Document:

Amended and Restated International Assignment Agreement

 Exhibit 10.1 
  

					
		 		 	 Cisco Systems, Inc

		 		 	 170 West Tasman Drive

		 		 	 San Jose, CA 95134-1706

		 		 	 Phone: 408 526 4000

		 		 	 Fax: 408 526 1400

		 		 	 http://www.cisco.com

 February 15, 2010 
 Wim Elfrink 
 [ADDRESS] 
  

	Re:	Amended and Restated International Assignment Agreement 

 Dear Wim: 
 I am pleased to confirm the amendment and restatement of your international assignment
to India. This letter of agreement outlines the terms and conditions of the amendment and restatement of your international assignment. Your international assignment is also subject to the terms of Cisco’s Long Term International Assignment
Policy (the “International Assignment Policy”) and the Tax Equalization Policy as they apply to international assignees generally. However, where an express term of this Agreement and the International Assignment Policy
conflict, this Agreement will govern. 
 Your point of origin is the Netherlands (the “home country”) and your country of reference
during your assignment is India (the “host country”). You will be treated as a resident of the United States for tax equalization purposes. 
 This Agreement supersedes and replaces, in its entirety, your previous International Assignment Agreement dated November 19, 2007 and your previous Agreement of International Assignment from the Netherlands to the United States dated
November 9, 2001 and any prior employment agreement except to the extent set forth in Exhibit A or as otherwise required by the laws of the Netherlands. 
 Assignment 
 Your international assignment began on January 3, 2007. 
 Your job title is Executive Vice President, Cisco Services and Chief Globalization Officer. In this capacity, you report to John Chambers, or his
successor(s) and/or designee(s). As the Executive Vice President, Cisco Services and Chief Globalization Officer, you are responsible for such duties and responsibilities as Mr. Chambers or his successor or designee assign. You are required to
travel in India, and/or internationally during your international assignment. 

 Wim Elfrink 
 February 2010 
 Page 2 
  

 Term 
 Although neither this assignment nor this letter alters your status as an at-will employee, it is anticipated that your international assignment will last for up to an additional three years from
January 3, 2010. Your international assignment may be extended if expressly agreed upon in writing by you and Cisco. 
 Salary and Bonus

 You will remain on and be paid by your home country payroll. Your annual base salary will continue to be EUR 583,778 (USD 839,968 as of
January 3, 2010) as approved by the Compensation and Management Development Committee effective as of October 27, 2008. You will also continue to be eligible to participate in Cisco’s Executive Incentive Plan (“EIP”). Your
continued participation in the EIP will be subject to the terms and conditions of the EIP. Your target bonus percentage under the EIP for fiscal year 2010 will continue to be 125 percent (125%) of your annual base salary. 
 Your salary and bonuses will be paid to you in Euro from your home country less applicable deductions and withholdings, subject to the Tax Equalization
Policy. 
 Benefits 
 Life
insurance, business travel accident insurance, retirement plans, disability and healthcare coverage will be provided from the home country while on assignment. For additional information about benefits coverage, please refer to the Benefits section
on Cisco’s intranet and access the link to Worldwide Plans. Your vacation entitlements will continue to be governed by the policies in effect for the home country and your PTO accrual will remain unchanged. However, working hours, public
holidays and sick leave will follow policies in effect for the host country, India. 
 Please be aware that in the case of a medical or security
emergency, Cisco has contracted with International SOS (“ISOS”) to provide employees working abroad with access to a full range of medical information and emergency services, including medical assistance, international healthcare, security
services and outsourced customer care. Additional information about ISOS, is available on Cisco’s intranet at wwwin.cisco.com/employee/benefits/isos.shtml. 

