Document:

Supplemental Management Employees' Retirement Plan.

 Exhibit 10.10 
  
  
 PHILIP MORRIS INTERNATIONAL 
 SUPPLEMENTAL MANAGEMENT EMPLOYEES’ RETIREMENT PLAN 
  
 Effective March 28, 2008 

 TABLE OF CONTENTS 
  

					
	 	  	Page
		
	 PREAMBLE
	  	1
		
	 ARTICLE I DEFINITIONS
	  	2
			
	 (a)
	    	Accredited Service	  	2
	 (b)
	    	Actuarial Equivalent	  	2
	 (c)
	    	Allowances	  	2
	 (d)
	    	Appointee	  	2
	 (e)
	    	Beneficiary	  	3
	 (f)
	    	Benefit Equalization Plan	  	4
	 (g)
	    	Benefits Committee	  	4
	 (h)
	    	Change in Circumstance	  	4
	 (i)
	    	Change of Control	  	5
	 (j)
	    	Chief Executive Officer	  	7
	 (k)
	    	Company	  	7
	 (l)
	    	Compensation	  	7
	 (m)
	    	Deceased Participant	  	8
	 (n)
	    	Deceased Retired Participant	  	8
	 (o)
	    	Earned and Vested	  	8
	 (p)
	    	Employee	  	8
	 (q)
	    	Exchange Act	  	8
	 (r)
	    	Form of Payment	  	8
	 (s)
	    	Grandfathered Deceased Participant	  	9
	 (t)
	    	Grandfathered Deceased Retired Participant	  	9
	 (u)
	    	Grandfathered Participant	  	9
	 (v)
	    	Grandfathered Retired Participant	  	9
	 (w)
	    	Grandfathered Retirement Allowance	  	10
	 (x)
	    	Grandfathered Supplemental Retirement Allowance	  	10
	 (y)
	    	Grandfathered Supplemental Survivor Allowance	  	10
	 (z)
	    	Grandfathered Supplemental Survivor Income Benefit Allowance	  	11
	 (aa)
	    	Latest Payment Date	  	11
	 (bb)
	    	Optional Payment	  	12
	 (cc)
	    	Other Plan	  	12
	 (dd)
	    	Participant	  	13
	 (ee)
	    	Payment Date	  	13
	 (ff)
	    	Plan	  	13
	 (gg)
	    	Predecessor Plan	  	13
	 (hh)
	    	Profit-Sharing Plan	  	13
	 (ii)
	    	Retired Participant	  	13
	 (jj)
	    	Salaried Retirement Plan	  	13
	 (kk)
	    	Separation from Service, Separates from Service or Separated from Service	  	14
	 (ll)
	    	Single Sum Payment	  	14
	 (mm)
	    	SMERP Benefit Payment Date	  	14

					
	 (nn)
	    	Specified Employee	  	16
	 (oo)
	    	Supplemental Joint and Survivor Allowance	  	16
	 (pp)
	    	Supplemental Optional Payment Allowance	  	17
	 (qq)
	    	Supplemental Profit-Sharing Allowance or Profit-Sharing Allowance	  	17
	 (rr)
	    	Supplemental Retirement Allowance	  	17
	 (ss)
	    	Supplemental SIB Allowance Payment Date	  	17
	 (tt)
	    	Supplemental Survivor Allowance	  	17
	 (uu)
	    	Supplemental Survivor Allowance Payment Date	  	18
	 (vv)
	    	Supplemental Survivor Income Benefit Allowance	  	18
	 (ww)
	    	Survivor Income Benefit Plan	  	18
	 (xx)
	    	Vested Retirement Allowance	  	18
		
	 ARTICLE II SUPPLEMENTAL RETIREMENT AND RELATED ALLOWANCES
	  	19
			
	 A.
	    	Supplemental Retirement Allowances	  	19
	 B.
	    	Supplemental Survivor Allowances, Supplemental Survivor Income Benefit Allowances and Supplemental Optional Payment Allowances	  	20
	 C.
	    	SMERP Benefit Payment Date and Termination of Supplemental Retirement Allowances, Supplemental Survivor Allowances, Supplemental Survivor Income Benefit Allowances and Allowances Payable in
the Form of an Optional Payment	  	21
	 D.
	    	Reduction of Benefits	  	26
	 E.
	    	Application or Notification for Payment of Allowances	  	28
		
	 ARTICLE III SUPPLEMENTAL PROFIT-SHARING ALLOWANCES
	  	29
			
	 A.
	    	Supplemental Profit-Sharing Allowances	  	29
	 B.
	    	Credits to Supplemental Profit-Sharing Allowance; SMERP Benefit Payment Date	  	29
		
	 ARTICLE IV FUNDS FROM WHICH ALLOWANCES ARE PAYABLE
	  	30
			
	 A.
	    	Establishment and Maintenance of Individual Accounts; Contributions	  	30
	 B.
	    	Maintenance of Book Reserves	  	30
		
	 ARTICLE V ADMINISTRATION
	  	31
			
	 A.
	    	Duties of the Benefits Committee and Administrator	  	31
	 B.
	    	Applicability of Duties of the Benefits Committee and Administrator under the Salaried Retirement Plan to the Plan	  	31
		
	 ARTICLE VI AMENDMENT AND DISCONTINUANCE OF THE PLAN
	  	32
			
	 A.
	    	Amendment of the Plan by the Board of Directors of Philip Morris International Inc., the Benefits Committee and the Administrator	  	32
	 B.
	    	Termination of the Plan	  	32
	 C.
	    	Change of Control Provisions	  	32

					
	 ARTICLE VII FORMS; COMMUNICATIONS
	  	33
			
	 A.
	    	Forms; Use of Electronic Media	  	33
	 B.
	    	Communications Concerning the Plan	  	33
		
	ARTICLE VIII INTERPRETATION OF PROVISIONS	  	34
			
	 A.
	    	Discretionary Authority to Interpret the Plan	  	34
		
	 ARTICLE IX APPLICABILITY OF PROVISIONS OF SALARIED RETIREMENT PLAN AND SURVIVOR INCOME BENEFIT PLAN
	  	35
			
	 A.
	    	Applicability of Provisions of Salaried Retirement Plan and Survivor Income Benefit Plan to the Plan	  	35
		
	 ARTICLE X CERTAIN RIGHTS AND LIMITATIONS
	  	36
			
	 A.
	    	Nonassignment and Nonalienation	  	36
	 B.
	    	Benefits Conditioned on Meeting All Requirements under the Plan	  	36
		
	 EXHIBIT A ACTUARIAL ASSUMPTIONS USED TO CALCULATE A SINGLE SUM PAYMENT
	  	37

 SUPPLEMENTAL MANAGEMENT EMPLOYEES’ RETIREMENT PLAN 
 PREAMBLE 
 PMI Global Services
Inc. hereby adopts the Supplemental Management Employees’ Retirement Plan for the benefit of (i) an Employee who was designated as a Participant under the Predecessor Plan, whose benefit has been (or will be) transferred from the
Predecessor Plan to this Plan and whose Separation from Service or Date of Retirement is on or after March 28, 2008, (ii) any former employee who was designated as a Participant under the Predecessor Plan, whose benefit has not been paid
in full as of March 28, 2008 and which has been transferred from the Predecessor Plan to this Plan, and (iii) any Employee designated as a Participant under the Plan and whose Separation from Service or Date of Retirement is on or after
March 28, 2008. 
 It is intended that Grandfathered Supplemental Retirement Allowances, Grandfathered Supplemental Survivor Allowances,
Grandfathered Supplemental Profit-Sharing Allowances and Grandfathered Supplemental Survivor Income Benefit Allowances with respect to Grandfathered Participants not be subject to the requirements of Section 409A of the Code and that the Plan
be interpreted in accordance with this intention. 
  

 1 

 ARTICLE I 
 DEFINITIONS 
 The following terms as used herein and in the Preamble shall have the meanings
set forth below. Any capitalized term used herein or in the Preamble and not defined below shall have the meaning set forth in the Philip Morris International Retirement Plan, the Philip Morris International Deferred Profit-Sharing Plan or the
Philip Morris International Survivor Income Plan, as the context may require. 
  

	 	(a)	Accredited Service 

 Accredited Service shall have
the same meaning as in the Salaried Retirement Plan, provided, however, that Accredited Service shall also include the additional periods of Accredited Service which may be credited to a Participant pursuant to the provisions of Article II, A
(1) (a) of the Plan pursuant to the designation of an Employee as a Participant under the Plan in accordance with Article I (dd) of the Plan. 
  

	 	(b)	Actuarial Equivalent 

 Actuarial Equivalent shall
mean a benefit which is at least equivalent in value to the benefit otherwise payable pursuant to the terms of the Plan, based on the actuarial principles and assumptions set forth in Exhibit I to the Salaried Retirement Plan; provided, however,
that a Single Sum Payment of all or any portion of a benefit payable pursuant to the terms of the Plan shall be the Actuarial Equivalent of such benefit (or portion of such benefit) payable in equal monthly payments during a twelve (12) month
period for the life of the recipient commencing at the applicable SMERP Benefit Payment Date, using the actuarial principles and assumptions set forth in Exhibit A to the Plan. 
  

	 	(c)	Allowances 

 Allowances shall mean a Supplemental
Retirement Allowance determined under Article II, A of the Plan, a Supplemental Profit-Sharing Allowance determined under Article III of the Plan and a Supplemental Survival Allowance and Supplemental Survivor Income Benefit Allowance
determined under Article II, B of the Plan. 
  

	 	(d)	Appointee 

 Appointee shall mean the person or
entity who, pursuant to the provisions of the Plan, is empowered, in his or its sole discretion, to designate an Employee as a Participant and grant one or more Allowances under the Plan. The Appointee with respect to an Employee who is not a chief
executive officer of a Participating Company shall be the chief executive officer of his Participating Company. The Appointee with respect to a Retired Employee and with respect to an Employee who is a chief executive officer of a Participating
Company other than Philip Morris International Inc. shall be the Chief Executive Officer. The Appointee of the Chief Executive Officer shall be the Compensation Committee of the Board of Directors of Philip Morris International Inc. 
  

 2 

	 	(e)	Beneficiary 

 Beneficiary shall mean: 

(1) Single Sum Payments. In the case of a Retired Participant whose Form of Payment of all or a portion of his Supplemental
Retirement Allowance after his Separation from Service is a Single Sum Payment pursuant to Article II, C of the Plan, but who dies after his Separation from Service and before such Single Sum Payment is made: 
 (A) if the Retired Participant is married on the date of his death, the Beneficiary of such Single Sum Payment shall be the Spouse to
whom he was married on the date of death; and 
 (B) if the Retired Participant is not married on the date of his death, the
Beneficiary of such Single Sum Payment shall be Retired Participant’s estate. 
 A Participant or Retired Participant may designate any
other person or persons as the Beneficiary who is to receive a Single Sum Payment of all or any portion of his Supplemental Retirement Allowance in the event that he dies after his Separation from Service and before such Single Sum Payment is made
by timely filing a beneficiary designation form with the Administrator (or his delegate), provided, however, that if the Participant or Retired Participant is married on the date of the filing of such beneficiary designation form, his Spouse must
consent, in writing before a notary public to such designation. 
 (2) Optional Payment. In the case of a
Grandfathered Participant who has elected to receive after his Separation from Service that portion of his Supplemental Retirement Allowance equal to the Grandfathered Supplemental Retirement Allowance in the form of an Optional Payment described in
Article I, (bb) (2) or (3) of the Plan pursuant to Article II, C (6) of the Plan, the Beneficiary of such Grandfathered Supplemental Retirement Allowance shall be the person or persons designated by the Grandfathered Participant to receive
(or who, pursuant to the terms of such Optional Payment, will receive) after his death a benefit according to the option elected by the Grandfathered Participant. 
 (3) Supplemental Profit-Sharing Allowance. In the case of a Participant or Inactive Participant who has been credited with a
Supplemental Profit-Sharing Allowance and who dies prior to the payment of such Supplemental Profit-Sharing Allowance: 
 (A)
if the Participant or Inactive Participant is married on the date of his death, the Beneficiary of such Supplemental Profit-Sharing Allowance shall be the Spouse to whom he was married on the date of death; and 
 (B) if the Participant or Inactive Participant is not married on the date of his death, the Beneficiary of such Supplemental
Profit-Sharing Allowance shall be the Participant’s or Inactive Participant’s estate. 
  

