Document:

Philip Morris Int'l Inc. Stock Compensation Plan for Non-Employee Directors

 Exhibit 10.20 
 Philip Morris International Inc. 
 2008 Stock Compensation Plan for Non-Employee Directors

 (effective January 29, 2008) 
 Section 1. Purpose; Definitions. 
 The purposes of the Plan are (i) to assist the Company in promoting a greater identity of
interest between the Company’s Non-Employee Directors and the Company’s stockholders; and (ii) to assist the Company in attracting and retaining Non-Employee Directors by affording them an opportunity to share in the future successes
of the Company. 
 For purposes of the Plan, the following terms are defined as set forth below: 
 (a) “Altria Deferred Stock Program” has the meaning provided in Section 7(g). 
 (b) “Award” means the grant under the Plan of Common Stock, Stock Options, or Other Stock-Based Awards. 
 (c)
“Board” means the Board of Directors of the Company. 
 (d) “Committee” means the Nominating and Corporate Governance Committee of the
Board or a subcommittee thereof, any successor thereto or such other committee or subcommittee as may be designated by the Board to administer the Plan. 
 (e) “Common Stock” or “Stock” means the Common Stock of the Company. 
 (f) “Company” means Philip Morris
International Inc., a corporation organized under the laws of the Commonwealth of Virginia, or any successor thereto. 
 (g) “Deferred Stock” means
an unfunded obligation of the Company, represented by an entry on the books and records of the Company, to issue one share of Common Stock on the date of distribution. 
 (h) “Deferred Stock Account” means the unfunded deferred compensation account established by the Company with respect to each participant who elects to participate in the Deferred Stock Program in accordance
with Section 7 of the Plan. 
 (i) “Deferred Stock Program” means the provisions of Section 7 of the Plan that permit participants to
defer all or part of any Award of Stock pursuant to Section 5(a) of the Plan. 
 (j) “Fair Market Value” means, as of any given date, the mean
between the highest and lowest reported sales prices of the Common Stock on the New York Stock Exchange-Composite Transactions or, if no such sale of Common Stock is reported on such date, the fair market value of the Stock as determined by the
Committee in good faith; 

 
provided, however, that the Committee may in its discretion designate the actual sales price as Fair Market Value in the case of dispositions of Common Stock
under the Plan. In the case of Stock Options or similar Other Stock-Based Awards, for purposes of Section 5(a), Fair Market Value means, as of any given date, the Black-Scholes or similar value determined based on the assumptions used for
purposes of the Company’s most recent financial reporting. 
 (k) “Non-Employee Director” means each member of the Board who is not a
full-time employee of the Company or of any corporation in which the Company owns, directly or indirectly, stock possessing at least 50% of the total combined voting power of all classes of stock entitled to vote in the election of directors in such
corporation. 
 (l) “Other Stock-Based Award” means an Award, other than a Stock Option or Deferred Stock, that is denominated in, valued in whole
or in part by reference to, or otherwise based on or related to, Common Stock. 
 (m) “Plan” means this Stock Compensation Plan for Non-Employee
Directors, as amended from time to time. 
 (n) “Plan Year” means the period commencing at the opening of business on the day on which the
Company’s annual meeting of stockholders is held and ending on the day immediately preceding the day on which the Company’s next annual meeting of stockholders is held. 
 (o) “Stock Option” means a right granted to a Non-Employee Director to purchase a share of Stock at a price equal to the Fair Market Value on the date of grant. Any Stock Options granted pursuant to the Plan
shall be nonqualified stock options. 
 (p) “Transferred Account” has the meaning provided in Section 7(g). 
 Section 2. Administration. 
 The Plan shall be administered by
the Committee, which shall have the power to interpret the Plan and to adopt such rules and guidelines for carrying out the Plan and appoint such delegates as it may deem appropriate. The Committee shall have the authority to adopt such
modifications, procedures and subplans as may be necessary or desirable to comply with the laws, regulations, compensation practices and tax and accounting principles of the countries in which Non-Employee Directors reside or are citizens of and to
meet the objectives of the Plan. 
 Any determination made by the Committee in accordance with the provisions of the Plan with respect to any Award shall be
made in the sole discretion of the Committee, and all decisions made by the Committee pursuant to the provisions of the Plan shall be final and binding on all persons, including the Company and Plan participants. 

 Section 3. Eligibility. 
 Only Non-Employee Directors shall be granted Awards under the Plan. 
 Section 4. Common Stock Subject to the Plan. 
 The total number of shares of Common Stock reserved and available for distribution pursuant to the Plan shall be 1,000,000. If any Stock Option or Other Stock-Based Award
is forfeited or expires without the delivery of Common Stock to a participant, the shares subject to such Award shall again be available for distribution in connection with Awards under the Plan. Any shares of Common Stock that are used by a
participant as full or partial payment of withholding or other taxes or as payment for the exercise price of an Award shall be available for distribution in connection with Awards under the Plan. 
 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, the Committee is authorized to and shall make such adjustments or substitutions with respect to the Plan and to Awards
granted thereunder (including adjustments to any Transferred Account to reflect the distribution of the Company to shareholders of Altria Group, Inc.) as it deems appropriate to reflect the occurrence of such event, including, but not limited to,
adjustments (A) to the aggregate number and kind of securities reserved for issuance under the Plan, (B) to the Award amounts set forth in Section 5(a), and (C) to the number and kind of securities subject to outstanding Awards
and, if applicable, to the grant or exercise price of outstanding Awards. In connection with any such event, the Committee is also authorized to provide for the payment of any outstanding Awards in cash, including, but not limited to, payment of
cash in lieu of any fractional Awards, provided that any such payment shall comply with the requirements of Internal Revenue Code section 409A. 
 Section 5. Awards. 
 (a) Annual Awards. Following March 28, 2008, each Non-Employee Director serving on such date shall receive an
Award having a Fair Market Value equal to $120,000 (with any fractional share being rounded up to the next whole share). On the first day of each succeeding Plan Year, each Non-Employee Director serving as such immediately after the annual meeting
held on such day shall receive an Award having a Fair Market Value equal to $120,000 (with any fractional share being rounded up to the next whole share) or such greater amount as the Committee determines in its discretion. Such Awards shall be made
in the form of Common Stock, Stock Options, Other Stock-Based Awards, or a combination of the foregoing as the Committee determines in its discretion. 
 (b)
Terms of Awards. 
 (i) Awards pursuant to Section 5(a) that are denominated in Common Stock are eligible for participation in the
Deferred Stock Program described in Section 7. 

