Document:

Exhibit

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Exhibit 10.3
THE CARLYLE GROUP L.P. 
2012 EQUITY INCENTIVE PLAN
FORM OF GLOBAL DEFERRED RESTRICTED COMMON UNIT AGREEMENT
FOR CO-CHIEF EXECUTIVE OFFICERS 
(Performance-Vesting)
	
		
	Participant:
	Date of Grant:  February 6, 2018

	Number of DRUs: 1,250,000
	 

1.     Grant of DRUs.  The Carlyle Group L.P. (the “Partnership”) hereby grants the number of deferred restricted Common Units (the “DRUs”) listed above to the Participant (the “Award”), effective as of February 6, 2018 (the “Date of Grant”), on the terms and conditions hereinafter set forth in this agreement including Appendix A, which includes any applicable country-specific provisions (together, the “Award Agreement”).  This grant is made pursuant to the terms of The Carlyle Group L.P. 2012 Equity Incentive Plan (as amended, modified or supplemented from time to time, the “Plan”), which is incorporated herein by reference and made a part of this Award Agreement.  Each DRU represents the unfunded, unsecured right of the Participant to receive a Common Unit on the delivery date(s) specified in Section 4 hereof.
2.     Definitions.  Capitalized terms not otherwise defined herein shall have the same meanings as in the Plan.
		
	a.
	“Cause” shall have the meaning set forth in the Employment Agreement.

		
	b.
	“Change of Control” shall have the meaning set forth in the Employment Agreement.

		
	c.
	“Disability” shall mean the Participant’s incapacitation as described in Section 5.b.i. of the Employment Agreement. 

		
	d.
	“Employment Agreement” shall mean the Employment Agreement by and between Participant and Employer dated October 23, 2017.

		
	e.
	“Exhibit A” shall mean the respective Exhibit A corresponding to each Tranche, as set forth in Section 4(a) below, which Exhibit shall set forth the performance metrics for each Tranche and shall be delivered to the Participant at the beginning of the corresponding Performance Period, but in no event later than 60 days following the first day of the Performance Period. For the avoidance of doubt, Exhibit A-1 relates specifically to Tranche 1 and subsequent Exhibits A-2, A-3, A-4 and A-5 shall relate to 

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Tranches 2, 3, 4 and 5, respectively, and shall be provided in accordance with the foregoing sentence.
		
	f.
	“Good Reason” shall have the meaning set forth in the Employment Agreement.

		
	g.
	“Performance Multiplier” shall mean the relevant multiplier, between 0% and 200%, applied to the Target DRU Award based on actual performance of the relevant performance metrics applicable to each respective Performance Period, as shall be set forth on the relevant Exhibit A.

		
	h.
	“Performance Period” shall mean January 1 through December 31 of the year applicable to each Tranche, as set forth below in Section 4(a).

		
	i.
	“Qualifying Event” shall mean, during the Participant’s Services with the Partnership and its Affiliates, the Participant’s death or Disability.

		
	j.
	“Restrictive Covenant Agreement” shall mean any agreement, and any attachments or schedules thereto, entered into by and between the Participant and the Partnership or its Affiliates, pursuant to which the Participant has agreed, among other things, to certain restrictions relating to non-competition (if applicable), non-solicitation and/or confidentiality, in order to protect the business of the Partnership and its Affiliates.

		
	k.
	    “Special Vesting Event” shall mean, during Participant’s Services with the Partnerships and its Affiliates, (i) the termination of the Participant’s Services without Cause or by the Participant for Good Reason or (ii) if the term of the Employment Agreement ends on December 31, 2022 and the Participant’s Services have not previously terminated for any reason, the termination of the Participant’s Services for any reason other than due to Cause following such term expiration (provided, in each case, that at the time of the relevant termination the Employer did not have grounds to terminate the Participant’s employment for Cause) (the Special Vesting Event in this clause (ii), the “Tranche 5 Vesting Event”).

		
	l.
	 “Target DRU Award” shall mean for each Tranche set forth in Section 4(a), the target number of DRUs that are eligible to vest pursuant to Exhibit A.

		
	m.
	“Tranche” shall mean Target numbers of DRUs eligible to vest with respect to each respective Performance Period.    

		
	n.
	“Vested DRUs” shall mean those DRUs which have become vested (x) determined by multiplying a Target DRU Award by the applicable Performance Multiplier for the corresponding Performance Period pursuant to the relevant Exhibit A or (y) otherwise pursuant to the Plan. 

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For the avoidance of doubt, the Vested DRUs may be a number lesser than or greater than the Target DRU Award for each Tranche.
		
	o.
	“Vesting Date” shall mean, with respect to each Tranche, the day on which the Board of Directors certifies the attainment of the established performance metrics set forth on Exhibit A, which shall occur promptly (but no more than eight (8) business days) following certification of the Partnership’s fourth quarter results for the corresponding Performance Period.

3.     Vesting.
(a)    Vesting – General.  Subject to the Participant’s continued Services with the Partnership and its Affiliates through each respective Vesting Date, on such Vesting Date, a number of DRUs subject to the Target DRU Award (which number may be lesser than or greater than the Target DRU Award) shall vest and become Vested DRUs based on the attainment of the performance metrics and the applicable Performance Multiplier set forth on Exhibit A.  
(b)     Vesting – Qualifying Event.  Upon the occurrence of a Qualifying Event, the Target DRU Awards for any Tranches with uncompleted Performance Periods (to the extent not previously vested or forfeited) shall vest in an amount equal to the product of (x) the Target DRU Award multiplied by (y) a Performance Multiplier equal to 100% upon the date of such Qualifying Event. 
(c)    Vesting – Special Vesting Event.  Upon the occurrence of a Special Vesting Event occurring prior to the final Vesting Date, then a portion of the DRUs will vest on the next scheduled Vesting Date following such Special Vesting Event in an amount equal to the sum of (x) with respect to the Tranche scheduled to vest on such next scheduled Vesting Date, either (A) the Target DRU Award with respect to a Special Vesting Event other than a Tranche 5 Vesting Event or (B) the Target DRU Award multiplied by the actual Performance Multiplier set forth in Exhibit A-5 with respect to a Tranche 5 Vesting Event plus (y) if the Special Vesting Event occurs prior to February 1, 2022, the Additional Vested Amount, as defined below.  As used herein, the term “Additional Vested Amount” means either (A) the Target DRU Award with respect to an additional full Tranche, if the Special Vesting Event occurs in January or (B) a pro-rated portion of the Target DRUs in a Tranche, equal to the product of 20,834 multiplied by the number of full months from January 1 of the year in which such Special Vesting Event occurs to the Special Vesting Event, if the Special Vesting Event occurs in any month other than January.  Notwithstanding the forgoing, in the event that the Special Vesting Event as described above occurs on or after a Change of Control, then the term Additional Vested Amount shall mean the sum of (A) the Target DRU Award with respect to an additional full Tranche plus (B) if the Special Vesting Event occurs prior to February 1, 2021, the amount that would constitute the Additional Vested Amount under the immediately preceding sentence in the absence of a Change of Control.  The special vesting described herein in connection with a Special Vesting Event shall be contingent 