 3 

 A Participant or Inactive Participant may designate any other person or persons (including a trust
created by the Participant or Inactive Participant during his lifetime or by will) as the Beneficiary of his Supplemental Profit-Sharing Allowance in the event of his death by timely filing a beneficiary designation form with the Administrator (or
his delegate), provided that if the Participant or Inactive Participant is married on the date of the filing of such beneficiary designation form, his Spouse must consent, in writing before a notary public to such designation. 
  

	 	(f)	Benefit Equalization Plan 

 Benefit Equalization
Plan shall mean the Philip Morris International Benefit Equalization Plan, effective as of January 1, 2008, and as amended from time to time, but only to the extent that benefits are payable pursuant to Article II, A thereof. 
  

	 	(g)	Benefits Committee 

 Benefits Committee shall mean
the Philip Morris International Benefits Committee, designated pursuant to the provisions of the Plan to perform certain duties in connection with the administration of the Plan. 
  

	 	(h)	Change in Circumstance 

 Change in Circumstance
shall mean: 
 (1) Marriage. The marriage of the Grandfathered Participant or Grandfathered Retired Participant;

 (2) Divorce. The divorce of the Grandfathered Participant or Grandfathered Retired Participant from his Spouse
(determined in accordance with applicable state law), provided 
 (A) such spouse was the Beneficiary who is to receive an
Optional Payment, or 
 (B) the Grandfathered Participant or Grandfathered Retired Participant elected to receive an Optional
Payment pursuant to Article I, (bb) (1) of the Plan; 
 (3) Death. The death of the Beneficiary designated by the
Grandfathered Participant or Grandfathered Retired Participant to receive an Optional Payment after the death of the Grandfathered Retired Participant; or 
 (4) Medical Condition. A medical condition of the Beneficiary, based on medical evidence satisfactory to the Administrator, which is expected to result in the death of the Beneficiary within five (5) years
of the filing of an application for change in Optional Payment method pursuant to Article II, C (6) of the Plan. 
  

 4 

	 	(i)	Change of Control 

 (1) Change of
Control shall mean the happening of any of the following events with respect to a Grandfathered Supplemental Retirement Allowance, a Grandfathered Supplemental Survivor Income Benefit Allowance and Grandfathered Supplemental Profit-Sharing
Allowance: 
 (A) The acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2)
of the Exchange Act) (a “Person”) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 20% or more of either (i) the then outstanding shares of common stock of Philip Morris International
Inc. (the “Outstanding Company Common Stock”) or (ii) the combined voting power of the then outstanding voting securities of Philip Morris International Inc. entitled to vote generally in the election of directors (the
“Outstanding Company Voting Securities”); provided, however, that the following acquisitions shall not constitute a Change of Control: (i) any acquisition directly from Philip Morris International Inc., (ii) any acquisition by
Philip Morris International Inc., (iii) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by Philip Morris International Inc. or any corporation controlled by Philip Morris International Inc. or
(iv) any acquisition by any corporation pursuant to a transaction described in clauses (i), (ii) and (iii) of subparagraph (C) of this Article I, (i) (1) of the Plan; or 
 (B) Individuals who, as of the date hereof, constitute the Board of Directors of Philip Morris International Inc. (the “Incumbent
Board”) cease for any reason to constitute at least a majority of the Board of Directors of Philip Morris International Inc.; provided, however, that any individual becoming a director subsequent to the date hereof whose election, or nomination
for election by Philip Morris International Inc.’s shareholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent
Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened
solicitation of proxies or consents by or on behalf of a Person other than the Board of Directors of Philip Morris International Inc.; or 
 (C) Approval by the shareholders of Philip Morris International Inc. of a reorganization, merger, share exchange or consolidation (a “Business Combination”), in each case, unless, following such Business
Combination: 
 (i) all or substantially all of the individuals and entities who were the beneficial owners, respectively,
of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own, directly or 

  

 5 

 
indirectly, more than 80% of, respectively, the then outstanding shares of common stock and the combined voting power of the then outstanding voting
securities entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from such Business Combination (including, without limitation, a corporation which as a result of such transaction owns Philip
Morris International Inc. through one or more subsidiaries) in substantially the same proportions as their ownership, immediately prior to such Business Combination of the Outstanding Company Common Stock and Outstanding Company Voting Securities,
as the case may be; 
 (ii) no Person (excluding any employee benefit plan (or related trust) of Philip Morris International
Inc. or such corporation resulting from such Business Combination) beneficially owns, directly or indirectly, 20% or more of, respectively, the then outstanding shares of common stock of the corporation resulting from such Business Combination or
the combined voting power of the then outstanding voting securities of such corporation except to the extent that such ownership existed prior to the Business Combination; and 
 (iii) at least a majority of the members of the board of directors of the corporation resulting from such Business Combination were
members of the Incumbent Board at the time of the execution of the initial agreement, or of the action of the Board of Directors of Philip Morris International Inc., providing for such Business Combination; or 
 (D) Approval by the shareholders of Philip Morris International Inc. of (1) a complete liquidation or dissolution of Philip Morris
International Inc. or (2) the sale or other disposition of all or substantially all of the assets of Philip Morris International Inc., other than to a corporation, with respect to which following such sale or other disposition: 
 (i) more than 80% of, respectively, the then outstanding shares of common stock of such corporation and the combined voting power of the
then outstanding voting securities of such corporation entitled to vote generally in the election of directors is then beneficially owned, directly or indirectly, by all or substantially all of the individuals and entities who were the beneficial
owners, respectively, of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior to such sale or other disposition in substantially the same proportion as their ownership, immediately prior to such sale or
other disposition, of the Outstanding Company Common Stock and Outstanding Company Voting Securities, as the case may be; 
 (ii) less than 20% of, respectively, the then outstanding shares of common stock of such corporation and the combined voting power of 

  

 6 

 
the then outstanding voting securities of such corporation entitled to vote generally in the election of directors is then beneficially owned, directly or
indirectly, by any Person (excluding any employee benefit plan (or related trust) of Philip Morris International Inc. or such corporation), except to the extent that such Person owned 20% or more of the Outstanding Company Common Stock or
Outstanding Company Voting Securities prior to the sale or disposition; and 
 (iii) at least a majority of the members of
the board of directors of such corporation were members of the Incumbent Board at the time of the execution of the initial agreement, or of the action of the Board of Directors of Philip Morris International Inc., providing for such sale or other
disposition of assets of Philip Morris International Inc. or were elected, appointed or nominated by the Board of Directors of Philip Morris International Inc.; and 
 (2) shall mean the happening of any of the events specified in Treasury Regulation §1.409A- 3(i)(5)(v), (vi) and (vii) with
respect to that portion of a Supplemental Retirement Allowance that is not a Grandfathered Supplemental Retirement Allowance, that portion of a Supplemental Survivor Income Benefit Allowance that is not a Grandfathered Supplemental Survivor Income
Benefit Allowance and that portion of a Supplemental Profit-Sharing Allowance that is not a Grandfathered Supplemental Profit-Sharing Allowance. For purposes of determining if a Change of Control has occurred, the Change of Control event must relate
to a corporation identified in Treasury Regulation §1.409A- 3(i)(5)(ii), provided, however, that (i) the spin-off of the shares of Philip Morris International Inc. to the shareholders of Altria Group, Inc. shall not be considered to be a
Change of Control, and (ii) any change in the Incumbent Board coincident with such spin-off shall not be considered to be a Change of Control. 
  

	 	(j)	Chief Executive Officer 

 Chief Executive Officer
shall mean the chief executive officer of Philip Morris International Inc. 
  

	 	(k)	Company 

 Company shall mean PMI Global Services
Inc. PMI Global Services Inc. is the sponsor of the Plan. 
  

	 	(l)	Compensation 

 Compensation shall have the same
meaning as in the Salaried Retirement Plan, except that in computing the Retirement Allowance and Supplemental Retirement Allowance of an Employee in salary Band A or B who was not age fifty-five (55) or older at December 31, 2006,
Compensation shall mean the lesser of (i) his annual base salary plus annual incentive award, and (ii) annual base salary plus annual incentive award at a business rating of 100 and individual performance rating of “Exceeds.”

  

 7 

	 	(m)	Deceased Participant 

 Deceased Participant shall
mean any Participant who died while he was an Employee and who had a nonforfeitable right to any portion of his Supplemental Retirement Allowance. 
  

	 	(n)	Deceased Retired Participant 

 Deceased Retired
Participant shall mean any Retired Participant who died after his Date of Retirement but prior to the SMERP Benefit Payment Date of his Supplemental Retirement Allowance; provided that the death of a Deceased Retired Participant described in Article
II, B. (2) (b) may occur prior to or subsequent to his SMERP Benefit Payment Date. 
  

	 	(o)	Earned and Vested 

 Earned and Vested shall mean,
when referring to an Allowance or any portion of an Allowance, an amount that, as of January 1, 2005, is not subject to a substantial risk of forfeiture (as defined in Treasury Regulation §1.83-3(c)) or a requirement to perform future
services. 
  

	 	(p)	Employee 

 Employee shall mean any person who
(1) is employed on a salaried basis by a Participating Company, (2) is a member of a select group of management or a highly compensated employee, and (3) is a participant in the Salaried Retirement Plan, the Profit-Sharing Plan, or
both such plans. 
  

	 	(q)	Exchange Act 

 Exchange Act shall mean the
Securities Exchange Act of 1934, as amended from time to time, and any successor thereto. 
  

	 	(r)	Form of Payment 

 Form of Payment shall mean the
form in which payment of the benefit is paid pursuant to the Plan. 
 (1) A Single Sum Payment shall be the exclusive Form of
Payment of the Supplemental Retirement Allowance, except with respect to: 
 (A) that portion of the Supplemental Retirement
Allowance derived solely from the Grandfathered Supplemental Retirement Allowance that is payable to a Grandfathered Retired Participant who is only eligible for a Vested Retirement Allowance at his Separation from Service; and 
 (B) that portion of the Supplemental Retirement Allowance derived solely from the Grandfathered Supplemental Retirement Allowance and
that is payable to a Grandfathered Retired Participant who has timely elected to receive after his Date of Retirement that portion of his Supplemental Retirement 

  

 8 

 
Allowance equal to the Grandfathered Supplemental Retirement Allowance in the form of an Optional Payment pursuant to Article II, C (6) of the Plan and
which election does not cease to be of any force and effect. 
 (2) A Single Sum Payment shall be the exclusive Form of
Payment of the Supplemental Survivor Allowance, except with respect to the Grandfathered Supplemental Survivor Allowance, which shall be paid in the form described in Article I, (tt) (disregarding the parenthetical statement). 
 (3) A Single Sum Payment shall be the exclusive Form of Payment of the Supplemental Survivor Income Benefit Allowance, except with
respect to the Grandfathered Supplemental Survivor Income Benefit Allowance. 
 (4) A Single Sum Payment shall be the
exclusive Form of Payment of the Supplemental Profit-Sharing Allowance. 
  

	 	(s)	Grandfathered Deceased Participant 

 Grandfathered
Deceased Participant shall mean a Grandfathered Participant who died while he was an Employee and who had a nonforfeitable right to any portion of his Supplemental Retirement Allowance. 
  

	 	(t)	Grandfathered Deceased Retired Participant 

 Grandfathered Deceased Retired Participant shall mean a Deceased Retired Participant who is eligible to receive a Grandfathered Supplemental Retirement Allowance. 
  