 Wim Elfrink 
 February 2010 
 Page 3 
  

 On-Going Allowances and Reimbursements 
 Cisco has adopted a “Balance Sheet Approach” in compensating employees on international assignments, to ensure that assignees can maintain purchasing power similar to that which they would have
enjoyed in their home country, assuming the same salary, grade level and family size. Therefore, during your international assignment, you will continue to be entitled to the following allowances or reimbursements to cover additional costs incurred
as a result of your international assignment. In addition, any amount of allowance/reimbursement that is not used by you in any given month shall be carried over to the next month(s) and made available to you (in addition to the maximum allowance
specified) in the subsequent month(s). Notwithstanding the foregoing, with respect to any allowance/reimbursement that would otherwise be treated as a deferred compensation arrangement under Section 409A of the Internal Revenue Code of 1986, as
amended (“Section 409A”) if the amount were carried over into a subsequent taxable year, any portion of such allowance/reimbursement that is unused as of each December 31 (including amounts carried over from a prior month in the same
calendar year) shall not be carried-over into the next calendar year and made available to you. Cisco will reimburse you for business expenses in accordance with Cisco’s applicable reimbursement policies; however, if you incur any business
related travel expenses that are not reimbursed by Cisco under such policies, any of the allowances below may be used to cover such expenses. 
 Housing Assistance: 
 Cisco will reimburse the monthly rental payments on the residence that will be leased on your behalf in
India. You understand and agree that your host country residence will be used not only as your personal residence, but for business purposes as well, including as a forum to showcase and test Cisco’s technology. The annual cost for this lease
is not to exceed INR 24,632,200 (USD 528,361 as of January 3, 2010) with scheduled annual inflation increases pursuant to the signed lease contract. 
 In order to maintain the property, Cisco has contracted with Epitome services for house maintenance to be paid on your behalf by Cisco. The annual cost of this benefit is not to exceed INR 2,600,000 (USD
55,770 as of January 3, 2010). Cisco will also reimburse you for the cost of domestic household assistance. The annual cost of this benefit is not to exceed INR 710,000 (USD 15,230 as of January 3, 2010). 
 For your security and the security of Cisco’s property, Cisco has contracted with a security firm for these services to be paid on your behalf. The
annual cost of this benefit is not to exceed INR 1,212,000 (USD 25,997 as of January 3, 2010). 
 Cisco will continue to provide housing
assistance in the United States as it will be necessary for you to return to the United States for business purposes. This housing assistance will be paid from the Netherlands payroll in the monthly amount not to exceed EUR 10,835 (USD 15,590 as of
January 3, 2010). Cisco will continue to assist with the costs of utilities in the United States at a cost not to exceed USD 300 per month. 
 Property Management: 
 If you elect not to sell or rent your home country residence, Cisco will reimburse you for the costs for
property management of that residence in accordance with the International Assignment Policy. 

 Wim Elfrink 
 February 2010 
 Page 4 
  

 Dependent Education Reimbursement: 
 Cisco will reimburse you the annual cost of tuition for each of your dependent children attending elementary or secondary school at the host location with a cost not to exceed INR 1,000,000 (USD 21,450 as
of January 3, 2010) in the aggregate per school year. 
 Home Leave Travel Allowance: 
 Cisco will reimburse you for the cost of airfare for you, your spouse, and your children to return to your home in the Netherlands or to the United States
each year. As a guideline, this allowance typically covers three trips per year. The annual cost of this benefit is not to exceed USD 50,000. 
 Automobile Assistance: 
 The costs for the rent or purchase two family-style automobiles, the services of two drivers during
your international assignment and standard automobile insurance on such two vehicles for you and your spouse will be paid on your behalf by Cisco. The annual cost is not to exceed INR 2,381,800 (USD 51,090 as of January 3, 2010). 
 In addition, Cisco will continue to pay you the transportation allowance that you were provided in connection with your international assignment to the
United States from the Netherlands as it will be necessary for you to return to the United States for business purposes. That allowance shall continue to be paid through payroll in the Netherlands and shall be in the amount of EUR 1,850 (USD 2,662
as of January 3, 2010) each month. 
 Relocation Payment: 
 Because you have completed your first full year working on international assignment in India, Cisco will continue to pay you a lump sum relocation allowance equal to EUR 27,574 (USD 39,675 as of
January 3, 2010) per year paid through payroll in the Netherlands for relocation, adjustment and transition assistance. Payment shall continue to be made on or about each anniversary of the commencement of your international assignment.
This payment shall be in lieu of the Miscellaneous Relocation Payment set forth in the International Assignment Policy. 
 Please notify Cartus
if you have any questions regarding these payments. In addition, please notify Cartus of any changes in your family size within 30 days while you are on assignment. These changes may affect the structuring of your benefits package or
allowances. 
 Repatriation 
 Upon completion of your international assignment, Cisco will provide you with relocation assistance related to your move back to the United States. This will include one-way business class travel for you and your qualifying dependents;
shipment of household goods and personal effects and temporary living in your home country. 