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upon the Participant’s timely execution of a release of claims in accordance with Section 6 of the Employment Agreement and the Participant’s continued compliance with any applicable Restrictive Covenant Agreement.
(d)    Vesting – Other Terminations.  Except as otherwise set forth in Section 3(b) and 3(c), in the event the Participant’s Services with the Partnership and its Affiliates are terminated for any reason (including but not limited to, the termination of the Participant’s Services by the Participant without Good Reason), the portion of the Award that has not yet vested pursuant to Section 3(a), 3(b) or 3(c) hereof (or otherwise pursuant to the Plan) shall be canceled immediately and the Participant shall automatically forfeit all rights with respect to such portion of the Award as of the date of such termination. For purposes of this provision, the effective date of termination of the Participant’s Services will be determined in accordance with Section 7(j) hereof. 
4.     Vesting and Delivery Dates.
(a)    Delivery – General.  The Partnership shall, as soon as practicable following each Vesting Date, but in each case, prior to the first Common Unit distribution record date following a Vesting Date, deliver (or cause delivery to be made) to the Participant the Common Units underlying the Vested DRUs that vest and become Vested DRUs on such Vesting Date.  The general terms with respect to the DRUs are set forth in the table below.
	
				
	Tranche
	Performance Period
	Target DRU Award
	Performance Measurement Exhibit

	Tranche 1
	January 1, 2018 – December 31, 2018
	250,000
	A-1

	Tranche 2
	January 1, 2019 – December 31, 2019
	250,000
	A-2

	Tranche 3
	January 1, 2020 – December 31, 2020
	250,000
	A-3

	Tranche 4
	January 1, 2021 – December 31, 2021
	250,000
	A-4

	Tranche 5
	January 1, 2022 – December 31, 2022
	250,000
	A-5

(b)    Delivery – Qualifying Event.  Upon the occurrence of a Qualifying Event, the Partnership shall, within 30 days following the date of such event, deliver (or cause delivery of) Common Units to the Participant in respect of 100% of the DRUs which vest and become Vested DRUs on such date.
(c)    Delivery – Special Vesting Event. Following the occurrence of a Special Vesting Event, the Participant shall remain entitled to receive delivery of the Common Units at the normal delivery time set forth under Section 4(a) above (i.e., prior to the first Common Unit distribution record date following a Vesting Date). 

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(d)    Delivery – Resignation without Good Reason.  In the event the Participant’s Services with the Partnership and its Affiliates are terminated by the Participant without Good Reason, the Partnership shall within 30 days following the date of such termination, deliver (or cause delivery of) Common Units to the Participant in respect of any then outstanding Vested DRUs. 
(e)    Forfeiture – Cause Termination or Breach of Restrictive Covenants.  Notwithstanding anything to the contrary herein, upon the termination of the Participant’s employment by the Partnership or any of its Affiliates for Cause or upon the Participant’s breach of any of the restrictive covenants contained within an applicable Restrictive Covenant Agreement, all outstanding DRUs (whether or not vested) shall immediately terminate and be forfeited without consideration and no further Common Units with respect of the Award shall be delivered to the Participant or to the Participant’s legal representative, beneficiaries or heirs.  Without limiting the foregoing, to the extent permitted under applicable law, any Common Units that have previously been delivered to the Participant or the Participant’s legal representative, beneficiaries or heirs pursuant to the Award and which are still held by the Participant or the Participant’s legal representative, or beneficiaries or heirs as of the date of such termination for Cause or such breach, shall also immediately terminate and be forfeited without consideration. 
5.     No Dividends or Distributions on DRUs.  No dividends or other distributions shall accrue or become payable with respect to any DRUs prior to the date upon which the Common Units underlying the DRUs are issued or transferred to the Participant.  
6.     Adjustments Upon Certain Events; Change of Control.  
(a) Adjustments Upon Certain Events. The Administrator shall make certain substitutions or adjustments to any DRUs subject to this Award Agreement pursuant to Section 9 of the Plan.
(b) Change of Control. Promptly following the consummation of a Change of Control, the Participant and the Partnership shall negotiate in good faith and agree on a framework or methodology for determining the future performance metrics applicable to the DRUs for each Tranche following such Change of Control (or an alternative structure of such Awards) to preserve the Change of Control performance metrics that provide for a reasonable opportunity to achieve threshold, target and maximum level performance that is substantially similar to the opportunity to achieve threshold, target and maximum level of performance in place immediately prior to the Change of Control.
7.     Nature of Grant.  In accepting the grant, the Participant acknowledges, understands, and agrees that:
(a)     the Plan is established voluntarily by the Partnership, it is discretionary in nature and it may be modified, amended, suspended or terminated by the Partnership, at any time, to the extent permitted by the Plan;

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(b)     the grant of the DRUs is exceptional, voluntary and occasional and does not create any contractual or other right to receive future grants of DRUs, or benefits in lieu of DRUs, even if DRUs have been granted in the past; 
(c)     all decisions with respect to future DRUs or other grants, if any, will be at the sole discretion of the Partnership; 
(d)     the granting of the DRUs evidenced by this Award Agreement shall impose no obligation on the Partnership or any Affiliate to continue the Services of the Participant and shall not lessen or affect the Partnership’s or its Affiliate’s right to terminate the Services of such Participant;
(e)     the Participant is voluntarily participating in the Plan; 
(f)     the DRUs and the Common Units subject to the DRUs, and the income from and value of same, are not intended to replace any pension rights or compensation;
(g)     the DRUs and the Common Units subject to the DRUs, and the income from and value of same, are not part of normal or expected compensation for purposes of calculating any severance, resignation, termination, redundancy, dismissal, end-of-service payments, holiday pay, bonuses, long-service awards, pension or retirement or welfare benefits or similar payments; 
(h)     unless otherwise agreed with the Partnership, the DRUs and the Common Units subject to the DRUs, and the income from and value of same, are not granted as consideration for, or in connection with, the Services Participant may provide as a director of an Affiliate;
(i)    the future value of the underlying Common Units is unknown, indeterminable and cannot be predicted with certainty; 
(j)    in the event of termination of the Participant’s Services for any reason, except as set forth in Sections 3(b), 3(c), 4(b) and 4(c) (whether or not later to be found invalid or in breach of employment laws in the jurisdiction where the Participant is employed or the terms of the Participant’s employment agreement, if any), unless otherwise determined by the Partnership, the Participant’s right to vest in the DRUs under the Plan, if any, will terminate effective as of the date that the Participant is no longer actively providing Services and will not be extended by any notice period (e.g., active Services would not include any contractual notice period or any period of “garden leave” or similar period mandated under employment laws in the jurisdiction where the Participant is employed, or the terms of the Participant’s employment agreement, if any); the Administrator shall have the exclusive discretion to determine when the Participant is no longer actively providing Services for purposes of the DRUs grant (including whether the Participant may still be considered to be providing Services while on an approved leave of absence); and