	 	(u)	Grandfathered Participant 

 Grandfathered
Participant shall mean: 
 (1) In the case of a Supplemental Retirement Allowance, a Participant who is a participant in the
executive trust or secular trust arrangements and eligible for a Grandfathered Supplemental Retirement Allowance that was Earned and Vested; 
 (2) In the case of a Supplemental Profit-Sharing Allowance, a Participant who is a participant in the executive trust or secular trust arrangements and eligible for a Grandfathered Supplemental Profit-Sharing
Allowance that was Earned and Vested; and 
 (3) In the case of a Supplemental Survivor Income Benefit Allowance, a
Participant who is a participant in the executive trust or secular trust arrangements and eligible for a Grandfathered Supplemental Survivor Income Benefit Allowance that was Earned and Vested. 
  

 9 

	 	(v)	Grandfathered Retired Participant 

 Grandfathered
Retired Participant shall mean a Retired Participant who is eligible for a Grandfathered Supplemental Retirement Allowance. 
  

	 	(w)	Grandfathered Retirement Allowance 

 Grandfathered
Retirement Allowance shall mean the present value of that portion (or all) of the Retirement Allowance earned to December 31, 2004 under the Retirement Plan for Salaried Employees, which Retirement Allowance was transferred to the Salaried
Retirement Plan and to which a Grandfathered Participant or Grandfathered Retired Participant had a nonforfeitable right as of December 31, 2004. In calculating the amount of such Grandfathered Retirement Allowance, it shall be assumed that
(i) the Grandfathered Participant or Grandfathered Retired Participant voluntarily terminated services without cause on December 31, 2004, and (ii) received a payment of his Grandfathered Retirement Allowance with the maximum value
available from the Retirement Plan for Salaried Employees on the earliest possible date allowed under the Retirement Plan for Salaried Employees to receive payment of a Retirement Allowance following the termination of services, provided, however,
that for any subsequent year such Grandfathered Retirement Allowance may increase to equal the present value of the benefit the Grandfathered Participant or Grandfathered Retired Participant actually becomes entitled to, determined in accordance
with the terms of the Retirement Plan for Salaried Employees as in effect on October 3, 2004, without regard to any further services rendered by the Grandfathered Participant or Grandfathered Retired Participant after December 31, 2004, or
any other events affecting the amount of or the entitlement to benefits. 
  

	 	(x)	Grandfathered Supplemental Retirement Allowance 

 Grandfathered Supplemental Retirement Allowance shall mean the present value of that portion (or all) of the Supplemental Retirement Allowance earned to December 31, 2004 to which the Grandfathered Participant or Grandfathered Retired
Participant would have been entitled under the Predecessor Plan if he had voluntarily terminated services without cause on December 31, 2004 and received a payment on the earliest possible date allowed under the Predecessor Plan to receive
payment of a Supplemental Retirement Allowance following the termination of services and receive the benefits in the form with the maximum value; provided, however, that for any subsequent year such Grandfathered Supplemental Retirement Allowance
may increase to equal the present value of the benefit the Grandfathered Participant or Grandfathered Retired Participant actually becomes entitled to, in the form and at the time actually paid, determined in accordance with the terms of the
Predecessor Plan (including applicable Statutory Limitations) as in effect on October 3, 2004, without regard to any further services rendered by the Grandfathered Participant or Grandfathered Retired Participant after December 31, 2004,
or any other events affecting the amount of or the entitlement to benefits (other than an election with respect to the time and form of an available benefit). 
  

	 	(y)	Grandfathered Supplemental Survivor Allowance 

 Grandfathered Supplemental Survivor Allowance shall mean the present value of that portion (or all) of the Supplemental Retirement Allowance earned to December 31, 2004 to 

  

 10 

 
which the Spouse of the Grandfathered Participant or Grandfathered Retired Participant would have been entitled under the Predecessor Plan if he had died on
December 31, 2004 and his Spouse had received a payment on the earliest possible date allowed under the Predecessor Plan to receive payment of a Supplemental Survivor Allowance following the date of death and receive the benefits in the form
with the maximum value; provided, however, that for any subsequent year such Grandfathered Supplemental Survivor Allowance may increase to equal the present value of the benefit the Spouse of the Grandfathered Participant or Grandfathered Retired
Participant actually becomes entitled to, in the form and at the time actually paid, determined in accordance with the terms of the Predecessor Plan (including applicable Statutory Limitations) as in effect on October 3, 2004, without regard to
any further services rendered by the Grandfathered Participant or Grandfathered Retired Participant after December 31, 2004, or any other events affecting the amount of or the entitlement to benefits (other than an election with respect to the
time and form of an available benefit). 
  

	 	(z)	Grandfathered Supplemental Survivor Income Benefit Allowance 

 Grandfathered Supplemental Survivor Income Benefit Allowance shall mean the present value of that portion (or all) of the Supplemental Survivor Income Benefit Allowance earned to December 31, 2004 to which the
Spouse of a Grandfathered Participant or of a Grandfathered Retired Participant would have been entitled under the Predecessor Plan if he had died on December 31, 2004 and his Spouse had received a payment on the earliest possible date allowed
under the Predecessor Plan to receive payment of a Supplemental Survivor Income Benefit Allowance following the date of death and receive the benefits in the form with the maximum value; provided, however, that for any subsequent year such
Grandfathered Supplemental Survivor Income Benefit Allowance may increase to equal the present value of the benefit the Spouse of the Grandfathered Participant or Grandfathered Retired Participant actually becomes entitled to, in the form and at the
time actually paid, determined in accordance with the terms of the Predecessor Plan (including applicable Statutory Limitations) as in effect on October 3, 2004, without regard to any further services rendered by the Grandfathered Participant
or Grandfathered Retired Participant after December 31, 2004, or any other events affecting the amount of or the entitlement to benefits (other than an election with respect to the time and form of an available benefit). 
  

	 	(aa)	Latest Payment Date 

 Latest Payment Date shall
mean: 
 (1) in the case of a Supplemental Retirement Allowance, the later of: 
 (A) December 31st
 of the year in which the Payment Date occurs, and 
 (B) the fifteenth day of
the third month following the Payment Date; 
 (2) in the case of a Supplemental Survivor Allowance, the later of:

 (A) December 31st of the year in which the Supplemental Survivor Allowance Payment Date occurs, and 
  

 11 

 (B) the fifteenth day of the third month following the Supplemental Survivor Allowance
Payment Date; and 
 (3) in the case of a Supplemental Survivor Income Benefit Allowance, the later of: 
 (A) December 31st
 of the year in which the Supplemental SIB Allowance Payment Date occurs, and 
 (B) the fifteenth day of the third month following the Supplemental SIB Allowance Payment Date. 
  

	 	(bb)	Optional Payment 

 Optional Payment shall mean the
following optional forms in which that portion of a Supplemental Retirement Allowance that is the Grandfathered Supplemental Retirement Allowance of a Grandfathered Retired Participant may be paid: 
 (1) in equal monthly payments for the life of the Grandfathered Retired Participant, 
 (2) in the form of a Supplemental Joint and Survivor Allowance, or 
 (3) in the form of a Supplemental Optional Payment Allowance. 
 Any election to receive an Optional Payment with respect to any Grandfathered Supplemental Retirement Allowance under the Plan shall be independent of any election with respect to benefits payable under any other
plan. 
  

	 	(cc)	Other Plan 

 Other Plan shall mean: 
 (1) the Salaried Retirement Plan, 
 (2) the Benefit Equalization Plan, 
 (3) any other plan, except a defined contribution or
similar plan, maintained by the Company, or any domestic or foreign subsidiary or affiliate of Philip Morris International Inc., which provides retirement income to one or more employees on or after termination of employment, and 
 (4) any employment contract or other agreement between an Employee and Philip Morris International Inc. or any other member of the
Controlled Group providing for retirement benefits or benefits in the event of a termination of employment or upon a Change of Control of Philip Morris International Inc. or of any other member of the Controlled Group. 
  

 12 

	 	(dd)	Participant 

 Participant shall mean an Employee or
Retired Employee who has been designated as such by his Appointee pursuant to the terms of the Plan. The designation of an Employee or Retired Employee as a Participant by a chief executive officer of a Participating Company shall be communicated in
writing to the Benefits Committee. An Employee or Retired Employee shall become a Participant as of the date designated in writing by his Appointee. Except as otherwise specifically provided for in the Plan, a Participant shall cease to be such
whenever he ceases to be an Employee. 
  

	 	(ee)	Payment Date 

 Payment Date shall mean the first
day of the third calendar month following the month in which the Participant Separates from Service; provided, however, that in all cases of a Separation from Service other than on account of death, the Payment Date in the case of a Specified
Employee shall be the first day of the calendar month following the date that is six (6) months following the date that such Specified Employee Separates from Service. 
  

	 	(ff)	Plan 

 Plan shall mean the Philip Morris
International Supplemental Management Employees’ Retirement Plan described herein and in any amendments hereto. 
  

	 	(gg)	Predecessor Plan 

 Predecessor Plan shall mean the
Supplemental Management Employees’ Retirement Plan sponsored by Altria Client Services Inc. 
  

	 	(hh)	Profit-Sharing Plan 

 Profit-Sharing Plan shall
mean Philip Morris International Deferred Profit-Sharing Plan, effective January 1, 2008, and as amended from time to time. 
  

	 	(ii)	Retired Participant 

 Retired Participant shall
mean a former Participant who is eligible for, or in receipt of, a Supplemental Retirement Allowance from the Plan. A former Participant shall cease to be a Retired Participant as of the date he receives a Single Sum Payment, or upon full payment of
his Allowance or Allowances pursuant to the terms of the Plan as determined in the sole discretion of the Administrator. 
  

	 	(jj)	Salaried Retirement Plan 

 Salaried Retirement Plan
shall mean the Philip Morris International Retirement Plan, effective as of January 1, 2008, and as amended from time to time. 
  

 13 

	 	(kk)	Separation from Service, Separates from Service or Separated from Service 

 Separation from Service, Separates from Service or Separated from Service shall each have the same meaning as the term “separation from
service” in Treasury Regulation §1.409A-1(h)(1). 
  

	 	(ll)	Single Sum Payment 

 Single Sum Payment shall mean
the payment of a benefit or portion of a benefit in a single payment to a Retired Participant or to the Spouse or other Beneficiary of a Deceased Participant or Deceased Retired Participant. A Single Sum Payment shall be (i) the Actuarial
Equivalent of the (or portion of the) Supplemental Retirement Allowance payable in equal monthly payments during a twelve (12) month period for the life of the Retired Participant, (ii) the Actuarial Equivalent of the (or portion of the)
Supplemental Survivor Allowance payable in equal monthly payments during a twelve (12) month period for the life of the Spouse of the Deceased Participant or Deceased Retired Participant and (iii) the Actuarial Equivalent of the (or
portion of the) Supplemental Survivor Income Benefit Allowance payable in equal monthly payments during a twelve (12) month period for the life of the Spouse of the Deceased Participant or Deceased Retired Participant. 
 (mm)  SMERP Benefit Payment Date 
 SMERP Benefit Payment Date shall mean the date on which the benefit to which the recipient is entitled is paid (or, solely in the case of a Grandfathered Supplemental Retirement Allowance, Grandfathered Supplemental Survivor Allowance and
Grandfathered Supplemental Survivor Income Benefit Allowance, the date the benefit commences to be paid) pursuant to the application filed in accordance with Article II, E of the Plan, or if no such application is filed, in accordance with the terms
of the Plan as determined by the Administrator (or his delegate). All such Allowances not paid in a Single Sum Payment are paid in arrears so that the actual date of payment shall be the first day of the calendar month next succeeding the SMERP
Benefit Payment Date. 
 (1) Supplemental Retirement Allowance. 
 (A) Except as provided in clauses (B), (C) and (D) hereof, the SMERP Benefit Payment Date of the Supplemental Retirement
Allowance shall be the Payment Date, but not later than the Latest Payment Date. 
 (B) The SMERP Benefit Payment Date of
that portion of a Supplemental Retirement Allowance that is the Grandfathered Supplemental Retirement Allowance payable in the form of an Optional Payment pursuant to an election under Article II, C (6) of the Plan to a Grandfathered Retired
Participant shall be the Benefit Commencement Date of the Grandfathered Retired Participant’s Full, Deferred or Early Retirement Allowance under the Salaried Retirement Plan. 
 (C) The SMERP Benefit Payment Date of that portion of a Supplemental Retirement Allowance that is the Grandfathered Supplemental
Retirement Allowance payable in the form of an Optional Payment with respect to 

