Document:

PM-EX10.1_Firestone Employment Contract

Exhibit 10.1

PRIVATE & CONFIDENTIAL
Mr. Marc Firestone
270 Thackeray Lane
Northfield, IL 60093-000
USA

Lausanne, February 17, 2012

Dear Marc,
 
We are pleased to confirm your employment by Philip Morris International Management SA (hereafter referred to as the "Company") as Senior Vice President and General Counsel, reporting to Louis Camilleri, Chairman and Chief Executive Officer PMI, and based in Lausanne, Switzerland. 

The terms and conditions of your employment will be as follows:

Effective date 

This contract will be effective as of April 15, 2012 (the “Effective Date”), physically on April 16, 2012 provided that you are in possession of a valid work permit by then. 

Annual base salary

Your gross annual base salary, to be paid in 13 installments, will be Swiss Francs (CHF) 1,000,012.--, corresponding to your band, which is B.

Incentive Compensation Award Program 

As a band B employee, you will be eligible to participate in the Incentive Compensation (“IC”) Award Program, which is administered at the sole discretion of the Compensation and Leadership Development Committee of the Board of Directors pursuant and subject to the terms of the 2008 Performance Incentive Plan (or any similar plan in the future). Each eligible employee has an annual IC award target that assumes a PMI company performance rating of 100 and an "Optimal" individual performance. As a band B employee, this target is currently 180% of annual base salary.

Equity Award Program 

As a band B employee, you will be eligible to participate in the Equity Award Program, which is administered at the sole discretion of the Compensation and Leadership Development Committee of the Board of Directors pursuant and subject to the terms of the 2008 Performance Incentive Plan (or any similar plan in the future). Each eligible employee has an annual

Philip Morris International Management SA

AVENUE DE RHODANIE 50          1007 LAUSANNE          SWITZERLAND          TELEPHONE : +41 58 242 00 00          TELEFAX : +41 58 242 01 01

www.philipmorrisinternational.com

equity award target that assumes a PMI company performance rating of 100 and an "Optimal" individual performance. As a band B employee, this target is 270% of annual base salary.

The Incentive Compensation and Equity Award Programs are discretionary and do not obligate the Company to make an award nor entitle employees to receive an award. Eligibility to participate in the Programs does not guarantee receipt of an award and receiving an annual award does not guarantee receipt of an award in the future. Any awards that are made may be higher or lower than the targets mentioned above.

Fidelity premium

For each completed year of service, the Company pays a cumulative bonus of CHF 150.-- on each anniversary of the Effective Date, up to a maximum of CHF 3,000.-- for 20 years of service.

Sign-on stock award

You will be granted deferred stock of the Company as a sign-on award.  The value of the award will be calculated reflecting the market value of forfeited equity awards, taking into account the price to exercise options from your previous employer, and based on the market price of the stock on the date the awards are forfeited.  The amount will be reduced by $250,000, which will be paid in cash.

The stock award has been approved by the Compensation and Leadership Development Committee ("Committee") of the Board of Directors of the Company, with the fair market value determined on the date you start employment. The stock will vest generally three years from the date of the award, unless vesting needs to be extended due to black out periods, and you will be entitled to receive dividend equivalents during the vesting period.  The stock award will be subject to the terms of the Company's 2008 Performance Incentive Plan and the applicable award agreement.

Home leave 

You will be entitled to use the Company aircraft once per year to return home to the United States of America with your accompanying family members.  Usage of the aircraft will be on an “as available” basis.  Any taxes and social security contributions due on the personal use of Company aircraft will be borne by you.

Pension Fund 

In accordance with the Swiss Federal Pension Law (“LPP”), you will become a member of the “Caisse de pensions Philip Morris en Suisse” (the “Pension Fund”), providing old age, disability, and survivor’s benefits. For further details, please refer to the Pension Fund regulations.

According to the current Pension Fund regulations, you will pay a contribution equivalent to 6% of your pensionable salary. This contribution will be deducted each month from your salary.