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(k)     in addition to the provisions above in this Section 7, the following provisions apply if the Participant is providing Services outside the United States: 
(i)  no claim or entitlement to compensation or damages shall arise from forfeiture of the DRUs resulting from termination of the Participant’s Services as set forth in Section 3(d) or 4(e) above for any reason (whether or not later found to be invalid or in breach of employment laws in the jurisdiction where the Participant is employed or the terms of the Participant’s employment agreement, if any), and in consideration of the grant of the DRUs, the Participant agrees not to institute any claim against the Partnership or any Affiliate;
(ii)  the DRUs and the Common Units subject to the DRUs are not part of normal or expected compensation or salary for any purpose; and
(iii)  neither the Partnership nor any Affiliate shall be liable for any foreign exchange rate fluctuation between the Participant’s local currency and the United States Dollar that may affect the value of the DRUs or of any amounts due to the Participant pursuant to the settlement of the DRUs or the subsequent sale of any Common Units acquired upon settlement.
8.     No Advice Regarding Grant.  The Partnership is not providing any tax, legal or financial advice, nor is the Partnership making any recommendations regarding the Participant’s participation in the Plan, or the Participant’s acquisition or sale of the underlying Common Units.  The Participant should consult with his or her own personal tax, legal and financial advisors regarding his or her participation in the Plan before taking any action related to the Plan.
9.     Data Privacy Information and Consent.  The Partnership is located at 1001 Pennsylvania Avenue, NW, Washington, DC 20004 U.S.A. and grants employees of the Partnership and its Affiliates DRUs, at the Partnership’s sole discretion.  If the Participant would like to participate in the Plan, please review the following information about the Partnership’s data processing practices and declare the Participant’s consent.
(a)    Data Collection and Usage: The Partnership collects, processes and uses personal data of Participants, including name, home address and telephone number, date of birth, social insurance number or other identification number, salary, citizenship, job title, any Partnership units or directorships held in the Partnership, and details of all DRUs, canceled, vested, or outstanding in the Participant’s favor, which the Partnership receives from the Participant or the Employer.  If the Partnership offers the Participant a grant of DRUs under the Plan, then the Partnership will collect the Participant’s personal data for purposes of allocating stock and implementing, administering and managing the Plan.  The Partnership’s legal basis for the processing of the Participant’s personal data would be his or her consent. 
(b)    Stock Plan Administration Service Providers:  The Partnership transfers participant data to Morgan Stanley, an independent service provider based in the United States, which assists the Partnership with the implementation, administration 

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and management of the Plan.  In the future, the Partnership may select a different service provider and share the Participant’s data with another company that serves in a similar manner.  The Partnership’s service provider will open an account for the Participant to receive and trade Common Units.  The Participant will be asked to agree on separate terms and data processing practices with the service provider, which is a condition to the Participant’s ability to participate in the Plan. 
(c)     International Data Transfers:  The Partnership and its service providers are based in the United States.  If the Participant is outside the United States, the Participant should note that his or her country has enacted data privacy laws that are different from the United States. For example, the European Commission has issued a limited adequacy finding with respect to the United States that applies only to the extent companies register for the EU-U.S. Privacy Shield program, which is open to companies subject to Federal Trade Commission jurisdiction and which the Partnership does not participate in.  The Partnership’s legal basis for the transfer of the Participant’s personal data is his or her consent. 
(d)     Data Retention:  The Partnership will use the Participant’s personal data only as long as is necessary to implement, administer and manage the Participant’s participation in the Plan or as required to comply with legal or regulatory obligations, including under tax and security laws.  When the Partnership no longer needs the Participant’s personal data, which will generally be seven years after the Participant is granted DRUs under the Plan, the Partnership will remove it from its systems.  If the Partnership keeps the data longer, it would be to satisfy legal or regulatory obligations and the Partnership’s legal basis would be relevant law or regulations. 
(e)    Voluntariness and Consequences of Consent Denial or Withdrawal:  The Participant’s participation in the Plan and the Participant’s grant of consent is purely voluntary.  The Participant may deny or withdraw his or her consent at any time.  If the Participant does not consent, or if the Participant withdraws his or her consent, the Participant cannot participate in the Plan.  This would not affect the Participant’s salary as an employee or his or her career; the Participant would merely forfeit the opportunities associated with the Plan. 
(f)    Data Subject Rights:  The Participant has a number of rights under data privacy laws in his or her country.  Depending on where the Participant is based, the Participant’s rights may include the right to (i) request access or copies of personal data of the Partnership processes, (ii) rectification of incorrect data, (iii) deletion of data, (iv) restrictions on processing, (v) portability of data, (vi) to lodge complaints with competent authorities in the Participant’s country, and/or (vii) a list with the names and address of any potential recipients of the Participant’s data.  To receive clarification regarding the Participant’s rights or to exercise the Participant’s rights please contact the Partnership at The Carlyle Group, LP, 1001 Pennsylvania Avenue, NW, Washington, DC 20004 U.S.A., Attention: Equity Management.