 Wim Elfrink 
 February 2010 
 Page 5 
  

 Assuming your international assignment is successful, upon its termination Cisco will attempt to employ you
in a position comparable to your then current position and which utilizes the skills and experience you gained during your international assignment. If Cisco is unable to provide you with a position comparable to your then current position, Cisco
will attempt to provide you with a position comparable to your position immediately prior to the commencement of your international assignment. Your base salary and target bonuses, in either case, will be at a level commensurate with the position
offered. If Cisco is unable to offer you a position, your employment will terminate and Cisco will pay you an amount equal to 225 percent (225%) of your then current annual salary (the “Severance”). Cisco’s obligation to pay the
Severance will be contingent upon your execution and the effectiveness of a release agreement in a form provided by Cisco within 30 days of your “separation from service” from Cisco as that term is defined in Section 409A. This
Severance would be in lieu of any entitlement you may have to notice of termination, to pay in lieu of notice of termination, or to any other severance payment from any source. This section supersedes any termination of employment provision of the
International Assignment Policy. 
 Taxes 
 Your international assignment will be covered by Cisco’s Tax Equalization Policy and you hereby acknowledge that you have accepted all the terms and conditions set forth in Exhibit B. Your pay will
be subject to annual hypothetical tax deductions in amounts determined by Ernst & Young (“EY”). Cisco’s philosophy regarding tax equalization is that as an international assignee, you will neither materially gain nor lose
from the differences in income and social tax costs between your home and host country, within certain parameters. Tax equalization applies to Cisco equity awards as described in the Tax Equalization Policy. Any Indian tax related to your equity
income will be handled in the same manner as other international assignees assigned to India. For purposes of tax equalization, your home country will be the United States. Cisco has retained EY, an independent tax accounting firm, to provide
assistance with the preparation of both your home and local country tax filing obligations and to prepare annual tax equalization calculations. Please contact
[                            ] in EY’s Tax Department for any questions. 
 Fees associated with tax services provided by EY and other tax consulting services, including any services provided by your tax advisor in the Netherlands,
shall be paid on your behalf by Cisco not to exceed USD 75,000 per year. 
 Notwithstanding the foregoing, if this Agreement or any benefit
payable to you hereunder is subject to Section 409A and you are a “specified employee” (within the meaning of Section 409A) as of the date you separate from service from Cisco, then any payments scheduled to be made to you
pursuant to this Agreement during the first six months following your separation from service shall be delayed and shall accrue interest at the applicable federal rate for such six month period. The delayed payments (and including any accrued
interest) shall be paid immediately following the end of the six month delay. In no event shall Cisco be liable for any taxes or penalties imposed under Section 409A with respect to any benefit(s) paid to you pursuant to this Agreement. All
reimbursements under this Agreement that are subject to Section 409A shall be made no later than the end of the calendar year next following the calendar year in which the applicable expenses are incurred and the Severance, if any, shall be
paid no later than the 15th day of the third month following the year in which your international assignment terminates. Any tax equalization payments shall be paid within the time periods described in Section 1.409A-1(b)(8)(iii) of the
Treasury Regulations under Section 409A. 

