Document:

Retention Bonus Plan

 Exhibit 10.K 
 MENTOR GRAPHICS CORPORATION 
 RETENTION BONUS PLAN 
 1. Establishment and Purpose. The Plan is hereby established effective as of September 1, 2008 (the “Effective Date”). The
purpose of the Plan is to reinforce and encourage the continued attention and dedication of certain key employees by providing the opportunity for such employees to receive retention bonus payments under the circumstances set forth herein and to
provide an incentive for such individuals to remain in the employ of the Company (and its Subsidiaries) or its successor in order to provide transition assistance for a period of time in the event of an acquisition of the Company. 
 2. Definitions. The following terms as used herein shall have the meanings set forth in this Section 2. 
 2.1 “Administrator” shall mean (a) the Board or such committee thereof as shall be designated by the Board to administer the Plan,
or (b) the Independent Committee (as defined in Section 3.1), to the extent provided in Section 3.1. 
 2.2 “Base
Salary” shall mean (a) for Participants in the sales organization of the Company or a Subsidiary with pay based on product sales, the total targeted compensation payable to such a Participant by the Company or such Subsidiary assuming
full quota attainment, before deductions or voluntary deferrals authorized by the Participant or required by law to be withheld from such compensation, and (b) for all other Participants, the annual base rate of compensation payable to a
Participant by the Company or a Subsidiary, before deductions or voluntary deferrals authorized by the Participant or required by law to be withheld from such compensation. For purposes of determining the amount of a Participant’s Retention
Bonus, Base Salary shall mean the higher of Participant’s Base Salary immediately prior to the date of payment of such Retention Bonus, or Participant’s Base Salary in effect at any time after the Effective Date. 
 2.3 “Beneficial Owner” and “Beneficial Ownership” shall have the meanings set forth in Rule 13d-3 promulgated under the
Exchange Act. 
 2.4 “Board” shall mean the Board of Directors of the Company, as constituted from time to time. 

2.5 “Cause” shall mean, the occurrence by a Participant of any one or more of the following events: 
 (a) the conviction of, or entry of a plea of “guilty” or “no contest” to, a felony or a crime involving moral turpitude or;

 (b) an unauthorized use or disclosure of confidential information or trade secrets of the Company (or a Subsidiary) or any successor or
parent or subsidiary thereof; 
 (c) other intentional misconduct, fraud, embezzlement or act of dishonesty that has a material adverse
impact on the Company (and its Affiliates) or any successor or parent or subsidiary thereof; or 
 (d) an intentional and continued refusal
or failure to act in accordance with any lawful and proper direction or order of the Board or the appropriate individual to whom Participant reports. 
 2.6 “Change in Control” shall mean the first to occur of any of the following: 
 (a) The
acquisition by any Person of Beneficial Ownership of 40% or more of either the then-outstanding shares of common stock of the Company or the combined voting power of the then-outstanding voting securities of the Company entitled to vote generally in
the election of directors (the “Outstanding Voting Securities”); provided, however, that, for purposes of this Section 2.6, the following acquisitions shall not constitute a Change in Control: (i) any acquisition directly
from the Company, (ii) any acquisition by the Company, or (iii) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any of its Subsidiaries; 