  

 14 

 
a Grandfathered Retired Participant who voluntarily retires within the one (1) year period following the date of filing of his application for an
Optional Payment with the Administrator pursuant to Article II, C (6) of the Plan or whose employment is terminated for misconduct (as determined by the Benefits Committee) within such one (1) year period, shall be the first day of the
month following the expiration of the one (1) year period following the date of the filing of his application for an Optional Payment. 
 (D) The SMERP Benefit Payment Date of that portion of a Supplemental Retirement Allowance that is the Grandfathered Supplemental Retirement Allowance payable to a Grandfathered Retired Participant who is only eligible
for a Vested Retirement Allowance at his Separation from Service shall be the Benefit Commencement Date of the Grandfathered Retired Participant’s Vested Retirement Allowance under the Salaried Retirement Plan. 
 (2) Supplemental Survivor Allowance. 
 (A) Except as provided in clause (B), the SMERP Benefit Payment Date of the Supplemental Survivor Allowance payable to the Spouse of a
Deceased Participant or Deceased Retired Participant pursuant to Article II, B of the Plan shall be the Supplemental Survivor Allowance Payment Date, but not later than the Latest Payment Date. 
 (B) The SMERP Benefit Payment Date of that portion of the Supplemental Survivor Allowance that is the Grandfathered Supplemental Survivor
Allowance that is payable to the Spouse of a Grandfathered Deceased Participant, or to the Spouse of a Grandfathered Deceased Retired Participant, shall, in each case, be the Benefit Commencement Date of the Survivor Allowance payable to such Spouse
under the Salaried Retirement Plan, provided that the Spouse may elect in accordance with the provisions of Article II, A 5(c) or (f) of the Salaried Retirement Plan, as applicable to the Spouse, that the SMERP Benefit Payment Date be the first
day of any month thereafter, but not later than the later of: 
 (i) the first day of the second calendar month following
the month in which the Grandfathered Deceased Participant or Grandfathered Deceased Retired Participant died (or if his date of birth was on the first day of a calendar month, the first day of the calendar month next following the calendar month in
which the Grandfathered Deceased Participant or Grandfathered Deceased Retired Participant died), or 
 (ii) the date that
would have been the Grandfathered Deceased Participant’s or Grandfathered Deceased Retired Participant’s Unreduced Early Retirement Benefit Commencement Date. 
  

 15 

 The final payment of that portion of the Supplemental Survivor Allowance that is the Grandfathered
Supplemental Survivor Allowance shall be the first day of the month following the death of the Spouse. 
 (3) Supplemental
Survivor Income Benefit Allowance. 
 (A) Except as provided in clause (B) hereof, the SMERP Benefit Payment Date of
the Supplemental Survivor Income Benefit Allowance payable to the Spouse of a Deceased Participant or of a Deceased Retired Participant pursuant to Article II, B shall be the Supplemental SIB Allowance Payment Date, but not later than the
Supplemental SIB Allowance Latest Payment Date. 
 (B) The SMERP Benefit Payment Date of that portion of the Supplemental
Survivor Income Benefit Allowance equal to the Grandfathered Supplemental Survivor Income Benefit Allowance payable to the Spouse of a Grandfathered Deceased Participant pursuant to Article II, B of the Plan, or to the Spouse of a Grandfathered
Deceased Retired Participant pursuant to Article II, B of the Plan shall be the Benefit Commencement Date of the Survivor Income Benefit Allowance payable to such Spouse under the Survivor Income Benefit Plan. The last payment of such Supplemental
Survivor Income Benefit Allowance shall be the same date as the last payment of the Survivor Income Benefit Allowance under the Survivor Income Benefit Plan. 
 (4) Supplemental Optional Payment Allowance. The SMERP Benefit Payment Date of the Supplemental Optional Payment Allowance payable
to the Beneficiary of a Grandfathered Deceased Retired Participant pursuant to Article II, B of the Plan shall be the first day of the calendar month following the death of the Grandfathered Deceased Retired Participant. The final payment of the
Supplemental Optional Payment Allowance shall be the first day of the month following the death of the Beneficiary. 
  

	 	(nn)	Specified Employee 

 Specified Employee shall have
the meaning given in Treasury Regulation §1.409A-1(i). 
  

	 	(oo)	Supplemental Joint and Survivor Allowance 

 Supplemental Joint and Survivor Allowance shall mean the total amount that would be payable during a twelve (12) month period as a reduced Supplemental Retirement Allowance to a Retired Participant for life and after his death the
amount payable to his Spouse for life equal to one-half of the reduced Supplemental Retirement Allowance payable to the Retired Participant (regardless of whether such form of benefit was available to such Retired Participant and his Spouse), which
together shall be the Actuarial Equivalent of the Supplemental Retirement Allowance of the Retired Participant. 
  

 16 

	 	(pp)	Supplemental Optional Payment Allowance 

 Supplemental Optional Payment Allowance shall mean, with respect to that portion of a Grandfathered Retired Participant’s Supplemental Retirement Allowance equal to the Grandfathered Supplemental Retirement Allowance, the total amount
payable during a twelve (12) month period in accordance with one of the payment methods described in Article II, A 4(d) of the Salaried Retirement Plan and designated by the Grandfathered Participant in his application for an Optional Payment
under Article II, C (6) of the Plan, pursuant to which the Grandfathered Participant receives for life after his Date of Retirement a reduced Supplemental Retirement Allowance in equal monthly payments and after his death, after his Date of
Retirement his Beneficiary receives for life a benefit in equal monthly payments according to the option elected by the Grandfathered Participant, which together shall be the Actuarial Equivalent of the Grandfathered Supplemental Retirement
Allowance payable in equal monthly payments for the life of the Retired Participant after his Date of Retirement. 
  

	 	(qq)	Supplemental Profit-Sharing Allowance or Profit-Sharing Allowance 

 Supplemental Profit-Sharing Allowance or Profit-Sharing Allowance shall mean the benefit determined under Article III of the Plan and payable at the time and in the Form of Payment set forth in Article I,
(r) (4) of the Plan. The Supplemental Profit-Sharing Allowance shall be comprised of the Grandfathered Supplemental Profit-Sharing Allowance, if any, and the remaining portion of such Profit-Sharing Allowance. 
  

	 	(rr)	Supplemental Retirement Allowance 

 Supplemental
Retirement Allowance shall mean the benefit determined under Article II, A (1) of the Plan and payable at the time and in the Form of Payment set forth in Article I, (r) (1) of the Plan. The Supplemental Retirement Allowance shall be
comprised of the Grandfathered Supplemental Retirement Allowance, if any, and the remaining portion of such Allowance. 
  

	 	(ss)	Supplemental SIB Allowance Payment Date 

 Supplemental SIB Allowance Payment Date shall mean the first day of the third calendar month following the month in which the Participant or Retired Participant dies. 
  

	 	(tt)	Supplemental Survivor Allowance 

 Supplemental
Survivor Allowance shall mean the benefit payable to: 
  

	 	(1)	the Spouse of a Deceased Participant; and 

  

	 	(2)	the Spouse of a Deceased Retired Participant; 

  

 17 

 in an amount equal one-half of the reduced Supplemental Retirement Allowance which would have been payable in the form of
a Supplemental Joint and Survivor Allowance to the Deceased Participant or Deceased Retired Participant (regardless of whether such form of benefit was available to such Deceased Participant or Deceased Retired Participant). 
  

	 	(uu)	  Supplemental Survivor Allowance Payment Date 

 Supplemental Survivor Allowance Payment Date shall mean the first day of the third calendar month following the month in which the Deceased Participant or Deceased Retired Participant died. 
  

	 	(vv)	  Supplemental Survivor Income Benefit Allowance 

 (1) Supplemental Survivor Income Benefit Allowance shall mean the total amount payable during a twelve (12) month period in equal monthly payments to the Spouse of a Deceased Participant or to the Spouse of a
Deceased Retired Participant equal to one-half of the reduced Supplemental Retirement Allowance which would have been payable to the Deceased Participant or Deceased Retired Participant had he elected to receive a Supplemental Joint and Survivor
Allowance. 
 (2) No Supplemental Survivor Income Benefit Allowance shall be payable with respect to any Deceased Participant
or Deceased Retired Participant whose request to receive an Optional Payment has been granted by the Administrator. 
  

	 	(ww)	  Survivor Income Benefit Plan 

 Survivor
Income Benefit Plan shall mean the Philip Morris International Survivor Income Benefit Plan, effective as of January 1, 2008 and as amended from time to time. 
  

	 	(xx)	  Vested Retirement Allowance 

 Vested
Retirement Allowance shall mean the Retirement Allowance payable pursuant to Article II, A (6) of the Salaried Retirement Plan, provided, however, that a Participant who is only eligible for a Vested Retirement Allowance may be deemed to be eligible
for an Early Retirement Allowance for any and all purposes of this Plan if in accordance with his designation as a Participant in the Plan; provided, however, that no such designation on or after October 3, 2004 shall change the time and form
of payment of a Grandfathered Supplemental Retirement Allowance or Grandfathered Supplemental Survivor Income Benefit Allowance of a Grandfathered Participant or Grandfathered Retired Participant. 
 The masculine pronoun shall include the feminine pronoun unless the context clearly requires otherwise. 
  

 18 

 ARTICLE II 
 SUPPLEMENTAL RETIREMENT AND RELATED ALLOWANCES 
  

	A.	SUPPLEMENTAL RETIREMENT ALLOWANCES 

 (1) Supplemental Retirement Allowances. A Participant may be granted one or more of the following Supplemental Retirement Allowances under the Plan: 
 (a) A Supplemental Retirement Allowance in an amount determined by using the formula for calculating the Participant’s Retirement
Allowance under the Salaried Retirement Plan, but, subject to the limitations of Article II, A (2) of the Plan, crediting Accredited Service in addition to that credited to the Participant pursuant to the Salaried Retirement Plan in recognition
of previous service by the Participant deemed to be of special value to the Company or his Participating Company; 
 (b) A
Supplemental Retirement Allowance in an amount equal to: 
 (i) a stated dollar amount per year, or 
 (ii) a stated percentage of the Participant’s Five-Year Average Compensation, or 
 (iii) the Participant’s Retirement Allowance under the Salaried Retirement Plan, which Supplemental Retirement Allowance accrues at
a rate as a percentage of the Participant’s Five-Year Average Compensation which is greater than the rate of accrual under the Salaried Retirement Plan, such Supplemental Retirement Allowance to be calculated in individual instances on the
basis of specific instructions which may depart only for such purpose from the terms, conditions and requirements of the Salaried Retirement Plan; or 
 (c) A Supplemental Retirement Allowance in an amount determined by using the formula for calculating the Participant’s Retirement Allowance under the Salaried Retirement Plan, such Supplemental Retirement
Allowance to be payable on and after the Participant’s retirement in an amount which is greater than the Retirement Allowance otherwise payable to the Participant at such age. 
 (2) Limitation on Accredited Service. If a Supplemental Retirement Allowance under Article II, A (1) of the Plan is determined pursuant to a
formula in the Salaried Retirement Plan using the Participant’s Compensation (including awards under incentive compensation plans of a Participating Company), the aggregate number of years of Accredited Service used in calculating the amount of
the Participant’s Supplemental Retirement Allowance under this Plan shall not exceed thirty-five (35) years. 
 (3) Appendix
I. The name of each Participant and the Supplemental Retirement Allowance awarded to him pursuant to Article II, A (1) of the Plan shall be set forth in Appendix I to the Plan. 
  

 19 

 (4) Payment. Payment of such Supplemental Retirement Allowance shall be made to such Participant
at the time and in the manner specified in Article II, C of the Plan. 
  