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If the Participant agrees with the data processing practices as described in this notice, please declare the Participant’s consent by clicking the “Accept Award” button on the Morgan Stanley award acceptance page or signing below.
10.    No Rights of a Holder of Common Units.  Except as otherwise provided herein, the Participant shall not have any rights as a holder of Common Units until such Common Units have been issued or transferred to the Participant.
11.    Restrictions.  Any Common Units issued or transferred to the Participant or to the Participant’s beneficiary pursuant to Section 4 of this Award Agreement (including, without limitation, following a Qualifying Event or Special Vesting Event) shall be subject to such stop transfer orders and other restrictions as the Administrator may deem advisable under the Plan or the rules, regulations, and other requirements of the SEC, any stock exchange upon which such Common Units are listed and any applicable U.S. or non-U.S. federal, state or local laws, and the Administrator may cause a notation or notations to be put entered into the books and records of the Partnership to make appropriate reference to such restrictions.  Without limiting the generality of the forgoing, a Participant’s ability to sell or transfer the Common Units shall be subject to such trading policies or limitations as the Administrator may, in its sole discretion, impose from time to time on current or former senior professionals, employees, consultants, directors, members, partners or other service providers of the Partnership or of any of its Affiliates.
12.    Transferability.  Unless otherwise determined or approved by the Administrator, no DRUs may be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by the Participant other than by will or by the laws of descent and distribution, and any purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance not permitted by this Section 12 shall be void and unenforceable against the Partnership or any Affiliate.
13.    Notices.  All notices, requests, claims, demands and other communications hereunder shall be in writing and shall be given (and shall be deemed to have been duly given upon receipt) by delivery in person, by courier service, by fax, or by registered or certified mail (postage prepaid, return receipt requested) to the respective parties at the following addresses (or at such other address for a party as shall be specified in a notice given in accordance with this Section 13):
(a)  If to the Partnership, to:
The Carlyle Group L.P. 
1001 Pennsylvania Avenue, NW
Washington, DC  20004
Attention: General Counsel
Fax: (202) 315-3678
    
(b)  If to the Participant, to the address appearing in the personnel records of the Partnership or any Affiliate.  

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14.    Withholding.  The Participant acknowledges that he or she may be required to pay to the Partnership or, if different, an Affiliate that employs the Participant (the “Employer”), and that the Partnership, the Employer, or any Affiliate shall have the right and are hereby authorized to withhold from any compensation or other amount owing to the Participant, applicable income tax, social insurance, payroll tax, fringe benefits tax, payment on account or other tax-related items (including taxes that are imposed on the Partnership or the Employer as a result of the Participant’s participation in the Plan but are deemed by the Partnership or the Employer to be an appropriate charge to the Participant) (collectively, “Tax-Related Items”), with respect to any issuance, transfer, or other taxable event under this Award Agreement or under the Plan and to take such action as may be necessary in the opinion of the Partnership to satisfy all obligations for the payment of such Tax-Related Items.  The Participant further acknowledges that the Partnership and/or the Employer (i) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the DRUs, including, but not limited to the grant or vesting of the DRUs and the subsequent sale of Common Units acquired upon settlement of the Vested DRUs; and (ii) do not commit to and are under no obligation to structure the terms of the grant or any aspect of the DRUs to reduce or eliminate the Participant’s liability for Tax-Related Items or achieve a particular tax result.  Further, if the Participant is subject to Tax-Related Items in more than one jurisdiction, the Participant acknowledges that the Partnership and/or the Employer (or former employer, as applicable) may be required to withhold or account for Tax-Related Items in more than one jurisdiction.  Without limiting the foregoing, the Administrator may, from time to time, permit the Participant to make arrangements prior to any Vesting Date described herein to pay the applicable Tax-Related Items in a manner prescribed by the Administrator prior to the applicable Vesting Date; provided that, unless otherwise determined by the Administrator, any such payment or estimate must be received by the Partnership prior to an applicable Vesting Date.  Additionally, the Participant authorizes the Partnership and/or the Employer to satisfy the obligations with regard to all Tax-Related Items by withholding from proceeds of the sale of Common Units acquired upon settlement of the Vested DRUs either through a voluntary sale or through a mandatory sale arranged by the Partnership (on the Participant’s behalf pursuant to this authorization).  Depending on the withholding method, the Partnership and/or the Employer may withhold or account for the Tax-Related Items by considering minimum statutory withholding amounts or other applicable withholding rates, including maximum applicable rates, in which case the Participant may receive a refund of any over-withheld amount in cash through the Employer’s normal payroll process and will have no entitlement to the Common Unit equivalent. The Participant acknowledges that, regardless of any action taken by the Partnership, the Employer, or any Affiliate the ultimate liability for all Tax-Related Items, is and remains the Participant’s responsibility and may exceed the amount actually withheld by the Partnership or the Employer.  The Partnership may refuse to issue or deliver the Common Units or the proceeds from the sale of Common Units, if the Participant fails to comply with his or her obligations in connection with the Tax-Related Items. 
15.    Choice of Law; Venue.  The interpretation, performance and enforcement of this Award Agreement shall be governed by the law of the State of New York without regard to its conflict of law provisions.  Any and all disputes, controversies or issues arising out of, concerning or relating to this Award, this Award Agreement or the relationship between the 

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parties evidenced by the Award Agreement, including, without limitation, disputes, controversies or issues arising out of, concerning or relating to the construction, interpretation, breach or enforcement of this Award Agreement, shall be brought exclusively in the courts in the State of New York, City and County of New York, including the Federal Courts located therein (should Federal jurisdiction exist).  Each of the parties hereby expressly represents and agrees that it/he/she is subject to the personal jurisdiction of said courts, irrevocably consents to the personal jurisdiction of such courts; and waives to the fullest extent permitted by law any objection which it/he/she may now or hereafter have that the laying of the venue of any legal lawsuit or proceeding related to such dispute, controversy or issue that is brought in any such court is improper or that such lawsuit or proceeding has been brought in an inconvenient forum.
16.    WAIVER OF RIGHT TO JURY TRIAL.  AS SPECIFICALLY BARGAINED FOR INDUCEMENT FOR EACH OF THE PARTIES HERETO TO ENTER INTO THIS AWARD AGREEMENT (AFTER HAVING THE OPPORTUNITY TO CONSULT WITH COUNSEL OF ITS/HIS/HER CHOICE), EACH PARTY EXPRESSLY WAIVES THE RIGHT TO TRIAL BY JURY IN ANY LAWSUIT OR PROCEEDING ARISING OUT OF, CONCERNING OR RELATING TO THIS AWARD, THIS AWARD AGREEMENT, THE RELATIONSHIP BETWEEN THE PARTIES EVIDENCED BY THIS AWARD AGREEMENT AND/OR THE MATTERS CONTEMPLATED THEREBY.  
17.    Subject to Plan.  By entering into this Award Agreement, the Participant agrees and acknowledges that the Participant has received and read a copy of the Plan.  All DRUs and Common Units issued or transferred with respect thereof are subject to the Plan.  In the event of a conflict between any term or provision contained herein and a term or provision of the Plan, the applicable terms and provisions of the Plan will govern and prevail.
18.    Entire Agreement.  This Award Agreement contains the entire understanding between the parties with respect to the DRUs granted hereunder (including, without limitation, the vesting and delivery schedules described herein and in the Appendix), and hereby replaces and supersedes any prior communication and arrangements between the Participant and the Partnership or any of its Affiliates with respect to the matters set forth herein and any other pre-existing economic or other arrangements between the Participant and the Partnership or any of its Affiliates, unless otherwise explicitly provided for in any other agreement that the Participant has entered into with the Partnership or any of its Affiliates and that is set forth on Schedule A hereto.  Unless set forth on Schedule A hereto, no such other agreement entered into prior to the Date of Grant shall have any effect on the terms of this Award Agreement.
19.    Modifications.  Notwithstanding any provision of this Award Agreement to the contrary, the Partnership reserves the right to modify the terms and conditions of this Award Agreement, including, without limitation, the timing or circumstances of the issuance or transfer of Common Units to the Participant hereunder, to the extent such modification is determined by the Partnership to be necessary to comply with applicable law or preserve the intended deferral of income recognition with respect to the DRUs until the issuance or transfer of Common Units hereunder.

