Document:

EX-10.31

 Exhibit 10.31 

DIRECTOR NOMINATION AGREEMENT 

THIS DIRECTOR NOMINATION AGREEMENT (this “Agreement”) is made and entered into as of [•], 2020, by and between Oak
Street Health, Inc., a Delaware corporation (the “Company”) and Humana, Inc., a Delaware corporation (“Humana”). This Agreement shall become effective (the “Effective Date”) upon the closing of the
Company’s initial public offering (the “IPO”) of shares of its common stock, par value $0.001 per share (the “Common Stock”). 

WHEREAS, as of the date hereof, Humana owns outstanding equity interests of Oak Street Health, LLC; 

WHEREAS, Humana is contemplating causing the Company to effect the IPO; 

WHEREAS, Humana currently has the authority to appoint certain members of the board of managers of the Company’s subsidiary, Oak Street
Health, LLC; 
 WHEREAS, in consideration of Humana agreeing to undertake the IPO, the Company has agreed to permit Humana to designate
persons for nomination for election to the board of directors of the Company (the “Board”) following the Effective Date on the terms and conditions set forth herein; 

NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, each of the parties to this Agreement agrees as follows: 
 1. Board Nomination Rights.

 From the Effective Date, Humana shall have the right, but not the obligation, to nominate to the Board one (1) Director so long as Humana
Beneficially Owns shares of Common Stock representing at least 5% of the shares of Common Stock then outstanding, which Director shall be nominated as a Class I Director; provided, however, that in the event that at any time prior to Humana
owning less than 5% of the shares of Common Stock then outstanding, Humana Beneficially Owns more than 30% of the shares of Common Stock then outstanding, Humana shall have the right, but not the obligation, to nominate to the Board two
(2) Directors for so long as Humana continues to Beneficially Own more than 30% of the shares of Common Stock then outstanding (such persons, the “Nominees”). Each of the Nominees of Humana shall be (i) reasonably
acceptable to the Board of Directors (provided it is agreed that the Nominee on Exhibit A hereto is agreed to be acceptable to the Board of Directors) and (ii) excluded from any meeting of the Board of Directors or any committee thereof (or
portion of any such meeting) and recused from any related decisions that any other member of the Board of Directors believes contains confidential information about any other health care payer or about any matters related to the Company’s
relationship with Humana. 
 (a) In the event that Humana has nominated less than the total number of designees that Humana shall be entitled
to nominate pursuant to Section 1, Humana shall have the right, at any time, to nominate such additional designees to which it is entitled, in which case, the Company 

 
and the Directors shall take all necessary corporation action, to the fullest extent permitted by applicable law (including with respect to fiduciary duties under Delaware law), to
(x) enable Humana to nominate and effect the election or appointment of such additional individuals, whether by increasing the size of the Board, or otherwise and (y) to designate such additional individuals nominated by Humana to fill
such newly created vacancies or to fill any other existing vacancies. 
 (b) The Company shall pay all reasonable out-of-pocket expenses incurred by any Nominee in connection with the performance of his or her duties as a director and in connection with his or her attendance at any
meeting of the Board. 
 (c) “Beneficially Own” shall mean that a specified person has or shares the right, directly or
indirectly, through any contract, arrangement, understanding, relationship or otherwise, to vote shares of capital stock of the Company. “Affiliate” of any person shall mean any other person controlled by, controlling or under
common control with such person; where “control” (including, with its correlative meanings, “controlling,” “controlled by” and “under common control with”) means possession,
directly or indirectly, of power to direct or cause the direction of management or policies (whether through ownership of securities, by contract or otherwise). 

(d) “Director” means any member of the Board. 

(e) No reduction in the number of shares of Common Stock that Humana Beneficially Owns shall shorten the term of any incumbent director. At the
Effective Date, the Board shall be comprised of eleven members and the initial Nominee shall be Carl Daley. 
 (f) In the event that any
Nominee shall cease to serve for any reason, Humana shall be entitled to designate such person’s successor in accordance with this Agreement (regardless of Humana’s Beneficial Ownership of Common Stock at the time of such vacancy) and the
Board shall promptly fill the vacancy with such successor nominee; it being understood that any such designee shall serve the remainder of the term of the director whom such designee replaces. 

