Cases, and we have not
        reviewed the contents of this letter with attorneys who are partners in or
        employees of this firm, other than the Responsible Attorney Group. 

      

      You
        acknowledge that the statements that are made herein “to the best of our
        knowledge” or as to matters that have “come to our attention” or matters as to
        which

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      4

      

      we
        “believe” (or the converse) in this letter are made based solely on the
        knowledge or awareness of the attorneys in the Responsible Attorney Group
        and
        that those statements do not include the knowledge or awareness of other
        attorneys who are partners in or employees of this firm who are not in the
        Responsible Attorney Group, including those who may be primarily responsible
        for
        representing parties to Products Liability Cases other than the Companies.
        Without limiting the foregoing, you acknowledge that we are making no statements
        and giving no opinions with regard to the discussions in the Registration
        Statement, the Disclosure Package and the Prospectus of the State Settlement
        Agreements, the Master Settlement Agreement, Settlement of State Reimbursement
        Litigation, Tobacco-Related Antitrust Cases, or Antitrust Claims (as those
        terms
        are defined in the Registration Statement and the Prospectus), the provisions
        of
        the Carolina Group Stock and the charter amendments creating those securities,
        or as to the actual or potential financial effect of the Products Liability
        Cases, individually or collectively, on the Company, its business, or its
        condition, financial or otherwise.

      

      The
        opinions contained in this letter merely constitute expressions of our
        professional judgment regarding the matters of law addressed herein. We are
        expressing no opinion regarding, nor are we endorsing or adopting as our
        own
        opinion, any particular statement of opinion or belief attributed to the
        Company
        in the Registration Statement, the Disclosure Package or the Prospectus.
        We are
        expressing no opinion regarding, nor are we predicting or guaranteeing, the
        outcome of any Product Liability Case. Further, we are expressing no opinion
        regarding the effect of the outcome, whether financial or otherwise, of any
        Product Liability Case on the Company or the Carolina Group Stock. 

      

      Subject
        to the qualifications and limitations set forth herein, no facts have come
        to
        our attention that cause us to believe that the descriptions of the Product
        Liability Cases in the Registration Statement and the Prospectus when considered
        in their entirety, (i) as they relate to the Registration Statement, as of
        the Effective Date contained an untrue statement of a material fact or omitted
        to state a material fact necessary to make the statements therein not misleading
        (except for the financial statements and other information of an accounting
        or
        financial nature included therein, as to which we do not express any view);
        (ii)
        as they relate to the Disclosure Package, as of the Execution Time, when
        taken
        together as a whole, contained an untrue statement of a material fact or
        omitted
        to state a material fact necessary in order to make the statements, in the
        light
        of the circumstances under which they were made, not misleading (except for
        the
        financial statements, other than the portions of Note 20 to the Consolidated
        Financial Statements in the Annual Report and Note 13 to the Consolidated
        Condensed Financial Statements in the Quarterly Report referred to above,
        and
        other information of an accounting or financial nature included therein,
        as to
        which we do not express any view) ; and (iii) as they relate to the
        Prospectus, at the date thereof or hereof contained an untrue statement of
        a
        material fact or omitted to state a material fact necessary in order to make
        the
        statements, in the light of the circumstances under which they were made,
        not
        misleading (except for the financial statements, other than the portions
        of Note
        20 to the Consolidated Financial Statements in the Annual Report and Note
        13 to
        the Consolidated Condensed Financial Statements in the Quarterly Report referred
        to above, and other information of an accounting or financial nature included
        therein, as to which we do not express any view).

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      5

       

            
        We have not considered and express no opinion as to, the laws of any
        jurisdiction other than the laws of the United States of America.

      

      This
        opinion letter is rendered only to you and solely for your benefit in connection
        with the above described transactions. This opinion may not be relied upon
        by
        you for any other purpose, or relied upon by, or furnished to, any other
        person,
        firm or corporation without our prior written consent.