 (ii) The term of each Stock Option or similar Other Stock-Based Award shall be ten years. Each Stock
Option or similar Other Stock-Based Award shall vest in not less than six months (or such longer period set forth in the Award agreement) and shall be forfeited if the participant does not continue to be a Non-Employee Director for the duration of
the vesting period, unless the participant ceases to be a Non-Employee Director by reason of the participant’s death or disability. Subject to the applicable Award agreement, Stock Options or similar Other Stock-Based Awards may be exercised,
in whole or in part, by giving written notice of exercise specifying the number of shares to be purchased. Such notice shall be accompanied by payment in full of the purchase price by certified or bank check or such other instrument as the Company
may accept (including, to the extent the Committee determines such a procedure to be acceptable, a copy of instructions to a broker or bank acceptable to the Company to deliver promptly to the Company an amount of sale or loan proceeds sufficient to
pay the purchase price). As determined by the Committee, payment in full or in part may also be made in the form of Common Stock already owned by the Non-Employee Director valued at Fair Market Value. 
 Section 6. Award Agreements. 
 Each Award of a Stock Option or
Other Stock-Based Award under the Plan shall be evidenced by a written agreement (which need not be signed by the Award recipient unless otherwise specified by the Committee) that sets forth the terms, conditions and limitations for each such Award.

 Section 7. Payments and Payment Deferrals. 
 (a)
Each participant may elect to participate in a Deferred Stock Program with respect to Awards of Common Stock granted under Section 5(a). The Deferred Stock Program shall be administered in accordance with the terms of this Section 7,
provided that the Committee may modify the terms of the Deferred Stock Program or may require deferral of the payment of Awards under such rules and procedures as it may establish. Any deferral election shall be made at a time and for such period as
shall satisfy the requirements of Internal Revenue Code section 409A(a)(4). 
 (b) Any election to have the Company establish a Deferred Stock Account shall
be made in terms of integral multiples of 25% of the number of shares of Common Stock that the participant otherwise would have been granted on each date of grant, shall be made no later than the last day of the calendar year immediately preceding
the date of grant (or in the case of a participant who is first becoming eligible for this Plan and any other Plan required to be aggregated with this Plan under Internal Revenue Code section 409A and the regulations and other guidance thereunder,
no later than 30 days after the participant first becomes eligible and before the date of grant), and shall specify the time and form of distribution of the participant’s Deferred Stock Account in a manner complying with Internal Revenue Code
section 409A(a)(2) and (3). Any such election shall remain in effect for purposes of the Plan until the participant executes (i) a new election applicable to any grants denominated in Common Stock to be made in years after 

 
the year in which the new election is made or (ii) an election not to participate in the Deferred Stock Program for Common Stock grants in such future
years. New elections pursuant to clause (i) of the preceding sentence may be made only to the extent permitted under rules and procedures established by the Committee taking into account administrative feasibility and other constraints.

 (c) The Deferred Stock Account of a participant who elects to participate in the Deferred Stock Program shall be credited with shares of Deferred Stock
equal to the number of shares of Common Stock that the participant elected to receive as Deferred Stock. The Deferred Stock Account shall thereafter be credited with amounts equal to the cash dividends that would have been paid had the participant
held a number of shares of Common Stock equal to the number of shares of Deferred Stock in the participant’s Deferred Stock Account, and any such amounts shall be treated as invested in additional shares of Deferred Stock. 
 (d) If as a result of adjustments or substitutions in connection with an event described in the second paragraph of Section 4 of this Plan or as a result of the
transfer of the Transferred Accounts, a participant has received or receives with respect to Deferred Stock credited to the participant’s Deferred Stock Account rights or amounts measured by reference to stock other than Common Stock,
(i) such rights or amounts shall be treated as subject to elections made, crediting of the participant’s account, and any other matters relating to this Plan in a manner parallel to the treatment of Deferred Stock under the Plan, provided
that any crediting of amounts to reflect dividends with respect to such other stock shall be treated as invested in additional Deferred Stock rather than such other stock, and (ii) within 12 months following the event described in
Section 4, the participant shall be offered the opportunity to convert the portion of his or her account measured by reference to such other stock to Deferred Stock with the same Fair Market Value (rounded as necessary to reflect fractional
shares) as of the date of such conversion. 
 (e) Any election by a participant for his or her Deferred Stock Account to be paid upon his or her separation
from service as a member of the Board shall be applied in accordance with Internal Revenue Code section 409A. No separation from service shall be deemed to occur until the participant ceases to serve on any and all of the Board of Directors of the
Company and the board of directors of any other company with respect to which his service as a director began while such other company was a subsidiary of the Company. 
 (f) The Deferred Stock Program shall be administered under such rules and procedures as the Committee may from time to time establish, including rules with respect to elections to defer, beneficiary designations and
distributions under the Deferred Stock Program. Notwithstanding anything in this Plan to the contrary, all elections to defer, distributions, and other aspects of the Deferred Stock Program shall be made in accordance with and shall comply with
Internal Revenue Code section 409A and any regulations and other guidance thereunder. 

