Document:

Amendment and Waiver Agreement dated as of February 6, 2009

 Exhibit 10.29 
 EXECUTION VERSION 
 AMENDMENT AND WAIVER TO THE 
 CREDIT AGREEMENT 
 THIS AMENDMENT
AND WAIVER, dated as of February 6, 2009 (this “Amendment and Waiver”), is an amendment to and waiver of certain provisions of that certain Credit Agreement, dated as of 4 December 2007, relating to a 5-Year Revolving
Credit Facility and a 3-Year Revolving Credit Facility (the “Credit Agreement”), by and among PHILIP MORRIS INTERNATIONAL INC., as borrower (“PMI”), the Lenders party thereto, and JPMORGAN EUROPE LIMITED, as
facility agent and swingline agent (the “Facility Agent”). 
 W I T N E S
S E T H 
 WHEREAS, PMI has requested certain amendments and waivers to the Credit Agreement to effect
the non-pro rata termination of the Revolving Credit Commitments of Lehman Commercial Paper Inc., UK Branch (“LCPI”) and 
 WHEREAS, LCPI and the Revolving Credit Lenders holding at least 50.1% of the aggregate Revolving Credit Commitments have approved the amendment and waiver of certain provisions of the Credit Agreement in
accordance with Section 9.1 of the Credit Agreement and the terms hereof and subject to the conditions set forth herein. 
 NOW,
THEREFORE, the parties hereto agree as follows: 
 SECTION 1. Defined Terms. 
 For the purposes of this Amendment and Waiver, all capitalized terms used but not otherwise defined herein shall have the respective meanings assigned to
such terms in the Credit Agreement. 
 SECTION 2. Amendments. 
 It is the intention of the parties hereto that the Revolving Credit Commitments of LCPI under the Credit Agreement be irrevocably terminated in whole on
a non-pro rata basis (the “LCPI Commitment Termination”), effective as of the Effective Date (defined below). LCPI shall no longer have any obligation to fund any amount of or extend any credit under the Credit
Agreement, provided that LCPI shall remain entitled to its rights pursuant to indemnification and other provisions of the Credit Agreement which by their terms would survive the repayment of the Credit Agreement and the LCPI Commitment Termination.
In order to reflect the LCPI Commitment Termination, all references to “Lehman Commercial Paper Inc.” contained in the Credit Agreement and the Schedules thereto shall be deleted in their entirety, including, without limitation, the
following: 
 (a) Schedule 4A shall be amended to remove “Lehman Commercial Paper Inc., UK Branch US$307,500,000”
from the list of Tranche A Revolving Credit Commitments and to replace “TOTAL US$3,000,000,000” with “TOTAL US$2,692,500,000”; and 

 (b) Schedule 4B shall be amended to remove “Lehman Commercial Paper Inc., UK Branch
US$102,500,000” from the list of Tranche B Revolving Credit Commitments and to replace “TOTAL US$1,000,000,000” with “TOTAL US$897,500,000.” 
 SECTION 3. Waivers. 
 In connection with the LCPI Commitment Termination, any provision of the Credit Agreement that may be read to conflict with such termination is hereby waived, in each case solely in relation to the Revolving Credit Commitments of LCPI,
including, without limitation, compliance with Section 2.14(a) of the Credit Agreement (Termination or Reduction of the Commitments). 
 SECTION 4. Representations and Warranties of PMI. PMI represents and warrants to the Lenders party hereto as of the Effective Date (as defined below) that: 
 (a) The execution, delivery and performance of this Amendment and Waiver are within PMI’s corporate powers, have been duly authorized
by all necessary corporate action, and do not contravene (i) PMI’s charter or by-laws or (ii) in any material respect, any law, rule, regulation or order of any court or governmental agency or any contractual restriction binding on or
affecting it. 
 (b) No authorization or approval or other action by, and no notice to or filing with, any governmental
authority or regulatory body is required for the due execution, delivery and performance by PMI of this Amendment and Waiver. 
 (c) This Amendment and Waiver is a legal, valid and binding obligation of PMI enforceable against PMI in accordance with its terms, subject to the effect of any applicable bankruptcy, insolvency, fraudulent conveyance, reorganization,
moratorium and other laws affecting creditors’ rights generally and subject, as to enforceability, to general principles of equity (regardless of whether enforcement is sought in a proceeding in equity or at law) and an implied covenant of good
faith and fair dealing. 
 (d) The representations and warranties contained in Section 4.1 of the Credit Agreement
(except the representations set forth in the last sentence of subsection (e) and in subsection (f) thereof (other than clause (i) thereof)) are correct as though made on and as of the Effective Date (as defined below). 
 (e) No Default or Event of Default has occurred and is continuing. 
 (f) On the date hereof and on the Effective Date, there are no Revolving Credit Advances outstanding under the Credit Agreement.

 SECTION 5. Conditions to Effectiveness. In accordance with Section 9.1 of the Credit Agreement, this Amendment
and Waiver shall become effective on the date (the “Effective Date”) upon which the Facility Agent has received either (i) counterparts of this Amendment and Waiver signed on behalf of PMI, LCPI and Revolving Credit Lenders
holding 50.1% of the aggregate Revolving Credit Commitments or (ii) written evidence satisfactory to the Facility Agent (which may include a telecopy transmission of an executed signature page of 

  

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this Amendment and Waiver) that such parties have signed counterparts of this Amendment and Waiver. 
 SECTION 6. Reference to and Effect on the Credit Agreement. 
 (a) On and after the Effective Date, the Credit Agreement shall be, and be deemed to be, modified and amended in accordance herewith and
the respective rights, limitations, obligations, duties, liabilities and immunities of PMI, the Lenders and the Facility Agent shall hereafter be determined, exercised and enforced subject in all respects to such modifications and amendments, and
all the terms and conditions of this Amendment and Waiver shall be deemed to be part of the terms and conditions of the Credit Agreement for any and all purposes and shall be binding on each party to the Credit Agreement. Except as expressly
modified and expressly amended by this Amendment and Waiver, the Credit Agreement is in all respects ratified and confirmed, and all the terms, provisions and conditions thereof shall be and remain in full force and effect, including, without
limitation, the Revolving Credit Commitments of all Revolving Credit Lenders other than LCPI. 
 (b) On and after the
Effective Date, each reference in the Credit Agreement to “this Agreement,” “hereunder,” “hereof” or words of like import referring to the Credit Agreement shall, unless the context otherwise requires, mean and be a
reference to the Credit Agreement, as amended by this Amendment and Waiver. 
 (c) The execution, delivery and effectiveness
of this Amendment and Waiver shall not operate as a waiver of any right, power or remedy of any Lender under the Credit Agreement nor constitute a waiver of any provision of the Credit Agreement. 
 SECTION 7. Governing Law. 
 This Amendment and Waiver shall be governed by, and construed in accordance with, the laws of the State of New York. 
 SECTION 8. Execution in Counterparts. 
 This Amendment and Waiver may be executed in any number of counterparts and by
different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page
to this Amendment and Waiver by telecopier or other electronic transmission shall be effective as delivery of a manually executed counterpart of this Amendment and Waiver. 
 SECTION 9. Headings. The headings of this Amendment and Waiver are for purposes of reference only and shall not limit or otherwise
affect the meaning hereof. 
 [Signature pages intentionally omitted.] 
  