Following your resignation from your current employer, an actuarial calculation will be performed on the pension benefits you will be entitled to from your current employer, versus those projected pension benefits you would have been entitled to had you remained employed with your current employer until the age of 62.  This will be compared to the projected pension benefits you will receive from the Company should you remain employed until the age of 62.  Should there be a loss to you in total projected pension benefits, the Company will make the appropriate cash contribution to the Pension Fund on your behalf to make you whole.

Swiss social security schemes (AVS/AI/APG/AC)

Contributions to the various Swiss Federal insurance schemes will be deducted from your compensation each month in accordance with the applicable Swiss laws.

Philip Morris International Management SA

AVENUE DE RHODANIE 50          1007 LAUSANNE          SWITZERLAND          TELEPHONE : +41 58 242 00 00          TELEFAX : +41 58 242 01 01

www.philipmorrisinternational.com

Accident insurance

In accordance with Swiss Federal Insurance Law (LAA), you are automatically covered for accident in the event of occupational or non-occupational accidents. This cover is paid for by the Company.

Health insurance 

For the purpose of your health insurance, you and your eligible dependants will be enrolled in IHI health scheme. The Company bears a substantial portion of the insurance premium cost.  No Company contributions will be paid if you choose to arrange an individual cover outside the group scheme. 

Salary continuation in the event of sickness 

In accordance with the regulations of the Company’s insurer, 100% of the annual base salary is paid for up to 2 years from the first day you are unable to work. This cover is paid for by the Company.

Life insurance

In accordance with the regulations of the Company’s insurer and in coordination with the Pension Fund, you are provided with an insurance cover in case of death and permanent disability paid for by the Company.

Office working hours 

The weekly basic work schedule is 40 hours spread over 5 days, from Monday to Friday based on a full time occupational rate. For further details, please refer to the Annual Working Time Policy. 

Tax assistance 

The Company will pay the fees of tax advisers approved by the Company on the occasions you are required to complete a tax declaration in Switzerland and the United States of America.

Company Car 

You will be entitled to a company car in accordance with Company policy.

Vacation days 

Your vacation entitlement is 25 working days per calendar year. For the current year your entitlement will be calculated pro rata temporis.

Relocation expenses 

With prior approval of the Human Resources Department, the Company will pay a remover selected by the Company to pack, transport, store if necessary, and unpack your household goods from Chicago, Illinois, United States of America to Lausanne, Switzerland, in accordance with Company Policy. The Relocation Services Department will coordinate this with you. Your move should take place within one year from the Effective Date.

Philip Morris International Management SA

AVENUE DE RHODANIE 50          1007 LAUSANNE          SWITZERLAND          TELEPHONE : +41 58 242 00 00          TELEFAX : +41 58 242 01 01

www.philipmorrisinternational.com

The Company will also pay you a relocation allowance amounting to CHF 39,250.--  to assist you with expenses related to your relocation from Chicago, Illinois, United States of America to Lausanne, Switzerland. This amount will be subject to social security deductions and will be taxable.

The Company will also pay for the travel costs associated with your relocation from Chicago, Illinois, United States of America to Lausanne, Switzerland, in accordance with the Company’s Business Travel policy.  You and your family may choose to use the company aircraft for your initial one-way travel to Switzerland on an “as available” basis.

Temporary accommodation and rental car 

In accordance with Company policy, temporary accommodation and a temporary company car or rental car will be provided to you for up to 60 days.

Taxability of benefits 

Certain benefits described above are subject to income tax and social security deductions. Please also take into account that the tax and social security treatment of all benefits may change in the future according to Swiss law or Company policy. Details may be obtained from the Human Resources Department.