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20.    Signature in Counterparts; Electronic Acceptance.  This Award Agreement may be signed in counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.  Alternatively, this Award Agreement may be granted to and accepted by the Participant electronically. 
21.    Electronic Delivery.  The Partnership may, in its sole discretion, decide to deliver any documents related to current or future participation in the Plan by electronic means.  The Participant hereby consents to receive such documents by electronic delivery and agrees to participate in the Plan through an on-line or electronic system established and maintained by the Partnership or a third party designated by the Partnership.
22.    Compliance with Law.  Notwithstanding any other provision of this Award Agreement, unless there is an available exemption from any registration, qualification or other legal requirement applicable to the Common Units, the Partnership shall not be required to deliver any Common Units issuable upon settlement of the DRUs prior to the completion of any registration or qualification of the Common Units under any local, state, federal or foreign securities or exchange control law or under rulings or regulations of the SEC or of any other governmental regulatory body, or prior to obtaining any approval or other clearance from any local, state, federal or foreign governmental agency, which registration, qualification or approval the Partnership shall, in its absolute discretion, deem necessary or advisable.  The Participant understands that the Partnership is under no obligation to register or qualify the Common Units with the SEC or any state or foreign securities commission or to seek approval or clearance from any governmental authority for the issuance or sale of the Common Units.  Further, the Participant agrees that the Partnership shall have unilateral authority to amend the Plan and the Award Agreement without the Participant’s consent to the extent necessary to comply with securities or other laws applicable to issuance of Common Units.
23.    Language.  If the Participant has received this Award Agreement or any other document related to the Plan translated into a language other than English and if the meaning of the translated version is different than the English version, the English version will control.
24.    Severability.  The provisions of this Award Agreement are severable and if any one or more provisions are determined to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions shall nevertheless be binding and enforceable.
25.    Appendix.  Notwithstanding any provisions in this Award Agreement, the DRUs grant shall be subject to any special terms and conditions set forth in Appendix A to this Award Agreement for the Participant’s country.  Moreover, if the Participant relocates to one of the countries included in Appendix A, any special terms and conditions for such country will apply to the Participant, to the extent the Partnership determines that the application of such terms and conditions is necessary or advisable for legal or administrative reasons.  Appendix A constitutes part of this Award Agreement.
26.    Imposition of Other Requirements. The Partnership reserves the right to impose other requirements on the Participant’s participation in the Plan, on the DRUs and on any Common Units acquired under the Plan, to the extent the Partnership determines it is necessary 

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or advisable for legal or administrative reasons, and to require the Participant to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing.
27.    Waiver.  The Participant acknowledges that a waiver by the Partnership of breach of any provision of this Award Agreement shall not operate or be construed as a waiver of any other provision of this Award Agreement, or of any subsequent breach by the Participant or any other participant.
28.    Insider Trading Restrictions/Market Abuse Laws.  The Participant acknowledges that, depending on his or her country of residence, or broker’s country of residence, or where the Common Units are listed, Participant may be subject to insider trading restrictions and/or market abuse laws, which may affect the Participant’s ability to directly or indirectly, accept, acquire, sell, or attempt to sell or otherwise dispose of Common Units or rights to Common Units (e.g., DRUs) under the Plan during such times as Participant is considered to have “inside information” regarding the Partnership (as defined by the laws or regulations in applicable jurisdictions or Participant’s country).   Local insider trading laws and regulations may prohibit the cancellation or amendment of orders placed by the Participant before possessing inside information.  Furthermore, the Participant understands that he or she may be prohibited from (i) disclosing the inside information to any third party, including fellow employees (other than on a “need to know” basis) and (ii) “tipping” third parties or causing them to otherwise buy or sell securities.  Any restrictions under these laws or regulations are separate from and in addition to any restrictions that may be imposed under any applicable Partnership insider trading policy.  The Participant acknowledges that it is his or her responsibility to comply with any applicable restrictions, and the Participant should speak to his or her personal advisor on this matter.
30.    Foreign Asset/Account Reporting.  The Participant’s country of residence may have certain foreign asset and/or account reporting requirements which may affect his or her ability to acquire or hold DRUs under the Plan or cash received from participating in the Plan (including sales proceeds arising from the sale of Common Units) in a brokerage or bank account outside the Participant’s country.  The Participant may be required to report such amounts, assets or transactions to the tax or other authorities in his or her country.  The Participant is responsible for ensuring compliance with such regulations and should speak with his or her personal legal advisor regarding this matter. 

14

IN WITNESS WHEREOF, the parties hereto have executed this Award Agreement(1).

THE CARLYLE GROUP L.P.

By: Carlyle Group Management L.L.C., its general partner

By: __________________________________________ 
Name:    
Title:    

(1)If this Award Agreement is delivered to the Participant electronically, the Participant's electronic acceptance of the Award Agreement (pursuant to instructions separately communicated to the Participant) shall constitute acceptance of the Award Agreement and shall be binding on the Participant and the Partnership in lieu of any required signatures to this Award Agreement.  

15

EXHIBIT A-[__]

VESTING TERMS FOR TRANCHE [__]

The Tranche [__] DRUs granted pursuant to this Agreement shall be eligible to vest pursuant to the terms described in this Exhibit A-[__], based on the Partnership's [Performance Metrics] for the Performance Period, as set forth below, in each case, subject to adjustment to exclude the effects of extraordinary, unusual or infrequently occurring events.

		
	I.
	Definitions.  Capitalized terms not otherwise defined in the Plan or the Agreement have the following meanings:

		
	a.
	[Performance Metrics]

		
	b.
	“Performance Period” means _______ through _______.

		
	c.
	“Weighting Multiplier” means the relative performance weighting associated with each performance metric listed below, as a percentage of the total Tranche [__] Target DRU Award.