 Wim Elfrink 
 February 2010 
 Page 6 
  

 Dispute Resolution 
 You and Cisco acknowledge and agree that any and all disputes or claims arising from or relating to your recruitment to or employment with Cisco (including but not limited to disputes or claims arising
from or relating to this Agreement), or the termination of your employment, will be resolved solely and exclusively pursuant to final and binding arbitration in lieu of any evidentiary hearing before a government agency and/or a court trial before a
judge or jury, pursuant to the terms of Cisco’s Arbitration Agreement and Policy, a copy of which can be found at http://wwwin.cisco.com/HR/employee/proprietary_info/agreement2arbitrate.shtml. The agreement to arbitrate means that both you and
Cisco have expressly waived any and all rights to a trial before a court or a jury. 
 General 
 Cisco’s personnel policies and standards of business apply to your assignment, unless a written exception is provided by a company representative
authorized to make that exception or is otherwise set forth in this Agreement. 
 This Agreement sets forth the entire agreement between you and
Cisco regarding your international assignment except that existing agreements with Cisco such as your agreement to arbitrate, your proprietary information and inventions agreement and agreement(s) establishing at-will employment are not superseded
by this agreement, unless expressly provided to the contrary herein. 
 This Agreement can only be modified by a written document signed in
writing by Randy Pond or his successor(s) or designee(s) and approved by the Compensation and Management Development Committee of the Board of Directors. Please note that Cisco reserves the right to unilaterally modify the provisions of this
Agreement and/or the documents incorporated herein as legal requirements may dictate, new practices may require or for other reasons at the discretion of Cisco. In the event such modifications are made, notification will be provided to you.

 This Agreement shall be governed by, and construed in accordance with, the laws of the State of California (except its choice-of-law
provisions). 
 We are excited to have you join our operations in India. If you are in agreement with the terms and conditions of your
assignment as outlined in this letter and in the attached policies, please sign the two originals and return one to the person listed below. 

 Wim Elfrink 
 February 2010 
 Page 7 
  

									
	BY CISCO SYSTEMS, INC.	 		 		 	APPROVED & ACCEPTED	 	
					
	 /s/ Randy Pond
	 	 2/15/10
	 		 	 /s/ Wim Elfrink
	 	 2/10/10

	Randy Pond	 	Date	 		 	Wim Elfrink	 	Date
	 Executive Vice President, Operations,
 Processes and Systems
	 		 		 	 Executive Vice President, Cisco Services and
 Chief Globalization Officer
	 	

  

			
	Return one original to:	 	[                            ]

		 	Cisco Systems, Inc.
		 	170 West Tasman Dr.
		 	San Jose, CA 95134
		 	United States

 EXHIBIT A 
  

	1.	Termination of the Employee’s home country employment agreement will be subject to a notice period of two (2) months. Notice must be given before the end of a
calendar month, in which case the formal notice period will start on the first day of the month following the month during which notice was served. 

  

	2.	The Employee shall be entitled to an annual holiday allowance of 8% of the gross annual base salary, payable in the month of May of the current year. If the Employee
performed work during only a part of the year, the holiday allowance shall be calculated and paid proportionately. 

  

	3.	The Employee shall be entitled to 25 days’ holiday a year, which the Employee shall take in consultation with and after approval by the Employer.

 In principle, accrued holidays must be taken in the calendar year in which they accrue. Excess holidays (i.e.,
holidays accrued during a certain year which have not been taken during the calendar year in which they accrued) must be taken between 1 January and 1 April of the subsequent calendar year in consultation with the Employer. If, after
consultation, the holidays are not taken during the said period, the Employer shall designate the period during which the holidays must be taken. If, in spite of this, the designated holiday period is not taken, the claim to the excess holidays
shall lapse. 
 Upon termination of the employment relationship, the Employee shall not be entitled to any salary over holidays
and/or hours which have been taken but which have not yet accrued. The Employee shall be obliged to repay the Employer any salary already received over such holidays and/or hours at the end of the employment relationship. 
  