(g) If a Nominee is not appointed or elected to the Board because of such person’s death, disability, disqualification, withdrawal as a
nominee or for other reason is unavailable or unable to serve on the Board, Humana shall be entitled to designate promptly another nominee and the director position for which the original Nominee was nominated shall not be filled pending such
designation. 
 (h) So long as Humana has the right to nominate at least one Nominee under Section 1 or any such Nominee is serving on
the Board, the Company shall maintain in effect at all times directors and officers indemnity insurance coverage reasonably satisfactory Humana, and the Company’s Amended and Restated Certificate of Incorporation and Bylaws (each as may be
further amended, supplemented or waived in accordance with its terms) shall at all times provide for indemnification, exculpation and advancement of expenses to the fullest extent permitted under applicable law. 

  
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 (i) At such time as the Company ceases to be a “controlled company” and is
required by applicable law or the New York Stock Exchange (the “Exchange”) listing standards to have a majority of the Board comprised of “independent directors” (subject in each case to any applicable phase-in periods), the Nominees shall include a number of persons that qualify as “independent directors” under applicable law and the Exchange listing standards such that, together with any other
“independent directors” then serving on the Board that are not Nominees, the Board is comprised of a majority of “independent directors”; provided that at any time that Humana shall have any nomination rights under this
Section 1, if Humana is only entitled to nominate one (1) Nominee, such Nominee need not qualify as an “independent director”. 

(j) At any time Humana shall have any nomination rights under Section 1, the Company shall not take any action,
including making or recommending any amendment to Company’s Amended and Restated Certificate of Incorporation or Bylaws (each as may be further amended, supplemented or waived in accordance with its terms) that could reasonably be expected to
adversely affect Humana’s rights under this Agreement. 
 (k) The Company recognizes that Nominees (i) will from time to time receive non-public information concerning the Company, and (ii) may share such information with other individuals associated with Humana that designated such Nominee. The Company hereby irrevocably
consents to such sharing. Humana agrees that it will keep confidential and not disclose or divulge to any third party any confidential information regarding the Company it receives from the Company or a Nominee, unless such information (x) is
known or becomes known to the public in general, (y) is or has been independently developed or conceived by Humana without use of the Company’s confidential information or (z) is or has been made known or disclosed to Humana by a
third party without a breach of any obligation of confidentiality such third party may have; provided, however, that Humana may disclose confidential information (I) to its Affiliates (other than portfolio companies), (II) to each of its and
its Affiliate’s (other than portfolio companies) attorneys, accountants, consultants, advisors and other professionals to the extent necessary to obtain their services in connection with evaluating the information, or (III) as may be
required by law or legal, judicial or regulatory process or requested by any regulatory or self-regulatory authority or examiner, provided that Humana takes reasonable steps to minimize the extent of any required disclosure described in this clause
(III). 
 2. Company Obligations. The Company agrees that prior to the date that Humana ceases to Beneficially Own shares of Common
Stock representing at least 5% of the total voting power of the then outstanding Common Stock, (i) each Nominee is included in the Board’s slate of nominees to the stockholders (the “Board’s Slate”) for each election
of directors; and (ii) each Nominee is included in the proxy statement prepared by management of the Company in connection with soliciting proxies for every meeting of the stockholders of the Company called with respect to the election of
members of the Board (each, a “Director Election Proxy Statement”), and at every adjournment or postponement thereof, and on every action or approval by written consent of the stockholders of the Company or the Board with respect to
the election of members of the Board. Humana will promptly report to the Company after Humana ceases to Beneficially Own shares of Common Stock representing at least 5% of the total voting power of the then outstanding Common Stock, such that
Company is informed of when this obligation terminates. The calculation of the number of Nominees that Humana is entitled to nominate to the Board’s Slate for any election of directors shall be based on the percentage of the total voting power
of the then outstanding Common Stock then Beneficially Owned by Humana immediately prior to the 