 (b) Individuals who, as of the Effective Date, constitute the Board, and any new director whose election
by the Board or nomination for election by the Company’s shareholders was approved by a vote of at least two thirds of the directors then still in office who were directors on the Effective Date or whose election or nomination for election was
previously so approved (collectively, the “Continuing Directors”), cease for any reason to constitute at least a majority of the members of the Board; 
 (c) The effective date of a reorganization, merger or consolidation of the Company (a “Business Combination”), in each case, unless immediately following such Business Combination: (a) all or
substantially all of the Persons who were Beneficial Owners of Outstanding Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than 51% of the combined voting power of the then outstanding
securities entitled to vote generally in the election of directors of the corporation resulting from such Business Combination (including, without limitation, a corporation which as a result of such transaction either owns the Company or all or
substantially all of the Company’s assets either directly or through one or more Subsidiaries) in substantially the same proportions as their ownership, immediately prior to such Business Combination, of the Outstanding Voting Securities;
(b) no Person (excluding any corporation resulting from such Business Combination) is the Beneficial Owner, directly or indirectly, of 40% or more of the combined voting power of the then outstanding securities entitled to vote generally in the
election of directors of such corporation except to the extent that such ownership existed prior to such Business Combination; and (c) at least a majority of the board of directors of the corporation resulting from such Business Combination
were Continuing Directors at the time of the execution of the initial agreement, or of the action of the Board, providing for such Business Combination; 
 (d) The approval by the shareholders of the Company of a complete liquidation of the Company or an agreement or series of agreements for the sale or disposition by the Company of all or substantially all of the
Company’s assets, other than factoring the Company’s current receivables or escrows due (or, if such approval is not required, the decision by the Board to proceed with such a liquidation, sale or disposition in one transaction or a series
of related transactions); or 
 (e) There occurs any other event of a nature that would be required to be reported in response to
Item 6(e) of Schedule 14A of Regulation 14A (or a response to any similar or successor item on any similar or successor schedule or form) promulgated under the Exchange Act, whether or not the Company is then subject to such reporting
requirement. 
 2.7 “Code” shall mean the Internal Revenue Code of 1986, as amended. 
 2.8 “Company” shall mean Mentor Graphics Corporation, an Oregon corporation. 
 2.9 “Covered Termination” shall mean (a) a termination of Participant’s employment due to Participant’s death or
Disability, or (b) following a Change in Control, either a termination of Participant’s employment by the Company (or any Subsidiary) for any reason other than Cause or the termination of Participant’s employment by Participant for
Good Reason (which must occur within 180 days following the existence of the condition giving rise to Good Reason). Notwithstanding anything herein to the contrary, to the extent that the benefits provided hereunder constitute a deferral of
compensation which is subject to Section 409A of the Code, the termination of Participant’s employment shall not constitute a Covered Termination unless such termination constitutes a Separation from Service. 
 2.10 “Disability” shall mean a Participant’s absence from full-time performance of Participant’s duties with the Company or a
Subsidiary for six (6) consecutive months as a result of the incapacity of Participant due to physical or mental illness. 
 2.11
“Employee” shall mean an individual who is an employee of the Company (or any Subsidiary) within the meaning of Section 3401(c) of the Code. 
 2.12 “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended. 
 2.13
“Executive” shall mean a Participant who is (a) an officer of the Company for purposes of Section 16 of the Exchange Act, or (b) a division officer or general manager. 

 2.14 “Good Reason” shall mean the occurrence of any one or more of the following events
without a Participant’s written consent, unless the Company (or Subsidiary) fully corrects the circumstances constituting Good Reason within thirty (30) days after its receipt of a written notice from Participant specifying the event
giving rise to Good Reason, such written notice to be received within ninety (90) days of the first occurrence of such event: 
 (a) a
diminution in the nature or status of Participant’s position, authority, title, duties or responsibilities; 
 (b) with respect to a
Participant who is in the sales organization of the Company or a Subsidiary and whose pay is directly determined in part by bookings and shipment of product or services, a material increase in Participant’s sales quota or material changes in
Participant’s account responsibilities or sales territory; 
 (c) a reduction in Participant’s Base Salary; 
 (d) a reduction in Participant’s target bonus; 
 (e) a relocation of Participant’s place of employment by more than twenty-five (25) miles from Participant’s place of employment immediately prior to such relocation; 
 (f) a failure of the Company to expressly require, in writing, any successor to the Company to assume the Plan; or 
 (g) a material breach by the Company (or a Subsidiary) or its successor, of any material obligation owed to Participant under the Plan or any other
written compensation agreement with Participant. 
 2.15 “Participant” shall mean an Employee who has been selected by the
Administrator to receive a Retention Bonus pursuant to the Plan. 
 2.16 “Person” shall have the meaning as set forth in
Sections 13(d) and 14(d) of the Exchange Act; provided, however, that Person shall exclude (a) the Company, (b) any Subsidiary of the Company, (c) any employment benefit plan of the Company or Subsidiary of the Company or of any
corporation owned, directly or indirectly, by the shareholders of the Company in substantially the same proportions as their ownership of stock of the Company, and (d) any trustee or other fiduciary holding securities under an employee benefit
plan of the Company or Subsidiary of the Company or of a corporation owned, directly or indirectly, by the shareholders of the Company in substantially the same proportions as their ownership of stock of the Company. 
 2.17 “Plan” shall mean this Mentor Graphics Corporation Retention Bonus Plan. 
 2.18 “Retention Bonus” shall mean a retention bonus payable to a Participant pursuant to the terms of this Plan. 
 2.19 “Separation from Service” shall mean a “separation from service” within the meaning of Section 409A of the Code and
the Department of Treasury regulations and other guidance promulgated thereunder, including Treasury Regulation Section 1.409A-1(h). 
 2.20 “Subsidiary” shall mean, with respect to any Person, any business organization or legal entity of which a majority of the voting power of the voting equity securities or equity interest is owned, directly or
indirectly, by that Person. 
 3. Administration. 
 3.1 General. The Plan shall be administered by the Board, or a committee thereof as designated by the Board. However, in the event of an impending Change in Control, the Administrator may (a) appoint a
person (or persons) independent of the third party effectuating the Change in Control to be the Administrator effective upon the occurrence of such Change in Control (the “Independent Committee”) and (b) provide that each
member of such Independent Committee shall be entitled to reasonable compensation for his or her service on the Independent Committee; 