 3Supplemental Equalization Plan

 Exhibit 10.30 
  
  
 Supplemental Equalization Plan 
 Effective as of January 1, 2008 

 ARTICLE I 
 INTRODUCTION 
 1.1 Establishment of Plan. PMI Global
Services Inc. (“PMIGS”) and its participating affiliates hereby establish the Supplemental Equalization Plan set forth herein (the “Plan”), effective as of January 1, 2008. 
 1.2 History and Purpose of Plan. Altria Client Services Inc. (“Altria”) and certain of its affiliates established and maintain the
Retirement Plan for Salaried Employees and the Deferred Profit-Sharing Plan for Salaried Employees for the benefit of certain employees, including certain employees of Philip Morris International Inc. (“PMI”) and its subsidiaries before
the spin off of PMI. Both plans are qualified retirement plans under sections 501(a) and 401(a) of the Internal Revenue Code of 1986, as amended (the “Code”) and, as such, are subject to certain statutory limitations on amounts that can be
contributed to and paid from such plans and other nondiscrimination requirements. 
 Altria and certain of its affiliates also established
and maintain the Benefit Equalization Plan (the “Altria BEP”) and the Supplemental Management Employees’ Retirement Plan (the “Altria SERP”) for the benefit of certain employees, including certain employees of PMI and its
subsidiaries before the spin off. These supplemental plans are nonqualified retirement plans that provide deferred compensation for Eligible Employees. Specifically, the Altria BEP is intended, in part, to provide benefits that cannot be paid due to
certain statutory limitations on the amount of contributions to and payments from Altria’s qualified plans. The Altria SERP is intended to provide certain additional benefits that cannot be provided under Altria’s qualified plans or the
Altria BEP. 
 Effective as of January 1, 2005, certain participants in the Altria BEP and Altria SERP, including certain employees of
PMI and its subsidiaries, ceased active participation in those plans. In lieu of accruing additional deferred compensation under those plans, these employees entered into Supplemental Enrollment Agreements and received annual “target
payments” as current compensation for the services that they provided to Altria and its affiliates during the year. Altria and its affiliates retained the right to terminate the Supplemental Enrollment Agreements and discontinue making target
payments at any time. 
 Effective as of January 1, 2008, PMIGS established the Philip Morris International Retirement Plan and the
Philip Morris International Deferred Profit-Sharing Plan, both of which are qualified retirement plans. Effective as of the same date, PMIGS also established the Philip Morris International Benefit Equalization Plan (the “PMI BEP”) and the
Philip Morris International Supplemental Management Employees’ Retirement Plan (the “PMI SERP”). The PMI BEP and the PMI SERP are nonqualified retirement plans that provide deferred compensation for Eligible Employees of PMI and its
subsidiaries. In connection with the spin off, the assets and liabilities associated with the employees of PMI and its subsidiaries under Altria’s qualified plans were transferred to the qualified plans of PMIGS, and the liabilities associated
with the employees of PMI and its subsidiaries under the Altria BEP and Altria SERP were transferred to PMI and its affiliates under the PMI BEP and the PMI SERP, respectively. Also effective as of January 1, 2008, both Altria and PMI
discontinued making target payments with respect to services performed after December 31, 2007. 
  

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 Under the terms of the PMI BEP and the PMI SERP, employees of PMI and its subsidiaries who received
target payments pursuant to a Supplemental Enrollment Agreement are not eligible to participate in those supplemental plans with respect to services provided after December 31, 2004, but, instead, are eligible to accrue future benefits under
this Plan, except that an employee who is first designated to participate in the PMI SERP effective after December 31, 2007, may participate in the PMI SERP. It is intended that the benefits provided under the Plan will not duplicate benefits
provided under the PMI BEP or the PMI SERP or amounts previously paid as current compensation under the terms of the Supplemental Enrollment Agreements. 
 The Plan is comprised of three separate plans, programs or arrangements, and each portion of the Plan shall be treated as a separate plan, program or arrangement from the other portions. One portion of the Plan
provides benefits to Eligible Employees (or their Spouses or other Beneficiaries) solely in excess of limitations on benefits and contributions under Section 415 of the Code. The second portion of the Plan provides benefits to Eligible
Employees attributable solely to the limitation under Section 401(a)(17) of the Code on annual compensation that may be taken into account under qualified plans. All other benefits are provided under the third portion of the Plan. 

ARTICLE II 
 DEFINITIONS 
 2.1 Actuarial Equivalent. The term “Actuarial Equivalent” shall mean a benefit
that is equivalent in value to the benefit otherwise identified under the Plan based on the actuarial principles and assumptions set forth in Exhibit 1 to the PMI Retirement Plan, including, to the extent applicable, the Early Retirement Factors for
Altria Transferee’s Assumed Kraft Pension Liability. 
 2.2 After-Tax SEP Benefit. The term “After-Tax SEP Benefit”
shall have the meaning set forth in Section 3.1(d). 
 2.3 Altria. The term “Altria” shall mean Altria Client Services Inc.

 2.4 Altria BEP. The term “Altria BEP” shall mean the Benefit Equalization Plan, maintained by Altria and certain of its
affiliates. 
 2.5 Altria Profit-Sharing Plan. The term “Altria Profit-Sharing Plan” shall mean the Deferred Profit-Sharing
Plan for Salaried Employees, maintained by Altria and certain of its affiliates. 
 2.6 Altria Retirement Plan. The term “Altria
Retirement Plan” shall mean the Retirement Plan for Salaried Employees, maintained by Altria and certain of its affiliates. 
 2.7
Altria SERP. The term “Altria SERP” shall mean the Supplemental Management Employees’ Retirement Plan, maintained by Altria and certain of its affiliates. 
  