		
	II.
	Vesting.  Subject to the Participant’s continued Services with the Partnership and its Affiliates through the Vesting Date with respect to the Tranche [__] DRUs (other than as may be set forth in the Agreement), on such Vesting Date, a number of Tranche [__] DRUs shall vest in an amount equal to the product of (1) the Tranche [__] Target DRU Award (i.e., 250,000 Common Units), (2) the applicable Performance Multiplier and (3) the applicable Weighting Multiplier, each as determined below (with such amount calculated separately for each of the three performance metrics listed below and the resulting sum of such amounts constituting the total Vested DRUs in respect of Tranche [__]). Any DRUs that do not become vested in accordance with this Exhibit A-[__] shall, effective as of the Vesting Date, be forfeited by the Participant without consideration. 

[Performance Metric]

	
				
	Performance Level
	[Performance Metric]
	Performance Multiplier
	Weighting Multiplier

	Below Threshold Level Performance
	 
	0%
	N/A

	Threshold Level Performance
	 
	50%
	 

	Target Level Performance
	 
	100%
	 

	Maximum Level Performance
	 
	200%
	 

16

[Performance Metric]

	
				
	Performance Level
	[Performance Metric]
	Performance Multiplier
	Weighting Multiplier

	Below Threshold Level Performance
	 
	0%
	N/A

	Threshold Level Performance
	 
	50%
	 

	Target Level Performance
	 
	100%
	 

	Maximum Level Performance
	 
	200%
	 

[Performance Metric]

	
				
	Performance Level
	[Performance Metric]
	Performance Multiplier
	Weighting Multiplier

	Below Threshold Level Performance
	 
	0%
	N/A

	Threshold Level Performance
	 
	50%
	 

	Target Level Performance
	 
	100%
	 

	Maximum Level Performance
	 
	200%
	 

Performance Multipliers shall be determined by linear interpolation for achievement falling between the above percentages; provided, that there shall be no interpolation for achievement that is less than Threshold Level Performance (and zero DRUs in respect of such performance metric will vest in such case) and the maximum number of DRUs that may vest in respect of any performance metric is the Target DRU Award multiplied by 200%, multiplied by the applicable Weighting Multiplier for such performance metric. 

[Notwithstanding the foregoing, in the event that the volume weighted average price of the Common Units over the [__] consecutive trading-day period ending ______, as reflected on the NASDAQ Stock Market (the “Tranche [  ] VWAP”), is less than or equal to _________, the total number of Tranche [__] DRUs that vest shall not exceed 150% of the Tranche __ Target DRU Award (the “VWAP Cap”). In the event that the Tranche [__] VWAP is greater than [$__], then the VWAP Cap shall not apply and the foregoing sentence shall have no effect.]

 

17

APPENDIX A
TO 
THE CARLYLE GROUP L.P.
GLOBAL DEFERRED RESTRICTED COMMON UNIT AGREEMENT
Terms and Conditions
This Appendix A includes additional terms and conditions that govern the Award of deferred restricted Common Units (“DRUs”) granted to the Participant under The Carlyle Group L.P. 2012 Equity Incentive Plan (the “Plan”) if the Participant works and resides in one of the countries listed below.  Capitalized terms used but not defined in this Appendix A are defined in the Plan and/or Award Agreement and have the meanings set forth therein.
Notifications
This Appendix A also includes information regarding securities laws, exchange controls and certain other issues of which the Participant should be aware with respect to the Participant’s participation in the Plan.  The information is based on the securities, exchange control and other laws in effect in the respective countries as of January 2018.  Such laws are often complex and change frequently.  As a result, the Partnership strongly recommends that the Participant not rely on the information noted in this Appendix A as the only source of information relating to the consequences of the Participant’s participation in the Plan because the information may be out of date by the time the Participant vests in the DRUs or sells Common Units acquired under the Plan. 
In addition, the information contained herein is general in nature and may not apply to the Participant’s particular situation, and the Partnership is not in a position to assure the Participant of a particular result.  Accordingly, the Participant should seek appropriate professional advice as to how the relevant laws in the Participant’s country may apply to the Participant’s situation.  
Finally, the Participant understands that if he or she is a citizen or resident of a country other than the one in which the Participant is currently working, transfers employment after the Date of Grant, or is considered a resident of another country for local law purposes, the information contained herein may not apply to the Participant, and the Partnership shall, in its discretion, determine to what extent the terms and conditions contained herein shall apply to the Participant. 
UNITED STATES
There are no country-specific provisions.EX-4.1

 Exhibit 4.1 

REGISTERED 
 No. 

PHILIP MORRIS INTERNATIONAL INC. 
  

			
	
                    
            2.875% NOTES DUE 2024
	  	PRINCIPAL AMOUNT
		  	 $

		  	 CUSIP NO. 718172 CH0

		  	 ISIN NO. US718172CH08

 THIS NOTE IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED
IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN CERTIFICATED FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITORY TRUST COMPANY (THE “DEPOSITARY”) TO
A NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY TO THE COMPANY OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY (AND ANY PAYMENT IS MADE TO CEDE &
CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE &
CO., HAS AN INTEREST HEREIN. 
 PHILIP MORRIS INTERNATIONAL INC., a Virginia corporation (hereinafter called the “Company”, which
term includes any successor corporation under the Indenture hereinafter referred to), for value received, hereby promises to pay to Cede & Co. or registered assigns, the principal sum of
                 ($                ) on May 1, 2024, and to pay interest thereon
from May 1, 2019 or from the most recent Interest Payment Date to which interest has been paid or duly provided for, semiannually in arrears on May 1 and November 1 of each year, commencing November 1, 2019, at the rate of 2.875%
per annum until the principal hereof is paid or made available for payment. 
 The interest so payable, and punctually paid or duly provided
for, on any Interest Payment Date will, as provided in the Indenture, be paid to the Person in whose name this Note (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest, which
shall be April 15 or October 15 (whether or not a Business Day), as the case may be, next preceding such Interest Payment Date. Any such interest not so punctually paid or duly provided for shall forthwith cease to be payable to the Holder
on such 

 
Regular Record Date and may be paid to the Person in whose name this Note (or one or more Predecessor Securities) is registered at the close of business on a Special Record Date for the payment
of such Defaulted Interest to be fixed by the Trustee for the Notes, notice whereof shall be given to Holders of Notes not less than 10 days prior to such Special Record Date, or may be paid at any time in any other lawful manner not inconsistent
with the requirements of any securities exchange on which the Notes may be listed, and upon such notice as may be required by such exchange, all as more fully provided in said Indenture. 