 
such Independent Committee shall not be involuntarily removed following such Change in Control and any rate of reasonable compensation established prior to
the Change in Control shall not be involuntarily reduced by the Company following such Change in Control. 
 3.2 Authority of the
Administrator. Subject to the provisions of the Plan, the Administrator shall have full authority and discretion to take any actions it deems necessary or advisable for the administration of the Plan. Subject to the provisions of the Plan, the
Administrator has authority to determine, in its sole discretion, to whom, and the time at which, Retention Bonuses may be paid as well as the determination of the Retention Bonus amounts. Subject to the provisions of the Plan, the Administrator has
authority to prescribe, amend and rescind rules and regulations relating to the Plan and to make all other determinations necessary or advisable for Plan administration. All decisions, interpretations and other actions of the Administrator shall be
final, conclusive and binding on all parties who have an interest in the Plan, provided that in the event of a dispute between a Participant and the Company involving any determination by the Administrator following a Change in Control of whether
“Cause”, “Disability” or “Good Reason” exists, such determination shall be conclusive only if an Independent Committee was appointed and acting as the Administrator when such determination was made. 
 3.3 Administrator Liability. All expenses and liabilities which members of the Administrator incur in connection with the administration of this
Plan shall be borne by the Company or its successor. No members of the Administrator shall be personally liable for any action, determination or interpretation made in good faith with respect to this Plan or any Retention Bonus paid hereunder, and
all members of the Administrator shall be fully indemnified and held harmless by the Company or its successor in respect of any such action, determination or interpretation. 
 4. Eligibility. Only Employees shall be eligible to participate in the Plan. Subject to the provisions of this Plan, the Administrator shall
select the Participants in its sole discretion. 
 5. Terms and Conditions of the Retention Bonuses. 
 5.1 Retention Bonus Amounts. The amount of each Retention Bonus for a Participant who is an Executive shall be equal to such Participant’s
Base Salary. The amount of the Retention Bonus for other Participants shall be determined by the Administrator, in its sole discretion. Unless otherwise determined by the Administrator, the amount of each Participant’s Retention Bonus shall be
expressed as a percentage of Participant’s Base Salary. The Administrator shall notify each Participant of the amount of his or her Retention Bonus at any time after determining such Retention Bonus amount, and such amount may not subsequently
be reduced without Participant’s written consent. Such notice shall be in a form specified by the Administrator and may contain such provisions as the Administrator deems appropriate (the “Retention Bonus Agreement”); the
Administrator may, in its discretion, require a Participant to acknowledge the terms of such notice in order to be eligible to receive a Retention Bonus pursuant to the Plan. 
 5.2 Vesting. A Participant shall become vested in his or her Retention Bonus if (a) Participant remains an Employee from the Effective Date
through February 14, 2010, or (b) Participant’s employment is terminated prior to February 14, 2010 as a result of a Covered Termination, provided that in either case, Participant has complied with the terms and conditions set
forth in his or her Retention Bonus Agreement. In no event shall a Participant be entitled to receive a Retention Bonus payment that does not become vested in accordance with this Section 5.2. 
 5.3 Form of Payment; Timing. A Participant’s vested Retention Bonus shall be paid in a cash lump sum on the next regularly scheduled payroll
day after the date on which the Retention Bonus becomes vested (but in no event later than 30 days after the date on which such Retention Bonus becomes vested). 
 6. Effect on Other Arrangements. A Participant’s rights hereunder shall be in addition to any rights Participant may otherwise have under all benefit plans or agreements of the Company or its Subsidiaries
to which Participant is a party or in which Participant is a participant, including, but not limited to, any employee benefit plans, bonus plans and equity incentive plans. The provisions of the Plan shall not in any way abrogate the
Participant’s rights under such other plans and agreements. Notwithstanding the foregoing, with respect to a Participant who (a) is not an Executive, (b) receives payment of a Retention Bonus pursuant to the Plan, and
(c) terminates employment within six (6) months following a Change in Control, such Participant shall not be entitled to receive any other severance payment pursuant to another plan, guideline, practice or agreement with the Company or a
Subsidiary (except as required under applicable law or such Participant’s written employment agreement). 