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 2.8 Assumed Trust Account TP. The term “Assumed Trust Account TP” shall mean the assumed
trust account established pursuant to an Eligible Employee’s Supplemental Enrollment Agreement. 
 2.9 Base SEP Pension Benefit.
The Term “Base SEP Pension Benefit” shall have the meaning set forth in Section (e) of Appendix 2. 
 2.10 Beneficiary.
The term “Beneficiary” shall mean the person or persons (including a trust created by the Eligible Employee during his lifetime or by will) designated by the Eligible Employee to receive his DPS Beneficiary Benefit in the event of his
death, which designation shall be made on a beneficiary designation form filed with the Administrator. If the Eligible Employee is married on the date of the filing of such beneficiary designation form, his Spouse must consent in writing to such
designation before a notary public or a duly authorized representative of the Plan. If an Eligible Employee fails to designate a Beneficiary pursuant to the foregoing, the Eligible Employee’s Beneficiary shall be: 
 (a) if the Eligible Employee is married on the date of his death, the Eligible Employee’s Spouse; and 
 (b) if the Eligible Employee is not married on the date of his death, the Eligible Employee’s estate. 
 2.11 Benefit Equalization Retirement Allowance. The term “Benefit Equalization Retirement Allowance” shall have the meaning set forth in
the PMI BEP or, if so specified, the Altria BEP. 
 2.12 Change in Control. The term “Change in Control” shall have the
meaning set forth in the PMI BEP with respect to an Eligible Employee’s Benefit Equalization Retirement Allowance that is not a Grandfathered Benefit Equalization Retirement Allowance (as defined in the PMI BEP). 
 2.13 Code. The term “Code” shall mean the Internal Revenue Code of 1986, as amended. 
 2.14 Company Account. The term “Company Account” shall mean the Company Account under the PMI Profit-Sharing Plan or the Altria
Profit-Sharing Plan, as applicable. 
 2.15 Designation of Participation. The term “Designation of Participation” shall mean
the document or documents that designated an Eligible Employee as a participant in the Altria SERP effective prior to January 1, 2005 and set forth the terms of the Eligible Employee’s benefits under the Altria SERP (and that now apply
under the PMI SERP and this Plan). 
 2.16 DPS Beneficiary Benefit. The term “DPS Beneficiary Benefit” shall have the
meaning set forth in Section 3.2. 
  

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 2.17 Early Retirement Grandfathered Pension Benefit. The term “Early Retirement Grandfathered
Pension Benefit” shall have the meaning set forth in Section 3.1(a)(iv) of the Plan or Section (d) of Appendix 2, as applicable. 
 2.18 Early Retirement Pension Benefit. The term “Early Retirement Pension Benefit” shall have the meaning set forth in Section 3.1(a)(ii) of the Plan or Section (b) of Appendix 2, as applicable. 
 2.19 Eligible Employee. The term “Eligible Employee” shall mean any of the individuals listed in Appendix 1, as amended from time to
time by the Administrator. 
 2.20 Fund. The term “Fund” shall mean the Fund under the PMI Profit-Sharing Plan or the Altria
Profit-Sharing Plan, as applicable. 
 2.21 Gross After-Tax SEP Benefit. The term “Gross After-Tax SEP Benefit” shall have
the meaning set forth in Section 3.1(c). 
 2.22 Kraft Retirement Plan. The term “Kraft Retirement Plan” shall mean the
Kraft Foods Global, Inc. Retirement Plan, maintained by Kraft Foods Global, Inc., or any predecessor, successor or replacement to such plan, as applicable. 
 2.23 Kraft Supplemental Plan Benefit. The term “Kraft Supplemental Plan Benefit” shall mean the defined benefit portion of the supplemental benefit payable to an Eligible Employee under the Kraft
Foods Global, Inc. Supplemental Plan I, maintained by Kraft Foods Global, Inc., or any predecessor, successor or replacement to such plan, as applicable. 
 2.24 Lump-Sum Equivalent. The term “Lump-Sum Equivalent” shall mean a single-sum amount that is equivalent in value to the benefit otherwise identified under the Plan based on the actuarial principles
and assumptions set forth in Exhibit A to the PMI BEP; provided, however, that if an Eligible Employee is a Secular Trust Participant, the term “Lump-Sum Equivalent” shall mean the greater of (i) the amount determined pursuant to the
foregoing provisions of this Section and (ii) the amount required to purchase a joint and 50% survivor annuity equal to the benefit otherwise identified under the Plan from a licensed commercial insurance company, as determined in the sole
discretion of the Administrator. 
 2.25 Normal Grandfathered Pension Benefit. The term “Normal Grandfathered Pension
Benefit” shall have the meaning set forth in Section 3.1(a)(iii) of the Plan or Section (c) of Appendix 2, as applicable. 
 2.26 Normal Pension Benefit. The term “Normal Pension Benefit” shall have the meaning set forth in Section 3.1(a)(i) of the Plan or Section (a) of Appendix 2, as applicable. 
 2.27 Participating Company(ies). The term “Participating Company(ies)” shall have the meaning set forth in the PMI Retirement Plan, and
a Participating Company under the PMI Retirement Plan that employs an Eligible Employee shall be a Participating Company under the Plan. 
  

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 2.28 PMI. The term “PMI” shall mean Philip Morris International Inc. 
 2.29 PMI BEP. The term “PMI BEP” shall mean the Philip Morris International Benefit Equalization Plan, maintained by PMIGS and certain
of its affiliates, in effect as of January 1, 2008 and as thereafter amended from time to time. Provisions in other plans or arrangements that refer to the PMI BEP shall be deemed to apply to this Plan in the manner and to the extent reasonably
determined by the Administrator in its sole discretion. 
 2.30 PMI Profit-Sharing Plan. The term “PMI Profit-Sharing Plan”
shall mean the Philip Morris International Deferred Profit-Sharing Plan, maintained by PMIGS and certain of its affiliates, as amended from time to time. 
 2.31 PMI Retirement Plan. The term “PMI Retirement Plan” shall mean the Philip Morris International Retirement Plan, maintained by PMIGS and certain of its affiliates, as amended from time to time.

 2.32 PMI SERP. The term “PMI SERP” shall mean the Philip Morris International Supplemental Management Employees’
Retirement Plan, maintained by PMIGS and certain of its affiliates, in effect as of January 1, 2008 and as thereafter amended from time to time. Provisions in other plans or arrangements that refer to the PMI SERP shall be deemed to apply to
this Plan in the manner and to the extent reasonably determined by the Administrator in its sole discretion. 
 2.33 PMIGS. The term
“PMIGS” shall mean PMI Global Services Inc. 
 2.34 Secular Trust Participant. The term “Secular Trust
Participant” shall mean an Eligible Employee who is identified as a Secular Trust Participant in Appendix 1. 
 2.35 SEP Benefit.
The term “SEP Benefit” shall mean the benefit payable to an Eligible Employee under the terms of the Plan, as set forth in Section 3.1(e). 
 2.36 SEP DPS Benefit. The term “SEP DPS Benefit” shall have the meaning set forth in Section 3.1(b). 
 2.37 SEP Pension Benefit. The term “SEP Pension Benefit” shall have the meaning set forth in Section 3.1(a) or Appendix 2, as applicable. 
 2.38 SEP Spousal Survivor Benefit. The term “SEP Spousal Survivor Benefit” shall have the meaning set forth in Section 3.3. 