	B.	SUPPLEMENTAL SURVIVOR ALLOWANCES, SUPPLEMENTAL SURVIVOR INCOME BENEFIT
ALLOWANCES AND SUPPLEMENTAL OPTIONAL PAYMENT ALLOWANCES 

 (1) Deceased Participants 
 (a) The Spouse of a Deceased Participant shall be
eligible to receive a Supplemental Survivor Allowance. 
 (b) If the death of the Deceased Participant occurs prior to his
attaining the age of sixty-one (61) years and he has (or is deemed to have) completed five (5) years or more of Accredited Service as of the date of his death, his Spouse shall be eligible to receive a Supplemental Survivor Income Benefit
Allowance on the SMERP Benefit Payment Date specified in Article I, (mm) (3) of the Plan. Such Supplemental Survivor Income Benefit Allowance shall be determined by assuming such Deceased Participant had continued in the employ of his Participating
Company until the age of sixty-five (65) years, that his compensation (as defined in the Survivor Income Benefit Plan, or in the designation of the Employee as a Participant in the Plan) for all periods of time subsequent to his death and until
age sixty-five (65) had been his compensation as in effect immediately prior to his death and that the Deceased Participant died the day after attaining the age of sixty-five (65) years. Such Supplemental Survivor Income Benefit Allowance
shall be reduced by the amount of any Supplemental Survivor Allowance payable pursuant to Article II, B (1) (a) of the Plan. 
 (2)
Deceased Retired Participants. 
 (a) The Spouse of a Deceased Retired Participant shall be eligible to receive a
Supplemental Survivor Allowance on the SMERP Benefit Payment Date specified in Article I, (mm) (2) of the Plan; provided that in the case of a Grandfathered Deceased Retired Participant, the Administrator has not granted his request to have payment
of his Grandfathered Supplemental Retirement Allowance paid in the form of a Supplemental Optional Payment Allowance. 
 (b)
The Spouse of a Grandfathered Deceased Retired Participant (other than a Grandfathered Deceased Retired Participant who is only eligible for a Vested Retirement Allowance) whose request for an Optional Payment described in Article I, (bb)
(1) of the Plan has been granted by the Administrator and who has died after his Date of Retirement shall be eligible to receive a Supplemental Survivor Income Benefit Allowance, as applicable to such Grandfathered Deceased Retired Participant.
Such Supplemental Survivor Income Benefit Allowance shall be reduced by the amount of any Supplemental Survivor Allowance payable pursuant to Article II, B (2) (a) of the Plan. 
 (c) The Beneficiary of a Grandfathered Deceased Retired Participant whose request for an Optional Payment in the form of a Supplemental
Optional Payment Allowance has been granted by the Administrator, but who has died after his Date of Retirement and prior to his SMERP Benefit Payment Date shall be eligible to receive that 

  

 20 

 
portion of the Supplemental Optional Payment Allowance elected by the Retired Participant which is payable after the death of the Retired Participant.

 (4) Objective of Benefit. It is the intention of the provisions of this Paragraph B. to provide a benefit to the Spouse or other
Beneficiary of a Deceased Participant or Deceased Retired Participant in the same instances as such Spouse or other Beneficiary would receive a benefit under the terms of the Salaried Retirement Plan or the Survivor Income Benefit Plan, as
applicable to such Spouse or other Beneficiary, and the provisions of this Article II, B of the Plan shall be construed and interpreted in a manner that is consistent with that objective. 
  

	C.	SMERP BENEFIT PAYMENT DATE AND TERMINATION OF SUPPLEMENTAL
RETIREMENT ALLOWANCES, SUPPLEMENTAL SURVIVOR ALLOWANCES, SUPPLEMENTAL SURVIVOR INCOME BENEFIT
ALLOWANCES AND ALLOWANCES PAYABLE IN THE FORM OF AN OPTIONAL PAYMENT:

 (1) Supplemental Retirement Allowances. 
 (a) For Retired Participants. 
 (i) The Form of Payment of the Supplemental Retirement Allowance to a Retired Participant who is not a Grandfathered Retired Participant shall be a Single Sum Payment on his SMERP Benefit Payment Date specified in Article I,
(mm) (1) (A) of the Plan. 
 (ii) If a Retired Participant who is not a Grandfathered Retired
Participant dies after his Date of Retirement and before payment of his Supplemental Retirement Allowance is paid in a Single Sum Payment, his Beneficiary shall receive a Single Sum Payment on the SMERP Benefit Payment Date specified in Article I,
(mm) (1) (A) of the Plan. 
 (iii) In the event the Supplemental Retirement Allowance with respect to
the Retired Participant is paid in a Single Sum Payment prior to: 
 (A) the Retired Participant’s Benefit Commencement
Date, the amount of such Supplemental Retirement Allowance shall equal the amount reasonably estimated by the Administrator to be actually payable under the Plan; or 
 (B) the date the Retired Participant shall have specified on his application for retirement as the Benefit Commencement Date of his
Retirement Allowance under the Salaried Retirement Plan, the Single Sum Payment shall be calculated based on the assumption that the Retired Employee elected to receive a Retirement Allowance at his Unreduced Early Retirement Benefit Commencement
Date. 
 (b) For Grandfathered Retired Participants. 
  

 21 

 (i) The Form of Payment of the Supplemental Retirement Allowance to a Retired Participant
who is a Grandfathered Retired Participant eligible for an Early, Full or Deferred Retirement Allowance at his Separation from Service shall be a Single Sum Payment on the SMERP Benefit Payment Date specified in Article I, (mm) (1) (A) of
the Plan, unless the Administrator has approved the Grandfathered Retired Participant’s election to have distribution of that portion of his Supplemental Retirement Allowance that is the Grandfathered Supplemental Retirement Allowance made in
the form of an Optional Payment pursuant to Article II, C (6) of the Plan, in which case the Form of Payment of his Grandfathered Benefit Equalization Retirement Allowance shall be made in the form of Optional Payment as specified in Article I, (bb)
of the Plan, as applicable to the Grandfathered Retired Participant on the SMERP Benefit Payment Date set forth in Article I, (mm) (1) (B) or (C) of the Plan. 
 (ii) If a Grandfathered Retired Participant who is eligible for an Early, Full or Deferred Retirement Allowance at his Separation from
Service dies after his Separation from Service and before payment of that portion of his Supplemental Retirement Allowance that is to be paid in a Single Sum Payment, his Beneficiary shall receive such Single Sum Payment on the SMERP Benefit Payment
Date specified in Article I, (mm) (1) (A) of the Plan. 
 (iii) 
 (A) The Form of Payment of that portion of the Supplemental Retirement Allowance that is not the Grandfathered Supplemental Retirement
Allowance with respect to a Grandfathered Retired Participant who is only eligible for a Vested Retirement Allowance shall be a Single Sum Payment on the SMERP Benefit Payment Date specified in Article I, (mm) (1) (A) of the Plan. 
 (B) The Form of Payment of that portion of the Supplemental Retirement Allowance that is the Grandfathered Supplemental Retirement
Allowance with respect to a Grandfathered Retired Participant who is only eligible for a Vested Retirement Allowance shall be the same form of Optional Payment which the Grandfathered Retired Participant’s Vested Retirement Allowance is paid
from the Salaried Retirement Plan and shall commence to be paid to the Retired Participant on his SMERP Benefit Payment Date specified in Article I, (mm) (1) (D) of the Plan. 
 (2) Supplemental Survivor Allowances. 
 (a) The Form of Payment of the Supplemental Survivor Allowance payable pursuant to Article II, B (1) (a) of the Plan to the Spouse of a Deceased Participant who is not a Grandfathered Participant or
pursuant to Article II, B (2) (a) to the Spouse of a Deceased Retired Participant who is not a Grandfathered Deceased Retired Participant shall be a Single Sum Payment paid to the Spouse on the SMERP Benefit Payment Date specified in
Article I, (mm) (2) (A) of the Plan. 
 (b) The Form of Payment of that portion of the Supplemental Survivor
Allowance that: 
 (i) is not the Grandfathered Supplemental Survivor Allowance payable to the Spouse of a Deceased
Participant who is a Grandfathered Participant shall be a Single Sum Payment paid to the Spouse on the SMERP Benefit Payment Date specified in Article I, (mm) (2) (A) of the Plan; and 
  

 22 

 (ii) is the Grandfathered Supplemental Survivor Allowance shall be the same form and at
the same time as the Survivor Allowance is paid from the Salaried Retirement Plan commencing on the SMERP Benefit Payment Date specified in Article I, (mm) (2) (B) of the Plan. 
 (3) Supplemental Survivor Income Benefit Allowances. 
 (a) The Form of Payment of the Supplemental Survivor Income Benefit Allowance payable pursuant to Article II, B (1) (b) of the
Plan to the Spouse of a Deceased Participant who is not a Grandfathered Participant shall be a Single Sum Payment paid to the Spouse on the SMERP Benefit Payment Date specified in Article I, (mm) (3) (A) of the Plan. 
 (b) The Form of Payment of that portion of the Supplemental Survivor Income Benefit Allowance that: 
 (i) is not the Grandfathered Supplemental Survivor Income Benefit Allowance payable pursuant to Article II, B (2) (b) of the
Plan to the Spouse of a Grandfathered Deceased Retired Participant shall be a Single Sum Payment paid to the Spouse on the SMERP Benefit Payment Date specified in Article I, (mm) (3) (A) of the Plan; and 
 (ii) is the Grandfathered Supplemental Survivor Income Benefit Allowance shall be in the same form as the Survivor Income Benefit
Allowance is paid from the Survivor Income Benefit Plan commencing on the SMERP Benefit Payment Date specified in Article I, (mm) (3) (B) of the Plan. 
 (4) Supplemental Optional Payment Allowance. The Form of Payment of the Supplemental Optional Payment Allowance payable pursuant to Article II, B (3) of the Plan to the Beneficiary of a Grandfathered
Deceased Retired Participant shall be the Optional Payment approved by the Administrator and commencing on the SMERP Benefit Payment Date specified in Article I, (mm) (4) of the Plan. 
 (5) Termination of Grandfathered Allowances. 
 (a) The payment of any Grandfathered Supplemental Retirement Allowance, Grandfathered Supplemental Survivor Allowance and Grandfathered Optional Payment Allowance in any form other than a Single Sum Payment shall
terminate on the same date as payment would terminate under the Salaried Retirement Plan. 
 (b) The payment of any
Grandfathered Supplemental Survivor Income Benefit Allowance in any form other than a Single Sum Payment shall terminate on the same date as payment would terminate under the Survivor Income Benefit Plan. 
 (6) Optional Payment. A Grandfathered Participant who is eligible to retire on a Full, Deferred or Early Retirement Allowance may make application
to the Administrator to receive 

  

 23 

 
an Optional Payment with respect to his Grandfathered Supplemental Retirement Allowance in lieu of the Single Sum Payment otherwise payable after his
Separation from Service. 
 (a) The application for an Optional Payment shall specify: 
 (i) the form in which such Optional Payment is to be paid, 
 (ii) the Beneficiary, if any, who will receive benefits after the death of the Employee, and 
 (iii) the SMERP Benefit Payment Date. 
 (b) In the case of a Participant who eighteen (18) months prior to attaining the age of sixty-five (65) years could be compulsorily retired by his Participating Company upon attaining the age of sixty-five
(65) years pursuant to Section 12(c) of the Age Discrimination in Employment Act, any application for an Optional Payment must be filed with the Administrator more than one (1) year preceding the date the Participant attains the age
of sixty-five (65) years. 
 (c) The Administrator shall notify the Benefits Committee of all applications for an
Optional Payment. The Administrator may grant or deny any such application in its sole and absolute discretion. Except as provided in Subparagraphs (d) and (e) of this Article II, C (6) of the Plan, a Participant shall not receive his
Grandfathered Supplemental Retirement Allowance in the form of a Single Sum Payment after the Administrator has granted the Participant’s application for an Optional Payment. In the event the Participant or Retired Participant incurs a Change
in Circumstance on or after the date of the filing of the application for an Optional Payment and prior to his SMERP Benefit Payment Date, the Participant or Retired Participant may file an application with the Administrator within ninety
(90) days of the Change in Circumstance, but in no event later than his SMERP Benefit Payment Date, to change the form of Optional Payment, or to change the Beneficiary who is to receive a benefit after the death of the Retired Participant in
accordance with the Optional Payment method originally filed with the Administrator. 
 (d) An application for an Optional
Payment with respect to a Grandfathered Participant’s Grandfathered Supplemental Retirement Allowance in lieu of the Single Sum Payment otherwise payable after his Separation from Service shall be of no force and effect if: 
 (i) the Participant does not retire on a Full, Deferred or Early Retirement Allowance, 
 (ii) the Participant incurs a disability at any time before the date his Optional Payment commences to be made which causes him to be
eligible for benefits under the Philip Morris International Long-Term Disability Plan or any other long-term disability plan of a Participating Company, or 
  