 (g) Notwithstanding anything in this Plan to the contrary, with respect to a participant in this Plan who was also a
participant in the Deferred Stock Program of the Altria Group, Inc. Stock Compensation Plan for Non-Employee Directors (the “Altria Deferred Stock Program”) for service in 2008 and who is eligible for this Plan on March 28, 2008:

 (i) the participant’s deferral elections in effect for 2008 under the Altria Deferred Stock Program with respect to such
participant’s stock compensation paid by the Altria Group, Inc. shall also apply with respect to Awards of Common Stock under this Plan to be paid to the participant by the Company for services performed in 2008 and future years; 
 (ii) the balance credited to the participant’s Deferred Stock Account under the Altria Deferred Stock Program shall be transferred to this Plan (a
“Transferred Account”), and the unfunded liability relating to such Transferred Account shall be assumed by the Company; 
 (iii)
the participant’s election as to the time and form of distribution of amounts deferred under the Altria Deferred Stock Program and credited to the Transferred Account shall continue to apply to the Transferred Account, and the
participant’s election as to the time and form of distribution of amounts deferred in 2008 under the Altria Deferred Stock Program shall also apply with respect to amounts deferred under this Plan in 2008 and future years; and 
 (iv) the participant’s most recent beneficiary designation under the Altria Deferred Stock Program shall continue to apply to the Transferred Account
and shall also apply to amounts deferred under this Plan in 2008 and future years; 
 provided, however, that any election or beneficiary designation carried
over from the Altria Deferred Stock Program under this Section 7(g) may be changed by the participant in the manner and to the extent permitted under the applicable provisions of this Section 7 and the rules and procedures established by
the Committee pursuant to this Section 7. 
 Section 8. Plan Amendment and Termination. 
 The Board may amend or terminate the Plan at any time without stockholder approval, including, but not limited to, any amendments necessary to comply with section 409A of
the Internal Revenue Code of 1986, as amended, and any regulations and other guidance thereunder; provided, however, that no amendment shall be made without stockholder approval if such approval is required under applicable law, regulation, or stock
exchange rule, or if such amendment would: (i) decrease the grant or exercise price of any Stock Option or a similar Other Stock-Based Award to less than the Fair Market Value on the date of grant (except as contemplated by Section 4); or
(ii) increase the total number of shares of Common Stock that may be distributed under the Plan. Except as may be necessary to comply with a change in the laws, regulations or accounting principles of a foreign country applicable to
participants subject to the laws of such foreign country, the Committee may not, without stockholder approval, cancel any Stock Option or similar 

 
Other Stock-Based Award and substitute therefor a new Stock Option or Other Stock-Based Award with a lower exercise price. Except as set forth in any Award
agreement or as necessary to comply with applicable law or avoid adverse tax consequences to some or all Award recipients, no amendment or termination of the Plan may materially and adversely affect any outstanding Award under the Plan without the
Award recipient’s consent. 
 Section 9. Transferability. 
 Unless otherwise required by law, Awards shall not be transferable or assignable other than by will or the laws of descent and distribution. 
 Section 10. Unfunded Status of Plan. 
 It is presently intended that the Plan constitute an “unfunded”
plan for incentive and deferred compensation. The Committee may authorize the creation of trusts or other arrangements to meet the obligations created under the Plan to deliver Common Stock or make payments; provided, however, that, unless the
Committee otherwise determines, the existence of such trusts or other arrangements is consistent with the “unfunded” status of the Plan. 
 Section 11. General Provisions. 
 (a) The Committee may require each person acquiring shares of Common Stock pursuant to an Award to
represent to and agree with the Company in writing that such person is acquiring the shares without a view to the distribution thereof. The certificates for such shares may include any legend that the Committee deems appropriate to reflect any
restrictions on transfer. 
 All certificates for shares of Common Stock or other securities delivered under the Plan shall be subject to such stock transfer
orders and other restrictions as the Committee may deem advisable under the rules, regulations and other requirements of the Securities and Exchange Commission (or any successor agency), any stock exchange upon which the Common Stock is then listed,
and any applicable Federal, state or foreign securities law, and the Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions. 
 (b) Nothing contained in the Plan shall prevent the Company from adopting other or additional compensation arrangements for Non-Employee Directors. 
 (c) Nothing in the Plan or in any Award agreement shall confer upon any grantee the right to continued service as a member of the Board. 
 (d) No later than the date as of which an amount first becomes includable in the gross income of the participant for income tax purposes with respect to any Award under
the Plan, the participant shall pay to the Company, or make arrangements satisfactory to the 