Privacy policy and data protection

The Company is part of a multinational group of companies, which is active in developing the skills and careers of its employees. As part of the Company’s career and skills development program, information about your employee status, personnel profile and similar matters may be transmitted to the Company's affiliates, whether in Switzerland or elsewhere. This information is treated confidentially and in accordance with Philip Morris International’s Policy on the Collection, Use and Protection of Personal Data. By signing this contract you will express your consent to such transmittal. You retain the right at any time to withdraw your consent related to the transmittal of any such data as described above, provided that such withdrawal is addressed in writing to the Human Resources Department. For the purposes of this contract an “affiliate” of the Company means any company or other entity which controls or is controlled by or under common control with the Company.

Confidential Information

Consistent with your obligations under Swiss law, you undertake not to disclose any Confidential Information, whether during or after your employment by the Company, and upon termination of your employment to return any Confidential Information in tangible or electronic form in your possession. For these purposes “Confidential Information” means any trade secrets and other proprietary information pertaining to the Company or its affiliates, which has not been made available to the general public by an authorized representative of the Company or its affiliates, whether patentable or not, including for example any idea, formula, technique, invention, process, program, business, marketing and sales plans, financial, organizational and sales data, and similar information in line with all Company Records & Information Management (RIM) policies, procedures, and guidelines.

Company property

Furthermore upon termination of your employment, you should return to the Company and/or its affiliates all paper and electronic  files and documents, tapes, CD’s, and copies thereof and other items belonging to the Company and its affiliates, irrespective of their source and origin, including Company corporate cards, telephone cards, keys, access and identification cards, computers, and, if requested, will certify that this has been done to the best of your belief and that you also comply with all Company Records & Information Management (RIM) policies, procedures, and guidelines before your departure.

The settlement of any outstanding expenses due to the Company, including, but not limited to any outstanding balance on the account of the corporate card issued in your name will be set-off with any payable sums.

Philip Morris International Management SA

AVENUE DE RHODANIE 50          1007 LAUSANNE          SWITZERLAND          TELEPHONE : +41 58 242 00 00          TELEFAX : +41 58 242 01 01

www.philipmorrisinternational.com

Termination of employment 

This contract shall be terminated in accordance with Swiss law.

Governing law, applicable policies and jurisdiction

The validity, construction and performance of this Employment Agreement shall be governed by the laws of Switzerland without regard to its conflict of law provisions and shall be subject to the exclusive jurisdiction of the competent courts of the Canton de Vaud, Switzerland. The Policies and Procedures of the Company, Philip Morris International, as amended or newly issued from time to time, shall also apply.

Miscellaneous

The foregoing represents the basis of your employment with the Company. Please indicate your acceptance thereof by signing and returning one copy of this contract to us.

Should you have any questions, feel free to contact Kevin Click, Senior VP Human Resources.

We look forward to your joining Philip Morris International Management SA in Lausanne.

Yours sincerely,

PHILIP MORRIS INTERNATIONAL MANAGEMENT SA

            
	
					
	/s/ KEVIN CLICK
	 
	/s/ RALF ZYSK
	 
	 

	Kevin Click
	 
	Ralf Zysk
	 
	 

	Senior VP Human Resources PMI
	 
	VP CoE Reward & Retain and Mobility
	 
	 

	 
	 
	 
	 
	 

    
                    
                    

	
				
	Read and approved:
	/s/ MARC S. FIRESTONE
	Date:
	24FEB2012

	 
	(Marc Firestone)
	 
	 

Philip Morris International Management SA

AVENUE DE RHODANIE 50          1007 LAUSANNE          SWITZERLAND          TELEPHONE : +41 58 242 00 00          TELEFAX : +41 58 242 01 01

www.philipmorrisinternational.comPM-EX10.2_Zielinski Combined Document

        

Exhibit 10.2

PERSONAL AND CONFIDENTIAL

HAND DELIVERY

To: Miroslaw Zielinski                            Lausanne, April 1, 2012

Dear Miroslaw,

Further to your annual performance assessment and discussion with your supervisor, we are pleased to confirm that effective April 1, 2012, your gross base salary is being increased by 2.78%

from     CHF 900'003.-- p.a.*        CHF 69'231.-- p.m.*
to      CHF 925'002.-- p.a.*        CHF 71'154.-- p.m.*

Your new Position in Range as a result of this salary increase will be 20%.

