Ronald S. Milstein (336)335-7718 Senior Vice President, Fax (336) 335-7707 Legal and External Affairs, May 5, 2008 General Counsel and Secretary
Exhibit 10.20
| Xxxxxx X. Xxxxxxxx | (000)000-0000 | |||
| Senior Vice President, | Fax (000) 000-0000 | |||
| Legal and External Affairs, | May 5, 2008 | |||
| General Counsel and Secretary |
Xx. Xxxxxx X. Xxxxxxxx
000 Xxxxx Xxxxxx Xxxx
Xxxxxxxxxx, XX 00000
| Re: | Amendment to Employment Agreement |
Dear Xxxxx:
The purpose of this letter is to amend, on this 5th day of May, 2008 (the “Amendment”), the Employment Agreement (the “Agreement”) dated February 1, 2008, between Lorillard Tobacco Company (the “Company”) and Xxxxxx X. Xxxxxxxx (“Xxxxxxxx”).
WHEREAS, Section 4(b) of the Agreement provides that the Company’s Board of Directors (the “Board’) will award Xxxxxxxx an annual bonus in an amount that is not less than $1,500,000 for 2008; and
WHEREAS, upon the completion of its separation from Loews Corporation as an independent public company, the Company anticipates adopting the Lorillard, Inc. 2008 Incentive Compensation Plan, which is intended to provide for equity and cash incentive awards including annual cash incentive compensation that constitutes “performance based compensation” pursuant to Section 162(m) of the Internal Revenue Code of 1986, as amended.
NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements contained in the Agreement and in this Amendment, the Company and Xxxxxxxx agree as follows:
1. The Company and Xxxxxxxx hereby amend Section 4(b) of the Agreement, effective as of May 5, 2008, to read in its entirety as follows:
“4(b). Bonus. In addition to the Base Salary referred to in Paragraph 4(a) above, Xxxxxxxx’x bonus for the period after the completion of the separation from Loews Corporation as an independent public company (the “Annual Bonus”) will be administered by the compensation committee of the Board and will be based on achievement of performance goals established by the compensation committee pursuant to the Lorillard, Inc. 2008 Incentive Compensation Plan (or any successor plan), and such Annual Bonus, if any, shall be paid not later than March 15 immediately following the close of the year.”
| Corporate Office: | Mail to: | |
| 000 Xxxxx Xxxxxx Xxxx | X.X. Xxx 00000 | |
| Xxxxxxxxxx, XX 00000 | Xxxxxxxxxx, XX 00000-0000 |
Xx. Xxxxxx X. Xxxxxxxx
Page Two
May 5, 2008
2. The Company and Xxxxxxxx agree that the Company will pay to Xxxxxxxx, on or about June 1, 2008, a sum of $750,000 as a bonus to Xxxxxxxx for the period commencing January 1, 2008 and ending June 30th 2008.
All other terms and conditions of the Agreement remain unchanged.
This Amendment has been executed by the parties as of the date first above written.
| Very truly yours, | ||
| LORILLARD TOBACCO COMPANY | ||
| By: | /s/ Xxxxxx X. Xxxxxxxx | |
| Xxxxxx X. Xxxxxxxx | ||
| (pursuant to a resolution of the Board of | ||
| Directors dated May 5, 2008) | ||
| ACCEPTED AND APPROVED | ||
| By: | /s/ Xxxxxx X. Xxxxxxxx | |
| Xxxxxx X. Xxxxxxxx | ||