 
Company regarding the payment of, any Federal, state, local or foreign taxes of any kind that are required by law or applicable regulation to be withheld
with respect to such amount. Unless otherwise determined by the Committee, withholding obligations arising from an Award may be settled with Common Stock, including Common Stock that is part of, or is received upon exercise of the Award that gives
rise to the withholding requirement. The obligations of the Company under the Plan shall be conditional on such payment or arrangements, and the Company, shall, to the extent permitted by law, have the right to deduct any such taxes from any payment
otherwise due to the participant. The Committee may establish such procedures as it deems appropriate, including the making of irrevocable elections, for the settling of withholding obligations with Common Stock. 
 (e) The terms of this Plan shall be binding upon and shall inure to the benefit of any successor to Philip Morris International Inc. and any permitted successors or
assigns of a grantee. 
 (f) The Plan and all Awards made and actions taken thereunder shall be governed by and construed in accordance with the laws of the
Commonwealth of Virginia, excluding any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of the Plan to the substantive law of another jurisdiction. Unless otherwise provided in an Award,
recipients of an Award under the Plan are deemed to submit to the exclusive jurisdiction and venue of the federal or state courts of Virginia, to resolve any and all issues that may arise out of or relate to the Plan or any related Award.
Notwithstanding anything in this Plan to the contrary, the Plan shall be construed to reflect the intent of the Company that all elections to defer, distributions, and other aspects of the Plan shall comply with Internal Revenue Code section 409A
and any regulations and other guidance thereunder. 
 (g) If any provision of the Plan is held invalid or unenforceable, the invalidity or unenforceability
shall not affect the remaining parts of the Plan, and the Plan shall be enforced and construed as if such provision had not been included. 
 (h) The Plan
shall be effective January 29, 2008. Except as otherwise provided by the Board, no Awards shall be made after the Awards made immediately following the 2018 Annual Meeting of Shareholders, provided that any Awards granted prior to that date may
extend beyond it.Philip Morris International Inc. Deferred Fee Plan for Non-Employee Directors

 Exhibit 10.21 
 Philip Morris International Inc. 
 2008 Deferred Fee Plan for Non-Employee Directors 

(effective January 29, 2008) 
 SECTION 1.
Purpose; Definitions. 
 The purpose of the Plan is to afford each Non-Employee Director the option to elect to defer the receipt of all or part of his or
her Compensation until such future date as he or she may elect pursuant to the terms and conditions of the Plan. 
 For purposes of the Plan, the following
terms are defined as set forth below: 
  

	a.	“Account” means an unfunded deferred compensation account established by the Company pursuant to the Deferred Fee Program, consisting of one or more Subaccounts
established in accordance with Section 3.2.2. 

  

	b.	“Allocation Date” means any date on which an amount representing all or a part of a Participant’s Compensation is to be credited to his or her Account pursuant
to an effective Election Form. The Allocation Date for the Retainer Fee shall be the first day of each calendar quarter and for Meeting Fees shall be the first day of the month following the meeting. 

  

	c.	“Altria Deferred Fee Plan” has the meaning provided in Section 4. 

  

	d.	“Altria Unit Plan” has the meaning provided in Section 4. 

  

	e.	“Beneficiary” means any person or entity designated as such in a current Election Form. If there is no valid designation or if no designated Beneficiary survives
the Participant, the Beneficiary is the Participant’s estate. 

  

	f.	“Board” means the Board of Directors of the Company. 

  

	g.	“Code” means the Internal Revenue Code of 1986, as amended from time to time. 

  

	h.	“Common Stock” means the common stock, no par value, of the Company. 

  

	i.	“Company” means Philip Morris International Inc., a corporation organized under the laws of the Commonwealth of Virginia, or any successor corporation.

  

	j.	“Compensation” means the sum of the Retainer Fee and the Meeting Fees payable by the Company to each Participant. 

  

	k.	“Deferral Election” means the election by a Participant on an Election Form to defer the payment of all or part of his or her Compensation to be earned and payable
after the applicable effective date set forth in Sections 3.1.1 or 3.1.2. 

  

	l.	“Deferred Amount” means the amount of Compensation (determined as a percentage of the Retainer Fee and the Meeting Fees) subject to a current deferral
election. 

  

	m.	“Deferred Fee Program” means the provisions of the Plan that permit Participants to defer all or part of their Compensation. 

  

	n.	“Disability” means permanent and total disability within the meaning of Code section 409A, as determined under procedures established by the Board for purposes of
the Plan. 

  

	o.	“Distribution Date” means the date designated by a Participant in accordance with Sections 3.3.1 and 3.3.2 for the commencement of payment of amounts credited to
his or her Account. 

  

	p.	“Election Date” means the date an Election Form is received by the Secretary of the Company. 

  

	q.	“Election Form” means a valid Deferred Fee Program Initial Election Form or Modified Election Form properly completed and signed. 

  

	r.	“Exchange Act” means the Securities Exchange Act of 1934, as from time to time amended. 

  

	s.	“Extraordinary Distribution Request Date” means the date an Extraordinary Distribution Request Form is received by the Secretary of the Company.

  

	t.	“Extraordinary Distribution Request Form” means the Deferred Fee Program Extraordinary Distribution Request Form properly completed and executed by a Participant or
Beneficiary who wishes to request an extraordinary distribution of amounts credited to his or her Account in accordance with Section 3.3.3. 

  

	u.	“Fund” means any one of the investment vehicles in which the trust fund established under the trust agreement, as amended from time to time, entered into by the
Company in connection with the Profit-Sharing Plan, is invested. 

  

	v.	“Meeting Fees” means the portion of a Participant’s Compensation that is based upon his or her attendance at Board meetings and meetings of committees of the
Board. 

  

	w.	“Non-Employee Director” means each member of the Board who is not a full-time employee of the Company (or any corporation in which the Company owns, directly or
indirectly, stock possessing at least fifty percent (50%) of the total combined voting power of all classes of stock entitled to vote in the election of directors in such corporation). 

  

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	x.	“Participant” means a Non-Employee Director and a Director Emeritus. A Participant shall also include a person who was, but is no longer, a member of the Board as
long as an Account is being maintained for his or her benefit. 

  

	y.	“Plan” means the Philip Morris International Inc. Deferred Fee Plan for Non-Employee Directors. 