  
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mailing to shareholders of the Director Election Proxy Statement relating to such election (or, if earlier, the filing of the definitive Director Election Proxy Statement with the U.S. Securities
and Exchange Commission). Unless a Humana notifies the Company otherwise prior to the mailing to shareholders of the Director Election Proxy Statement relating to an election of directors, the Nominees for such election shall be presumed to be the
same Nominees currently serving on the Board, and no further action shall be required of Humana for the Board to include such Nominees on the Board’s Slate; provided, that, in the event Humana is no longer entitled to nominate the full number
of Nominees then serving on the Board, Humana shall provide advance written notice to the Company, of which currently servicing Nominee(s) shall be excluded from the Board Slate, and of any other changes to the list of Nominees. If Humana fails to
provide such notice prior to the mailing to shareholders of the Director Election Proxy Statement relating to such election (or, if earlier, the filing of the definitive Director Election Proxy Statement with the U.S. Securities and Exchange
Commission), a majority of the independent directors then serving on the Board shall determine which of the Nominees of Humana then serving on the Board will be included in the Board’s Slate. Furthermore, the Company agrees for so long as the
Company qualifies as a “controlled company” under the rules of the Exchange the Company will elect to be a “controlled company” for purposes of the Exchange and will disclose in its annual meeting proxy statement that it is a
“controlled company” and the basis for that determination. The Company and Humana acknowledge and agree that, as of the Effective Date, the Company is a “controlled company.” The Company agrees to provide written notice of the
preparation of a Director Election Proxy Statement to Humana at least 20 business days, but no more than 40 business days, prior to the earlier of the mailing and the filing date of any Director Election Proxy Statement. 

3. Committees. For so long as a Humana Nominee is serving as a Director, such Director shall be entitled to serve on any executive
committee, special committee or other committee to which plenary authority is delegated by the Board that is established after the date of the IPO. 

4. Amendment and Waiver. Any provision of this Agreement may be amended or waived if, but only if, such amendment or waiver is in
writing and is signed, in the case of an amendment, by the Company and Humana, or in the case of a waiver, by the party against whom the waiver is to be effective. No failure or delay by any party in exercising any right, power or privilege
hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies herein provided shall be
cumulative and not exclusive of any rights or remedies provided by law. Humana shall not be obligated to nominate all (or any) of the Nominees it is entitled to nominate pursuant to this Agreement for any election of directors but the failure to do
so shall not constitute a waiver of its rights hereunder with respect to future elections; provided, however, that in the event Humana fails to nominate all (or any) of the Nominees it is entitled to nominate pursuant to this Agreement
prior to the mailing to shareholders of the Director Election Proxy Statement relating to such election (or, if earlier, the filing of the definitive Director Election Proxy Statement with the U.S. Securities and Exchange Commission), the Nominating
and Corporate Governance Committee of the Board shall be entitled to nominate individuals in lieu of such Nominees for inclusion in the Board’s Slate and the applicable Director Election Proxy Statement with respect to the election for which
such failure occurred and Humana shall be deemed to have waived its rights hereunder with respect to such election; provided, further, however, that 

  
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any such waiver shall only be effective if the Company has provided written notice to Humana of such Director Election Proxy Statement no less than 20 business days, and no more than 40 business
days, prior to the earlier of the mailing or filing date of such Director Election Proxy Statement. The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by law. 

5. Benefit of Parties. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective
permitted successors and assigns. Notwithstanding the foregoing, the Company may not assign any of its rights or obligations hereunder without the prior written consent of Humana to the extent Humana has the right to nominate any Nominees under
Section 1 hereof. Except as otherwise expressly provided in Section 6, nothing herein contained shall confer or is intended to confer on any third party or entity that is not a party to this Agreement any rights under
this Agreement. 
 6. Assignment. Upon written notice to the Company, Humana may assign to any Affiliate (other than a portfolio
company) all of its rights hereunder and, following such assignment, such assignee shall be deemed to be “Humana”, as applicable, for all purposes hereunder. 

7. Headings. Headings are for ease of reference only and shall not form a part of this Agreement. 

8. Governing Law. This Agreement shall be construed in accordance with and governed by the law of the State of Delaware without giving
effect to the principles of conflicts of laws thereof. 
 9. Jurisdiction. Any suit, action or proceeding seeking to enforce any
provision of, or based on any matter arising out of or in connection with, this Agreement may be brought against any of the parties in any federal court located in the State of Delaware or any Delaware state court, and each of the parties hereby
consents to the exclusive jurisdiction of such court (and of the appropriate appellate courts) in any such suit, action or proceeding and waives any objection to venue laid therein. Process in any such suit, action or proceeding may be served on any
party anywhere in the world, whether within or without the jurisdiction of any such court. Without limiting the foregoing, each of the parties agrees that service of process upon such party at the address referred to in
Section 16, together with written notice of such service to such party, shall be deemed effective service of process upon such party. 

10. WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL
PROCEEDING ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT. 
 11. Entire Agreement. This Agreement constitutes the entire
agreement among the parties with respect to the subject matter hereof and supersedes all prior agreements, understandings and negotiations, both written and oral among the parties with respect to the subject matter hereof. 

  
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 12. Counterparts; Effectiveness. This Agreement may be signed in any number of
counterparts, each of which shall be deemed an original. This Agreement shall become effective when each party shall have received a counterpart hereof signed by each of the other parties. An executed copy or counterpart hereof delivered by
facsimile shall be deemed an original instrument. 
 13. Severability. If any provision of this Agreement or the application thereof
to any person or circumstance shall be invalid or unenforceable to any extent, the remainder of this Agreement and the application of such provisions to other persons or circumstances shall not be affected thereby and shall be enforced to the
greatest extent permitted by law. 
 14. Further Assurances. Each of the parties hereto shall execute and deliver such further
instruments and do such further acts and things as may be required to carry out the intent and purpose of this Agreement. 
 15. Specific
Performance. Each of the parties hereto agree that irreparable damage would occur if any provision of this Agreement were not performed in accordance with the terms hereof and that the parties shall be entitled to an injunction or injunctions to
prevent breaches of this Agreement or to enforce specifically the performance of the terms and provisions hereof in any federal or state court located in the State of Delaware, in addition to any other remedy to which they are entitled at law or in
equity. 
 16. Notices. All notices, requests and other communications to any party or to the Company shall be in writing (including
telecopy or similar writing) and shall be given, 
 If to the Company: 

Oak Street Health, Inc.. 
 30 W.
Monroe Street 
 Suite 1200 

Chicago, Illinois 60603 

Attention: Chief Legal Officer 

With a copy to (which shall not constitute notice): 

Kirkland & Ellis LLP 

300 N. LaSalle 
 Chicago, IL 60654

 Attention: Robert M. Hayward, P.C. 

                 Robert E. Goedert, P.C. 

Facsimile: (312) 862-2200 

  
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 If to Humana or any of its Nominees: 

Humana, Inc. 
 500 West Main
Street 
 Louisville, Kentucky 40202 

Attention: Law Department 
 E-mail: JRuschell1@humana.com 
 With a copy to (which shall not constitute notice): 

Fried, Frank, Harris, Shriver & Jacobson LLP 

801 17th Street, NW 

Washington, DC 20015 
 Attention:
Brian Mangino 
 Email: Brian.Mangino@friedfrank.com 

or to such other address or telecopier number as such party or the Company may hereafter specify for the purpose by notice to the other parties and the
Company. Each such notice, request or other communication shall be effective when delivered at the address specified in this Section 16 during regular business hours. 

17. Enforcement. Each of the parties hereto covenants and agrees that the disinterested members of the Board have the right to enforce,
waive or take any other action with respect to this Agreement on behalf of the Company. 

*        *        *       
 *        * 

  
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 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date first above
written. 
  

			
	OAK STREET HEALTH, INC.
		
	By:	 	          

	Name:
	Title:
	
	HUMANA, INC.
		
	By:	 	  

	Name:
	Title:

 Exhibit A 

Carl Daley is agreed by the Board of Directors to be a reasonably acceptable Nominee by Humana.Exhibit

Exhibit 10.2

CONFIDENTIAL

                  Lausanne, June 1st, 2020
Martin King
    
                            
Dear Mr. King,

This letter confirms the terms and conditions of your employment effective as of June 1st, 2020 (the “Effective Date”) with Philip Morris Services S.A. (“the Company”). 

Compensation

Your gross annual base salary will be CHF 845,004.-- corresponding to your grade, which is 25. Your base salary will be paid in twelve (12) equal monthly installments and reviewed annually, for the first time on April 1st, 2021.