It is agreed and understood that this letter will for all purposes be regarded as a continuation of your employment with Philip Morris International Management SA.

All other conditions relating to your employment Philip Morris International Management SA remain as stated in your employment contract and, if applicable, in any subsequent amendments.

We would like to take this opportunity to wish you continued success and satisfaction.

Yours sincerely,

PHILIP MORRIS INTERNATIONAL MANAGEMENT SA

/s/ NICOLA ARTINGSTALL RAVUSSIN

	
	
	Nicola Artingstall Ravussin

	Director Human Resources 
Business Partner Switzerland

	
	
	 

*p.a. = annual
*p.m. = monthly

Philip Morris International Management SA

AVENUE DE RHODANIE 50       *    1007 LAUSANNE      *  SWITZERLAND     *     TELEPHONE : +41 58 242 00 00           TELEFAX : +41 58 242 01 01

www.philipmorrisinternational.com

        

PRIVATE & CONFIDENTIAL
Mr Miroslaw Zielinski
c/o PMI GLOBAL SERVICES INC.

Lausanne, May 10, 2010

CONTRACT OF EMPLOYMENT
AMENDMENT

Dear Miroslaw,

We would like to confirm that your revised effective date of entry will be May 1, 2010, physically May 3, 2010 instead of April 1, 2010, as stated in your contract dated February 22, 2010.

All other terms and conditions of your contract remain unchanged.

Please be so kind as to sign the lower portion of this document and to return a copy to us to acknowledge your    agreement with the present amendment.

We look forward to your joining Philip Morris International Management SA in Lausanne.

	
		
	 
	Yours Sincerely,

	 
	PHILIP MORRIS INTERNATIONAL MANAGEMENT SA

    
        
	
		
	/s/ CAN KULLUKCU
	/s/ PETER PAUL ADRIAANSEN

	 
	 

	Can Kullukcu
Director Human Resources Business
Partner PMI Operation Center,
Brand Building & Sales
	Peter Paul Adriaansen
Director Human Resources Decision Support &
Buisness Partner Switzerland

	 
	 

	
				
	Read and approved:
	/s/ MIROSLAW ZIELINSKI
	Date:
	MAY 10, 2010

	 
	(Miroslaw Zielinski)
	 
	 

Philip Morris International Management SA

AVENUE DE RHODANIE 50       *    1007 LAUSANNE      *  SWITZERLAND     *     TELEPHONE : +41 58 242 00 00           TELEFAX : +41 58 242 01 01

www.philipmorrisinternational.com

        

PRIVATE & CONFIDENTIAL
Mr Miroslaw Zielinski
c/o PMI GLOBAL SERVICES INC.

Lausanne, February 22, 2010

Dear Miroslaw,
 
We are pleased to confirm your employment by Philip Morris International Management SA (hereafter referred to as the "Company") as President EEMA Region & PMI Duty Free, reporting to Mr Andre Calantzopoulos, Chief Operating Officer, and based in Lausanne, Switzerland. 

The terms and conditions of your employment will be as follows:
Effective Date 

This contract will be effective as of April 1, 2010 (the “Effective Date”).

For the purpose of benefits which are linked to seniority in the Company, but with the exception of Pension Fund affiliation, your initial entry date into Philip Morris International Inc . or its subsidiaries will be taken into account, i.e. September 1, 1991.
Annual base salary

Your gross annual base salary, to be paid in 13 instalments, will be Swiss Francs (CHF) 900’003.--, corresponding to your band, which is C. The salary includes your April 2010 merit increase.
Fidelity premium

For each completed year of service, the Company pays a cumulative bonus of CHF 150.-- on each anniversary of the Effective Date, up to a maximum of CHF 3'000.-- for 20 years of service.
Pension Fund 

In accordance with the Swiss Federal Pension Law (“LPP”), you will remain a member of the “Caisse de pensions Philip Morris en Suisse” (the “Pension Fund”), providing old age, disability, and survivor’s benefits. For further details, please refer to the Pension Fund regulations.