      

      Very
        truly yours,

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        F

      

      [Form
        of Opinion of Thompson Coburn LLP]

      

      [Date]

      

      [Underwriters]

      

      Ladies
        and Gentlemen: 

      

      We
        have
        served as primary legal counsel of record for Lorillard, Inc., a Delaware
        corporation, and its wholly owned subsidiary Lorillard Tobacco Company, a
        Delaware corporation (collectively, the “Company”), in connection with certain
        matters involving cigarette and chewing tobacco related products liability
        litigation to which the Company is a party. We are rendering this opinion
        in
        connection with the purchase by you from Loews Corporation, a Delaware
        corporation and parent corporation of Lorillard, Inc. (the “Parent”), of
        15,000,000 shares of Carolina Group Stock, par value $0.01 per share of the
        Parent pursuant to the Underwriting Agreement, dated August 15, 2006, between
        you and the Parent (the “Underwriting Agreement”). The letter is being delivered
        to you pursuant to Section 6(f) of the Underwriting Agreement.

      

      We
        have
        examined: (1) the Registration Statement on Form S-3, as amended (such
        Registration Statement, including the documents incorporated by reference
        therein, at the time it became effective (the “Effective Date”), is referred to
        as the “Registration Statement”) filed by Parent under the Securities Act of
        1933, as amended (the “Act”); (2) the basic prospectus dated March 10, 2006,
        including the documents incorporated by reference therein (the “Basic
        Prospectus”); (3) the final prospectus supplement dated August 15, 2006, (the
“Final Prospectus” and, together with the Basic Prospectus, is referred to as
        the “Prospectus”),
        filed
        by Parent pursuant to Rule 424(b) of the rules and regulations of the Securities
        and Exchange Commission (the “Commission”);
        and
        (4) the other information, if any, identified in Schedule IV to the Underwriting
        Agreement and the issuer free writing prospectuses, if any, identified in
        Schedule III to the Underwriting Agreement (together with the Basic Prospectus,
        as amended and supplemented to the Execution Time, is referred to as the
        “Disclosure
        Package”).

      

      In
        addition, we have examined certain records of the Company relating to the
        matters covered by the opinion set forth in the numbered paragraph below
        and
        have made such other investigations as we have deemed necessary in connection
        with the opinion hereinafter set forth. In examining such material and in
        delivering this opinion, we have assumed the genuineness of all signatures,
        the
        authenticity of all documents submitted to us as originals, the conformity
        to
        the originals of all documents submitted to us as certified, photostatic
        or
        conformed copies, and the authenticity of the originals of all such
        copies.

      

      Based
        upon such examination and review, and subject to the foregoing, we are of
        the
        opinion that:

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      2

       

      1. To
        the
        best of our knowledge, the statements set forth in the Parent’s Annual Report on
        Form 10-K for the year ended December 31, 2005 (the “Annual Report”) under the
        headings “Legal Proceedings -- Tobacco Related” and “Notes to Consolidated
        Financial Statements -- Note 20. Legal Proceedings -- Tobacco Related” and in
        Exhibit 99.01 to the Annual Report and in the Parent’s Quarterly Report on Form
        10-Q for the quarter ended June 30, 2006 (“Quarterly Report”) under the headings
“Notes to Consolidated Condensed Financial Statements -- Note 13. Legal
        Proceedings -- Tobacco Related” and “Part II. Other Information. Item 1. Legal
        Proceedings. 2. Tobacco Related” incorporated by reference into the Registration
        Statement, the Disclosure Package and the Prospectus, when considered in
        their
        entirety, constitute a complete and accurate summary, in all material respects,
        of matters involving actual or threatened cigarette and chewing tobacco related
        products liability litigation to which the Company is or may be a party and
        for
        which we act as primary legal counsel of record to the Company. In passing
        upon
        the accuracy of those statements, we are not endorsing or adopting as our
        own
        opinion any particular statement of opinion or belief attributed to the Company
        in the Registration Statement, the Disclosure Package or the Prospectus,
        nor are
        we predicting the outcome of any pending or threatened litigation.

      

      We
        are
        opining herein only on the federal laws of the United States and the laws
        of the
        State of Missouri. We expressly disavow any obligation to update this opinion
        as
        to any events occurring after [●], 2006.