Payment of the principal of (and premium, if any) and interest on this Note will be made at the office or agency of the Company maintained for
that purpose in the Borough of Manhattan, The City of New York, in such coin or currency of the United States of America as at the time of payment is legal tender for the payment of public and private debts; provided, however, that at
the option of the Company payment of interest may be made by check mailed to the address of the Person entitled thereto as such address shall appear on the Securities Register or by wire transfer at such place and to such account at a banking
institution in the United States as may be designated in writing to the Trustee at least 15 days prior to the date for payment by the person entitled thereto. All payments of principal, premium, if any, and interest in respect of this Note will be
made by the Company in immediately available funds. 
 Additional provisions of this Note are contained on the reverse hereof, and such
provisions shall have the same effect as though fully set forth in this place. 
 Unless the certificate of authentication hereon has been
executed by or on behalf of the Trustee for the Notes by manual signature, this Note shall not be entitled to any benefit under the Indenture, or be valid or obligatory for any purpose. 

 IN WITNESS WHEREOF, PHILIP MORRIS INTERNATIONAL INC. has caused this instrument to be duly
executed. 
  

			
	Dated: May 1, 2019
	
	PHILIP MORRIS INTERNATIONAL INC.
		
	By:	 	  

	Name:	 	Frank de Rooij
	Title:	 	Vice President Treasury and Corporate Finance
	
	Attest:
		
	By:	 	  

	Name:	 	Jerry Whitson
	Title:	 	Deputy General Counsel and Corporate Secretary

 CERTIFICATE OF AUTHENTICATION 

This is one of the Securities of the series designated therein described in the within-mentioned Indenture. 

 

			
	HSBC BANK USA, NATIONAL ASSOCIATION, as Trustee
		
	By:	 	  

		 	Authorized Officer

 2.875% Notes due 2024 - No. 

 (Reverse of Note) 

PHILIP MORRIS INTERNATIONAL INC. 

This Note is one of a duly authorized issue of debentures, notes or other evidences of indebtedness (hereinafter called the
“Securities”) of the Company of the series hereinafter specified, which series is issued in an initial aggregate principal amount of $900,000,000, all such Securities issued and to be issued under an Indenture dated as of April 25,
2008 between the Company and HSBC Bank USA, National Association, as Trustee (herein called the “Indenture”), to which Indenture and all other indentures supplemental thereto reference is hereby made for a statement of the rights and
limitations of rights thereunder of the Holders of the Securities and of the rights, obligations, duties and immunities of the Trustee for each series of Securities and of the Company, and the terms upon which the Securities are and are to be
authenticated and delivered. As provided in the Indenture, the Securities may be issued in one or more series, which different series may be issued in various aggregate principal amounts, may mature at different times, may bear interest, if any, at
different rates, may be subject to different redemption provisions, if any, may be subject to different sinking, purchase or analogous funds, if any, may be subject to different covenants and Events of Default and may otherwise vary as in the
Indenture provided or permitted. This Note is one of a series of the Securities designated therein as 2.875% Notes due 2024 (the “Notes”). 

Section 1010 of the Indenture shall be applicable to the Notes, except that (i) the term “Holder,” when used in
Section 1010 of the Indenture, shall mean the beneficial owner of a Note or any person holding on behalf or for the account of the beneficial owner of a Note; (ii) the following language shall replace subsection (k) to
Section 1010 of the Indenture “any tax, assessment or other governmental charge imposed pursuant to the provisions of Sections 1471 through 1474 of the Code” and (iii) the following language shall be included as subsection
(l) to Section 1010 of the Indenture “any combination of items (a), (b), (c), (d), (e), (f), (g), (h), (i), (j) and (k).” 

Prior to April 1, 2024 (the date that is one month prior to the scheduled maturity date for the Notes), the Company may, at its option,
redeem the Notes, in whole at any time or in part from time to time (equal to $2,000 or an integral multiple of $1,000 in excess thereof) at a redemption price equal to the greater of (i) 100% of the principal amount of the Notes to be redeemed and
(ii) the sum of the present values of each remaining scheduled payment of principal and interest that would be due if such Notes matured on April 1, 2024 (exclusive of interest accrued to the date of redemption) discounted to the
redemption date, on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months), at a rate equal to the applicable Treasury Rate (as defined below)
plus 12.5 basis points plus, in either case, accrued and unpaid interest, if any, thereon to, but excluding, the redemption date. 
 On or
after April 1, 2024 (the date that is one month prior to the scheduled maturity date for the Notes), the Company may, at its option, redeem the Notes, in whole at any time or in part from time to time (equal to $2,000 or an integral multiple of
$1,000 in excess thereof) at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest, if any, thereon to, but excluding, the redemption date. 

 “Comparable Treasury Issue” means the U.S. Treasury security or securities
selected by an Independent Investment Banker as having an actual or interpolated maturity comparable to the remaining term of the Notes to be redeemed (assuming for this purpose that the Notes matured on April 1, 2024) that would be utilized,
at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of a comparable maturity to the remaining term of such Notes. 

“Comparable Treasury Price” means, with respect to any redemption date (1) the average of the Reference Treasury Dealer
Quotations for such redemption date, after excluding the highest and lowest such Reference Treasury Dealer Quotation or (2) if the Independent Investment Banker obtains fewer than four such Reference Treasury Dealer Quotations, the average of
all such quotations. 
 “Independent Investment Banker” means one of the Reference Treasury Dealers appointed by the Company. 

“Reference Treasury Dealer” means each of Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, HSBC Securities (USA)
Inc. and Mizuho Securities USA LLC or their affiliates, which are primary United States government securities dealers and one other leading primary U.S. government securities dealer in New York City reasonably designated by the Company;
provided, however, that if any of the foregoing shall cease to be a primary U.S. government securities dealer in New York City (a “Primary Treasury Dealer”), the Company will substitute therefor another Primary Treasury
Dealer. 
 “Reference Treasury Dealer Quotation” means, with respect to each Reference Treasury Dealer and any redemption date,
the average, as determined by the Independent Investment Banker, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Independent Investment Banker by
such Reference Treasury Dealer at 2:00 pm New York time on the third Business Day preceding such redemption date. 
 “Treasury
Rate” means, with respect to any redemption date, the rate per annum equal to the semiannual equivalent yield to maturity or interpolated maturity (on a day count basis) of the Comparable Treasury Issue, assuming a price for the Comparable
Treasury Issue (such price expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such redemption date. 