  

	z.	“Profit-Sharing Plan” means the Philip Morris International Inc. Deferred Profit-Sharing Plan, as amended from time to time. 

  

	aa.	“Retainer Fee” means the portion of a Participant’s Compensation that is fixed and paid without regard to his or her attendance at meetings, but shall not
include amounts credited to a Participant’s account under the Stock Compensation Plan for Non-Employee Directors. 

  

	bb.	“Subaccount” means one of the bookkeeping accounts established within each Participant’s Account in accordance with Section 3.2.2.

  

	cc.	“Transfer Election Date” means the date set forth on a Transfer Form. 

  

	dd.	“Transfer Form” means a valid Deferred Fee Program Transfer Election Form completed and signed by a Participant or Beneficiary. 

  

	ee.	“Transferred Account” has the meaning provided in Section 4. 

  

	ff.	“Unit Account” has the meaning provided in Section 4. 

 SECTION 2. Eligibility. 
 Each Non-Employee Director shall be eligible to participate in the Deferred Fee Program. 
 SECTION 3. Deferred Fee Program. 
 3.1 Participation.

 3.1.1 Deferral Elections. 
 A Non-Employee Director may elect to defer all or a part of his or her Compensation to be earned and payable thereafter by completing and executing an Election Form and delivering it to the Secretary of the Company. Any Deferral Election
relating to Retainer 

  

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Fees shall be in integral multiples of twenty-five percent (25%) of the Retainer Fee. Any Deferral Election relating to Meeting Fees shall be one
hundred percent (100%) of each Meeting Fee. 
 The Participant shall indicate on the Initial Election Form: 
  

	 	a.	the percentage of the Retainer Fee that he or she wishes to defer and whether Meeting Fees are to be deferred; 

  

	 	b.	the Distribution Date; 

  

	 	c.	whether distributions are to be in a lump sum, in installments or a combination thereof; 

  

	 	d.	the Participant’s Beneficiary or Beneficiaries; and 

  

	 	e.	the Subaccounts to which the Deferred Amount is to be allocated. 

 A Deferral Election shall become effective with respect to a Participant’s Retainer Fee and Meeting Fees accruing on and after the first day of the calendar year following the Election Date and shall remain in effect with respect to
all future Compensation until a new Deferral Election made by the Participant in accordance with Section 3.1.2 or Section 3.1.3 becomes effective. In the case of a newly eligible Participant, however, a Deferral Election may be made no
later than 30 days after first becoming eligible for this Plan and any other Plan required to be aggregated with this Plan under Code section 409A and the regulations and other guidance thereunder, and shall not be effective with respect to
Compensation to which the Participant becomes entitled as a result of services performed on or before the Election Date. 
 3.1.2 Change
of Deferral Election. 
 A Participant may change his or her deferral election with respect to Compensation to be earned and payable in a
subsequent calendar year by completing and executing a Modified Election Form and delivering it to the Secretary of the Company. A change to increase or decrease the amount of future Retainer Fee or Meeting Fees to be deferred shall be effective
only with respect to Compensation accruing on and after the first day of the calendar year following the Election Date. 
 3.1.3 Cessation
of Deferrals. 
 A Participant may cease to defer future Compensation in the Deferred Fee Program by completing and executing a Modified
Election Form, and delivering it to the Secretary of the Company. An election by a Participant to cease deferrals in the Deferred Fee Program shall become effective with respect to a Participant’s Retainer Fees or Meeting Fees on or after the
first day of the first calendar year that begins after the Election Date. 
  

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 3.1.4 Beneficiary Election Modification. 
 A Participant shall be permitted at any time to modify his or her Beneficiary election, effective as of the Election Date, by completing and executing a
Modified Election Form and delivering it to the Secretary of the Company. 
 3.2 Investments. 
 3.2.1 Accounts. 
 The Company shall
establish an Account for each Participant and for each Beneficiary to whom installment distributions are being made. On each Allocation Date, the Company shall allocate to each Participant’s Account an amount equal to his or her Deferred
Amount. 
 3.2.2 Subaccounts. 
 The Company shall establish within each Account one or more Subaccounts, which shall be credited with earnings and charged with losses, if any, on the same basis as the corresponding Fund, as the same may change from time to time, under the
Profit-Sharing Plan (except with respect to Subaccount D); as of the date hereof, the Subaccounts are, respectively: 
 Subaccount A -
a bookkeeping account whose value shall be based on a theoretical investment in the U.S. Obligations Fund of the Profit-Sharing Plan. 
 Subaccount B - a bookkeeping account whose value shall be based on a theoretical investment in the Equity Index Fund of the Profit-Sharing Plan. 
 Subaccount C - a bookkeeping account whose value shall be based on a theoretical investment in the Interest Income Fund of the Profit-Sharing Plan. 
 Subaccount D - a bookkeeping account whose value shall be based on a theoretical investment in the number of shares of Common Stock determined by
dividing the Deferred Amount by the fair market value of a share of Common Stock on the date the Deferred Amount is credited to Subaccount D. 
 Subaccount E - a bookkeeping account whose value shall be based on a theoretical investment in the Balanced Fund of the Profit-Sharing Plan. 
 Subaccount F - a bookkeeping account whose value shall be based on a theoretical investment in the International Equity Fund of the Profit-Sharing Plan. 
 Subaccount G - a bookkeeping account whose value shall be based on a theoretical investment in the US Mid/Small Cap Fund of the Profit-Sharing
Plan. 
 Subaccount H - a bookkeeping account whose value shall be based on a theoretical investment in the Euro Equity Fund of the
Profit-Sharing Plan. 
  