Incentive Compensation Award Program 

As a grade 25 employee, you will be eligible to participate in the Incentive Compensation (“IC”) Award Program, which is administered at the sole discretion of the Compensation and Leadership Development Committee of the Board of Directors of Philip Morris International Inc. pursuant and subject to the terms of the 2017 Performance Incentive Plan (or any similar plan adopted from time to time). Each eligible employee has an annual IC award target that assumes a PMI company performance rating and an individual performance rating of 100. 

As a grade 25 employee, for 2020 your target is 100% of your annual base salary. Targets are reviewed annually and are made available to employees under the PMI 23-G4 Guidelines Global Variable Compensation Programs Annex 1.

Stock Award Program

As a grade 25 employee, you will be eligible to participate in the Stock Award Program, which is administered at the sole discretion of the Compensation and Leadership Development Committee of the Board of Directors of Philip Morris International Inc. pursuant and subject to the terms of the 2017 Performance Incentive Plan (or any similar plan adopted from time to time). Each eligible employee has an annual stock award target that assumes an individual performance rating of 100.

As a grade 25 employee, for 2020 your target is 175% of your annual base salary. Targets are reviewed annually and are made available to employees under the PMI 23-G4 Guidelines Global Variable Compensation Programs Annex 2.

Philip Morris Services S.A., Avenue de Cour 107, 1001 Lausanne, Switzerland  
T:+41 (58) 242 00 00, F: +41 (58) 242 01 01

The Incentive Compensation and Stock Award Programs are discretionary and do not obligate the Company to make an award nor entitle employees to receive an award. Eligibility to participate in the Programs does not guarantee receipt of an award and receiving an annual award does not guarantee receipt of an award in the future. Any awards that are made may be higher or lower than the targets mentioned above. Targets may be amended at the discretion of the Company at any time without prior notice.

Fidelity premium

For each completed year of service, the Company pays a cumulative bonus of CHF 150.-- on each anniversary of the Service Date (as defined in this contract), up to a maximum of CHF 3'000.-- for 20 years of service.

Pension Fund 

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

Your contribution to the Pension Fund will be deducted each month from your salary according to the current Pension Fund regulations.

Other benefits

For the purpose of benefits which are linked to seniority in the Company, but with the exception of Pension Fund affiliation, your initial entry date into Philip Morris International Inc. or its subsidiaries will be taken into account, i.e. June 3rd, 1991 (the “Service Date”).

Accident Insurance

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

Health Insurance

You will join the Company group health insurance contract. Employees and their eligible dependents (spouse and dependent children up to age 18 or up to age 25 if full-time student or apprentices) are enrolled into this group health insurance scheme. Global Mobility department will provide you full details of the coverage.

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Salary continuation in the event of sickness

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

Life Insurance

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

Vacation

You will be entitled to the greater of the number of days determined by applicable Home or Host Country Affiliate vacation practice.
Your entitlement to public holidays will be in accordance with local office practice.

Privacy policy and data protection

These provisions complement the provisions on data protection in the Company’s Employee Privacy Statement.

The Company will, in the course of its business, process (which includes collecting, storing, using and transferring):
		
	(a)
	personal data relating to you (for example, personnel details, bank account information, automated records of your use of information systems, or information required for building access control systems);

		
	(b)
	personal data that you provide to the Company relating to other persons (“Your Contacts”) such as your partner or other family members (for example contact details or information in connection with employee benefits); and

		
	(c)
	sensitive personal data relating to you or Your Contacts where this is necessary for the administration of your employment relationship and is permitted by law (for example, health data required to administer health benefits).

Together, all the data mentioned above is referred to as “Personal Data”.

You give your consent to the Company to:
		
	(a)
	process the Personal Data for its, and its Affiliates’, business purposes. Those purposes include legal, personnel, administrative and management purposes (including, for example, payroll administration, correspondence, IT systems development, operation and maintenance, building access controls, performance review, and talent management);

		
	(b)
	make the Personal Data available to its Affiliates for them to process for their own benefit for the same purposes as described above;

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	(c)
	make the Personal Data available, and to permit the Company’s Affiliates to make Personal Data available, to third parties who provide products or services to the Company or its Affiliates (such as advisers, payroll administrators, and information services providers) or where required or permitted by law (such as regulatory authorities; potential or future employers; and governmental or quasi-governmental organisations); and

		
	(d)
	transfer the Personal Data either within or outside the country in which you are employed, including where the country or territory in question does not maintain data protection standards that are equivalent to those of that country.