According to the current Pension Fund regulations, you will pay a contribution equivalent to 6% of your pensionable salary. This contribution will be deducted each month from your salary.

Philip Morris International Management SA

AVENUE DE RHODANIE 50      *    CASE POSTALE 1171    *  1001 LAUSANNE     *  SWITZERLAND     *     TELEPHONE : +41 58 242 00 00    TELEFAX : +41 58 242 01 01

Swiss social security schemes (AVS/AI/APG/AC)

Contributions to the various Swiss Federal insurance schemes will be deducted from your compensation each month in accordance with the applicable Swiss laws.
Accident insurance

In accordance with Swiss Federal Insurance Law (LAA), you are automatically covered for accident in the event of occupational or non-occupational accidents. This cover is paid for by the Company.
Health insurance 

If you wish, you may join the Company group health insurance contract. Employees and their eligible dependents    (spouse and dependent children up to age 18 or up to age 25 if full-time students or apprentices) can enroll into this group health insurance scheme. The Company bears a substantial portion of the insurance premium cost. No           Company contributions will be paid if you choose to arrange an individual cover outside the group scheme.
Salary continuation in the event of sickness 

In accordance with the regulations of the Company’s insurer, 100% of the annual base salary is paid for up to 2 years from the first day you are unable to work. This cover is paid for by the Company.
Life insurance

In accordance with the regulations of the Company’s insurer and in coordination with the Pension Fund, you are          provided with an insurance cover in case of death and permanent disability paid for by the Company.
Office working hours 
The weekly basic work schedule is 40 hours spread over 5 days, from Monday to Friday based on a full time          occupational rate. You understand and agree that your annual base salary includes all compensation for time worked in excess of the basic work schedule, and that there will be no extra compensation for such work. For further details, please refer to the Human Resources Department. 
Tax assistance 

The Company will pay the fees of tax advisers approved by the Company on the occasions you are required to              complete a tax declaration in Switzerland.
Company Car 

You will be entitled to a company car in accordance with Company policy.
Vacation days 

Your vacation entitlement is 25 working days per calendar year. For the current year your entitlement will be                  calculated pro rata temporis.

Philip Morris International Management SA

AVENUE DE RHODANIE 50      *    CASE POSTALE 1171    *  1001 LAUSANNE     *  SWITZERLAND     *     TELEPHONE : +41 58 242 00 00    TELEFAX : +41 58 242 01 01

Relocation expenses 

In accordance with Company policy, you will receive a relocation allowance amounting to CHF 71’364.-- to help                  defray the miscellaneous non-reimbursable costs associated with your relocation from New York, United States of America to Lausanne, Switzerland. This amount is derived by taking 1/12th of your annual base salary and grossing it up at a fixed standard rate to take account of tax liability on this allowance. This relocation allowance will be paid to      you with your first salary and consequently be subject to social security and tax deductions.

The Company will also pay for the travel costs associated with your relocation from New York, United States of                America to Lausanne, Switzerland, in accordance with the Company’s Business Travel policy.

