FORM OF LORILLARD, INC.
STOCK APPRECIATION RIGHT
THIS CERTIFICATE, dated as of the day of , evidences the
grant of the Award set forth below by Lorillard, Inc., a Delaware corporation (the “Company”) to
1. Grant of Award .
Subject to the provisions of this Certificate and the Lorillard, Inc. 2008 Incentive Compensation Plan, as
adopted, effective as of May 5, 2008 (the “Plan”), the Company hereby grants to the Participant as of
(the “Grant Date”) Stock Appreciation Rights having an Exercise Price
of $ per Stock Appreciation Right (such grant being herein called the “Award”). Each Stock
Appreciation Right represents the right to receive an amount, payable in shares of Stock as provided in
Paragraph 3 below, equal in value to the excess, if any, on the date of exercise of the Fair Market Value of a
share of Stock over the Exercise Price of the Stock Appreciation Right. The Stock Appreciation Rights granted
hereby are Free-Standing Stock Appreciation Rights and are not granted in conjunction with an Option. Unless
earlier terminated pursuant to the terms of this Certificate, the Award shall expire on .
Capitalized terms not defined herein shall have the meanings set forth in the Plan.
2. Exercisability of the Award .
The Award shall become vested and exercisable with respect to one-quarter (1/4) of the Stock
Appreciation Rights granted hereby on and as to an additional one-quarter (1/4) of
such shares on each of the next three anniversaries of that date, subject to the prior termination of the Award.
3. Method of Exercise of the Award .
(a) An Award may be exercised at any time after the Grant Date with respect to tho