 24 

 (iii) the Participant is retired for ill health, disability or hardship under Article II,
A 3.(a) of the Salaried Retirement Plan. 
 (e) In the event the application for an Optional Payment is of no force and
effect as a result of an event described in clauses (ii) or (iii) of Article II, C (6) (d) of the Plan, payment of the Grandfathered Participant’s Supplemental Retirement Allowance shall be made in a Single Sum Payment
pursuant to Article II, C (1) (a) of the Plan on the SMERP Benefit Payment Date specified in Article I, (mm) (1) of the Plan, but otherwise such application for an Optional Payment shall be effective on the Participant’s
Date of Retirement on a Full, Deferred or Early Retirement Allowance and the Grandfathered Participant’s Grandfathered Supplemental Retirement Allowance shall commence on the SMERP Benefit Payment Date specified in Article I,
(mm) (1) (A) of the Plan; provided, however, that if within the one (1) year period following the date of the filing of the application with the Administrator the Grandfathered Participant voluntarily retires or his employment is
terminated for misconduct (as determined by the Benefits Committee) by any member of the Controlled Group, the Optional Payment shall be reduced by one percent (1%) for each month (or portion of a month) by which the month in which the Retired
Participant’s termination of employment precedes the first anniversary of the filing of the application with the Administrator and his benefits shall commence in the SMERP Benefit Payment Date specified in Article I,
(mm) (1) (B) of the Plan. 
 (7) Exceptions. Notwithstanding the preceding provisions of this Paragraph C, 

(a) the Administrator may cause the distribution of that portion of the Supplemental Retirement Allowance that is the Grandfathered
Supplemental Retirement Allowance to any group of similarly situated Grandfathered Retired Participants (or their Spouses or other Beneficiaries) in a Single Sum Payment or as an Optional Payment; and 
 (b) the Administrator shall distribute that portion of a Retired Participant’s Supplemental Retirement Allowance that is the
Grandfathered Supplemental Retirement Allowance in a Single Sum Payment if such portion of the Supplemental Retirement Allowance payable in equal monthly payments is not more than $250 per month. 
 (8) Actuarial Equivalents. Any Supplemental Survivor Allowance or Supplemental Optional Payment Allowance payable under this Plan to any Spouse or
other Beneficiary commencing at an age other than the Retired Participant’s Normal Retirement Age shall be the Actuarial Equivalent of the benefit payable pursuant to the terms of the Plan in equal monthly payments for life commencing at the
Retired Participant’s Normal Retirement Age. 
 (9) Delayed Single Sum Payments. If any Single Sum Payment is made later than the
date otherwise specified in this Article II, C of the Plan and such late payment is not due in whole or in part to the fault of the Retired Participant (or his Beneficiary), interest at a rate to be determined by the Administrator shall be added to
such Single Sum Payment. 
  

 25 

	D.	REDUCTION OF BENEFITS 

 (1) Supplemental Retirement Allowance. 
 (a) The Supplemental Retirement Allowance
payable to a Retired Participant shall be reduced by the greater of: 
 (i) the Actuarial Equivalent of the benefits payable
pursuant to any Other Plan to the extent that service used to determine the amount of benefits payable from such Other Plan is also used to calculate the amount of a Retired Participant’s Supplemental Retirement Allowance under this Plan, or

 (ii) the amount set forth in, or determined in accordance with, the Participant’s designation as such pursuant to
Article I, (dd) of the Plan, assuming in each case that the Participant elected to receive such benefits in equal monthly payments for his life; 
 (b) provided, however, that: 
  

 26 

 (i) in the event the Supplemental Retirement Allowance is paid to the Retired Participant
(or his beneficiary) in a Single Sum Payment prior to the Retired Participant’s Benefit Commencement Date, such Supplemental Retirement Allowance shall be computed in accordance with the applicable provisions of Article II, A (1) of the
Plan, as reasonably estimated by the Administrator, reduced by the Actuarial Equivalent of the projected annual amount of benefits payable pursuant to any Other Plan assuming that such benefits are payable to the Retired Participant in equal monthly
payments for life; and 
 (ii) in the event the benefit equalization retirement allowance under the Benefit Equalization Plan
is paid to the Retired Participant (or his Spouse or other beneficiary) in a single sum payment (as defined in the Benefit Equalization Plan) prior to the Retired Participant’s Benefit Commencement Date, the amount of the reduction to the
Participant’s Supplemental Retirement Allowance shall be determined in good faith by the Administrator. 
 (2) Supplemental Survivor
Allowance or Supplemental Survivor Income Benefit Allowance. Any Supplemental Survivor Allowance or Supplemental Survivor Income Benefit Allowance payable to the Spouse of a Deceased Participant or of a Deceased Retired Participant pursuant to
Article II, B of the Plan shall be reduced by the Actuarial Equivalent of the maximum benefits for which the Spouse was actually eligible under the Salaried Retirement Plan, the Benefit Equalization Plan and the Survivor Income Benefit Plan assuming
that the Participant elected to receive a Retirement Allowance under the Salaried Retirement Plan and a benefit equalization retirement allowance under the Benefit Equalization Plan in equal monthly payments for the life of the Retired Participant.

 (3) Supplemental Optional Payment Allowance. Any Supplemental Optional Payment Allowance payable to the Beneficiary of a
Grandfathered Deceased Retired Participant pursuant to Article II, B of the Plan shall be reduced by the Actuarial Equivalent of the benefits payable pursuant to the Salaried Retirement Plan and the Benefit Equalization Plan assuming that the
Grandfathered Deceased Retired Participant had elected to receive such benefits in equal monthly payments for life. 
 (4) Employment
Outside of United States. The Supplemental Retirement Allowance of a Participant, who as a result of employment outside of the United States, has benefits accrued to him under the social security, or similar laws, of a country other than the
United States may, in the discretion of the Administrator, be reduced by the Actuarial Equivalent of such benefits, assuming that such Participant elected to receive such benefits in equal monthly payments for life. 
 (5) Prior Single Sum Payment. No benefits shall be payable to the Spouse or other beneficiary of a Deceased Retired Participant pursuant to
Article II, B of the Plan, if prior to his death the Deceased Retired Participant received a Single Sum Payment from this Plan or the Single Sum Payment is made after his death to his Spouse or a beneficiary. 
  

 27 

	E.	APPLICATION OR NOTIFICATION FOR PAYMENT OF ALLOWANCES:

 (1) Notification of SMERP Benefit Payment Date. An application for retirement pursuant to Article II, B of the
Salaried Retirement Plan shall be deemed notification to the Administrator of the SMERP Benefit Payment Date of a Supplemental Retirement Allowance (or other benefit) in accordance with the terms of this Plan. 
 (2) Notification of Beneficiary. In the event a Grandfathered Participant shall not have elected an Optional Payment method with respect to that
portion of his Supplemental Retirement Allowance that is Grandfathered Supplemental Retirement Allowance, the Grandfathered Participant may specify the Beneficiary to whom payment of the Single Sum Payment shall be made in the event the
Grandfathered Participant dies after his Separation from Service, but prior to his SMERP Benefit Payment Date. If no Beneficiary is specified, the Beneficiary shall be the Participant’s Spouse, and if there is no Spouse, the Beneficiary shall
be the Grandfathered Participant’s estate. 
  

 28 

 ARTICLE III 
 SUPPLEMENTAL PROFIT-SHARING ALLOWANCES 
  

	A.	SUPPLEMENTAL PROFIT-SHARING ALLOWANCES 

 A Participant may be granted a Supplemental Profit-Sharing Allowance equal to the amount, if any, by which the sum of the Operating Company Contribution
which would have been made to the Profit-Sharing Plan and the amount which would have been credited to his account under the Benefit Equalization Plan had such Participant been eligible to participate in such plans for a plan year, exceeds the
amount, if any, of employer contributions (excluding any contributions which the Participant has elected to have an employer make on his behalf pursuant to a cash or deferred arrangement) actually made or credited for the plan year on behalf of such
Participant under a defined contribution plan qualified under Section 401(a) of the Code, an excess benefit plan (as defined in ERISA) and a plan maintained primarily for the purpose of providing deferred compensation for a select group of
management or highly compensated employees maintained by any other member of the Controlled Group. 
  

	B.	CREDITS TO SUPPLEMENTAL PROFIT-SHARING ALLOWANCE; SMERP BENEFIT
PAYMENT DATE 

 (1) Valuation. Any amounts credited to a
Participant’s account pursuant to the provisions of this Article III shall be deemed to have been invested in Part A of the Fund (Stable Value Fund) under the Profit-Sharing Plan and shall be valued in accordance with the provisions of the
Profit-Sharing Plan. 
 (2) Payment. A Participant shall receive his Supplemental Profit-Sharing Allowance in a Single Sum Payment on
the Payment Date, but no later than the Latest Payment Date. If a Participant or former Participant dies before receiving such Supplemental Profit-Sharing Allowance, payment shall be made to his Beneficiary in a Single Sum Payment on the Payment
Date, but no later than the Latest Payment Date. 
 (3) Application. A Participant or former Participant (or Beneficiary) shall make
application to the Administrator (or his delegate) for distribution of Supplemental Profit-Sharing Allowance under this Plan. Any such application shall specify the Beneficiary to whom payment of the Single Sum Payment shall be made in the event the
Participant dies after his Separation from Service, but prior to his SMERP Benefit Payment Date. 
  

 29 

 ARTICLE IV 
 FUNDS FROM WHICH ALLOWANCES ARE PAYABLE 
  

	A.	ESTABLISHMENT AND MAINTENANCE OF INDIVIDUAL ACCOUNTS;
CONTRIBUTIONS 

 (1) Establishment of Accounts. Individual accounts shall be
established for the benefit of each Participant (or Beneficiary) under the Plan. Any benefits payable from an individual account shall be payable solely to the Participant (or Beneficiary) for whom such account was established. The Plan shall be
unfunded. All benefits intended to be provided under the Plan shall be paid from time to time from the general assets of the Participant’s Participating Company and paid in accordance with the provisions of the Plan; provided,
however, that the Participating Companies reserve the right to meet the obligations created under the Plan through one or more trusts or other agreements. 
 (2) Contributions. The contributions by each Participating Company on behalf of its Participants to the individual accounts established pursuant to the provisions of the Plan, whether in trust or otherwise,
shall be in an amount which such Participating Company, with the advice of an actuary, determines to be sufficient to provide for the payment of the benefits under the Plan. No Participant, Spouse or Beneficiary shall, unless the Plan expressly
provides otherwise, have any right or claim whatsoever to any specific assets of a Participating Company or of any trust. 
  

	B.	MAINTENANCE OF BOOK RESERVES 

 Each Participating Company shall maintain such reserves on its books with respect to Participants who are employed by such Participating Company as
determined by the actuary for the Plan. 
  

 30 

 ARTICLE V 
 ADMINISTRATION 
  

	A.	DUTIES OF THE BENEFITS COMMITTEE AND ADMINISTRATOR

 The general administration of the Plan shall be vested in the Administrator. The Benefits Committee and the Administrator
may employ and rely on actuaries, legal counsel, accountants and agents as they deem advisable. 
  