      

      Very
        truly yours,

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        G

      

      [Form
        of Opinion Greenberg Traurig LLP]

      

      [Date]

      [Underwriters]

      

      Ladies
        and Gentlemen: 

      

      We
        have
        served as primary legal counsel of record for Lorillard, Inc., a Delaware
        corporation, and its wholly owned subsidiary Lorillard Tobacco Company, a
        Delaware corporation (collectively, the “Company”), in connection with certain
        matters involving cigarette and chewing tobacco related products liability
        litigation to which the Company is a party. We are rendering this opinion
        in
        connection with the purchase by you from Loews Corporation, a Delaware
        corporation and parent corporation of Lorillard, Inc. (the “Parent”), of
        15,000,000 shares of Carolina Group Stock, par value $0.01 per share of the
        Parent pursuant to the Underwriting Agreement, dated August 15, 2006, between
        you and the Parent (the “Underwriting Agreement”). The letter is being delivered
        to you pursuant to Section 6(g) of the Underwriting Agreement.

      

      We
        have
        examined: (1) the Registration Statement on Form S-3, as amended (such
        Registration Statement, including the documents incorporated by reference
        therein, at the time it became effective (the “Effective Date”), is referred to
        as the “Registration Statement”) filed by Parent under the Securities Act of
        1933, as amended (the “Act”); (2) the basic prospectus dated March 10, 2006,
        including the documents incorporated by reference therein (the “Basic
        Prospectus”); (3) the final prospectus supplement dated August 15, 2006, (the
“Final Prospectus” and, together with the Basic Prospectus, is referred to as
        the “Prospectus”),
        filed
        by Parent pursuant to Rule 424(b) of the rules and regulations of the Securities
        and Exchange Commission (the “Commission”);
        and
        (4) the other information, if any, identified in Schedule IV to the Underwriting
        Agreement and the issuer free writing prospectuses, if any, identified in
        Schedule III to the Underwriting Agreement (together with the Basic Prospectus,
        as amended and supplemented to the Execution Time, is referred to as the
        “Disclosure
        Package”).

      

      In
        addition, we have examined certain records of the Company relating to the
        matters covered by the opinion set forth in the numbered paragraph below
        and
        have made such other investigations as we have deemed necessary in connection
        with the opinion hereinafter set forth. We have relied, to the extent that
        we
        deem such reliance proper, upon certain factual representations made in
        certificates given by officers of the Company in answer to our inquiries.
        In
        examining such material and in delivering this opinion, we have assumed the
        genuineness of all signatures, the authenticity of all documents submitted
        to us
        as originals, the conformity to the originals of all documents submitted
        to us
        as certified, photostatic or conformed copies, and the authenticity of the
        originals of all such copies.

      

      Based
        upon such examination and review, and subject to the foregoing, we are of
        the
        opinion that:

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      1. To
        the
        best of our knowledge, the statements set forth in the Parent’s Annual Report on
        Form 10-K for the year ended December 31, 2005 (the “Annual Report”) under the
        headings “Legal Proceedings -- Tobacco Related” and “Notes to Consolidated
        Financial Statements -- Note 20. Legal Proceedings -- Tobacco Related” and in
        Exhibit 99.01 to the Annual Report and in the Parent’s Quarterly Report on Form
        10-Q for the quarter ended June 30, 2006 (“Quarterly Report”) under the headings
“Notes to Consolidated Condensed Financial Statements -- Note 13. Legal
        Proceedings -- Tobacco Related” and “Part II. Other Information. Item 1. Legal
        Proceedings. 2. Tobacco Related” incorporated by reference into the Registration
        Statement, the Disclosure Package and the Prospectus, when considered in
        their
        entirety, constitute a complete and accurate summary, in all material respects,
        of matters involving actual or threatened cigarette and chewing tobacco related
        products liability litigation to which the Company is or may be a party and
        for
        which we act as primary legal counsel of record to the Company. In passing
        upon
        the accuracy of those statements, we are not endorsing or adopting as our
        own
        opinion any particular statement of opinion or belief attributed to the Company
        in the Registration Statement, the Disclosure Package or the Prospectus,
        nor are
        we predicting the outcome of any pending or threatened litigation.

      

      We
        are
        opining herein only on the federal laws of the United States and the laws
        of the
        State of
        [             ].
        We expressly disavow any obligation to update this opinion as to any events
        occurring after [●], 2006.

      

      Very
        truly yours,

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      SCHEDULE I

      

      Underwriting
        Agreement dated August 15, 2006.

      

      Registration
        Statement No. 333-132344.