 7. Withholding Taxes. All amounts payable hereunder shall be subject to withholding of any
applicable federal, state, local, and foreign income, employment and excise taxes as are required to be withheld pursuant to any applicable law or regulation. 
 8. Assignment or Transfer of Rights and Obligations. The Company shall require any corporation, entity, individual or other person who is the successor (whether direct or indirect by purchase, merger,
consolidation, reorganization or otherwise) to all or substantially all the business and/or assets of the Company to expressly assume and agree to perform, by a written agreement in form and in substance satisfactory to the Company, all of the
obligations of the Company under this Plan. As used in this Plan, the term “Company” shall mean the Company as hereinbefore defined and any successor to its business and/or assets as aforesaid which assumes and agrees to perform this Plan
by operation of law, written agreement or otherwise. No Participant’s rights hereunder shall be assigned, attached, garnished, optioned, transferred or made subject to any creditor’s process, whether voluntarily, involuntarily or by
operation of law, except as approved by the Administrator. 
 9. No Employment Rights. No provision of the Plan shall be construed to
give any person any right to become, to be treated as, or to remain an Employee. The Company and its Subsidiaries reserve the right to terminate any Participant’s employment at any time and for any reason or for no reason, with or without cause
and with or without advance notice. 
 10. No Equity Interest. Neither the Plan nor any Retention Bonus payable hereunder creates or
conveys any equity or ownership interest in the Company nor any rights commonly associated with such interests, including, without limitation, the right to vote on any matters put before the shareholders of the Company. 
 11. Duration and Amendments. 
 11.1
Term of the Plan. This Plan shall be effective as of the Effective Date, and shall terminate upon the payment of all Retention Bonuses benefits payable hereunder. 
 11.2 Right to Amend or Terminate the Plan. Except as otherwise provided herein, the Plan may be amended or terminated at any time or from time to time by the Board; provided, however, that no such
amendment or termination shall impair the then-existing rights of a Participant with regard to the Plan without such Participant’s written consent. 
 12. Choice of Law. All questions concerning the construction, validation and interpretation of the Plan will be governed by the law of the State of Oregon without regard to its conflict of laws provision.

 13. Funding. No provision of the Plan shall require the Company, for purpose of satisfying any obligations under the Plan, to
purchase assets or place any assets in a trust or other entity to which contributions are made or otherwise to segregate any assets, nor shall the Company maintain separate bank accounts, books, records or other evidence of the existence of a
segregated or separately maintained or administered fund for such purposes. Participants shall have no rights under the Plan other than as unsecured general creditors of the Company or its successor. 
 14. Code Section 409A. Notwithstanding anything herein to the contrary, if a Participant is deemed by the Company at the time of his or her
Separation from Service to be a “specified employee” for purposes of Section 409A(a)(2)(B)(i) of the Code, to the extent delayed commencement of any portion of the benefits to which Participant is entitled hereunder is required in
order to avoid a prohibited distribution under Section 409A(a)(2)(B)(i) of the Code, such portion of Participant’s benefits shall not be provided to Participant prior to the earlier of (a) the expiration of the six-month period
measured from the date of the Participant’s Separation from Service with the Company or a Subsidiary or (b) the date of Participant’s death. Upon the first business day following the expiration of the applicable Code
Section 409A(a)(2)(B)(i) period, all payments deferred pursuant to this Section 14 shall be paid in a lump sum to Participant (or Participant’s estate or beneficiaries), and any remaining payments due under the Agreement shall be paid
as otherwise provided herein. In addition, notwithstanding anything herein to the contrary, within the time period permitted by the applicable Treasury Regulations or other Internal Revenue Service or Treasury Department authority, if any
compensation or benefits provided by this Plan may result in accelerated taxation or tax penalties under Section 409A of the Code, the Company shall modify the Plan in the least restrictive manner necessary in order to exclude such compensation
from the definition of “deferred compensation” within the meaning of Section 409A of the Code or in order to comply with the provisions of Section 409A of the Code, other applicable provision(s) of the Code and/or any rules,
regulations or other regulatory guidance issued under such statutory provisions and without any diminution in the value of the payments to any Participant. 