	B.	APPLICABILITY OF DUTIES OF THE BENEFITS COMMITTEE AND
ADMINISTRATOR UNDER THE SALARIED RETIREMENT PLAN TO THE PLAN 

 All powers, rights, duties and responsibilities assigned to the Benefits Committee and the Administrator under the Salaried Retirement Plan applicable to
this Plan shall be the powers, rights, duties and responsibilities of the Benefits Committee and the Administrator under the terms of this Plan, except that the Benefits Committee and the Administrator shall not be fiduciaries (within the meaning of
Section 3(21) of ERISA) with respect to any portion or all of the Plan which is intended to be exempt from the requirements of ERISA pursuant to Section 4(b)(5) thereof. 
  

 31 

 ARTICLE VI 
 AMENDMENT AND DISCONTINUANCE OF THE PLAN 
  

	A.	AMENDMENT OF THE PLAN BY THE BOARD OF
DIRECTORS OF PHILIP MORRIS INTERNATIONAL INC., THE BENEFITS COMMITTEE AND THE
ADMINISTRATOR 

 (1) Authority to Amend. The Board may, from time to time, and at any
time, amend the Plan; provided, however, that authority to amend the Plan is delegated to the following committees or individuals where approval of the Plan amendment or amendments by the shareholders of Philip Morris International Inc. is not
required: 
 (a) to the Benefits Committee, if the amendment (or amendments) will not increase the annual cost of the Plan by
$10,000,000; and 
 (b) to the Administrator, if the amendment (or amendments) will not increase the annual cost of the Plan
by $500,000. 
 (2) Permitted Amendments. Any amendment to the Plan may effect a substantial change in the Plan and may include (but
shall not be limited to) any change deemed by the Company to be necessary or desirable to obtain tax benefits under any existing or future laws or rules or regulations thereunder; provided, however, that no such amendment shall deprive any
Participant, Retired Participant, Spouse or Beneficiary of any Allowances accrued at the time of such amendment. 
  

	B.	TERMINATION OF THE PLAN 

 (1) Authority to Terminate. The Board may terminate the Plan for any reason at any time, provided that such termination shall not adversely affect
the rights of any Participant, Retired Participant, Spouse or Beneficiary to benefits accrued to the date of termination. 
 (2)
Participant Rights Upon Termination. In the event the Plan is terminated, each Participant, whether or not such Participant is eligible to receive benefits under this Plan, shall be immediately and fully vested in the benefits set forth in
Article II of the Plan accrued to the date of termination of the Plan. Payment of any such benefits shall be made or commence to be made at the time such Participant (or his Spouse or Beneficiary) meets, under the terms of the Plan at the time
of its termination, the requirement for payment of benefits under the Plan. 
  

	C.	CHANGE OF CONTROL PROVISIONS 

 Notwithstanding any other provision of the Plan to the contrary, in the event of a Change of Control of Philip Morris International Inc., each
Participant shall immediately be fully vested in the benefits set forth in Article II of the Plan which have accrued through the date of the Change of Control and, upon the Change of Control, each Participant (or his Spouse or Beneficiary) shall be
entitled to a Single Sum Payment in an amount which is the Actuarial Equivalent of such accrued benefits, which amount shall be paid within 30 days of the Change of Control. 
  

 32 

 ARTICLE VII 
 FORMS; COMMUNICATIONS 
  

	A.	FORMS; USE OF ELECTRONIC MEDIA 

 The Administrator shall provide such appropriate forms as he may deem expedient in the administration of the Plan and no action to be taken under the
Plan for which a form is so provided shall be valid unless upon such form. Any Plan communication may be made by electronic medium to the extent allowed by applicable law. The Administrator may adopt reasonable procedures to enable a Participant or
Retired Participant to make an election using electronic medium (including an interactive telephone system and a website on the Intranet). 
  

	B.	COMMUNICATIONS CONCERNING THE PLAN 

 All communications concerning the Plan shall be in writing addressed to the Benefits Committee or the Administrator at such address as may from time to
time be designated. No communication shall be effective for any purpose unless received by the Benefits Committee or the Administrator. 
  

 33 

 ARTICLE VIII 
 INTERPRETATION OF PROVISIONS 
  

	A.	DISCRETIONARY AUTHORITY TO INTERPRET THE PLAN

 All power and authority with respect to the discretionary authority of the Benefits Committee and the Administrator to
interpret the provisions of the Salaried Retirement Plan shall be the power and authority of the Benefits Committee and the Administrator to interpret the provisions of this Plan, including discretionary authority to determine all matters arising in
the administration, interpretation and application of the Plan; discretionary authority to construe Plan terms and provisions and to make factual determinations and to remedy any ambiguities, inconsistencies or omissions of any kind; discretionary
authority to determine the eligibility of any employee of a Participating Company to participate in the Plan; and to determine the amount of any benefit to which any person is entitled to under the Plan; provided, however, that the
Administrator and any Benefits Committee member who makes a request for payment of a Supplemental Retirement Allowance in accordance with a form of distribution authorized under the Salaried Retirement Plan shall excuse himself from any and all
deliberations and decisions in connection with such request. 
  

 34 

 ARTICLE IX 
 APPLICABILITY OF PROVISIONS OF SALARIED RETIREMENT 
 PLAN AND SURVIVOR INCOME BENEFIT PLAN

  

	A.	APPLICABILITY OF PROVISIONS OF SALARIED RETIREMENT PLAN
AND SURVIVOR INCOME BENEFIT PLAN TO THE PLAN 

 Except as expressly provided to the contrary, all of the provisions, conditions and requirements set forth in the Salaried Retirement Plan and where
applicable, the Survivor Income Benefit Plan, with respect to eligibility for and payment of benefits thereunder shall be equally applicable to the granting of Supplemental Retirement Allowances, Supplemental Survivor Income Benefit Allowances and
other benefits to Participants and Beneficiaries pursuant to this Plan and the payment thereof pursuant to the provisions of this Plan. Whenever a Participant’s rights under this Plan are to be determined, appropriate reference shall be made to
the Salaried Retirement Plan or the Survivor Income Benefit Plan, as applicable. 
  

 35 

 ARTICLE X 
 CERTAIN RIGHTS AND LIMITATIONS 
  

	A.	NONASSIGNMENT AND NONALIENATION 

 No benefit under the Plan shall be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, or charge, and any
attempt to do so shall be void; nor shall any benefit be in any manner liable for or subject to the debts, contracts, liabilities, engagements, or torts of the person entitled to such benefit. In the event that the Administrator shall find that any
Participant, Retired Participant, Spouse or other beneficiary under the Plan has become bankrupt or that any attempt has been made to anticipate, alienate, sell, transfer, assign, pledge, encumber, or charge any of his benefits under the Plan, then
such benefits shall cease, and in that event, the Administrator shall hold or apply the same to or for the benefit of such Participant, Retired Participant, Spouse or other beneficiary or apply the same to or for the benefit of such Participant,
Retired Participant, Spouse or other beneficiary, in such manner as the Administrator may deem proper. 
  

	B.	BENEFITS CONDITIONED ON MEETING ALL REQUIREMENTS UNDER THE
PLAN 

 Except as otherwise expressly provided in the Plan, Supplemental Retirement
Allowances, Supplemental Profit-Sharing Allowances and Supplemental Survivor Income Benefit Allowances and other benefits shall be payable only if the Participant meets all of the requirements for benefits under the Plan. 
  

 36 

 EXHIBIT A  
 ACTUARIAL ASSUMPTIONS USED TO CALCULATE A SINGLE SUM PAYMENT 
 INTEREST RATE: The average of
the monthly rate of interest specified in Section 417(e)(3)(A)(ii)(II) of the Code, but published for 24 months preceding the Employee’s Date of Retirement, less 1/2 of 1%. 
 MORTALITY ASSUMPTION: The applicable mortality table is the table specified in Section 417(e)(3)(A)(ii)(I) of the Code and
Section 1.417(e)-1(c)(2) of the Treasury Regulations (currently prescribed in Rev. Rul. 2001-62 as GAR 1994). 
  

 37Restricted Stock Award Agreement

 Exhibit 10.6 
 BOLT TECHNOLOGY CORPORATION 
 RESTRICTED STOCK AWARD AGREEMENT 
 THIS RESTRICTED STOCK AWARD AGREEMENT (this “Agreement”) is entered into as of January 23, 2008 (the
“Effective Date”), by and between Bolt Technology Corporation, a Connecticut corporation (the “Company”), and Raymond M. Soto (the “Participant”). 
 WHEREAS, the Participant is an employee of the Company or one of its subsidiaries or a director of the Company and in connection therewith has rendered
services for and on behalf of the Company and/or its subsidiaries; and 
 WHEREAS, in recognition of the prior contributions made by the
Participant and to provide the Participant with an additional incentive to use maximum efforts for the future success of the Company and its subsidiaries, the Company desires to grant to the Participant, and the Participant desires to accept from
the Company, an award of the common stock, without par value, of the Company (the “Common Stock”) pursuant to the Bolt Technology Corporation Amended and Restated 2006 Stock Option and Restricted Stock Plan (as it may be further
amended from time to time, the “Plan”), subject to certain restrictions for the benefit of the Company, and upon such other terms and conditions, set forth in this Agreement. 
 NOW, THEREFORE, the Company and the Participant agree as follows: 
 1. Restricted Stock Award. The Company hereby offers to issue to the Participant 15,000 shares (after effect of January 2008 
3-for-2 stock split) of Common Stock (the “Shares”)
subject to the restrictions and on the terms and conditions set forth in this Agreement (the “Award”). Unless this offer is earlier revoked in writing by the Company, the Participant shall have ten (10) days from the date of
the delivery of this Agreement to the Participant to accept the offer of the Company by executing and delivering to the Company two copies of this Agreement, without condition or reservation of any kind whatsoever, and pay the full purchase price,
if any, for said Shares to the Company in the manner set forth in this Agreement. 
 2. Purchase Price. The purchase price to purchase
the Shares is zero ($0). 
 3. Restriction on the Shares. 
 (a) Period of Restriction. Except as otherwise set forth herein, all the Shares issued to the Participant pursuant to this Agreement shall be
subject to a period of restriction (the “Period of Restriction”) during which the Participant’s rights in and to such Shares shall be subject to the limitations and obligations set forth in this Section 3. 

 (b) Lapse of Period of Restriction. The Period of Restriction shall lapse as to a percentage of
the Shares in accordance with the schedule set forth below based upon the period of time of the Participant’s Continuous Service (as defined in the Plan) with the Company or any Subsidiary (as defined in the Plan), calculated from the Effective
Date: 
  

					
	 Period of Continuous Service
 (calculated from the
Effective Date)
	  	 Incremental Percentage of
 Shares Not Subject to
Restriction
	  	 Cumulative Percentage of
 Shares Not Subject to
Restriction

	              12 months	  	                  20%	  	                  20%
	              24 months	  	                  20%	  	                  40%
	              36 months	  	                  20%	  	                  60%
	              48 months	  	                  20%	  	                  80%
	              60 months	  	                  20%	  	                100%

 During the period that the Shares are subject to the Period of Restriction, such Shares are referred to herein as
“Restricted Stock.” 
 (c) Termination of Continuous Service. Notwithstanding any other provision of this Agreement
to the contrary, if the Participant’s Continuous Service with the Company or any Subsidiary terminates for any reason (or no reason) other than the Participant’s retirement as set forth in the proviso to this Section 3(c), including
without limitation, the Participant’s death or Disability (as defined in the Plan), any shares of Restricted Stock that are subject to the Period of Restriction on the date of the Participant’s termination shall be immediately forfeited by
the Participant and shall be automatically transferred to and reacquired by the Company at no cost to the Company, and neither the Participant nor his or her heirs, executors, administrators or successors shall have any right or interest in such
Restricted Stock; provided, however, that if the Participant holds Restricted Stock at the time the Participant’s Continuous Service with the Company terminates due to the Participant’s retirement, the Period of Restriction with respect to
such Restricted Stock shall automatically lapse on the date of the Participant’s retirement. 
 (d) Escrow. Upon the
Participant’s execution and delivery of this Agreement, the Participant agrees to concurrently deliver one or more executed stock powers as requested by the Company, duly endorsed in blank for transfer, in the form attached hereto as
Exhibit A, which shall be deposited with the Company during the Period of Restriction. Each certificate representing shares of Restricted Stock shall bear the following legend until the lapse of the Period of Restriction with respect to the
shares represented by such certificate: 
 Transfer of this certificate and the shares represented hereby is restricted pursuant to the terms
of the Bolt Technology Corporation Amended and Restated 2006 Stock Option and Restricted Stock Plan (the “Plan”) and the Restricted Stock Award Agreement, dated as of January 23, 2008, between Bolt Technology Corporation and Raymond
M. Soto (the “Agreement”). Copies of the Plan and the Agreement are on file at the offices of Bolt Technology Corporation. 
  