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 To the extent additional funds are provided under the Profit-Sharing Plan, the Secretary of the Company or his designee
is authorized to establish corresponding Subaccounts under the Plan. The Secretary or his designee is authorized to limit or prohibit new investments or transfers into any Subaccount. 
 Subject to the provisions of Sections 3.2.3 and 3.2.4, on each Allocation Date, each Participant’s Subaccounts shall be credited with an amount
equal to the Deferred Amount designated by the Participant for allocation to such Subaccounts. Each Subaccount shall be credited with earnings and charged with losses as if the amounts allocated thereto had been invested in the corresponding Fund,
provided that Subaccount D shall be credited with additional shares of Common Stock based on the amount of cash dividends that are paid from time to time on the number of shares of Common Stock with respect to which the Subaccount’s value is
determined. 
 The value of any Subaccount at any relevant time shall be determined as if all amounts credited thereto had been invested in
the corresponding Fund; provided, however, that if as a result of adjustments or substitutions in connection with an event described in the second paragraph of Section 4 of the Company’s Stock Compensation Plan for Non-Employee Directors
or the corresponding provision of any successor thereto or as a result of the transfer of the Transferred Account, a participant has received or receives with respect to Subaccount D rights or amounts measured by reference to stock other than Common
Stock, then any crediting of amounts to reflect dividends with respect to such other stock shall be allocated among and treated as invested proportionately in the Subaccounts most recently in effect for the investment of Compensation deferred by the
Participant. 
 3.2.3 Investment Directions. 
 In connection with his or her initial Deferral Election, each Participant shall make an investment direction on his or her Initial Election Form with respect to the portion of such Participant’s Deferred Amount
that is to be allocated to a Subaccount. Any apportionment of Deferred Amounts (and of increases or decreases in Deferred Amounts) among the Subaccounts shall be in integral multiples of one percent (1%). An investment direction shall become
effective with respect to any Subaccount on the first day of the calendar month following the Election Date. All investment directions shall be irrevocable and shall remain in effect with respect to all future Deferred Amounts until a new
irrevocable investment direction made by the Participant in accordance with Section 3.2.4 becomes effective. 
 3.2.4 New Investment
Directions. 
 A Participant may make a new investment direction with respect to his or her Deferred Amount only by completing and
executing a Modified Election Form and delivering it to the Secretary of the Company. A new investment direction shall become effective with respect to any Subaccount on the first day of the calendar month following the Election Date. 
  

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 3.2.5 Investment Transfers. 
 A Participant or a Beneficiary (after the death of the Participant) may transfer to one or more different Subaccounts all or a part (not less than one
percent (1%)) of the amounts credited to a Subaccount by completing and executing a Transfer Form and delivering it to the Secretary of the Company; provided, however, that no Transfer Form may be submitted by a Participant who is subject to
Section 16 of the Exchange Act, if a Transfer Form requesting an opposite way transfer had been submitted by such Participant within the preceding six months. 
 Any transfer of amounts among Subaccounts shall become effective on the first day of the calendar month following the Transfer Election Date. 
 3.3 Distributions. 
 3.3.1 Distribution Elections. 
 Each Participant shall designate on his or her Election Form one of the following dates as a Distribution Date with respect to amounts credited to his or
her Account thereafter: 
  

	 	a.	the fifteenth day of the calendar month following the Participant’s separation from service, including by reason of Disability or the Participant’s death;

  

	 	b.	the fifteenth day of the earlier of (i) a calendar month specified by the Participant which is at least six months after the Election Date or (ii) the calendar month
following the Participant’s death; or 

  

	 	c.	the earlier to occur of a or b. 

 A Distribution Date
election shall be effective only with respect to amounts attributable to service by the Participant on and after the Election Date and subsequent earnings credited with respect to such amounts. Any election by a Participant for his or her Account to
be paid upon his or her separation from service shall be applied in accordance with Internal Revenue Code section 409A. No separation from service shall be deemed to occur until the Director ceases to serve on any and all of the Board of Directors
of the Company and the board of directors of any other company with respect to which his service as a director began while such other company was a subsidiary of the Company. 
 A Participant may request on his or her Election Form that distributions from his or her Account be made in (i) a lump sum, (ii) no more than
one-hundred eighty (180) monthly, sixty (60) quarterly or fifteen (15) annual installments or (iii) a combination of (i) and 

  

 -7- 

 
(ii). Each installment shall be determined by dividing the Account balance by the number of remaining installments. If a Participant receives a distribution
from a Subaccount on an installment basis, amounts remaining in such Subaccount before payment shall continue to accrue earnings and incur losses in accordance with the terms of Section 3.2.2. Except as stated in the next paragraph, all
distributions shall be made to the Participant. 
 Upon the Participant’s death, the balance remaining in the Participant’s
Account shall be payable to his or her Beneficiaries as set forth on the Participant’s current Election Form or Forms. Upon the death of a Beneficiary who is receiving distributions in installments, the balance remaining in the Account of the
Beneficiary shall be payable to his or her estate in a lump sum, without interest, except to the extent that the Secretary of the Company permits a Participant to elect otherwise in accordance with the procedures of this Section 3.3, taking
into account administrative feasibility and other constraints. 
 All distributions shall be paid in cash and, except as provided in
Section 3.3.3, shall be deemed to have been made from each Subaccount pro rata. 
 3.3.2 Modified Distribution Elections.