 15. Attorney Fees. The Company agrees to reimburse each Participant, to the full extent permitted
by law, for all legal fees and expenses that the Participant may reasonably incur as a result of any contest by the Company, the Participant or others of the validity or enforceability of, or liability under, any provision of this Plan or any
guarantee of performance thereof (including as a result of any contest by the Participant about the amount of any payment pursuant to this Plan) (each, a “Contest”); provided, that the Company shall not be obligated to reimburse a
Participant for such legal fees and expenses unless the Participant prevails on at least one material claim (regardless of by whom brought) and that the Participant shall have submitted an invoice for such fees and expenses not later than 30 days
after the final resolution of such Contest, and the Company shall make such payment within 30 days after the date on which the invoice is so submitted. To the extent necessary to comply with Section 409A of the Code, (a) in no event shall
the payments by the Company under this Section 15 be made later than the end of the calendar year next following the calendar year in which such fees and expenses were incurred, (b) the amount of such legal fees and expenses that the
Company is obligated to pay in any given calendar year shall not affect the legal fees and expenses that the Company is obligated to pay in any other calendar year and (c) the Participant’s right to have the Company pay such legal fees and
expenses may not be liquidated or exchanged for any other benefit. 
 ***** 
 I hereby certify that the foregoing Plan was duly adopted by the Board on the Effective Date set forth above. 
  

			
	MENTOR GRAPHICS CORPORATION
		
	By:	 	 /s/ Dean M. Freed

		
	Title:	 	 Vice President, Legal CounselForm of 5.625% DTC Global Notes due 2011

 Exhibit 4.1 
 REGISTERED 
 No. 
 PHILIP MORRIS
INTERNATIONAL INC. 
  

					
		 	5.625% NOTE DUE
2011                        	  	PRINCIPAL AMOUNT
		 		  	€
		 		  	CUSIP NO. 718172AD1
		 		  	ISIN NO. XS038570853

 THIS NOTE IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER
REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN CERTIFICATED FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITORY TRUST COMPANY
(THE “DEPOSITARY”) TO A NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY
TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY (AND ANY
PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
 PHILIP MORRIS INTERNATIONAL INC., a Virginia corporation
(hereinafter called the “Company”), which term includes any successor corporation under the Indenture hereinafter referred to, for value received, hereby promises to pay to Cede & Co. or registered assigns, the principal sum of
€             (or such other principal sum as has been most lately endorsed on the Schedule of Exchanges of Interests hereto) on September 6, 2011, and to pay interest thereon
from September 4, 2008 or from the most recent Interest Payment Date to which interest has been paid or duly provided for, annually in arrears on September 6, in each year, commencing September 6, 2009, at the rate of 5.625% per
annum until the principal hereof is paid or made available for payment. 

 The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as
provided in the Indenture, be paid to the Person in whose name this Note (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest, which shall be August 22, (whether or not a
Business Day), as the case may be, next preceding such Interest Payment Date. Any such interest not so punctually paid or duly provided for shall forthwith cease to be payable to the Holder on such Regular Record Date and may be paid to the Person
in whose name this Note (or one or more Predecessor Securities) is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee for the Notes, notice whereof shall be given to
Holders of Notes not less than 10 days prior to such Special Record Date, or may be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Notes may be listed, and upon such notice
as may be required by such exchange, all as more fully provided in said Indenture. 
 Interest on this Note will be calculated on the basis
of the actual number of days in the period for which interest is being calculated and the actual number of days from and including the last date on which interest was paid on the Note (or September 4, 2008 if no interest has been paid on this
Note), to but excluding the next scheduled Interest Payment Date. 
 Payment of the principal of (and premium, if any) and interest on this
Note will be made at the office or agency of the Company maintained for that purpose in the City of London or the Borough of Manhattan, The City of New York, in such coin or currency of the members states of the European Monetary Union that have
adopted or that adopt the single currency in accordance with the treaty establishing the European Community, as amended by the Treaty on European Union as at the time of payment shall be legal tender for the payment of public and private debts,
provided that holders of interests in the Note through the Depositary will receive payment in Dollars unless they make an election to receive payment in euros in accordance with the procedures of the Depositary, in which case the Currency
Determination Agent under the Indenture will convert the euros paid by the Company into Dollars in accordance with the Indenture; provided further, however, that at the option of the Company payment of interest may be made by
check mailed to the address of the Person entitled thereto as such address shall appear on the Securities Register or by wire transfer at such place and to such account at a banking institution in the United States as may be designated in writing to
the Trustee at least 15 days prior to the date for payment by the person entitled thereto. All payments of principal, premium, if any, and interest in respect of this Note will be made by the Company in immediately available funds. 
 Additional provisions of this Note are contained on the reverse hereof, and such provisions shall have the same effect as though fully set forth in this
place. 
 Unless the certificate of authentication hereon has been executed by or on behalf of the Trustee for the Notes by manual signature,
this Note shall not be entitled to any benefit under the Indenture, or be valid or obligatory for any purpose. 