	4.	If the Employee is ill or unable to perform work for any other reason, he shall be obliged to inform the Employer thereof on the first day of absence.

 If the Employee is unable to perform his work as a result of illness, he shall remain entitled to 100% of his
last earned salary for a period of 52 weeks, unless the illness was caused intentionally by him or ensued from an infirmity in respect of which he intentionally gave the Employer false information when he entered into the employment agreement, in
the event he causes an obstruction of or delay in the recovery process, or if the Employee - despite being able to do so - refuses to perform other suitable work for his own Employer or - with the prior approval of the Industrial Insurance Board -
for another employer. 
 The wages will be reduced by: 
  

	 	•	 	 the amount of any financial benefit which the Employee receives under any statutorily prescribed insurance or under any insurance or from many fund
which was agreed upon in or results from the employment agreement; 

  

	 	•	 	 the amount of income earned by the Employee, whether in or outside the employer-employee relationship, from work which he has performed in the period
during which the contractually agreed work could have been performed if he had not been prevented from doing so. 

 If the Employee’s incapacity for work was caused by a third party, the Employer shall
not be obliged to pay the Employee’s salary or a supplement to his social security benefits. If, in that case, the Employee can hold a third party liable for loss of income in connection with his incapacity for work, he shall assign his claim
against the third party to the Employer, for which he will receive an amount equal to the amount which he would have received if the third party had not been involved in the incapacity for work. The Employer will pay the amount to which the Employee
is in that case entitled in monthly installments, the amount of which shall be determined by the Employer. 
 The Employer will
not invoke the provisions contained above, if and insofar as the Employee cannot hold the third party liable. 
  

	5.	The Employer shall compensate 50% of the Employee’s premium payable for the standard insurance class of the Company’s health insurance plan. The Company does
not contribute to the costs of participating in insurance plans other than the Company plan. 

 The Employer has
taken out accident insurance, i.e. “Cisco’s Worldwide Business Travel Accident Insurance (BTA)”, for the benefit of the Employee. 
  

	6.	As required, the Employee has joined the employers pension scheme in the Netherlands. Both employee and employer participate in the costs of this scheme. Under the
scheme there is an employer contribution for the following pensions: old age pension, survivors pension, orphans pension and occupational disability benefit. By way of example, for fiscal 2007, Cisco’s contribution to this scheme was
approximately EUR 135,000 (USD 184,950 as of August 1, 2007). The contribution percentage increases with age and the contribution amount is generally determined as a percentage of certain cash compensation of the employee. Contributions are
used to purchase insurance which has a specified minimum guaranteed annual rate of return. 

  

	7.	Neither during the employment term nor upon termination of the employment shall the Employee inform any third party in any form, directly or indirectly, of any
particulars concerning or related to the business conducted by the Employer or its affiliated companies which he could reasonably have known were not intended for third parties, regardless of the manner in which he learned of the particulars.

 Any violation of the obligation to maintain confidentiality as set forth in the preceding paragraph shall carry
a penalty of NLG 10,000, immediately payable by the Employee to the Employer and without prejudice to any other claims which the Employer may have, including the right to full damages. 
  

	8.	Insofar as the rights specified hereinafter are not vested in the Employer by operation of law on the grounds of the employment relation between the parties, the
Employee covenants that he shall transfer and, insofar as possible, hereby transfers to the Employer any rights of whatever nature in or arising from inventions made by the Employee in the discharge of his duties, both in the Netherlands and abroad.