 A Participant may modify his or her election as to Distribution Date and distribution form with respect to Compensation attributable
to future service, with such modification to be effective beginning with the next calendar year and continuing thereafter, by completing and executing a modified Election Form and delivering it to the Secretary of the Company. 
 3.3.3 Extraordinary Distributions. 
 Notwithstanding the foregoing, a Participant or Beneficiary (after the death of the Participant) may request an extraordinary distribution of all or part of the amount credited to his or her Account because of hardship. A distribution shall
be deemed to be “because of hardship” if such distribution is necessary to alleviate or satisfy an immediate and heavy financial need of the Participant and otherwise satisfies the requirements for the occurrence of an “unforeseeable
emergency” within the meaning of Code section 409A(a)(2). 
 A request for an extraordinary distribution shall be made by completing
and executing an Extraordinary Distribution Request Form and delivering it to the Secretary of the Company. All extraordinary distributions shall be subject to approval by the Nominating and Governance Committee of the Board. 
 The Extraordinary Distribution Request Form shall indicate: 
  

	 	a.	the amount to be distributed from the Account; 

  

	 	b.	the Subaccount(s) from which the distribution is to be made; and 

  

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	 	c.	the “hardship” requiring the distribution. 

 The amount of any extraordinary distribution shall not exceed the amount determined by the Compensation Committee of the Board to be required to meet the immediate financial need of the applicant. 
 An extraordinary distribution shall be made with respect to amounts credited to each Subaccount on the first day of the calendar month next following
approval of the extraordinary distribution request by the Compensation Committee of the Board. Upon approval of an extraordinary distribution request, any Deferral Election in place shall be cancelled prospectively. A Participant may make a new
Deferral Election for a future year in accordance with Section 3.1.2. 
 SECTION 4. Special Provisions for Transferring Directors. 
 4.1 Altria Deferred Fee Plan Transfer 
 Notwithstanding anything in
this Plan to the contrary, with respect to a Participant who was a participant in the Altria Group, Inc. Deferred Fee Plan for Non-Employee Directors (the “Altria Deferred Fee Plan”) for service in 2008 and who is eligible for this Plan on
March 28, 2008: 
  

	a.	the Participant’s deferral elections for 2008 under the Altria Deferred Fee Plan with respect to such Participant’s meeting fees and retainer fee paid by the Altria Group,
Inc. shall also apply with respect to Compensation to be paid to the Participant by the Company for services performed in 2008 and future years; 

  

	b.	the balance credited to the Particpant under the Altria Deferred Fee Plan shall be transferred to this Plan (a “Transferred Account”), and the unfunded liability relating
to such Transferred Account shall be assumed by the Company; 

  

	c.	the Participant’s election as to the time and form of distribution of amounts deferred under the Altria Deferred Fee Plan and credited to the Transferred Account shall continue
to apply to the Transferred Account, and the Participant’s election as to the time and form of distribution of amounts deferred in 2008 under the Altria Deferred Fee Plan shall also apply with respect to amounts deferred under this Plan in 2008
and future years; 

  

	d.	the Participant’s most recent election as to the investment of the Transferred Account under the Altria Deferred Fee Plan shall continue to apply to the Transferred Account,
and the Participant’s most recent election as to the investment of future deferrals under the Altria Deferred Fee Plan shall also apply with respect to amounts deferred under this Plan in 2008 and future years (for purposes of deferrals under
this Plan, an election to be treated as invested in Subaccount D under the Altria Deferred Fee Plan, which was measured by the value of the common stock of Altria Group, Inc., shall be considered an election to be treated as invested in Subaccount D
under this Plan, which is measured by the value of the common stock of the Company); and 

  

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	e.	the Participant’s most recent beneficiary designation under the Altria Deferred Fee Plan shall continue to apply to the Transferred Account and shall also apply to amounts
deferred under this Plan in 2008 and future years; 

 provided, however, that any election or beneficiary designation carried over from the
Altria Deferred Fee Plan under this Section 4.1 may be changed by the Participant in the manner and to the extent permitted under the applicable provisions of Section 3. 
 4.2 Altria Unit Plan Transfer. 
 With respect to a Participant who was a participant in the Altria Group, Inc. Unit
Plan for Incumbent Non-Employee Directors (the “Altria Unit Plan”) and who is eligible for this Plan on March 28, 2008: 
  

	a.	the balance credited to the Participant under the Altria Unit Plan shall be transferred to this Plan (a “Unit Account”) immediately before the distribution of the Company
to shareholders of the Altria Group, Inc., and the unfunded liability relating to such Unit Account shall be assumed by the Company; 

  

	b.	the Participant’s election as to the form of distribution of amounts deferred under the Altria Unit Plan and credited to the Unit Account shall continue to apply to the Unit
Account, and the Unit Account shall continue to be payable upon the first day of the second month following the date the Participant ceases to be a Director; 

  

	c.	the Unit Account shall continue to be treated as invested in the Stock Unit Account, Equity Index Account, and/or Interest Income Account (in each case within the meaning of the
Altria Unit Plan), as previously elected by the Participant under the Altria Unit Plan, provided, however, that if as a result of adjustments or substitutions in connection with an event described in the second paragraph of Section 4 of the
Company’s Stock Compensation Plan for Non-Employee Directors or the comparable provision of any successor to such plan or as a result of the transfer of the Unit Account to this Plan, a Participant has received or receives with respect to his
or her Stock Unit Account rights or amounts measured by reference to stock other than Common Stock, then (i) such rights or amounts shall be accounted for in an additional account under the Plan but treated as subject to the elections made with
respect to the Stock Unit Account and (ii) within 12 months following the event described in such Section 4 or the transfer of the Unit Account, the Participant shall be offered the opportunity to convert the portion of his or her Unit
Account measured by reference to such other stock to an amount measured by reference to the Common Stock having the same fair market value (rounded as necessary to reflect fractional shares) as of the date of such conversion, and further provided
that any crediting of amounts to reflect dividends with respect to such other stock shall be allocated among and treated as invested proportionately in the investments most recently selected by the Participant; and 

  

 -10- 

	d.	the Participant’s most recent beneficiary designation under the Altria Unit Plan shall continue to apply to the Unit Account. 