The Company will, or will cause the Trustee or Paying Agent on its behalf to, mail notice of a redemption to Holders of the Notes to be
redeemed by first-class mail (or otherwise transmit in accordance with applicable procedures of the Depositary) at least 15 and not more than 45 days prior to the date fixed for redemption. Unless the Company defaults in the payment of the
redemption price, on and after the redemption date, interest will cease to accrue on the Notes or any portion thereof called for redemption. On or before the applicable redemption date, the Company will deposit with the Trustee, funds sufficient to
pay the redemption price of, and (unless the redemption date shall be an Interest Payment Date) accrued and unpaid interest on, such Notes to be redeemed on that redemption date. If fewer than all of the Notes are to be redeemed, the Notes to be
redeemed shall be selected by the Trustee by lot, pro rata or by such 

 
method as the Trustee shall deem fair and appropriate in each case in accordance with the applicable procedures of the Depositary. The Trustee shall not be responsible for calculating the
“make-whole” premium. 
 The Company may redeem the Notes prior to maturity in whole, but not in part, on not more than 60
days’ notice and not less than 30 days’ notice at a redemption price equal to the principal amount of such Notes plus any accrued interest and additional amounts to the date fixed for redemption if: 

 

	 	•	 	 as a result of a change in or amendment to the tax laws, regulations or rulings of the United States or any
political subdivision or taxing authority of or in the United States or any change in official position regarding the application or interpretation of such laws, regulations or rulings (including a holding by a court of competent jurisdiction in the
United States) that is announced or becomes effective on or after May 1, 2019, the Company has or will become obligated to pay additional amounts with respect to the Notes as described in Section 1010 of the Indenture, or

  

	 	•	 	 on or after May 1, 2019, any action is taken by a taxing authority of, or any decision is rendered by a
court of competent jurisdiction in, the United States or any political subdivision or taxing authority of or in the United States, including any of those actions specified in the bullet point above, whether or not such action is taken or decision is
rendered with respect to the Company, or any change, amendment, application or interpretation is officially proposed, which, in any such case, in the written opinion of independent legal counsel of recognized standing, will result in a material
probability that the Company will become obligated to pay additional amounts with respect to the Notes, 

 and the Company in its business
judgment determines that such obligations cannot be avoided by the use of reasonable measures available to the Company. 
 If the Company
exercises its option to redeem the Notes for tax reasons, the Company will deliver to the Trustee a certificate signed by an authorized officer stating that it is entitled to redeem the Notes and the written opinion of independent legal counsel if
required. 
 The Indenture contains provisions for defeasance at any time of the entire principal of all the Securities of any series upon
compliance by the Company with certain conditions set forth therein. 
 If an Event of Default (other than an Event of Default described in
Section 501(4) or 501(5) of the Indenture) with respect to the Notes shall occur and be continuing, then either the Trustee or the Holders of at least 25% in aggregate principal amount of the Securities of all series then Outstanding (or, if
such default is not applicable to all series of the Securities, the Holders of at least 25% in principal amount of the then Outstanding Securities of all series to which it is applicable) (in each case voting as a single class) may declare the
entire principal amount of the Securities of all series so affected due and payable in the manner and with effect provided in the Indenture. If an Event of Default specified in Section 501(4) or 501(5) occurs

 
with respect to the Company, all of the unpaid principal amount and accrued interest then Outstanding shall ipso facto become and be immediately due and payable in the manner with the
effect provided in the Indenture without any declaration or other act by the Trustee or any Holder. 
 The Indenture permits, with certain
exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Holders of the Securities under the Indenture at any time by the Company with the consent of the Holders of
not less than a majority in aggregate principal amount of the Outstanding Securities of all series of Securities affected thereby (voting as a single class). The Indenture also contains provisions permitting the Holders of specified percentages in
aggregate principal amount of the Securities of all series affected thereby at the time Outstanding (voting as a single class) to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture
and their consequences to the affected series. Any such consent or waiver by the Holder of this Note shall be conclusive and binding upon such Holder and upon all future Holders of this Note and of any Note issued upon the transfer hereof or in
exchange or in lieu hereof whether or not notation of such consent or waiver is made upon this Note. 
 No reference herein to the Indenture
and no provision of this Note or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of (and premium, if any) and interest on this Note at the times, place and rate, and in
the coin or currency, herein and in the Indenture prescribed. 
 As provided in the Indenture and subject to certain limitations therein set
forth, this Note is transferable on the Security Register of the Company, upon surrender of this Note for registration of transfer at the office or agency of the Company to be maintained for that purpose in the Borough of Manhattan, The City of New
York, or at any other office or agency of the Company maintained for that purpose, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Security Registrar duly executed by the Holder hereof
or his or her attorney duly authorized in writing, and thereupon one or more new Notes, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees. 

The Notes are issuable only in registered form in denominations of $2,000 and any integral multiple of $1,000 in excess thereof. As provided
in the Indenture and subject to certain limitations therein set forth, Notes are exchangeable for a like aggregate principal amount of Notes of a like tenor and of a different authorized denomination, as requested by the Holder surrendering the
same. 
 No service charge shall be made for any such registration of transfer or exchange, but the Company may require payment of a sum
sufficient to cover any tax or other governmental charge payable in connection therewith. 
 The Company, the Trustee for the Notes and any
agent of the Company or such Trustee may treat the Person in whose name this Note is registered as the owner hereof for the purpose of receiving payment as herein provided and for all other purposes, whether or not this Note be

 
overdue, and neither the Company, such Trustee nor any such agent shall be affected by notice to the contrary. 

Certain of the Company’s obligations under the Indenture with respect to Notes may be terminated if the Company irrevocably deposits with
the Trustee money or Government Obligations sufficient to pay and discharge the entire indebtedness on all Notes, as provided in the Indenture. 

This Note shall for all purposes be governed by, and construed in accordance with, the laws of the State of New York. 

Certain terms used in this Note which are defined in the Indenture have the meanings set forth therein. 

 ASSIGNMENT FORM 

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto 

PLEASE INSERT SOCIAL SECURITY NUMBER OR 
 OTHER IDENTIFYING
NUMBER OF ASSIGNEE 
  
  

(Name and address of Assignee, including zip code, must be printed or typewritten) 
  

 
  

 
 the within Note, and all rights thereunder, hereby
irrevocably, constituting and appointing 
  
  

 
  

Attorney to transfer the said Note on the books of Philip Morris International Inc. with full power of substitution in the premises. 

 

					
	Dated:                     	  		  	
		  		  	  

		  	 NOTICE: The signature to this assignment must correspond with the name as it appears upon the face of the
within Note in every particular, without alteration or enlargement or any change whatsoever.

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