2.39 SERP Compensation. The term “SERP Compensation” shall have the meaning set forth in Section (a) of Appendix 2. 

2.40 SERP Service. The term “SERP Service” shall have the meaning set forth in Section (a) of Appendix 2. 
 2.41 Supplemental Enrollment Agreement. The term “Supplemental Enrollment Agreement” shall mean the most recent of any Supplemental
Employee Grantor 

  

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Trust Enrollment Agreements and Supplemental Cash Enrollment Agreements between the Eligible Employee and Altria or PMIGS or any of its or their affiliates
or predecessors. 
 2.42 Trust Account TP. The term “Trust Account TP” shall mean the trust subaccount established pursuant
to an Eligible Employee’s Supplemental Enrollment Agreement and to which target payments have been credited. 
 2.43 Trust Account TP
Value. The term “Trust Account TP Value” shall mean, 
 (a) with respect to an Eligible Employee for whom
a Trust Account TP has been established, the sum of the amounts credited to the Eligible Employee’s Assumed Trust Account TP and Trust Account TP as of the earlier of the date 
 (i) on which the Eligible Employee’s Trust Account TP is terminated and distributed in accordance with the procedures established by
the Administrator, 
 (ii) that is 60 days after the Eligible Employee’s Separation from Service, or 
 (iii) on which a Change in Control occurs, and 
 (b) with respect to an Eligible Employee for whom a Trust Account TP has not been established, the amounts credited to the Eligible
Employee’s Assumed Trust Account TP as of the earlier of the date 
 (i) of the Eligible Employee’s Separation from
Service, or 
 (ii) on which a Change in Control occurs, 
 in each case, reduced by the estimated amount of any taxes that would be attributable to income or assumed income from these accounts assuming liquidation of the accounts as of the applicable determination date set
out above, but which have not been paid or deducted from these accounts, calculated using the income tax rate assumptions set forth in Appendix 3, and disregarding any withholding for the Eligible Employee’s share of employment taxes.

 The following terms, as used herein, shall have the meanings attributed to them in the PMI Retirement Plan: “Accredited
Service,” “Assumed Kraft Pension Plan Liability,” “Deferred Retirement Allowance,” “Early Retirement Allowance,” “Full Retirement Allowance,” “Kraft Pension Plans,” “Retained Kraft Pension
Plan Liability,” “Retirement Allowance,” “Spouse” and “Vested Retirement Allowance.” 
 The following
terms, as used herein, shall have the meanings attributed to them in the PMI BEP: “Administrator,” “Benefits Committee,” “Latest Payment Date,” “Payment Date,” “Separation from Service,”
“Statutory Limitations,” “Survivor Benefit Latest Payment Date” and “Survivor Benefit Payment Date.” 
  

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 The masculine pronoun shall include the feminine pronoun unless the context clearly requires otherwise.

 ARTICLE III 
 BENEFITS 
 3.1 SEP Benefit. An Eligible Employee shall be entitled to a SEP Benefit determined under
this Section 3.1. 
 (a) SEP Pension Benefit. Unless an Eligible Employee’s SEP Pension Benefit is determined
under Appendix 2 pursuant to the terms thereof, the SEP Pension Benefit for an Eligible Employee shall be determined under this Section 3.1(a). For purposes of determining the SEP Pension Benefit of an Eligible Employee who is a Secular Trust
Participant (and whose SEP Pension Benefit is determined under this Section 3.1(a), rather than Appendix 2), the term “joint and 50% survivor annuity” shall be substituted for the term “single life annuity” in each place
that such term appears in this Section 3.1(a). 
 (i) Normal Pension Benefit. An Eligible Employee’s Normal
Pension Benefit shall be the amount by which 
 (A) the Retirement Allowance determined for the Eligible Employee under the
PMI Retirement Plan based on all of the Eligible Employee’s Accredited Service, but without regard to the Statutory Limitations and without regard to any Actuarial Equivalent reduction for early commencement, expressed in the form of a single
life annuity, exceeds 
 (B) the Retirement Allowance determined for the Eligible Employee under the PMI Retirement Plan based
on all of the Eligible Employee’s Accredited Service and taking into account any applicable Statutory Limitations, but without regard to any Actuarial Equivalent reduction for early commencement, expressed in the form of a single life annuity.

 For the avoidance of doubt, in determining the Normal Pension Benefit, the amount by which the Assumed Kraft Pension Plan
Liability exceeds the Retained Kraft Pension Plan Liability shall be taken into account in the manner set forth in the PMI Retirement Plan in calculating the Retirement Allowances described in Sections 3.1(a)(i)(A) and (B) above. 
 (ii) Early Retirement Pension Benefit. The Early Retirement Pension Benefit of an Eligible Employee who is eligible for an Early
Retirement Allowance, whether reduced or unreduced, (but is not eligible to receive a Full or Deferred Retirement Allowance) under the PMI Retirement Plan as of the Eligible Employee’s Separation from Service or, in the discretion of the
Administrator, the end of the Eligible Employee’s policy severance shall be the Actuarial Equivalent of the Eligible 

  

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Employee’s Normal Pension Benefit, computed as though such benefit were payable under the terms of the PMI Retirement Plan as a single life annuity
commencing on the first day of the month coincident with or next following the Eligible Employee’s Separation from Service or, in the discretion of the Administrator, the end of the Eligible Employee’s policy severance. 
 (iii) Normal Grandfathered Pension Benefit. An Eligible Employee’s Normal Grandfathered Pension Benefit shall equal the
Benefit Equalization Retirement Allowance to which the Eligible Employee would have been entitled under the Altria BEP (and which is now payable under the PMI BEP) if the Eligible Employee had voluntarily terminated employment without cause on
December 31, 2004 and received payment of such benefit on the earliest permissible date following termination of employment in the form with the greatest value, expressed for purposes of this calculation as a single life annuity commencing at
age 65. 
 (iv) Early Retirement Grandfathered Pension Benefit. The Early Retirement Grandfathered Pension Benefit of
an Eligible Employee who is eligible for an Early Retirement Allowance, whether reduced or unreduced, (but is not eligible for a Full or Deferred Retirement Allowance) under the PMI Retirement Plan as of the Eligible Employee’s Separation from
Service or, in the discretion of the Administrator, the end of the Eligible Employee’s policy severance shall be the Actuarial Equivalent of the Eligible Employee’s Normal Grandfathered Pension Benefit, computed as though such benefit were
payable under the terms of the PMI Retirement Plan in the form of a single life annuity commencing on the first day of the month coincident with or next following the Eligible Employee’s Separation from Service or, in the discretion of the
Administrator, the end of the Eligible Employee’s policy severance; provided, however, that solely for purposes of the determining the early retirement factor to be applied in determining the Actuarial Equivalent of such benefit, the earliest
date on which the Eligible Employee shall be treated as being entitled to an unreduced benefit under the PMI Retirement Plan for purposes of Exhibit 1 to the PMI Retirement Plan shall be the earliest date on which the Eligible Employee would have
been entitled to an unreduced benefit if the Eligible Employee had voluntarily terminated employment on December 31, 2004. 
 (v) Determination of SEP Pension Benefit. Unless an Eligible Employee’s SEP Pension Benefit is determined under Appendix 2 pursuant to the terms thereof, the Eligible Employee’s “SEP Pension Benefit” shall be,