  

	9.	The foregoing provisions on this Exhibit A shall be governed by the laws of the Netherlands. 

 EXHIBIT B 
 CISCO SYSTEMS, INC. 
 INTERNATIONAL ASSIGNMENT TAX
EQUALIZATION POLICY AGREEMENT 
 I acknowledge having read the Tax Equalization Policy of Cisco Systems, Inc. (“Cisco”), located
at http://wwwin.cisco.com/FinAdm/Tax/StockOptions/stock_faq.shtml, and understand the personal impact of the Policy. Any questions concerning this Policy with Cisco have been fully explained to my satisfaction. I accept that all interpretations
under this agreement shall be controlled by the Policy of Cisco, which is included as part of this agreement. Cisco shall have the right and privilege at any time it deems necessary and proper to amend, add, or delete provisions to and from this
Policy without prior notice. 
 I understand and agree that all tax positions affecting income, deductions and credits outside the scope of the
Policy (i.e., amounts not covered by the Policy) are the responsibility of the employee. Cisco is not liable for any taxes, penalties, or interest resulting from a successful challenge by any tax authority of any item not covered by the Policy.

 In addition, I understand the employee is fully responsible for all penalties and interest charges assessed by any tax authority due to the
employee’s failure to (1) provide information to Ernst & Young on a timely basis, (2) notify Ernst & Young of any significant personal income or investment transactions, or (3) cooperate with Cisco with respect
to the tax equalization process. 
 I understand and agree that Cisco will reduce my compensation by an estimated hypothetical tax. The
estimated hypothetical tax is an amount which approximates my periodic estimated tax deductions calculated with reference to compensation, benefits, deductions and credits otherwise available to me had I remained in my home country, except as
otherwise provided in this Policy. In return, Cisco will advance wages that I have not yet earned to assist with the payment of my actual home and host country tax liabilities within the limits prescribed by the Policy. 
 I understand that these wage advances provided by Cisco for payment of taxes constitutes an obligation by me to Cisco, which will be reconciled with the
final liabilities that are Cisco’s responsibility through the annual tax equalization settlement calculation. After completion of the tax equalization settlement statement for each taxable year, I agree to repay any obligation for each taxable
year within thirty (30) days. If I fail to repay any obligation to Cisco within thirty (30) days after completion of the tax equalization settlement statement, then, unless Cisco and I have agreed otherwise in writing, Cisco shall have the
right to: 
  

	 	a)	reduce any foreign assignment allowances or reimbursements due to me, and/or 

  

	 	b)	reduce future amounts paid to me whether as wages, salary or other compensation for services performed in light of my having received wage advances that I have not yet
earned. 

 The total obligation will become immediately due and payable if my employment with Cisco or any of its affiliate
corporations is terminated, whether voluntarily or involuntarily. 
  

 If I fail to furnish tax records in response to a request by Cisco pursuant to the Policy, or cease
employment with Cisco or any of its subsidiaries for any reason before the tax records needed to complete the year-end tax equalization settlement statement under the Policy are available, then Cisco shall have the right to calculate such amounts by
making reasonable assumptions of probable taxes. If an amount is owed to Cisco, Cisco shall also have the right to require immediate payment of such amount, including the right to reduce future amounts paid to me whether as wages, salary or other
compensation for services performed in light of my having received wage advances that I have not yet earned, unless Cisco and I have agreed otherwise in writing.Form of Restricted Stock Agreement

 Exhibit 10.1 
 PHILIP MORRIS INTERNATIONAL INC. 
 2008 PERFORMANCE
INCENTIVE PLAN 
 (as amended and restated effective February 11, 2010) 
 RESTRICTED STOCK AGREEMENT 
 FOR PHILIP MORRIS INTERNATIONAL INC. COMMON STOCK 
 (February 11, 2010)