 IN WITNESS WHEREOF, PHILIP MORRIS INTERNATIONAL INC. has caused this instrument to be duly executed under
its corporate seal. 
  

									
		 		 	 Dated: September 4, 2008
  
 PHILIP MORRIS INTERNATIONAL INC.

					
		 		 		 	By:	 	 
		 		 		 	 Name: Marco Kuepfer
 Title: Vice President
Finance and Treasurer

	[SEAL]	 		 	
				
		 		 		 	Attest:
					
		 		 		 	By:	 	 
		 		 		 	 Name: G. Penn Holsenbeck
 Title: Vice
President and Corporate Secretary

 CERTIFICATE OF AUTHENTICATION 
 This is one of the Securities of the series designated therein described in the within-mentioned Indenture. 
  

									
		 		 	 HSBC BANK USA, NATIONAL ASSOCIATION,
 as
Trustee

					
		 		 		 	By:	 	 
		 		 		 	Authorized Officer

 (Reverse of Note) 
 PHILIP MORRIS INTERNATIONAL INC. 
 This Note is one of a duly authorized issue of debentures, notes or other
evidences of indebtedness (hereinafter called the “Securities”) of the Company of the series hereinafter specified, which series is limited in aggregate principal amount to €1,000,000,000 (except as provided in the Indenture
hereinafter mentioned), all such Securities issued and to be issued under an Indenture dated as of April 25, 2008 between the Company and HSBC Bank USA, National Association, as Trustee (herein called the “Indenture”), to which
Indenture and all other indentures supplemental thereto reference is hereby made for a statement of the rights and limitations of rights thereunder of the Holders of the Securities and of the rights, obligations, duties and immunities of the Trustee
for each series of Securities and of the Company, and the terms upon which the Securities are and are to be authenticated and delivered. As provided in the Indenture, the Securities may be issued in one or more series, which different series may be
issued in various aggregate principal amounts, may mature at different times, may bear interest, if any, at different rates, may be subject to different redemption provisions, if any, may be subject to different sinking, purchase or analogous funds,
if any, may be subject to different covenants and Events of Default and may otherwise vary as in the Indenture provided or permitted. This Note is one of a series of the Securities designated therein as 5.625% Notes due 2011 (the “Notes”).

 Principal and interest payments in respect of the Notes are payable by Company in euro, but holders of beneficial interests in Global
Securities held through the Depositary, other than Euroclear and Clearstream, will receive payments in Dollars unless they elect to receive payments in euro. If a Holder through the Depositary has not made such an election, payments to the Holder
will be converted to Dollars by exchange agent, which will be the Currency Determination Agent under the Indenture. All costs of conversion will be borne by the Holder by deduction from the payments. The Dollar amount of any payment in respect of
principal or interest received by a Holder not electing payment in euro will be the amount of euro otherwise payable exchanged into Dollars at the euro/Dollar rate of exchange prevailing as at 11:00 a.m. (New York City time) on the day which is two
Business Days prior to the relevant payment date, less any costs incurred by the exchange agent for the conversion (to be shared pro rata among the holders of beneficial interests in the Global Securities accepting Dollar payments in proportion to
their respective holdings), all in accordance with the Indenture and the Notes. 
 The Trustee will obtain a bid quotation from a leading
foreign exchange bank in the City of New York, which may be the Trustee or selected by the Trustee for that purpose after consultation with the Company. If no bid quotation from a leading foreign exchange bank is available, payment will be made in
euro to the account or accounts specified by the Depositary to the Trustee unless euro are unavailable due to the imposition of exchange controls or other circumstances beyond the Company’s control. 