 (A) for an Eligible Employee who is eligible for an Early Retirement Allowance, whether reduced or unreduced, (but is not
eligible for a Full or Deferred Retirement Allowance) on the date of his Separation from Service or, in the discretion of the Administrator, at the end of the Eligible Employee’s policy severance, the Lump-Sum Equivalent of the amount by which
the Eligible Employee’s Early Retirement Pension Benefit exceeds his Early Retirement Grandfathered Pension Benefit; and 
  

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 (B) for an Eligible Employee who is eligible to receive a Full, Deferred or Vested
Retirement Allowance as of the date of his Separation from Service or, in the discretion of the Administrator, the end of the Eligible Employee’s policy severance, the Lump-Sum Equivalent of the amount by which the Eligible Employee’s
Normal Pension Benefit exceeds his Normal Grandfathered Pension Benefit. 
 (b) SEP DPS Benefit. An Eligible
Employee’s SEP DPS Benefit shall equal the amounts that would have been credited to the Eligible Employee’s Company Account after December 31, 2004, but were not credited to his Company Account as a result of the Statutory
Limitations. Such amounts shall be deemed to have been invested in Part A of the Fund and valued in accordance with the provisions of the PMI Profit-Sharing Plan or Altria Profit-Sharing Plan, as applicable. 
 (c) Gross After-Tax SEP Benefit. An Eligible Employee’s Gross After-Tax SEP Benefit shall equal the amount that would remain
if income taxes (determined as if withholding for federal, state and local income taxes were effected at the rates specified in Appendix 3), but disregarding any withholding for the Eligible Employee’s share of employment taxes, were withheld
on the sum of the Eligible Employee’s (i) SEP Pension Benefit and (ii) SEP DPS Benefit. 
 (d) After-Tax SEP
Benefit. The Eligible Employee’s After-Tax SEP Benefit shall equal the amount by which (i) the Gross After-Tax SEP Benefit exceeds (ii) the Eligible Employee’s Trust Account TP Value. 
 (e) SEP Benefit. The Eligible Employee’s SEP Benefit shall equal the After-Tax SEP Benefit converted to a pre-tax amount.
Such pre-tax amount shall equal an amount sufficient to cause the amount remaining after withholding of income taxes (determined as if withholding for federal, state and local income taxes were effected at the rates specified in Appendix 3), but
disregarding any withholding for the Eligible Employee’s share of employment taxes, to equal the After-Tax SEP Benefit. 
 3.2 DPS
Beneficiary Benefit. If an Eligible Employee dies before his SEP Benefit has been paid, the Eligible Employee’s Beneficiary shall be eligible to receive a DPS Beneficiary Benefit in an amount calculated as follows: 
 (a) Determine the amount that would remain if income taxes (determined as if withholding for federal, state and local income taxes
were effected at the rates specified in Appendix 3), but disregarding any withholding for the Eligible Employee’s share of employment taxes, were withheld on the Eligible Employee’s SEP DPS Benefit. 
 (b) Determine the amount, if any, by which (i) the amount determined under Section 3.2(a) exceeds (ii) the Eligible
Employee’s Trust Account TP Value. 
 (c) The DPS Beneficiary Benefit payable under this Section shall equal an
amount sufficient to cause the amount remaining after withholding of income taxes (determined as if withholding for federal, state and local income taxes were effected 

  

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at the rates specified in Appendix 3), but disregarding any withholding for the Eligible Employee’s share of employment taxes, to equal the amount, if
any, determined under Section 3.2(b). 
 3.3 SEP Spousal Survivor Benefit. The Spouse of an Eligible Employee who dies before his
SEP Benefit is paid shall be eligible to receive a SEP Spousal Survivor Benefit. The SEP Spousal Survivor Benefit shall be the amount calculated as follows: 
 (a) Determine the amount, if any, by which (i) the Eligible Employee’s Trust Account TP Value exceeds (ii) the
amount calculated under Section 3.2(a) above. 
 (b) If the Eligible Employee dies before terminating employment
with PMI and its affiliates, determine one half of the amount that would be the Eligible Employee’s SEP Pension Benefit if (i) the Eligible Employee had survived and had a Separation from Service on his date of death and (ii) the term
“Actuarial Equivalent joint and 50% survivor annuity” were substituted for the term “single life annuity” in each place that such term appears in Section 3.1(a). 
 (c) Determine the amount that would remain if income taxes (determined as if withholding for federal, state and local income taxes
were effected at the rates specified in Appendix 3), but disregarding any withholding for the Eligible Employee’s share of employment taxes, were withheld on the amount determined under Section 3.3(b). 
 (d) If the Eligible Employee dies after terminating employment with PMI and its affiliates but before his SEP Benefit is paid,
determine the amount that would remain if income taxes (determined as if withholding for federal, state and local income taxes were effected at the rates specified in Appendix 3), but disregarding any withholding for the Eligible Employee’s
share of employment taxes, were withheld on the Eligible Employee’s SEP Pension Benefit. 
 (e) The SEP Spousal
Survivor Benefit shall equal an amount sufficient to cause the amount remaining after withholding of income taxes (determined as if withholding for federal, state and local income taxes were effected at the rates specified in Appendix 3), but
disregarding any withholding for the Eligible Employee’s share of employment taxes, to equal 
 (i) If the Eligible
Employee dies before terminating employment with PMI and its affiliate, the amount by which (A) the amount determined under Section 3.3(c) exceeds (ii) the remaining Trust Account TP Value, if any, determined under
Section 3.3(a); or 
 (ii) If the Eligible Employee dies after terminating employment with PMI but before his SEP Benefit
is paid, the amount by which (A) the amount determined under Section 3.3(d) exceeds (ii) the remaining Trust Account TP Value, if any, determined under Section 3.3(a). 
  