 PHILIP MORRIS INTERNATIONAL INC. (the “Company”), a Virginia corporation, hereby grants to the employee
identified in the 2010 Restricted Stock Award section of the Award Statement (the “Employee”) under the Philip Morris International Inc. 2008 Performance Incentive Plan (as amended and restated effective February 11, 2010) (the
“Plan”) a Restricted Stock Award (the “Award”) dated February 11, 2010 (the “Award Date”) with respect to the number of shares set forth in the 2010 Restricted Stock Award section of the Award Statement (the
“Shares”) of the Common Stock of the Company (the “Common Stock”), all in accordance with and subject to the following terms and conditions: 
 1. Book Entry Registration. The Shares shall be evidenced by a book entry account maintained by the Company’s Transfer Agent for the Common Stock. Upon the vesting of Shares, no certificates
will be issued except upon a separate written request made to such Transfer Agent or other agent as determined by the Company. 
 2. Restrictions. Subject to Section 3 below, the restrictions on the Shares shall lapse and the Shares shall vest on the Vesting Date set forth in the 2010 Restricted Stock Award section of the Award Statement (the “Vesting
Date”), provided that the Employee remains an employee of the PMI Group during the entire period commencing on the Award Date and ending on the Vesting Date. 
 3. Termination of Employment Before Vesting Date. In the event of the termination of the Employee’s employment with the PMI Group prior to the Vesting Date due to death or Disability, or upon
the Employee reaching eligibility for Normal Retirement, the restrictions on the Shares shall lapse and the Shares shall become fully vested on the date of death, Disability, or eligibility for Normal Retirement. 
 Subject to provisions of Section 6(a) of the Plan, if the Employee’s employment with the PMI Group is terminated for any reason
other than death or Disability or Normal Retirement prior to the Vesting Date, the Employee shall forfeit all rights to the Shares. Notwithstanding the foregoing and except as provided in Section 6(a) of the Plan, the Compensation Committee of
the Board of Directors of the Company may, in its sole discretion, waive the restrictions on, and the vesting requirements for, the Shares. 
 4. Voting and Dividend Rights. During the Restriction Period, the Employee shall have the right to vote the Shares and to receive any cash dividends payable with respect to the Shares, as paid,
less applicable withholding taxes (it being understood that such dividends will generally be taxable as ordinary compensation income during such Restriction Period). 
 5. Transfer Restrictions. This Award and the Shares (until they become unrestricted pursuant to the terms hereof) are non-transferable and may not be assigned, hypothecated or otherwise pledged and
shall not be subject to execution, attachment or similar process. Upon any attempt to effect any such disposition, or upon the levy of any such process, the Award shall immediately become null and void and the Shares shall be forfeited. 

6. Withholding Taxes. The Company is authorized to satisfy the actual minimum statutory withholding taxes arising from the
granting, or vesting of this Award, as the case may be, by deducting the number of Shares having an aggregate value equal to the amount of withholding taxes due from the total number of Shares awarded, vested, or otherwise becoming subject to
current taxation. The Company is also authorized to satisfy the actual withholding taxes arising from the granting or vesting of this Award, or