 The holder of a beneficial interest in the Global Securities held through a participant of the Depositary
(other than Euroclear or Clearstream) may elect to receive payment or payments under a Global Security in euro by notifying the Depositary participant through which its Notes are held on or prior to the applicable Regular Record Date of (1) the
Holder’s election to receive all or a portion of the payment in euro and (2) wire transfer instructions to a euro account located outside of the United States. The Depositary must be notified of an election and wire transfer instructions
(1) on or prior to the third New York Business Day after the Regular Record Date for any payment of interest and (2) on or prior to the fifth New York Business Day prior to the date for any payment of principal. The Depositary will notify
the Trustee of an election and wire transfer instructions (1) on or prior to 5:00 p.m. (New York City time) on the fifth New York Business Day after the Regular Record Date for any payment of interest and (2) on or prior to 5:00 p.m.
(New York City time) on the third New York Business Day prior to the date for any payment of principal. If complete instructions are forwarded to and received by the Depositary through Depositary participants and forwarded by the Depositary to the
Trustee and received on or prior to such dates, such Holder will receive payment in euro outside the Depositary; otherwise, only Dollar payments will be made by the Trustee to the Depositary. All costs of conversion will be borne by holders of
beneficial interests in the Global Securities receiving Dollars by deduction from those payments. 
 So long as the Notes of this series are
in the form of Global Securities only, all Notes of this series will collectively be evidenced (a) by one or more Global Securities (the “DTC Global Notes”) and (b) by the Global Security of this series registered in the name of
HSBC Issuer Services Common Depositary Nominee (UK) Limited (the “International Global Note”). The DTC Global Notes and the International Global Note will at all times collectively represent the aggregate principal amount of this series
outstanding from time to time. If at any time a portion of the International Global Note is exchanged for an interest in one or more DTC Global Notes, the principal amount of one or more DTC Global Notes shall be increased by the amount of such
portion, and such DTC Global Notes shall be endorsed on the Schedule of Exchanges of Interests thereto to reflect such principal increase, subject to the limitation that in no event may the principal amount of any DTC Global Note be greater than the
equivalent in Dollars of $500,000,000. If at any time a portion of a DTC Global Note is exchanged for an interest in the International Global Note, the principal amount of such DTC Global Note shall be decreased by the amount of such portion, and
the DTC Global Note shall be endorsed on the Schedule of Exchanges of Interests thereto to reflect such principal decrease. To ascertain the Dollar equivalent of the principal amount endorsed on the Schedule of Exchanges of Interests attached to
such DTC Global Note, inquiry shall be made of the Currency Determination Agent, and the Dollar equivalent quoted by the Currency Determination Agent (and the date of such quote) shall be noted on such Schedule of Exchanges of Interests next to the
corresponding euro amount. 
 Section 1010 of the Indenture shall be applicable to the Notes, except that the term “Holder,”
when used in Section 1010 of the Indenture, shall mean the beneficial owners of a Note or any person holding on behalf or for the account of the beneficial owner of a Note. 
 The Company may redeem the Notes prior to maturity in whole, but not in part, on not more than 60 days’ notice and not less than 30 days’
notice at a redemption price equal to the principal amount of such Notes plus any accrued interest and additional amounts to the date fixed for redemption if: 
  

	 	•	 	 as a result of a change in or amendment to the tax laws, regulations or rulings of the United States or any political subdivision or taxing authority of or in the
United States or any change in official position regarding the application or interpretation of such laws, regulations or rulings (including a holding by a court of competent jurisdiction in the United States) that is announced or becomes effective
on or after September 4, 2008, the Company has or will become obligated to pay additional amounts with respect to such series of Notes as described in Section 1010 of the Indenture, or 

	 	•	 	 on or after September 4, 2008, any action is taken by a taxing authority of, or any decision is rendered by a court of competent jurisdiction in, the United
States or any political subdivision or taxing authority of or in the United States, including any of those actions specified in the bullet point above, whether or not such action is taken or decision is rendered with respect to the Company, or any
change, amendment, application or interpretation is officially proposed, which, in any such case, in the written opinion of independent legal counsel of recognized standing, will result in a material probability that the Company will become
obligated to pay additional amounts with respect to such series of notes, 

 and the Company in its business judgment determines that such
obligations cannot be avoided by the use of reasonable measures available to the Company. 
 If the Company exercises its option to redeem
the Notes, the Company will deliver to the Trustee a certificate signed by an authorized officer stating that it is entitled to redeem the Notes and the written opinion of independent legal counsel if required. 
 The Indenture contains provisions for defeasance at any time of the entire principal of all the Securities of any series upon compliance by the Company
with certain conditions set forth therein. 
 If an Event of Default (other than an Event of Default described in Section 501(4) or
501(5) of the Indenture) with respect to the Notes shall occur and be continuing, then either the Trustee or the Holders of at least 25% in aggregate principal amount of the Securities of all series then Outstanding (or, if such default is not
applicable to all series of the Securities, the Holders of at least 25% in principal amount of the then Outstanding Securities of all series to which it is applicable) (in each case voting as a single class) may declare the entire principal amount
of the Securities of all series so affected due and payable in the manner and with effect provided in the Indenture. If an Event of Default specified in Section 501(4) or 501(5) occurs with respect to the Company, all of the unpaid principal
amount and accrued interest then Outstanding shall ipso facto become and be immediately due and payable in the manner with the effect provided in the Indenture without any declaration or other act by the Trustee or any Holder. 
 The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities under the Indenture at any time by the Company with the consent of the Holders of not less than a majority in aggregate principal amount of the Outstanding Securities of all series of
Securities affected thereby (voting as a single class). The Indenture also contains provisions permitting the Holders of specified percentages in aggregate principal amount of the 