 11 

 ARTICLE IV 
 TIME AND FORM OF PAYMENT 
 4.1 Form of Payment. All benefits under the Plan will be paid in one or more lump-sum payments, as determined by the Administrator, subject to any applicable tax withholding. 
 4.2 Time of Payment.  
 (a) SEP Benefit. An Eligible Employee’s SEP Benefit shall be paid on the Payment Date, but not later than the Latest Payment Date. 
 (b) DPS Beneficiary Benefit. An Eligible Employee’s DPS Beneficiary Benefit shall be paid on the Payment Date, but not later than the Latest Payment Date. 
 (c) SEP Spousal Survivor Benefit. An Eligible Employee’s SEP Spousal Survivor Benefit shall be paid on the Survivor Benefit
Payment Date, but not later than the Survivor Benefit Latest Payment Date. 
 4.3 Allocation of Payments. The Administrator may use
any reasonable method, as determined in its sole discretion, to designate amounts paid under the Plan as supplemental defined contribution payments or supplemental defined benefit payments and to allocate benefits among the three plans, programs or
arrangements that constitute the Plan as described in Article I. 
 4.4 Interest and Earnings. If all or any portion of a benefit
payable under the Plan is paid later than the Payment Date or Survivor Benefit Payment Date, as applicable, interest (at a reasonable rate determined in the sole discretion of the Administrator based on the short-term applicable federal rates
published by the Internal Revenue Service) from the date on which the Eligible Employee’s Trust Account TP Value is determined until the last day of the month preceding the month in which payment is made may, in the sole discretion of the
Administrator, be added to such benefit. 
 ARTICLE V 
 FUNDS FROM WHICH SEP BENEFITS ARE PAYABLE 
 Individual accounts shall be established for the benefit of each Eligible Employee (or Spouse or Beneficiary) under the Plan. Any benefits payable from
an individual account shall be payable solely to the Eligible Employee (or Spouse or Beneficiary) for whom such account was established. The Plan shall be unfunded. All benefits intended to be provided under the Plan shall be paid from time to time
from the general assets of the Eligible Employee’s Participating Company and paid in accordance with the provisions of the Plan; provided, however, that the Participating Companies reserve the right to meet the obligations created under the
Plan through one or more trusts or other agreements. In no event shall any such trust or trusts be outside of the United States. The contributions or allocations by each Participating Company on behalf of its Eligible Employees to the individual
accounts established pursuant to the 

  

 12 

 
provisions of the Plan, whether in trust or otherwise, shall be in an amount which such Participating Company, with the advice of an actuary, determines to
be sufficient to provide for the payment of the benefits under the Plan. 
 ARTICLE VI 
 THE ADMINISTRATOR; CLAIMS PROCEDURES; INTERPRETATION OF
PROVISIONS 
 The general administration of the Plan shall be vested in the Administrator. The powers, rights, duties and
responsibilities of the Administrator shall be the same as the powers, rights, duties and responsibilities of the Administrator under the PMI BEP. 
 The procedures applicable to claims for benefits made under the Plan shall be the same as the procedures applicable to claims made under the PMI Retirement Plan. 
 The Plan is intended to comply with the requirements of Section 409A of the Code. Accordingly, where applicable, this Plan shall at all times be construed and administered in a manner consistent with the
requirements of Section 409A of the Code and applicable regulations, without any diminution in the value of benefits. If the Internal Revenue Service or a court of competent jurisdiction makes a determination that has become final that the Plan
fails to comply with Section 409A of the Code with respect to one or more Eligible Employees and imposes any additional taxes, penalties or interest as a result of such violation that would not otherwise be payable, the Participating Companies
shall pay to the Eligible Employee, Spouse or Beneficiary on whom such additional taxes, penalties or interest are imposed an amount sufficient to cause the amount remaining after withholding of income taxes (determined as if withholding for
federal, state and local income taxes were effected at the rates specified in Appendix 2), and any withholding for the Eligible Employee’s share of employment taxes, to equal the amount of any such additional taxes, penalties or interest;
provided, however, that an Eligible Employee shall be entitled to such payment only if he informs PMIGS of any notice of an intent to impose such additional taxes, penalties or interest within 30 days of his receipt thereof and cooperates fully with
the Participating Companies in opposing the imposition of such additional taxes, penalties or interest. 
 ARTICLE VII 

 AMENDMENT AND DISCONTINUANCE OF THE
PLAN 
 The Plan can be amended or discontinued in the same manner as the PMI BEP can be amended or
discontinued; provided, however, that the Benefits Committee can amend the Plan at any time to prevent the payment of benefits that duplicate benefits provided under any other plan or program, as reasonably determined in the sole discretion of the
Benefits Committee. 
 ARTICLE VIII 
 FORMS; COMMUNICATIONS 
 The Administrator shall provide such
appropriate forms as it may deem expedient in the administration of the Plan, and no action to be taken under the Plan for which a form is so 

  

 13 

 
provided shall be valid unless upon such form. Any Plan communication may be made by electronic medium to the extent allowed by applicable law. 

All communications concerning the Plan shall be in writing addressed to the Administrator at such address as may from time to time be designated. No
communication shall be effective for any purposes unless received by the Administrator. 
 ARTICLE IX 
 CHANGE IN CONTROL PROVISIONS 
 In the event of a Change in Control, each Eligible Employee shall be fully vested in his SEP Benefit and any other benefit accrued under the Plan through
the date of the Change in Control. Each Eligible Employee shall be entitled to a lump-sum payment in cash within 30 days of a Change in Control equal to his SEP Benefit, determined as if the date of the Change in Control was the date of Eligible
Employee’s Separation from Service. 
 ARTICLE X 
 MISCELLANEOUS 
 The Plan shall be construed and administered in
accordance with the laws of the State of New York to the extent not preempted by federal law. 
  

 14 

 APPENDIX 1 
 ELIGIBLE EMPLOYEES 
 Philip Morris International

  

							
	Secular Trust
	Data Listing as of December 1, 2008 - Active Participants
				
	 Last Name
	 	 First Name
	 	 Funding Payment Account(s)
	  	 Target Payment Account(s)

	 Camilleri
	 	Louis C.	 	 FP Trust Account / FP
 Assumed Account
	  	 TP Trust Account / TP
 Assumed Account

				
	 Wall
	 	Charles R.	 	 FP Trust Account / FP
 Assumed Account
	  	 TP Trust Account / TP
 Assumed Account

				
	 Total ST Participants: 2
	 		 		  	
	
	Executive Trust Arrangement
				
	 Last Name
	 	 First Name
	 	 Funding Payment Account(s)
	  	 Target Payment Account(s)

	 Alonso
	 	Hector	 	 FP Trust Account / FP
 Assumed Account
	  	 TP Trust Account / TP
 Assumed Account

				
	 Holsenbeck
	 	G. Penn	 	 FP Trust Account / FP
 Assumed Account
	  	 TP Trust Account / TP
 Assumed Account

				
	 Rivera
	 	Salvador	 	FP Assumed Account	  	TP Assumed Account
				
	 Roberts
	 	Andrew N.	 	FP Trust Account	  	 TP Trust Account / TP
 Assumed Account

				
	 Rolli
	 	Nicholas M.	 	 FP Trust Account / FP
 Assumed Account
	  	 TP Trust Account / TP
 Assumed Account