 2 

 The certificates representing the Restricted Stock along with the stock power(s) shall be held in escrow by the Company
until such time as either (i) the Period of Restriction with respect to all of such shares of Restricted Stock lapses in accordance with Section 3(b) or the proviso in Section 3(c) of this Agreement, in which case the shares shall be
delivered to the Participant, or (ii) any such shares of Restricted Stock are forfeited pursuant to Section 3(c) of this Agreement, in which case such shares shall be transferred to and reacquired by the Company in accordance with said
Section 3(c). 
 (e) Distributions. All cash distributions on the Restricted Stock shall be paid directly to the Participant and
shall not be held in escrow. Any new, substituted or additional securities or other property issued in respect of Restricted Stock shall be held in escrow, together, where applicable, with appropriate stock powers, assignments or other transfer
documents which the Participant hereby agrees to execute as a condition to receipt of such securities or other property. If the Restricted Stock in respect of which such securities or other property was issued is forfeited to the Company pursuant to
Section 3(c) of this Agreement, then such securities or other property shall be immediately forfeited to the Company and automatically transferred to and reacquired by the Company at no cost to the Company, to the same extent and in accordance
with Section 3(c) of this Agreement as if such securities or other property were Restricted Stock thereunder. 
 4.
Participant’s Acknowledgement. The Participant acknowledges and agrees that: (x) unless the Shares are covered by a then current registration statement or a notification under Regulation A under the Securities Act of 1933, as
amended (the “Securities Act”), (i) the Shares are being purchased for investment and not for distribution or resale (other than a distribution or resale which, in the opinion of counsel satisfactory to the Company, may be made
without violating the registration provisions of the Securities Act); (ii) the Participant has been advised and understands that (A) the Shares have not been registered under the Securities Act and are “restricted securities”
within the meaning of Rule 144 under the Securities Act and are subject to restrictions on transfer, and (B) the Company is under no obligation to register the Shares under the Securities Act or to take any action which would make available to
the Participant any exemption from such registration; (iii) such Shares may not be transferred without compliance with all applicable federal and state securities laws and any other restrictions contained in the Plan and this Agreement; and
(iv) an appropriate legend referring to the foregoing restrictions on transfer and any other applicable restrictions under this Agreement may be endorsed on the certificates; (y) notwithstanding the foregoing, if the Company determines
that issuance of Shares should be delayed pending (1) registration under federal or state securities laws, (2) the receipt of an opinion of counsel satisfactory to the Company that an appropriate exemption from such registration is
available, (3) the listing or inclusion of the Shares on any securities exchange or an automated quotation system, or (4) the consent or approval of any governmental regulatory body whose consent or approval is necessary in connection with
the issuance of such Shares, the Company may defer issuance of any Shares granted hereunder until any 

  

 3 

 
of the events described in this sentence has occurred; and (z) if at any time the Committee shall determine that an additional agreement of the
Participant is necessary or desirable as a condition of, or in connection with, the delivery or purchase of the Shares hereunder, then the Award shall not be effective unless such agreement shall have been obtained free of any conditions not
acceptable to the Committee. 
 5. Rights as a Stockholder. Upon the Participant’s execution and delivery of this
Agreement and payment of the full purchase price for the Shares and until such time as the Restricted Stock is forfeited to the Company as set forth herein, the Participant shall be the record owner of the Restricted Stock and, subject to the terms
of this Agreement and the Plan, shall have all rights of a stockholder with respect to the Restricted Stock, including the right to vote the shares of Restricted Stock and, subject to the terms of Section 3 hereof, to receive dividends and
distributions with respect to the Restricted Stock. 
 6. Change of Control. Notwithstanding Section 3 of this Agreement,
if the Participant holds Restricted Stock at the time a Change of Control (as defined in the Plan) occurs, the Period of Restriction with respect to such Restricted Stock shall automatically lapse immediately prior to the consummation of such Change
of Control, provided that the Participant remains employed with the Company upon such Change of Control; except that if the acquiring or successor entity (or parent thereof) in a Change of Control transaction provides for the continuance or
assumption of this Agreement or the substitution for this Agreement of a new agreement of comparable value covering shares of a successor corporation (with appropriate adjustments as to the number and kind of shares and the purchase price), then the
Period of Restriction shall not lapse, and the Period of Restriction shall continue in accordance with this Agreement. 
 7.
Withholding. All deliveries and distributions under this Agreement shall be subject to withholding of all applicable taxes. The Participant agrees to make appropriate arrangements with the Company for satisfaction of any applicable federal,
state or local income tax, withholding requirements or like requirements, including the payment to the Company upon the lapse of the Period of Restriction with respect to shares of Restricted Stock (or such later date as may be applicable under
Section 83 of the Internal Revenue Code of 1986, as amended (the “Code”)), or other settlement in respect of, the Restricted Stock of all such taxes and requirements. The Participant agrees that the Company shall be authorized to take
such action as the Company may deem necessary (including, without limitation, in accordance with applicable law, withholding amounts from any compensation or other amount owing from the Company to the Participant) to satisfy all obligations for the
payment of such taxes. 
 8. Restrictions on Transfer. The Participant shall not sell, transfer, pledge, hypothecate, assign, exchange
or otherwise dispose of the Restricted Stock. Any attempted sale, transfer, pledge, hypothecation, assignment, exchange or other disposition shall be null and void and of no force or effect and the Company shall have the right to disregard the same
on its books and records and to issue “stop transfer” instructions to its transfer agent. 
  

 4 

 9. Plan Provisions Control. This Agreement is subject to the terms and conditions of the Plan,
which are incorporated herein by reference. Notwithstanding anything to the contrary contained herein, the provisions of the Plan shall govern if and to the extent there are inconsistencies between the provisions of the Plan and the provisions of
this Agreement. The Participant acknowledges that the Participant has received a copy of the Plan prior to the execution of this Agreement. 
 10. No Rights Conferred. Nothing in this Agreement shall give the Participant any right to continue in the employ or service of the Company or any Subsidiary and/or as a member of the Company’s Board of Directors or in any other
capacity, or interfere in any way with the right of the Company or any Subsidiary to terminate the employment or services of the Participant. 
 11. Adjustments. All references to the number and class of shares covered by this Agreement, the purchase price per share of the Shares, and other terms in this Agreement may be appropriately adjusted, in the discretion of the
Committee, in the event of certain changes in capitalization, as set forth in Section 9 of the Plan. 
 12. Compliance with
Section 409A of the Code. The Participant hereby consents (without further consideration) to any change to this Agreement or the Award so the Participant can avoid paying penalties under Section 409A of the Code, even if those changes
affect the terms and conditions of this Agreement or the Award and reduce its value or potential value. 
 13. Binding Effect.
This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective heirs, executors, administrators, successors and permitted assigns. This Agreement may not be assigned or transferred in whole or in part
by the Participant, nor may the Participant delegate any duty or obligation under this Agreement, and any attempt to so assign, transfer or delegate shall be null and void and of no force or effect. 
 14. Interpretation of this Agreement. All determinations and interpretations made by the Committee with regard to any questions arising under the
Plan or this Agreement shall be final, binding and conclusive as to all persons, including without limitation the Participant and any person claiming rights from or through the Participant. 
 15. Venue. Each party to this Agreement hereby irrevocably (i) consents and submits to the exclusive jurisdiction of the state and federal
courts in Fairfield County, Connecticut in connection with any disputes arising out of this Agreement, and (ii) waives any objection based on venue or inconvenient forum with respect to any action instituted therein arising under this Agreement
or the transactions contemplated hereby, and agrees that any dispute with respect to such matters shall be heard only in the courts described above. 
  

 5 

 16. Governing Law; Entire Agreement; Amendment. This Agreement shall be governed by and construed
in accordance with the laws of the State of Connecticut, without regard to such state’s conflict of laws principles. The Plan and this Agreement constitute the entire agreement between the parties with respect to the subject matter hereof and
supersede all prior understandings and agreements, written or oral, of the parties hereto with respect to the subject matter hereof. This Agreement may be amended by the Committee, subject to the Participant’s consent if such amendment is not
favorable to the Participant, except that the consent of the Participant shall not be required for any amendment made pursuant to Section 7B(j), Section 8 or Section 9 of the Plan, or as set forth in Section 12 of this Agreement.

 17. Tax Elections. THE PARTICIPANT UNDERSTANDS THAT HE OR SHE (AND NOT THE COMPANY) SHALL BE RESPONSIBLE FOR THE PARTICIPANT’S
OWN TAX LIABILITY THAT MAY ARISE AS A RESULT OF THE ACQUISITION OF THE SHARES HEREUNDER. THE PARTICIPANT ACKNOWLEDGES AND AGREES THAT HE OR SHE HAS CONSIDERED THE ADVISABILITY OF ALL TAX ELECTIONS IN CONNECTION WITH THE ISSUANCE OF THE SHARES,
INCLUDING THE MAKING OF AN ELECTION UNDER SECTION 83(b) OF THE CODE. THE PARTICIPANT FURTHER ACKNOWLEDGES AND AGREES THAT, IF THE PARTICIPANT DETERMINES TO MAKE AN ELECTION UNDER SECTION 83(b) OF THE CODE, (i) THE PARTICIPANT (AND NOT THE
COMPANY) IS SOLELY RESPONSIBLE FOR PROPERLY AND TIMELY COMPLETING AND FILING ANY SUCH SECTION 83(b) ELECTION, AND (ii) THE PARTICIPANT AGREES TO TIMELY PROVIDE A COPY OF THE ELECTION TO THE COMPANY AS REQUIRED UNDER THE CODE. 

18. Notices. Any notice, demand or request required or permitted to be given under this Agreement shall be in writing and shall be deemed given
(i) when delivered personally, or (ii) three days after being deposited in the United States mail, by certified or registered mail, postage prepaid, or (iii) the next business day after sent by nationally recognized overnight delivery
service, and addressed, if to the Company, at its principal place of business, Attention: Chief Financial Officer, and if to the Participant, at his or her most recent address as shown in the employment or stock records of the Company. 

 

 6 

 IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first written above.

  

			
	BOLT TECHNOLOGY CORPORATION
		
	By:	 	 /s/ Joseph Espeso

	Name:	 	Joseph Espeso
	Title:	 	Senior Vice President Finance – CFO
	
	PARTICIPANT
	
	 /s/ Raymond M. Soto

	Raymond M. Soto

  

 7 

 Exhibit A 
 STOCK POWER 
 For value received, I hereby sell, assign and transfer unto
                                        
     shares of the Common Stock of Bolt Technology Corporation standing in my name on the books of said Company represented by Certificate(s) Number(s)
                     herewith, and do hereby irrevocably constitute and appoint
                         attorney to transfer the said stock on the books of said Company with full power of substitution
in the premises. 
  

			
	Date:	 	  

  

			
	Printed Name:	 	  

  

			
	Social Security Number:	 	  

  

			
	Signature:	 	  

  

			
	Witness Signature:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00141-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00141-of-00352.parquet"}]]