 
Securities of all series affected thereby at the time Outstanding (voting as a single class) to waive compliance by the Company with certain provisions of
the Indenture and certain past defaults under the Indenture and their consequences to the affected series. Any such consent or waiver by the Holder of this Note shall be conclusive and binding upon such Holder and upon all future Holders of this
Note and of any Note issued upon the transfer hereof or in exchange or in lieu hereof whether or not notation of such consent or waiver is made upon this Note. 
 No reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of (and premium, if
any) and interest on this Note at the times, place and rate, and in the coin or currency, herein and in the Indenture prescribed. 
 As
provided in the Indenture and subject to certain limitations therein set forth, this Note is transferable on the Security Register of the Company, upon surrender of this Note for registration of transfer at the office or agency of the Company to be
maintained for that purpose in the Borough of Manhattan, The City of New York, or at any other office or agency of the Company maintained for that purpose, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to
the Company and the Security Registrar duly executed by the Holder hereof or his or her attorney duly authorized in writing, and thereupon one or more new Notes, of authorized denominations and for the same aggregate principal amount, will be issued
to the designated transferee or transferees. 
 The Notes are issuable only in registered form in denominations of €50,000 and any
integral multiple of €50,000. As provided in the Indenture and subject to certain limitations therein set forth, Notes are exchangeable for a like aggregate principal amount of Notes of a like tenor and of a different authorized denomination,
as requested by the Holder surrendering the same. 
 No service charge shall be made for any such registration of transfer or exchange, but
the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. 
 The
Company, the Trustee for the Notes and any agent of the Company or such Trustee may treat the Person in whose name this Note is registered as the owner hereof for the purpose of receiving payment as herein provided and for all other purposes,
whether or not this Note be overdue, and neither the Company, such Trustee nor any such agent shall be affected by notice to the contrary. 
 Certain of the Company’s obligations under the Indenture with respect to Notes may be terminated if the Company irrevocably deposits with the Trustee money or Government Obligations sufficient to pay and discharge the entire
indebtedness on all Notes, as provided in the Indenture. 
 This Note shall for all purposes be governed by, and construed in accordance
with, the laws of the State of New York. 

 For purposes of the Notes, the term “Business Day” means any day other than (1) a Saturday
or Sunday or a day on which commercial banks in the City of New York or the City of London are authorized or required by law, regulation or executive order to close and (2) a day on which the Trans-European Automated Real-time Gross Settlement
Express Transfer (TARGET or TARGET2) system is not open. The term “New York Business Day” means any day other than a Saturday or Sunday or a day on which commercial banks in the City of New York are authorized or required by law,
regulation or executive order to close. 
 Certain terms used in this Note which are defined in the Indenture have the meanings set forth
therein. 

 ASSIGNMENT FORM 
 FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto 
 PLEASE INSERT SOCIAL SECURITY NUMBER OR 
 OTHER IDENTIFYING NUMBER OF ASSIGNEE 
  
  
 (Name and address of Assignee, including zip code, must be
printed or typewritten) 
  
  
  
  
 the within Note, and all rights thereunder, hereby irrevocably, constituting and appointing 
  
  
  
  
 Attorney to transfer the said Note on the books of Philip Morris
International Inc. with full power of substitution in the premises. 
 Dated: ___________ 
 ______________________________________________ 
 NOTICE: The signature to this
assignment must correspond with the name as it appears upon the face of the within Note in every particular, without alteration or enlargement or any change whatever. 

 SCHEDULE OF EXCHANGES OF INTERESTS 
 The following exchanges of a part of this Note for an interest in another Global Security or for a certificated Note, or exchanges of a part of another
Global Security or certificated Note for an interest in this Note, have been made: 
  

									
	 Date of
Exchange
	  	Amount of
decrease in
Principal
Amount of
this Note	  	Amount of
increase in
Principal
Amount
of this Note	  	Principal Amount
of this Note
following such
decrease (or
increase)	  	Signature of
Authorized Officer of
Trustee or Currency
Determination Agent
	
	 
	
	 
	
	 
	
	 
	
	 
	
	 
	
	 
	
	 
	
	 
	
	 
	
	 
	
	 
	
	 

  

	*	This Schedule may be used by the Trustee, Paying Agent, Currency Determination Agent or other agent of the Company in respect of this Note, and, if so used, shall be deemed a part
thereof for all purposes.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}]]