				
	 Lindon
	 	Timothy	 	 FP Trust Account / FP
 Assumed Account
	  	 TP Trust Account / TP
 Assumed Account

				
	 Total ETA Participants: 6
	 		 		  	

  

 15 

 APPENDIX 2 
 SEP PENSION BENEFIT 
 FOR
MR. LOUIS C. CAMILLERI 
 SEP Pension Benefit. The SEP
Pension Benefit for Louis C. Camilleri (“Mr. Camilleri”) shall be determined under this Appendix 2, rather than under Section 3.1(a), as follows: 
 (a) Normal Pension Benefit. Mr. Camilleri’s Normal Pension Benefit shall be the amount by which 
 (i) the Retirement Allowance determined for Mr. Camilleri under the PMI Retirement Plan based on Mr. Camilleri’s SERP
Service (as defined below) and SERP Compensation (as defined below), but without regard to the Statutory Limitations and without regard to any Actuarial Equivalent reduction for early commencement, expressed in the form of a joint and 50% survivor
annuity that is the Actuarial Equivalent of a single life annuity, exceeds 
 (ii) the sum of Mr. Camilleri’s:

 (A) Retirement Allowance determined under the PMI Retirement Plan based on Mr. Camilleri’s Accredited Service and
taking into account any applicable Statutory Limitations, but without regard to any Actuarial Equivalent reduction for early commencement, expressed in the form of a joint and 50% survivor annuity that is the Actuarial Equivalent of a single life
annuity; 
 (B) retirement benefit under the Kraft Retirement Plan payable with respect to service that is also treated as
SERP Service and taking into account all applicable statutory and plan limitations on such benefit, but without regard to any actuarial reduction for early commencement, expressed in the form of a joint and 50% survivor annuity, as adjusted for such
form of payment based on the applicable actuarial factors under the Kraft Retirement Plan; and 
 (C) Kraft Supplemental Plan
Benefit payable with respect to service that is also treated as SERP Service, but without regard to any Actuarial Equivalent reduction for early commencement, expressed in the form of a joint and 50% survivor annuity, as adjusted for such form of
payment based on the applicable actuarial factors under the Kraft Foods Global, Inc. Supplemental Benefits Plan I. 
 For
purposes of this Appendix 2, the term “SERP Service” shall mean Mr. Camilleri’s Accredited Service plus, without duplication, any additional service set forth in his Designation of Participation, without regard to
Mr. Camilleri’s eligibility to participate in the PMI SERP or the Altria SERP for any year; provided, however, that such SERP Service shall not exceed thirty-five years. 
  

 16 

 For purposes of this Appendix 2, the term “SERP Compensation” shall mean
(i) for calendar years before 2007, “Compensation” as such term is defined in the PMI Retirement Plan, (ii) for the 2007 calendar year, the lesser of Mr. Camilleri’s (A) base salary plus actual annual incentive
compensation and (B) base salary plus annual incentive compensation at a business rating of 100 and individual performance rating of “Exceeds,” and (iii) for calendar years 2008 and thereafter, the lesser of
Mr. Camilleri’s (A) base salary plus actual annual incentive compensation, and (B) base salary plus $2,887,500. 
 For the avoidance of doubt, in determining the Normal Pension Benefit, the amount by which the Assumed Kraft Pension Plan Liability exceeds the Retained Kraft Pension Plan Liability shall be taken into account in the manner set forth in the
PMI Retirement Plan in calculating the Retirement Allowances described in Sections (a)(i) and (a)(ii)(A) of this Appendix 2 above. 
 (b) Early Retirement Pension Benefit. If Mr. Camilleri is eligible for an Early Retirement Allowance, whether reduced or unreduced, (but is not eligible to receive a Full or Deferred Retirement Allowance) under the PMI
Retirement Plan as of his Separation from Service or, in the discretion of the Administrator, the end of his policy severance, his Early Retirement Pension Benefit shall be the amount by which 
 (i) the Actuarial Equivalent, reflecting any reduction for early commencement, of the Retirement Allowance determined under Section (a)(i)
of this Appendix 2 commencing on the first day of the month coincident with or next following his Separation from Service or, in the discretion of the Administrator, the end of his policy severance, exceeds 
 (ii) the sum of: 
 (A) the Actuarial Equivalent, reflecting any reduction for early commencement, of the Retirement Allowance determined under Section (a)(ii)(A) of this Appendix 2 commencing on the first day of the month coincident with or next following his
Separation from Service or, in the discretion of the Administrator, the end of his policy severance; 
 (B) the Kraft
Retirement Plan benefit determined under Section (a)(ii)(B) of this Appendix 2 commencing on the first day of the month coincident with or next following his Separation from Service or, in the discretion of the Administrator, the end of his policy
severance, as reduced for such early commencement based on the applicable actuarial factors under the Kraft Retirement Plan; and 
 (C) the Kraft Supplemental Plan Benefit determined under Section (a)(ii)(C) of this Appendix 2 commencing on the first day of the month coincident with or next following his Separation from Service or, in the discretion of the
Administrator, the end of his policy severance, 

  

 17 

 
as reduced for such early commencement based on the applicable actuarial factors under the Kraft Foods Global, Inc. Supplemental Benefits Plan I. 

(c) Normal Grandfathered Pension Benefit. Mr. Camilleri’s Normal Grandfathered Pension Benefit shall be the amount by
which 
 (i) the retirement benefit to which Mr. Camilleri would have been entitled under the Altria Retirement Plan
based on his SERP Service and SERP Compensation, but without regard to any applicable statutory or plan limits on such benefit, and without regard to any actuarial reduction for early commencement, if he had voluntarily terminated employment on
December 31, 2004, expressed for purposes of this calculation in the form of a joint and 50% survivor annuity, as adjusted for such form of payment based on the then applicable actuarial factors under the Altria Retirement Plan, exceeds

 (ii) the sum of: 
 (A) the retirement benefit to which Mr. Camilleri would have been entitled under the Altria Retirement Plan (which is now payable under the PMI Retirement Plan), taking into account all applicable statutory and
plan limits on such benefit, but without regard to any actuarial reduction for early commencement, if he had voluntarily terminated employment on December 31, 2004, expressed for purposes of this calculation in the form of a joint and 50%
survivor annuity, as adjusted for such form of payment based on the then applicable actuarial factors under the Altria Retirement Plan; 
 (B) the retirement benefit to which Mr. Camilleri would have been entitled under the Kraft Retirement Plan, taking into account all applicable statutory and plan limitations on such benefit, but without regard to
any actuarial reduction for early commencement, if he had voluntarily terminated employment on December 31, 2004, expressed for purposes of this calculation in the form of a joint and 50% survivor annuity, as adjusted for such form of payment
based on the then applicable actuarial factors under the Kraft Retirement Plan; and 
 (C) the Kraft Supplemental Plan Benefit
to which Mr. Camilleri would have been entitled under the Kraft Foods Global, Inc. Supplemental Plan I, but without regard to any actuarial reduction for early commencement, if he had voluntarily terminated employment on December 31, 2004,
expressed for purposes of this calculation in the form of a joint and 50% survivor annuity, as adjusted for such form of payment based on the then applicable actuarial factors under such plan. 
 For the avoidance of doubt, the amount determined under Section (c)(i) of this Appendix 2 shall be determined based only on SERP Service and SERP
Compensation to which 

  

 18 

 
Mr. Camilleri would have been entitled under the terms of the Altria SERP if he had voluntarily terminated employment on December 31, 2004.