With prior approval of the Human Resources Department, the Company will pay a remover selected by the Company to pack, transport, store if necessary, and unpack your household goods from New York, United States of America to Lausanne, Switzerland, in accordance with Company Policy. The Relocation Services Department will coordinate this with you.  Your move should take place within one year from the Effective Date. 
Temporary accommodation

In accordance with Company policy, temporary accommodation  will be provided to you for up to 60 days.
Taxability of benefits 

Certain benefits described above are subject to income tax and social security deductions. Please also take into            account that the tax and social security treatment of all benefits may change in the future according to Swiss law or Company policy. Details may be obtained from the HR Department.
Privacy policy and data protection

The Company is part of a multinational group of companies, which is active in developing the skills and careers of its employees. As part of the Company’s career and skills development program, information about your employee              status, personnel profile and similar matters may be transmitted to the Company's affiliates, whether in Switzerland or elsewhere. This information is treated confidentially and in accordance with Philip Morris International’s Policy on the Collection, Use and Protection of Personal Data. By signing this contract you will express your consent to such       transmittal. You retain the right at any time to withdraw your consent related to the transmittal of any such data as described above, provided that such withdrawal is addressed in writing to the Human Resources Department. For the purposes of this contract an “affiliate” of the Company means any company or other entity which controls or is              controlled by or under common control with the Company.
Confidential Information

Consistent with your obligations under Swiss law, you undertake not to disclose any Confidential Information, whether during or after your employment by the Company, and upon termination of your employment to return any                   Confidential Information in tangible or electronic form in your possession. For these purposes “Confidential            Information” means any trade secrets and other proprietary information pertaining to the Company or its affiliates,           which has not been made available to the general public by an authorized representative of the Company or its             affiliates, whether patentable or not, including for example any idea, formula, technique, invention, process, program, business, marketing and sales plans, financial, organizational and sales data, and similar information in line with all Company Records & Information Management (RIM) policies, procedures, and guidelines.

Philip Morris International Management SA

AVENUE DE RHODANIE 50      *    CASE POSTALE 1171    *  1001 LAUSANNE     *  SWITZERLAND     *     TELEPHONE : +41 58 242 00 00    TELEFAX : +41 58 242 01 01

Company Property

Furthermore upon termination of your employment, you should return to the Company and/or its affiliates all paper           and electronic  files and documents, tapes, CD’s, and copies thereof and other items belonging to the Company and       its affiliates, irrespective of their source and origin, including Company corporate cards, telephone cards, keys,                access and identification cards, computers, and, if requested, will certify that this has been done to the best of your belief and that you also comply with all Company Records & Information Management (RIM) policies, procedures,              and guidelines before your departure.

The settlement of any outstanding expenses due to the Company, including, but not limited to any outstanding                 balance on the account of the corporate card issued in your name will be set-off with any payable sums.
Termination of employment 
This contract shall be terminated in accordance with Swiss law. 
Governing law, applicable policies and Jurisdiction

The validity, construction and performance of this Employment Agreement shall be governed by the laws of              Switzerland without regard to its conflict of law provisions and shall be subject to the exclusive jurisdiction of the      competent courts of the Canton de Vaud, Switzerland. The Policies and Procedures of the Company, Philip Morris International, as amended or newly issued from time to time, shall also apply.
Miscellaneous

The foregoing represents the basis of your employment with the Company. Please indicate your acceptance thereof     by signing and returning one copy of this contract to us.

Should you have any questions, feel free to contact Mr Frederic Patitucci, Vice President Human Resources EEMA      and Duty Free. 

We look forward to your joining Philip Morris International Management SA in Lausanne, and remain,

Yours sincerely,

PHILIP MORRIS INTERNATIONAL MANAGEMENT SA

	
		
	

/s/ ANDRE CALANTZOPOULOS
André Calantzopoulos
Chief Operating Officer
	

/s/ DANIELE REGORDA
Daniele Regorda
Senior Vice President Human Resources PMI

	 
	 

            
	
				
	Read and approved:
	/s/ MIROSLAW ZIELINSKI
	Date:
	April 1, 2010

	 
	(Miroslaw Zielinski)
	 
	 

Philip Morris International Management SA

AVENUE DE RHODANIE 50      *    CASE POSTALE 1171    *  1001 LAUSANNE     *  SWITZERLAND     *     TELEPHONE : +41 58 242 00 00    TELEFAX : +41 58 242 01 01

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