You confirm that, before providing us with personal data of Your Contacts, you will obtain their consent to the processing of their personal data as described above.  You or Your Contacts may request access to, or the correction or deletion of, the Personal Data that we hold, by contacting your People & Culture department.

Confidential Information

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

Expatriate Status

In accepting the terms and conditions of employment contained herein, you acknowledge that you have accepted an assignment to work outside Switzerland for an affiliate of the Company or an entity that does business with the Company. The terms of the assignment are set out in a separate letter. 

Company Property

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

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

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Termination of employment

This contract shall be terminable in accordance with Swiss law. Each party may terminate the employment for the end of a month by giving three months notice. 

As of May 1, 2020 should the Company unilaterally terminate your employment for a reason which does not constitute a “Cause” as defined in this section, and provided you shall execute the separation agreement proposed by the Company, the Company shall offer you the following severance conditions (gross amounts):

		
	(a)
	A severance lump sum payment calculated based on the number of years of service with the Company, calculated as one month base salary (1/12 of your annual base salary) for each year of service, capped at 18 monthly salaries

		
	(b)
	An amount in lieu of your prorated incentive compensation for the year of termination, calculated based on actual individual and PMI company performance ratings if termination date is after June 30, otherwise calculated based on the ratings of 100

		
	(c)
	A lump sum payment equal to 18 monthly salaries (calculated based on 1/12 of your annual base salary) in exchange for your agreement not to compete with the Company and its affiliates for a period of 24 months following the termination date

		
	(d)
	All unvested Restricted Stock Units (RSUs) grants made to you will fully vest. The shares acquired must be held for at least one year following the accelerated vesting date

		
	(e)
	Your unvested Performance Share Units (PSUs) will vest at the scheduled vesting date to the extent the PMI performance targets are achieved as certified by the Compensation and Leadership Development Committee of the Board of Directors of Philip Morris International Inc. as set out in the applicable award agreements

		
	(f)
	Outplacement service that can be payable in cash.

The PMI policy regarding the adjustment or recovery of compensation shall also apply to the severance conditions stipulated under this section.

The treatment of compensation granted under the PMI performance incentive plans upon a change of control shall be governed by the applicable performance incentive plan.
 
Any individual tax and social security obligations that may arise under the severance conditions stipulated under this section in any jurisdiction are solely the employee's. The Company will have no responsibility, directly or indirectly, with respect to such obligations, including any obligation to pay, reimburse or gross up any payments to the employee. 

For the purposes of this section, “Cause” means termination because of:
(i) continued failure to substantially perform the employee’s job duties (other than resulting from incapacity due to disability) after a written demand by the Company (or any of its subsidiaries or affiliates, as the case may be) that identifies the manner in which the Company (or any of its subsidiaries or affiliates, as the case may be) has reasonably determined that the employee has not performed his or her duties; or
(ii) gross negligence in the performance of the employee’s job duties, willful misconduct, or a material violation of Company policy (including the PMI Guidebook for success), that the Company has reasonably determined has resulted in, or is likely to result in, a material and demonstrable detriment to the 

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business, operations, properties, financial condition or reputation of the Company (or any of its subsidiaries or affiliates); or
(iii) the employee’s conviction of a felony or a plea of nolo contendere by the employee with respect to a felony.

Miscellaneous

This contract, when countersigned by you, will represent the complete agreement between you and the Company concerning its subject matter and will supersede and replace any previous agreements or understandings between you and the Company or any of its affiliates. This agreement may not be modified or waived in any respect except in a written document duly signed by you and the Company.

This agreement will be governed by and construed in accordance with Swiss law. 

Please indicate your acceptance of the foregoing by countersigning and returning the enclosed copy of this letter to the attention of People & Culture Operations Switzerland.

Yours sincerely,

PHILIP MORRIS SERVICES S.A.

	
		
	/s/ CONSTANTIN ROMANOV

Constantin Romanov
Global Head of Total Rewards
	/s/ RALF ZYSK

Ralf Zysk
Global Head of People Sustainability, Employee Relations

    
Acknowledged and agreed:

	
		
	/s/ MARTIN KING

Martin King
	Date: 12 June 2020

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