 (d) Early Retirement Grandfathered Pension Benefit. If Mr. Camilleri is eligible for an Early Retirement
Allowance, whether reduced or unreduced, (but is not eligible to receive a Full or Deferred Retirement Allowance) under the PMI Retirement Plan as of his Separation from Service or, in the discretion of the Administrator, the end of his policy
severance, his Early Retirement Grandfathered Pension Benefit shall be the amount by which 
 (i) the retirement benefit
determined under Section (c)(i) of this Appendix 2, commencing on the first day of the month coincident with or next following Mr. Camilleri’s Separation from Service or, in the discretion of the Administrator, the end of his policy
severance, as reduced for such early commencement, if applicable, based on the early retirement factors under the Altria Retirement Plan, exceeds 
 (ii) the sum of 
 (A) the retirement benefit payable under the Altria Retirement Plan (and
now payable under the PMI Retirement Plan) determined under Section (c)(ii)(A) of this Appendix 2 commencing on the first day of the month coincident with or next following his Separation from Service or, in the discretion of the Administrator, the
end of his policy severance, as reduced for such early commencement, if applicable, based on the early retirement factors under the Altria Retirement Plan; 
 (B) the Kraft Retirement Plan benefit determined under Section (c)(ii)(B) of this Appendix 2 commencing on the first day of the month coincident with or next following his Separation from Service or, in the discretion
of the Administrator, the end of his policy severance, as reduced for such early commencement, if applicable, based on the applicable actuarial factors under the Kraft Retirement Plan; and 
 (C) the Kraft Supplemental Plan Benefit determined under Section (c)(ii)(C) of this Appendix 2 commencing on the first day of the month
coincident with or next following his Separation from Service or, in the discretion of the Administrator, the end of his policy severance, as reduced for such commencement, if applicable, based on the applicable actuarial factors under the Kraft
Foods Global, Inc. Supplemental Benefits Plan I, 
 provided, however, that solely for purposes of determining the early retirement reductions
required under this Section (d) of Appendix 2 for the early commencement of benefits, the early retirement or other factors to be used for each benefit shall be the actuarial factors that would have applied under the applicable plan treating
the earliest date on which Mr. Camilleri would become entitled to an unreduced benefit as the date 

  

 19 

 
that would have applied if he had voluntarily terminated employment on December 31, 2004. 
 (e) Base SEP Pension Benefit. Mr. Camilleri’s Base SEP Pension Benefit shall be calculated as follows: 
 (i) If Mr. Camilleri is eligible for an Early Retirement Allowance, whether reduced or unreduced, (but is not eligible for a Full or
Deferred Retirement Allowance) on the date of his Separation from Service or, in the discretion of the Administrator, the end of his policy severance, his Base SEP Pension Benefit shall be the Lump-Sum Equivalent of the amount by which his Early
Retirement Pension Benefit exceeds his Early Retirement Grandfathered Pension Benefit; and 
 (ii) If Mr. Camilleri is
eligible to receive a Full, Deferred or Vested Retirement Allowance as of the date of his Separation from Service or, in the discretion of the Administrator, the end of his policy severance, his Base SEP Pension Benefit shall be the Lump-Sum
Equivalent of the amount by which his Normal Pension Benefit exceeds his Normal Grandfathered Pension Benefit. 
 (f)
SEP Pension Benefit. Mr. Camilleri’s SEP Pension Benefit under this Appendix 2 shall be his Base SEP Pension Benefit plus, if Mr. Camilleri retires as of January 2012, the excess, if any, of 
 (i) $36,500,000 over 
 (ii) the present value of the amount determined under Section (a)(i) of this Appendix 2, less the amounts determined under Sections (a)(ii)(B) and (a)(ii)(C) of this Appendix 2 and any amounts determined under Section (a)(ii)(D) of this
Appendix 2 that would not be payable by PMI or its affiliates. 
  

 20 

 APPENDIX 3 
 TAX ASSUMPTIONS 
 Federal income
tax rate: The highest marginal Federal income tax rate as adjusted for the Federal deduction of state and local taxes and the phase out of Federal deductions under current law (or as adjusted under any subsequently enacted similar provisions of the
Internal Revenue Code). 
 State income tax rate: Except with respect to additional benefits attributable to the provisions of an Eligible
Employee’s Designation of Participation, the highest adjusted marginal state income tax rate based on Eligible Employee’s state of residence on the date of the Eligible Employee’s Separation from Service. With respect to those
additional benefits that are attributable to the provisions of an Eligible Employee’s Designation of Participation, the highest marginal state income tax rate based on the state in which the Eligible Employee is or was employed by a
Participating Company on the date of his Separation from Service. 
 Local income tax rate: Except with respect to additional benefits
attributable to the provisions of an Eligible Employee’s Designation of Participation, the highest adjusted marginal local income tax rate (taking into account the Eligible Employee’s resident or nonresident status) based on Eligible
Employee’s locality of residence on the date of the Eligible Employee’s Separation from Service. With respect to those additional benefits that are attributable to the provisions of an Eligible Employee’s Designation of Participation,
the highest marginal state income tax rate (taking into account the Eligible Employee’s resident or nonresident status) based on the locality in which the Eligible Employee is or was employed by a Participating Company on the date of his
Separation from Service. 
 Exception: In the case of an Eligible Employee who is an expatriate, income taxes shall generally be computed as
follows: Expatriate taxes will be calculated assuming the highest marginal Federal income tax rate as adjusted for the Federal deduction of state and local taxes and the phase out of Federal deductions under current law (or as adjusted under any
subsequently enacted similar provisions of the Code). The applicable state and local tax rates will be adjusted to reflect an Eligible Employee’s expatriate status to the extent appropriate. 
 Capital Gains: The ordinary income or capital gains character of items of trust investment income or deemed investment income shall be taken into account
as relevant. 
 The above principles shall generally be applied in determining tax-rate assumptions for the relevant purpose, but the
Administrator shall have the authority in its discretion to alter the assumptions made as deemed appropriate to take into account particular facts and circumstances. 
  

 21

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