      

      Representative(s):
        J.P. Morgan Securities Inc.

      

      Title,
        Purchase Price and Description of Securities:

      

      Title:
        Carolina Group Stock

      

      Number
        of
        Underwritten Securities to be sold by the Company: 15,000,000

      

      Price
        per
        Share to the Underwriters - total: $58.45

      

      Other
        provisions:

      

      Closing
        Date, Time and Location: August 18, 2006 (T+3) at 10:00 a.m. at the offices
        of
        Cravath, Swaine & Moore LLP, Worldwide Plaza, 825 Eighth Avenue, New York,
        New York, 10019.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      SCHEDULE
        II

      

      
        	
                Underwriters

              	 	
                Number
                  of

                Securities
                  to be Purchased

              
	
                J.P.
                  Morgan Securities Inc.

              	 	
                15,000,000

              
	
                 

              	 	 
	
                Total.
                  . . . . . . . .

              	 	
                15,000,000

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      SCHEDULE III

      

      Schedule
        of Free Writing Prospectuses included in the Disclosure Package

      

      1.
        None.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      SCHEDULE IV

      

      Schedule
        of other information included in the Disclosure Package

      

      1.
        Issuer: Loews Corporation - Carolina Group Stock

      2.
        Shares
        offered: 15,000,000 shares

      3.
        Price
        to public: $[58.75] per share

      4.
        Underwriter(s): J.P. Morgan Securities Inc.

      5.
        After
        this offering, 62.3% of the economic interest in the Carolina Group will
        be
        outstanding, and the Loews Group will hold a 37.7% economic interest in the
        Carolina Group.Exhibit 10.1 2006 Director Equity Incentive Plan Stock Units Award Agreement
      08-17-06

    Exhibit
      10.1

    

    M/I
      HOMES, INC.

    2006
      DIRECTOR EQUITY INCENTIVE PLAN

    STOCK
      UNITS AWARD AGREEMENT

    

    

    M/I
      Homes, Inc. (the “Company”), pursuant to the M/I Homes, Inc. 2006 Director
      Equity Incentive Plan (the “Plan”) and this Award Agreement (the “Agreement”),
      hereby irrevocably awards (the “Award”) to the undersigned Participant the
      following stock units (the “Stock Units”) representing the right to receive
      payment of common shares, $.01 par value, of the Company (the “Stock”):

    

    

    1. Name
      of
      Participant:  ____________________________________________

    

    2. Grant
      Date:   ____________________________________________

    

    3. Total
      Number of Stock Units Granted: ____________________________________

    

    4. Settlement
      of Stock Units:

    

    A.
      Time
      of Settlement:     The
      total
      number of Stock Units granted under this

    Agreement
      (plus additional Stock Units, if any, that accrue under Section 9.03 of the
      Plan
      due to dividends and other distributions paid after the Grant Date with respect
      to the Stock) will be settled on the date of the Participant’s separation from
      service (as defined in Section 409A of the Internal Revenue Code of 1986, as
      amended) from the Company.

    

    B.
      Form
      of Settlement:     All
      Stock
      Units to be settled under this Agreement 

    (as
      described in Section 4.A. above) will be settled in shares of Stock.

    

    C.
      Payment:      Within
      sixty (60) days following the date on which the Stock Units are settled (as
      described in Section 4.A. above), the Participant will receive a lump sum
      payment of shares of Stock equal to the whole number of Stock Units settled,
      plus a cash payment for any fractional Stock Unit, determined based upon the
      Fair Market Value of a share of Stock on the settlement date.

    

    5. Effect
      of
      Plan:               The
      Award
      of Stock Units is subject in all cases to the terms and conditions set forth
      in
      the Plan, which are incorporated into and made a part of this Agreement. All
      capitalized terms that are used in this Agreement but are not defined in this
      Agreement shall have the meanings ascribed to such terms in the Plan.

    

    6. Acknowledgment:        By
      signing below, the Participant acknowledges and agrees that the Award is subject
      to all of the terms and conditions of the Plan.

    

    

    

    

    

    PARTICIPANT

    

    

    

    Date:__________________________

    By:________________________________

    

    

    M/I
      HOMES, INC.

    

    

    

    Date:__________________________

    By:_______________________________

    Title:_____________________________

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}]]