 
hypothetical withholding tax amounts if the Employee is covered under a Company tax equalization policy, as the case may be, by the remittance of the required amounts from any proceeds realized
upon the open-market sale of the vested Shares by the Employee. Shares deducted from this Award in satisfaction of actual minimum withholding tax requirements shall be valued at the Fair Market Value of the vested Shares on the date as of which the
amount giving rise to the withholding requirement first became includible in the gross income of the Employee under applicable tax laws. If the Employee is covered by a Company tax equalization policy, the Employee also agrees to pay to the Company
any additional hypothetical tax obligation calculated and paid under the terms and conditions of such tax equalization policy. 
 7. Death of Employee. If any of the Shares shall vest upon the death of the Employee, they shall be registered in the name of the estate of the Employee except that, to the extent permitted by the Compensation Committee, if the
Company shall have theretofore received in writing a beneficiary designation, the Shares shall be registered in the name of the designated beneficiary. 
 8. Board Authorization in the Event of Restatement. Notwithstanding anything in this Agreement to the contrary, if the Board of Directors of the Company or an appropriate Committee of the Board
determines that, as a result of fraud, misconduct, a restatement of the Company’s financial statements or a significant write-off not in the ordinary course affecting the Company’s financial statements, an Employee has received more
compensation in connection with this Award than would been paid absent the fraud, misconduct, write-off or incorrect financial statement, the Board or Committee, in its discretion, shall take such action with respect to this Award as it deems
necessary or appropriate to address the events that gave rise to the fraud, misconduct, write-off or restatement and to prevent its recurrence. Such action may include, to the extent permitted by applicable law, in appropriate cases, causing the
partial or full cancellation of this Award and, with respect to Shares that have vested, requiring the Employee to repay to the Company the partial or full Fair Market Value of the Award determined at the time of vesting. The Employee agrees by
accepting this Award that the Board or Committee may make such a cancellation, impose such a repayment obligation, or take other necessary or appropriate action in such circumstances. 
 9. Other Terms and Definitions. The terms and provisions of the Plan (a copy of which will be furnished to the Employee upon written
request to the Office of the Secretary, Philip Morris International Inc., 120 Park Avenue, New York, New York 10017) are incorporated herein by reference. To the extent any provision of this Award is inconsistent or in conflict with any term or
provision of the Plan, the Plan shall govern. Capitalized terms not otherwise defined herein have the meaning set forth in the Plan. Subject to the provisions of section 6(a), in the event of any merger, share exchange, reorganization,
consolidation, recapitalization, reclassification, distribution, stock dividend, stock split, reverse stock split, split-up, spin-off, issuance of rights or warrants or other similar transaction or event affecting the Common Stock after the date of
this Award, the Board of Directors of the Company is authorized, to the extent it deems appropriate, to make adjustments to the number and kind of shares of stock subject to this Award, including the substitution of equity interests in other
entities involved in such transactions, to provide for cash payments in lieu of Shares, and to determine whether continued employment with any entity resulting from such a transaction will or will not be treated as continued employment with the PMI
Group, in each case subject to any Board or Committee action specifically addressing any such adjustments, cash payments, or continued employment treatment. 
 For purposes of this Agreement, (a) the term “Disability” means permanent and total disability as determined under procedures established by the Company for purposes of the Plan, and
(b) the term “Normal Retirement” means retirement from active employment under a pension plan of any member of the PMI Group or under an employment contract with any member of the PMI Group on or after the date specified as the normal
retirement age in the pension plan or employment contract, if any, under which the Employee is at that time accruing pension benefits for his or her current service (or, in the absence of a specified normal retirement age, the age at which pension
benefits under such plan or contract become payable without reduction for early commencement and without any requirement of a particular period of

  

 2 

 
prior service). In any case in which (i) the meaning of “Normal Retirement” is uncertain under the definition contained in the prior sentence or (ii) a termination of
employment at or after age 65 would not otherwise constitute “Normal Retirement,” an Employee’s termination of employment shall be treated as a “Normal Retirement” under such circumstances as the Committee, in its sole
discretion, deems equivalent to retirement. “PMI Group” means the Company and each of its subsidiaries and affiliates. Generally, for purposes of this Agreement, (x) a “subsidiary” includes only any company in which the
Company, directly or indirectly, has a beneficial ownership interest of greater than 50 percent and (y) an “affiliate” includes only any company that (A) has a beneficial ownership interest, directly or indirectly, in the Company
of greater than 50 percent or (B) is under common control with the Company through a parent company that, directly or indirectly, has a beneficial ownership interest of greater than 50 percent in both the Company and the affiliate. 

IN WITNESS WHEREOF, this Restricted Stock Agreement has been duly executed as of February 11, 2010. 
  

	
	PHILIP MORRIS INTERNATIONAL INC.
	
	/s/ G. Penn Holsenbeck
	 G. Penn Holsenbeck
 Vice
President & Corporate Secretary
 Philip Morris International Inc.

  

 3

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