 If a Participant has not already filed a distribution election form with respect to his Unit Account with the Altria Group, Inc., the Participant may, no later than one
year and one day preceding the date he or she ceases to be a Director, file with the Secretary of the Company a distribution election form, which shall be irrevocable, providing that distribution from his or her Unit Account may be made (i) in
no more than one-hundred eighty (180) monthly, sixty (60) quarterly or fifteen (15) annual installments or (ii) in a combination of a lump sum and installments. The first such payment shall be made on the first day of the second
month following the date the participant ceases to be a Director. Each installment shall be determined by dividing the sum of the Unit Account balances by the number of remaining installments. If a Participant or a beneficiary is receiving
distributions in installments, the Unit Account shall continue to accrue earnings and incur losses. 
 A Participant who elects a distribution in
installments with respect to his Unit Account shall be entitled to make a special investment election on his or her distribution election form pursuant to which transfers from the Participant’s Stock Unit Account will be made, effective the
first day of the second month following the date the Participant ceases to be a Director, to an Equity Index Account or an Interest Income Account or both (in each case within the meaning of the Altria Unit Plan). 
 If a distribution occurs by reason of the Participant’s death or, if at the time of death, the Participant was receiving distributions in installments, the balance
remaining in the Participant’s Unit Account shall be payable to his or her beneficiaries designated in, and in the manner of payment set forth on, the Participant’s beneficiary designation form with respect to the Unit Account in effect on
the date of the Participant’s death. Any lump sum distributions to beneficiaries shall be without interest. A Participant may at any time file a beneficiary designation form with respect to the Unit Account with the Secretary of the Company.
Such designation may be revoked or modified at any time by filing a new beneficiary designation form. 
 All distributions with respect to the Unit Account
shall be paid in cash. 
 Notwithstanding any provision of this Plan to the contrary, the Unit Account is a “grandfathered” deferred compensation
account that was in effect on and has not been materially modified since October 3, 2004, and is not intended to be subject to Section 409A of the Code. The distribution and related provisions of the Deferred Fee Program contained in
Section 3 of this Plan shall not apply with respect to the Unit Account, which shall be governed by this Section 4.2. 
 SECTION 5. General
Provisions. 
 5.1 Unfunded Plan. 
 It is intended that
the Plan constitute an “unfunded” plan for deferred compensation. The Company may authorize the creation of trusts or other arrangements to meet the obligations 

  

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created under the Plan; provided, however, that, unless the Company otherwise determines, the existence of such trusts or other arrangements is consistent
with the “unfunded” status of the Plan. Any liability of the Company to any person with respect to any grant under the Plan shall be based solely upon any contractual obligations that may be created pursuant to the Plan. No such obligation
of the Company shall be deemed to be secured by any pledge of, or other encumbrance on, any property of the Company. 
 5.2 Rules of Construction. 

 The Plan shall be construed and interpreted in accordance with Virginia law. Headings are given to the sections of the Plan solely as a convenience to
facilitate reference. The reference to any statute, regulation, or other provision of law shall be construed to refer to any amendment to or successor of such provision of law. Notwithstanding anything in this Plan to the contrary, the Plan shall be
construed to reflect the intent of the Company that all elections to defer, distributions, and other aspects of the Plan shall comply with Code section 409A and any regulations and other guidance thereunder. The Plan is also intended to be construed
so that participation in the Plan will be exempt from Section 16(b) of the Exchange Act pursuant to regulations and interpretations issued from time to time by the Securities and Exchange Commission. 
 5.3 Withholding. 
 No later than the date as of which an amount first
becomes includible in the gross income of the Participant for Federal income tax purposes with respect to any participation under the Plan, the Participant shall pay to the Company, or make arrangements satisfactory to the Company regarding the
payment of, any Federal, state, local or foreign taxes of any kind required by law to be withheld with respect to such amount. 
 5.4 Amendment.

 The Plan may be amended by the Board, but no amendment shall be made that would impair prior Common Stock awards or the rights of a Participant to his
or her Account without his or her consent. In addition, no amendment may become effective until shareholder approval is obtained if the amendment (i) materially increases the benefits accruing to Participants under the Plan or
(ii) modifies the eligibility requirements for participation in the Plan. 
 5.5 Duration of Plan. 
 The Company hopes to continue the Plan indefinitely, but reserves the right to terminate the Plan by appropriate action of the Board at any time. Upon termination of the
Plan, amounts then credited to each Account shall be paid in accordance with the Distribution Election then governing such Account or as otherwise provided in Section 3.3.1. 
  

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 5.6 Assignability. 
 No Participant or Beneficiary shall have the right to assign, pledge or otherwise transfer any payments to which such Participant or Beneficiary may be entitled under the Plan other than by will or by the laws of descent and distribution or
pursuant to a domestic relations order that meets the relevant requirements of a “qualified domestic relations order” (as defined by Section 414(p) of the Code). 
 5.7 Adoption of Procedures. 
 The Secretary of the Company shall have the authority to adopt such procedures as are
appropriate to administer the Plan. The Nominating and Corporate Governance Committee shall have the authority to adopt such modifications, procedures and subplans as may be necessary or desirable to comply with the laws, regulations, compensation
practices and tax and accounting principles of the countries in which Non-Employee Directors reside or are citizens of and to meet the objectives of the Plan. 
  

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